Soft Q1 creates interesting entry point

研报英文原文证据摘录

Soft Q1 creates interesting entry point

Odfjell Technology

reach and field deployment capability, and OTL integrates both into its Well Services

offering.

Kaseum and Razor focus on non-conventional technologies and market their products

as more efficient. On its website, Razor states: "RAZOR was founded to offer alternative

intervention tools to the intervention services market which will assist our customers in

reducing or eliminating lost time associated with logistics issues created by existing tools

use of hazardous materials. Explosives (and to a lesser extent lithium batteries) can create

what is now unnecessary non-productive time. Additionally, we aim to offer an alternative

to expensive electric line methods for mechanical tubing and casing cutting ...". Combined,

the two companies have been growing by 44%/31% over the last two years, emphasising

customers' demand for their technology and services.

OTL has previously highlighted the challenge of securing sufficient margins in the P&A

market, prompting a more selective, disciplined strategy rather than volume-driven

expansion. Through these acquisitions, the company targets integrated, technology-

led projects where it can combine Well Services and Operations' capabilities to secure

sustainable margins and long-term reference work, instead of competing for scale at lower

returns.

We view the integration risk as low given the companies’ standalone operating models, with

commercial synergies achievable through OTL’s existing sales and operating structure.

OTL’s broader geographical footprint expands the addressable market for the acquired

product portfolios, which to date have had a somewhat limited international presence.

The transaction was financed through existing facilities and a NOK 600m tap issue on the