Lysaker, 25 August 2021
CEO STATEMENT
“This quarter marked the completion of the restructuring and a new chapter in the transformation of the Company. Following the approval of the reconstruction proposal and the private placement in late April, the Company announced its new strategic direction. The “new” company, Carbon Transition ASA, will have a focus on investing in businesses and technologies which will contribute to the reduction of carbon emissions. We think there is a unique opportunity to invest in several companies which have the potential to become long term winners in the energy transition space. Through a unique access to deal flow and careful selection, Carbon Transition ASA expects to generate substantial and tangible shareholder values.
Subsequently we made our first investment in the carbon transition space in early July. The Company invested NOK 30 million into a convertible loan in Arbaflame AS. Arbaflame is a highly promising company with a proven technology and substantial backlog for their bio waste-based coal replacement fuel solution. Coupled with a truly global potential, strong shareholder base and Management/Board, the Company is confident that Arbaflame will be able to execute on its substantial growth plans in a profitable manner.
The Company is currently evaluating several other interesting investment opportunities within relevant sectors and expect to announce new investment(s) within a relatively short time frame. Given the improved balance sheet following the reconstruction, the Company has the capacity to undertake further investments without raising capital.
Activities in the Company’s legacy Ocean Bottom Node (OBN) operations as well as the Data Library (DL) business continued during the quarter. In line with our asset light business model, the Company divested its seismic source vessel together with related seismic equipment. For the previously announced OBN project in the North Sea, we chartered a state-of-the-art source vessel which started mobilization at the end of the quarter. The survey was subsequently completed without incidents, on schedule and on budget, further confirming the viability of our project-based and asset-light approach.
Going forward, the Company will continue to refine its low fixed-cost strategy. Over time, OBN acquisition contracts and DL late sales are expected to generate revenues to finance the Company’s new investment strategy.
The seismic market remains challenging as the effects of the COVID-19 pandemic persist. We see limited remaining OBN contract opportunities for this year but at the same time we see an increased demand for seismic projects to be undertaken in 2022. As a consequence, we have reverted to a low-cost mode while maintaining our tendering and project planning capabilities. In parallel, we are evaluating strategic alternatives for this business. In the multi-client segment, we see continued interest in the Utsira OBN data survey. There are several ongoing discussions with potential clients and a positive outlook for late sales in the second half of 2021,” says Ronny Bøhn, CEO of Carbon Transition.
EVENTS DURING THE QUARTER
• Approval of reconstruction proposal and issuance of USD 17.4 million equity private placement
• Sale of vessel “Neptune Naiad” and associated equipment
• Election of new board of directors
• Mobilization of North Sea project
SUBSEQUENT EVENTS
• Change of Company name to Carbon Transition ASA and ticker symbol to CARBN
• Announcement of new strategic direction
• First investment made under new strategy - NOK 30m convertible note in (Arbaflame AS)
• NOK 20 million repair offering substantially oversubscribed
• North Sea project successfully completed – on time and on budget
A pre-recorded presentation of the results featuring CEO Ronny Bøhn and CFO Nils Haugestad is released at www.axxisgeo.com.
The second quarter 2021 report and presentation will be available at Carbon Transition ASA (www.axxisgeo.com) and Oslo Stock Exchange (www.newsweb.com).
For further information, please contact
Ronny Bøhn, CEO
Ronny.Bohn@axxisgeo.com
+47 905 58 517
Nils Haugestad, CFO
Nils.Haugestad@axxisgeo.com
+47 977 04 439
About Carbon Transition
Carbon Transition ASA ("CT") is an investment company listed on EURONEXT EXPAND OSLO. CT has a focus towards investing in companies and technologies engaged in the "energy transition" area, which contribute to significant reductions of carbon emissions. CT may also invest more broadly in the "energy transition" space. CT has a legacy OBN seismic business operating under the name Axxis Geo Solutions, with both a node-technology seismic contract business, and a multiclient library. This business unit is categorized as an investment, and revenues generated from this business unit may be invested in the “energy transition” area. Carbon Transition ASA is listed on EURONEXT EXPAND OSLO and traded under the ticker Carbn. More information on www.axxisgeo.com
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.