Good afternoon, and welcome to the presentation of Akastor's fourth quarter results for 2022. My name is Øyvind Paaske, CFO, and I'm here together with our CEO, Mr. Karl Erik Kjelstad. We are happy to also this time have with us from Houston, represented, HMH by Tom McGee, CFO, and David Bratton, SVP Finance. As usual, Karl will start by taking us through the highlights before the HMH team will present their fourth quarter. I will then go through the Akastor consolidated financials before Karl wraps it up. Towards the end, we will open for questions through the webcast solutions. Please note that questions can be posted at any time and preferably as early as possible in order to make sure we receive...
Of Akastor's fourth quarter 2022 earnings. Let's move to slide number two.
The key value indicator for Akastor is the value of each of the investment we hold, with the majority of these investments today being in joint ventures or together with different partners. The value of our investment per quarter is illustrated as usual on this slide by the net capital employed. As you see from the overview on this slide, the equity value of Akastor by the end of the fourth quarter 2022 was about NOK 15 per share, around NOK 1 per share lower than the third quarter. This is primarily driven by FX effects following a weaker U.S. dollar in the fourth quarter compared with the third quarter.
In the quarter, we realized the preference share part of our investment in order for drilling with a transaction value of $95 million, which of $20 million was settled as a seller credit. The proceeds from this transaction contributed to reduce our net interest-bearing debt from NOK 1.45 billion in the third quarter to NOK 553 million in the fourth quarter. HMH continues to be our most valuable investment. The book value of our shareholding in HMH is equal to about 60% of our net capital employed, and HMH had a value of about NOK 2.9 billion by the end of the quarter or about NOK 10.50 per Akastor share. HMH delivered a strong revenue growth and order intake in the quarter, driven by increased service activity.
We expect the service activity will continue to increase going forward as HMH has strong momentum into 2023, driven primarily by increased rig activity. In the quarter, Eirik Bergsvik was appointed CEO, replacing Pete Miller, that will continue as Chairman of the Board. Eirik has a strong 35-year track record from the industry and was previously president of HMH Equipment and System Solutions. For AKOFS Offshore, we are happy to see that Aker Wayfarer contract in the quarter was extended to mid-April 2023. After that, Aker Wayfarer will go to shipyard to prepare for the new four-year contract with Petrobras that we expect will commence in the third quarter this year. AKOFS Offshore delivered good operational performance for all vessels and operations in the quarter.
We continue to be very pleased with the NES Fircroft performance with a 2022 EBITDA result of $114 million, and with a promising outlook for 2023 that really demonstrates NES Fircroft's attractive business model. We are together with our co-owners considering potential listing of NES Fircroft in Oslo, subject that the equity market offers attractive valuation of the company. In the quarter, we also signed a sales and purchase agreement for the sale of Cool Sorption to DKI International. Cool Sorption was a part of Fjords Processing that we sold in 2016, but at that time called out of the transaction. We are now pleased with that Cool Sorption will be part of DKI, who has same business as Cool Sorption as its core business.
Finally, the DRU arbitration process is well on track with arbitration hearing starting the last week of this month, and we expect an award in the media time of this year. With that, I'm pleased to introduce HMH CFO, Thomas McGee, that will take us through the HMH fourth quarter earnings and key priorities going forward. Tom, the floor is yours.
Thank you. Obviously we had a great year. We're excited about our performance. You know, a lot of things, you know, going right in the market for us. You've seen day rates continue to increase for our customers and seeing really attractive day rates, you know, in the $400,000+ range. We view that as a huge positive. You continue to see rig reactivations. We've talked publicly before, you know, you're starting to see some of those conversations around cold stacked rigs, and that's something that, you know, a year and a half ago we would've said wasn't gonna happen, but we're seeing it.
We think there's a very favorable backdrop to our business, and that's why you see our service orders up considerably, and you see our service revenue continuing to grow, and we expect that growth to continue into this year and are very optimistic. On the Synergy plan side, the really, the biggest milestone we had was to getting off the Baker Hughes TSA. Exited early on that, and really the hardest part of that, there are a lot of hard parts of that, and a lot of people worked extremely hard to make that happen. Really the most challenging aspect is standing up, you know, the ERP system independent of Baker Hughes. We did a fantastic job doing that, are really proud of our team.
Now we're shifting to the SIIS side and asking them to do the same thing. It's gonna be a lot of work there too, but we expect that to be successful. That really ties into our IPO readiness, and that is a big component of being ready to list and look at public liquidity options is to continue to progress on unifying our company into one ERP system, unifying all the policies and you being ready to report publicly. We're very happy with that progress, and we know a lot of people have worked really hard to get us there. As we talked about it, you know, we ended with a, you know, solid revenue number and solid EBITDA number that David will walk through.
