Welcome to Odfjell Technology's Q4 presentation. My name is Gert Haugeland. I'm the SVP for Finance and Investor Relations in Odfjell Technology. I'm joined by our CEO, Simen Lieungh, and our CFO, Jone Torstensen. You'll find the presentation on our website, and I ask you to take notice of the disclaimer on page two. Simen will start by presenting the key highlights and talk us through the business area update, achievements, and outlook. Jone will thereafter cover the financial figures before we conclude with a Q&A session. You can submit your questions through the webcast portal or by using the dial-in numbers. I now hand it over to Simen for the first part.
Thank you, Gert, and welcome, everybody, and thank you for calling in. I'm here to present today's Q4 results. And just to flash, we have seen a year behind us now, which has been in overview quite successful. Significant improvements on certain KPIs, which I'll come back to. We have a revenue of Q4 of NOK 1.3 billion. We have the EBITDA up to NOK 223 million, and a backlog now NOK 12.3 billion . Available liquidity NOK 99 million and NOK 13 million , including also the undrawn RCF.
We have deleveraged our balance sheet and debt on EBITDA, and we are now to 0.6%, and which I also find quite comfortable to use that word, that we have our backlog compared to the debt level is there, but they expected in the backlog, which is, to us, a quite important KPI, is now 4.3%, up from 2.1%. So, the Q4 also indicates a year and sum up. If you look back on the year, we have an annual growth of close to 30%, 29%. We have achieved a 25% EBITDA growth. We have a backlog growth of NOK 1.5 billion, including the recent contract within operations on Yme.
Our net profits are NOK 344 million, and, as I said, the available liquidity is strong and quite healthy. Well, this time, I want to give you some more detailed update on the business areas. And I think, we'll be going through three of them, which is the project engineering, the operations, and well services. Remind also, we have a big area with common services, GBS, Global Business Services. I'm not gonna go into those details, but that part of the company also serves the other Odfjell companies, like Odfjell Drilling and Odfjell Oceanwind. But anyway, project engineering, as I said, we are focused strong to build up again, that area.
To us, that's, that's the key enabler for our growth and our transition. We see that, the project engineering department or business area are really one of the strong points in the company. Doesn't mean that it provides the biggest bottom line effect because of the nature of the business, but it, but it really, really keep us to protect our technical integrity and qualify what we actually are doing regarding development of the company. That part is building upon the, especially the marine competencies and the drilling competencies over the last 50 years.
Just an example, the effort we are doing on Oceanwind with all the marine activity there on the harsh environment development of solutions for offshore floating wind is basically driven by the technology in this department. So we are into executional projects. We do SPS, periodic surveys for drilling rigs. Very critical activity for a rig owner, as you all know. Costly, $40 million-$60 million, at least each time or more. Very important to have a qualified group of people to support the drilling companies to do this most cost-effective, reduce downtime, and so forth. We do a lot of modification upgrades on existing platforms and drilling rigs. We also do the green shift on those installations to install technologies for reducing emissions, CO2 and others.
I mentioned offshore, offshore wind. We have asset integrity management, meaning that we are controlling the marine part of installations. Remind again that our speciality is actually harsh environment. We also do more other areas with more benign waters, but the most extreme is, of course, the harsh environment located in the north and in Atlantic Canada, in the very south of Africa and more south. HVAC activities, marine services, and of course, we are, as I said, this is the enabler for us to qualify and identify areas where we're gonna continue to develop the company into the energy transition activities. Already, we have quite significant activities, profitable activities in that area. So this is really the technical enabler....
Moving over to operations, who we are there. As you know, this is the platform drilling, the traditional platform drilling operations. We have also expanded the activity into operating jackups. We have one operations in Norway today. We are looking at more in the north, and we will also have a couple of interesting possibilities in Asia-Pacific, especially along Malaysia and in those kind of waters. There are a market for that because of the change in the market situation since the crash down in 2014 and 2015 in the marketplace.
