May 13, 2019


HIGHLIGHTS Q1 2019

- Revenues of USD 8.2 million in Q1 2019, same level as in Q1 2018
- Operating loss (EBIT) of USD 0.2m vs operating profit of USD 0.2 million in Q1
2018
- Adjusted EBIT of USD 0.1 million in Q1 2019 vs USD 0.2 million in Q1 2018
- Positive operational cash flow of USD 1.8 million
- Billing ratio of 79% in Q1 2019
- Continued solid HSE performance and no lost time incidents (LTIs) during the
quarter  
- Robust financial position with cash balance of USD 7.2 million
- Offshore renewable business continues strong growth
- Opening up of new office in Boston, US to target renewables market
- Order backlog up to USD 9.0 million with increase in pipeline of opportunities
- Subsequent event: Entered into agreement to acquire three business lines
(Adjusting, Marine and Offshore, jointly “BTS”) representing the majority of
Braemar Technical Services division

“Q1 2019 started weaker than expected and was affected by the fluctuations in
the call out contracting market with delays in some operations. Our backlog and
pipeline increased during the quarter. We are pleased that our geographical
expansion continues through the opening of an office in Boston, US. We look
forward to support the renewables developments in the region. 

The activity in the offshore wind sector remains high.  We are very excited
about the future of the offshore wind business particularly in emerging markets
where we have identified several growth opportunities. This combined with that
growth is finally expected to return to offshore oil and gas investments this
year lead us to be optimistic on a continued strong performance for 2019” says
Mr. David Wells, CEO of Aqualis ASA

Revenues and adjusted EBIT
Revenue were steady at USD 8.2 million in Q1 2019 (USD 8.2 million in Q1 2018).
Revenues in Middle East and for OWC increased while there was a decrease in
Europe due mainly to the closure of our operations in Norway. 
EBIT loss of USD 0.2 million in Q1 2019 (profit of USD 0.2 million in Q1 2018).
Adjusted EBIT was USD 0.2 million with a margin of 1.7% versus 2.4% in the same
period last year.
The financial position of Aqualis is strong with cash balance of USD 7.2 million
at end of Q1 2019.
Most entities have had positive operational performance in the quarter despite
continued overall weak market conditions in the oil and gas sector. The billing
ratio for technical staff (including subcontractors) was reduced to 79% in Q1
2019 compared to 84% in Q1 2018 due to delays in some operations.

Outlook
Aqualis financial performance is driven primarily by activity within the global
oil and gas markets and the offshore renewables sector.
The O&G sector continues to face challenging market conditions, but signs of
recovery. Based on analyst estimates the offshore O&G exploration budgets
increasing with 10 – 20% in 2019. This is expected to lead to market improvement
for Aqualis in 2020 and beyond
Aqualis expects the Middle East region to remain robust, a region where we are
gaining an increasingly dominant position. The market conditions in other
regions are weaker
Our activity in the offshore renewables market remains high and the industry has
a strong project pipeline over the next years. OWC is strengthening its market
position and experiences increasing opportunities in emerging markets. Growth
opportunities have been identified globally and further expansion is planned.
OWC is enhancing its service offering and re-focusing on higher margin advisory
work.

The acquisition of BTS will increase scale, broaden service offering and
position the combined company as a leading adjusting, marine, offshore and
renewable consultancy
Aqualis’ strategy remains unchanged being focused on widening and strengthening
its global client portfolio and enhancing client loyalty to take increased
market share. The company has a flexible cost base needed to adapt more quickly
to market changes. 

The presentation will be available through a conference call only, at 10:30 a.m.
CET. The recording of the presentation will be available on the company website.
To join this event, please use the dial in details below 5- 10 minutes prior to
start time. 

Dial in details: 
Local - USA +1 929-477-0448 
Local - UK +44 (0)330 336 9411 
Local - Norway +47 2350 0296 

Confirmation code: 6598983

For further information, please contact:

Investors and financial media;
Kim Boman, CFO, Aqualis ASA
Telephone: +47 959 63 912
Email: kim.boman@aqualis.no

Other media enquiries:
Endre Johansen, Corporate Communications AS
Telephone: +47 41 61 06 05, 
Email: endre.johansen@corpcom.no.

About Aqualis ASA
Aqualis ASA (OSE: Aqua) is a public company that, through its subsidiaries and
associates, offers energy consultancy services to the offshore oil, gas and
renewables sectors globally. The group employs experienced consultants across 19
offices in 15 countries worldwide. Aqualis ASA operates under two different
brands: Aqualis Offshore and Offshore Wind Consultants. Aqualis Offshore is a
specialized offshore marine and engineering consultancy firm, focusing on the
shallow and deep-water offshore segments of the oil and gas industry. Offshore
Wind Consultants is a globally focused consultancy providing independent
services to the offshore renewables industry.