We also earlier this year completed a bond offering, you know, just after close, just before the world got very challenging. Certainly it looks better today than it was at times last year. We're very proud of, you know, our team that executed on that. When I look at 2023, you know, anticipated significant growth in rig years fueled by Brazil and Middle East. I'll touch on the Middle East a little bit. I mean, we obviously there's a lot of activity there, both on the jackup side and on the land rig side.
It's a high priority for us, and we're gonna be looking strategically at what we can do to better position both our equipment portfolio, the products that we provide, and also what we can do on the ground there potentially. We've got a lot of activity there that we're looking at and seeing how we can strengthen our position there. Again, we, you know, we work optimistic. We'll continue to deliver on our synergy cost plan and get our ERP system completed and get stood up, and I think it's an exciting time for us, and we continue to see great tailwinds from the industry. From that, we'll dig into the numbers on the next page, and David will walk you through some of that.
Great. Thanks, Tom. I'll begin with the total company results and then move into segment details. Revenue for the quarter was $196 million, up 20% year-over-year, driven by strong fourth quarter activities related to our products and services. We continue to experience strong growth in our aftermarket order in the fourth quarter, highlighting the rebound in the offshore industry from higher crude prices and higher day rates from our customers. Adjusted EBITDA in the quarter was $29 million, down 8% year-over-year, but up 4% on a quarter-over-quarter basis due to increased services volume, partially offset by inflation, increased labor costs, and a non-repeat of the final project termination fees received in the third quarter of 2022. Adjusted EBITDA rate was 14.8% in the quarter.
Orders for the quarter were $183 million, down 8% year-over-year, driven by non-repeat of a large project order in 2021, but up 6% on the quarter with increased service orders as we caught up from ERP implementation-related delays in the third quarter. Finally, on cash flow, free cash flow in the quarter was negative $2 million, driven by a strategic inventory plan, which included a $19 million increase in inventory to prepare for higher 2023 volumes and a delay by customers for milestone payments. We ended the quarter with $47 million cash and cash equivalents on hand. Now if we move to the next page, I'll walk you through segment details.
In aftermarket services, revenue was NOK 140 million in the quarter, up 26% year-over-year and up 31% quarter-over-quarter as output increased based on past order intake trends. Aftermarket order intake was NOK 136 million in the quarter, up 27% year-over-year and up 31% quarter-over-quarter, driven by increased rig activity and a catch-up in orders that pushed from the third quarter due to ERP implementation delays. In projects, product, and other, revenue in the quarter was NOK 55 million, up 3% quarter-over-quarter, driven by an increase in product offshore equipment in the fourth quarter of 2022. Moving now to net interest-bearing debt. We ended the quarter with net debt of NOK 150 million.
Leverage in the fourth quarter was below targeted capital structure at 1.5x, which allows us to stay within all covenant requirements for minimum liquidity, gearing ratio, and interest coverage ratio. Overall, we're very pleased with the team's performance in the fourth quarter and for the full year 2022. With that, I'll turn the call back over to Tom.
All right. Thank you. To wrap up, as we've mentioned several times, you know, good market tailwinds, and we feel really good about the 2023 year. You know, as we talked about before, we're sort of exiting this integration, you know, complexity mode and getting into growth mode. It's exciting time for us, and I think you'll hear more from us this year on, you know, on some growth strategy and hopefully some execution on that strategy. It's for us, it's time to kind of move to the next phase, and we've done a lot of the heavy lifting, and it's time to get out there, get aggressive, and grow the business. Thank you for your time. We'll hand it back to the Akastor team.
Thank you, Tom.
I will then take you through the customer financials, starting then at this slide, with the highlights. As before, please bear in mind that many of our holdings, including then HMH and AKOFS, are not consolidated into our group financials. As such, our consolidated revenue and EBITDA only include a very minor part of our customers' investments. With that in mind, AGR delivered yet another strong quarter in Q4 with positive year-on-year growth for both revenue and EBITDA. Total revenues for AGR ended at NOK 204 million with an EBITDA of NOK 17 million. For the year, AGR ended at an EBITDA of NOK 81 million, which included then a positive NOK 21 million accounting effect related to the creation of Fern Energy Services completed in Q1.
DDW Offshore, included under other on this slide, delivered revenues of NOK 46 million in the quarter, increased both year-on-year and quarter-on-quarter, driven by utilization of the fleet.