Many players left the market, and still there are opportunities to operate, and many—some people has invested in assets with no operational experience, and that's where we can come in and and do management. So, today we are about 1,200 people. We are, as I said, recently, we won Yme, which is for Repsol, and a very welcome contract with a long backlog. And we are active on several tenders now to expand our operations also, both within jackups and fixed installations. And one other thing with the platforms, even though the margins in this area are lower, it's literally spoken a platform for add-on sales. It's also an area where we can expand into more integrated services.
For example, plug and abandonment activities, slot recovery activities, and on both floating drilling platforms and fixed rigs. So all in all, this area for us is quite important, and as I said, it adds on activities for both engineering upgrades, well services upgrades, and as I said, integrated services, which has been quite important for the company going forward. Moving on to well services, which might have the most, I would say, first of all, the most complex setup because it's a very international setup. We have described it as a specialist provider of mission-critical life of field services and equipment. That sounds very bold, but it's true. We are about 600 people now, and we are expanding the activities internationally.
We actually have served more than 200 clients in 2023. We operate close to 30 countries, and we have 13 bases and operations all around the world. Nothing in the U.S. so far, but or in America so far, but we are come back to that, how we are thinking there. The strategy here is to expand the activities. It's to expand with new product lines. It is to expand not headless. We are always focused on disciplined manner to where we are investing and where we are spending our money. And as you've seen on the numbers, we have said earlier that we grow with the profitable growth. We're not growing for the volume only.
We are growing with a focus on profitability also. So we are not depending on a large volume every day. We are depending on growing in the right areas, on the right spots, with the right clients, with the right margins. So discipline is a key here. And again, our product lines is tubular running operations, which is quite big. We have a big portfolio of tools within rental, quite profitable business area.
We have expanding also within the well intervention activities, and as I said again, well services is a key player within integrated services, both with plug abandonment, slot recovery, also with integrated activities on drilling platforms, where we actually do cross-training of the crews, that some of the drillers, they can use their own drilling crew to do well services activity. While we rent out equipment, they operate it, maybe sometimes without supervision, sometimes with supervision. Depending on how well we know our clients and how well we are prepared to take the chance to operate via the drilling personnel.
So we operate both with our own owned or associated Odfjell Drilling, but we also operate with our other international drilling activities, companies. Quite important area. Key here for us is to see... look at the market, so I'll come back to the market also. But very important KPI is actually rig count. Both onshore, offshore, mid-water, harsh water, benign, deep water, and so forth. More activity in operation, more activity for us. More rigs in operation, more activity. This is a typical KPI, which also rules for the main service providers, like the big ones, Baker, Halliburton, Schlumberger or SLB. We are kind of focusing on the same type of KPIs.
So, that's where we are, and if we move to the next area or chapter, we show where we are moving. This is well services, the global picture of well services. And as we said here, I've been through this before with you. We in Asia-Pacific are also now focusing on Indonesia. There are a couple of clients there we know very, very well. And for serving jackups, we are there for well services activities and of course also, as I said, with potential management of jackups. With that management, just want to say that too, we sell our management associated with well services activity. So the next step for us is to establish an office in Houston. Why?
Because in Houston, most of the clients for deepwater activities and offshore drilling are located in Houston. We also know, for example, that Seadrill, which is an important client for us too, are also moving their head office to Houston. The big majors, they also most of them are located in Houston, and from Houston, they serve deepwater activities in South Americas and West Africa. So to be present in Houston, we used to be that many years ago. After again, back to the crash in 2014, we backed off for a good reason, there were no activity.
But now we are looking at activities, especially in Brazil, where we do have quite interesting leads, where we also will do more investments on equipment to serve, typical, be a sub-contractor to the main service providers like Baker, Halliburton, and SLB. We also look at a very interesting area for Suriname and Guyana, where there are a lot of activities, with majors where all our clients we serve elsewhere are located. So, yes, South America is coming, and I don't expect a huge step up. As I said some time ago, I think I say it every time, 2023 and 2024 to us is not, is not a year where everything will be a high, a very steep ramp up.
2023, 2024, we see it's a moderate growth, but we see a lot more potential activities in 2025 and onwards. And that we have said before, so we view the 2024, f or us, an area for establishing and position ourselves for the next wave of activity, and then hopefully harvest more into the future. Namibia, I like to also talk about, because we do have three rigs there now. Namibia is a very, very interesting area with harsh environment, very deep water markets. We are drilling there with one of the rigs we operate now, the West Mira, for 3,000-meter water depth. We have drilled for Shell and Total, and successfully though.