DDW delivered a positive EBITDA of NOK 12 million this quarter. For the full year, DDW's EBITDA came in at a positive NOK 7 million after a slow first half of the year. Corporate costs in the quarter included around NOK 9 million in costs related to the DRU contracts, on same level as per last quarter. We expect costs related to this case through the first half of 2023. Including then a slight positive contribution also from Cool Sorption, our consolidated revenues and EBITDA for Q4 came in at NOK 283 million and NOK 3 million respectively. For the full year, revenues came in at just over NOK 1 billion, whilst EBITDA ended at a negative NOK 15 million. Sorry, NOK 10 million. A few words on our JV holdings, shown here in NOK terms.
As Tom and David has just been through, HMH delivered another good quarter with an adjusted EBITDA of then $29 million in the period, including adjustments for specific integration costs of around $5 million. Results and intake in the period driven by strong service activity. The full year adjusted EBITDA of HMH came in at $100 million, significantly up compared to 2021. AKOFS Offshore delivered solid operational results on the two vessels in operations through Q4. Total revenues for Q4 for AKOFS ended at $36 million in the quarter, with an EBITDA of $13 million, both in line with previous quarter. As mentioned last time, Skandi Santos went to dock in July in order to prepare for the new contract with Petrobras, which was expected to commence in December last year.
Certain issues related to a sub-supplier has, however, delayed commencement with expected startup now later this month. As soon as Santos commences its new contract, the financial run rate of AKOFS will increase. The two other vessels will remain in normal operations on same contracts through this quarter, after which Wayfarer will demobilize, as Karl mentioned, in April and prepare for the new contract, which is expected to commence within Q3 this year. Over to the next slide, for a further look at our consolidated P&L, with here focus on our net financial items that came in at a negative NOK 299 million in the period. Under net financials in Q4, Odfjell Drilling contributed positively with NOK 22 million, mainly related to the peak dividend accumulated between Q3 and closing of the sale of those preference shares.
In addition to a positive non-cash effect of NOK 4 million related to valuation of the warrant structure, which also then had a positive impact in Q4. Going forward, our net financial results will include interest from Odfjell related to the seller's credit arrangement, which has a 10% fixed interest rate payable on a quarterly basis. NES contributed negatively with NOK 144 million in the quarter, of which NOK 120 million was related to valuation changes stemming from previous quarters, which was reclassified from equity to P&L in this quarter. This effect, thus, did not have any effect on equity or the NES net capital employed in Q4. The remaining effect on NES of then NOK 24 million related to a slight adjustment in valuation in Q4, primarily driven by an update related to assumed multiples used in our internal valuation.
Our total net capital employed related to the NES of NOK 636 million per end of Q4 implicitly assumes an EBITDA multiple of NES of approximately 6.5x 2022 earnings. This is lower than historical trading levels, so what we consider similar listed companies. AKOFS Offshore contributed negatively with NOK 15 million, while HMH contributed positively with NOK 36 million, both then equal to 50% of net income in the period. Net foreign exchange effects were negative with NOK 153 million in Q4 after a positive effect of NOK 137 million in Q3, driven by the strengthening of the NOK versus the USD during the period, which then has a negative accounting effect related to our dollar holdings. Let us turn to the next slide for an overview of the debt movement in the period.
You here see that our bank debt, net bank debt decreased significantly through the quarter, driven then by the realization of the Odfjell preference shares, which closed in November last year. Per Q4, our net debt was NOK 1.2 billion, down from NOK 1.9 billion per Q3. Net interest-bearing debt decreased even further from NOK 1.5 billion per Q3 to then the mentioned NOK 553 million per Q4, and now includes the Odfjell seller credit position.
Cash flow in Q4 included in addition to normal cash, corporate cash flow, payments of the guaranteed preferred return to Mitsui and MOL in connection with the AKOFS Offshore divestment in 2018, and a funding of approximately $5 to AKOFS required in connection with the Santos yard stay, which is both included here under other in the graph, partly mitigated then by positive FX effect related to our US dollar debt of $124 million. Of our total reported net bank debt of NOK 1.2 billion, DDW Offshore constituted NOK 226 million per end of period, while the net debt in AGR was NOK 136 million. The DDW debt was reduced through proceeds from the sale of Odfjell due to a mandatory prepayment clause in the DDW bank agreement.
Over to the next slide for an overview of our external financing facilities. With the effects mentioned, the draw on our corporate banking facilities decreased to NOK 0.85 billion per end of December. There was no draw on the liquidity facility from Aker Holding per end of fourth quarter. Our corporate banking facilities originally matured in the first quarter of this year, but have during Q1 in 2023 been extended by one year and now mature in Q1 2024. As a result of the Odfjell transaction and implication in the bank agreement, the corporate US dollar facility was reduced from $89 million to $66 million through the quarter. As mentioned previously, parts of proceeds from Odfjell sale was used to repay the DDW debt, which was reduced from $53 million to $27 million per end of Q4.
Per end of quarter, our undrawn corporate credit lines was NOK 0.3 billion, increased compared to Q3 as a result of cash flow in the period. However, partly mitigated by the reduction in facility size following the realization of Odfjell position. As also mentioned in the previous quarterly presentation, Akastor today an investment company with limited upstream cash flow from our portfolio companies. It does continue to depend on realization of assets to reduce debt and improve liquidity, which was, of course, one of the main drivers behind the realization of Odfjell shares. Going forward, we will continue to closely monitor the liquidity reserve and aim to further increase this through realization of assets. Depending on timing of the next realizations, an increase in financing facilities or alternative financing could still be required in the medium term.
With that, I will pass the word over for Karl for the next session. Please, Karl.
Thank you, Øyvind. Let me try to wrap up this presentation with some reflection around our ownership agenda for the different portfolio companies. First on slide 14, you see overview of the portfolio, this has changed as mentioned for the third quarter by the sale of the preference shares in Odfjell Drilling. However, Odfjell is still present on the slide as we continue to own the warrant instrument in Odfjell and also have exposure through Odfjell through the seller credit of $20 million. This option is also present, as mentioned, we're in agreement to sell all shares, and closing is expected to take place in this quarter. Let's move to slide 15, HMH, where operational performance has already been covered by Tom's presentation.
We are happy with the outlook of HMH business as mentioned, and we believe that the company is very well positioned to take part in the upturn driven by increased focus on energy security worldwide. We see a strong growth in the coming years driven by the higher rig activity, and we believe that HMH has a strong position in floaters, and we know they have a strong position in floaters. As Tom mentioned, we are also working with, together with the companies, how we can strengthen the position in the Middle East, particularly within the jackups and the land rig segment.
Akastor, together with our co-owners, Baker Hughes and the management in HMH, are still targeting to make this investment liquid through an IPO as soon as the company is ready, but also depending on that the equity market is offering interesting valuation of our HMH investment. Let's move to slide 16. For AKOFS, the key focus going forward is to deliver high-quality operation with high revenue utilization for all the three vessels. Our ownership strategy, we have now important prerequisite in place that all the vessels have long-term contracts, and by that, we have the foundation for exploring different structural solution for AKOFS Offshore going forward. This is something we, together with our co-owners, will explore going forward. NES Fircroft. NES Fircroft is the clear global leader within its niche.
As mentioned, the company continued to deliver strong growth, demonstrated by the 2022 EBITDA increase of 46%. It's growing in the energy field, it's growing in the renewable field and also a new business area as life science, for example. NES Fircroft is what I would call exit-ready, and different alternatives are being explored, including, as mentioned earlier, a potential listing in Oslo this year. Let's move to slide 18. AGR continued with a high activity level with consultancy in the quarter, driven by the Norwegian market particularly, but also with a strong market development for well management in Australia. Our ownership agenda for AGR is to continue to profitably grow the AGR business, both organically and also explore M&A opportunities. Finally, let me wrap up with our short and medium-term priorities for Akastor.
We continue to believe that the realization of our financial investment, such as our shareholding in NES Fircroft.
Will most probably come first. We also expect to monetize our seller credit in Odfjell Drilling in 2023. The DLU arbitration is now on a legal track with the hearing starting later this month. We expect, as I mentioned earlier, an outcome of this to be ready before the summer. For HMH, the target is to do a separate listing as soon as the company is ready and as mentioned, when the equity market is open for this type of IPO. With that, I believe we are through the presentation and we will move over to a Q&A session, and I believe we will pause for a minute or two for you to provide questions. Thank you for your attention so far.
Okay. We'll start.
We have received one question so far. We'll start with that. It's a question from Håvard Nilsson : "How do you value the Odfjell Drilling warrants? Are they recognized in Q4?" I can take that myself. The valuation of the Odfjell Drilling warrants, which is still then part of Akastor, we have realized in Q4 only the preference shareholding in Odfjell Drilling. We remain exposed through the warrant structure as well as then the seller's credit. The valuation of the warrant structure is done based on an external analysis and is basically based on a type of Black-Scholes methodology, valuing the warrant structure based on the specific instrument. It's included in our net capital employed under other, with approximately NOK 34 million per Q4.
Around the same level as it was per Q3, than with a slight increase of NOK 4 million . That's the only question we have received so far. With that, I think we are done through our quarterly presentation. We welcome you all back for our presentation of the first quarter results on April 27th. Thank you very much.