So I expect now Namibia, typical clients will consolidate, they will digest what they have found, because I think every well we did was fine. And the clients are now, because Namibia is a very new market, there's no infrastructure, but the potential production in the future in Namibia is significant. And I think that all of the big majors in, as I mentioned in Houston, they are positioning for activity in Namibia. And that's a typical semi-submersible market, not too much for drill ships because of the harsh currents, waves, and you name it. So semi-submersibles are preferred in that region, which opens up a fantastic opportunity for Odfjell Drilling and for Odfjell Technology.
Okay, next, let's talk a little about our strategic performance, because I think I was asked once that we have been kind of careful when we launched Odfjell Technology as a company, not to kind of say too much how or what we expected. Of course, we have the ambitions to grow. We have the ambition to be, to become larger, but w e want to do kind of to establish the company in the marketplace first. There's not too many peers to Odfjell Technology in the market, but we have peers on well services, we have peers on operations, then not many peers on engineering. So our engineering department is quite unique with that profile of competencies.
So I can't see, If I look into the marketplace, I don't see anyone with the same competence. And if we increase that size on engineering project, it's gonna be a very interesting enabler for maybe many and expanding activity. So we achieved then 29% growth compared to 2022. We said we want a growth, and we are, we're gonna do it by again discipline. We're not running after the volume, we're running after profitable growth. I underline that with three lines. We have identified M&A targets, not the biggest one in the world, but an interesting product lines, new product for supporting what we don't have ourselves today. So not far into the future, we will probably announce the first one.
We have grown the EBITDA, and with 25% growth from 2022 to 2023, that's to us actually okay. We have focused on cash and working capital. I'm very happy that we have reversed the buildup of working capital, which Jone will come more back to. And we also said that we will establish a dividend program. We have agreed on what we will give dividend in 2023. But we also see on the numbers that potentially we might will support a future dividend program also. I will not say anything about level, but of course, if we look at the numbers and we compare what's necessary for investments and growth, we also have capacity for interesting dividend capacity.
But that remains to be discussed and launched when the time is right. If we look at the revenue growth on the next slide, I think, of course, we are big in Norway, and I say thank you for that, because Norway is a very, very stable market. 60% of the revenue is coming from Norway today, and it looks quite modest, the other regions, but that's the potential we have in those regions. I remind, we are not in South America yet, but if that region meets at least half of the expectations we have, it's gonna be very interesting.
Norway, strong, has been strong all the time with the catastrophic war on energy in, for example, Russia, Ukraine, and other places. Norway is perceived as the most stable energy provider in the world, at least in the Western world. And of course, that saying that, meaning that this market is strong and active for a very, very long time, and why shouldn't we focus on Norway? We are here, and we have a long tradition. We have been active through the last crisis, and we look at Norway as a growth area, but Norway is kind of up to a level where it's actually delivering quite well. So we will maintain or somewhat increase our presence in Norway and increase our profitability in Norway.
Rest of world, we have growth all over the places, summing up to close to 30% growth, if we look at the global number. Next slide, backlog. Of course, with it's now NOK 12.3 billion. I think that backlog is a healthy backlog. We know we have estimates on what kind of EBITDA we expect from that backlog. And so as I said earlier, one of the KPIs is expected EBITDA on, on debt, showing that we have a quite healthy operation. So, of course, within operations, with long contracts, that's the where the backlog is biggest. But remember also that well services is the most profitable area, and growth in well services backlog is quite important to, which give an immediate effect on the bottom line and earnings.
Engineering projects, of course, are more modest based on the nature of the business, but even though the margins are more modest than well services, that division is equally important for developing Odfjell Technology as a company going forward. Clear message. Remember that we have been running the two years now with approximately NOK 11 billion backlog all the way, and now we're more than NOK 12 billion. If you are successful with some of the tenders, it will be even higher. But remember, just mark that we have earned backlog all the time, because through these years, we have been stable on approximately NOK 11 billion backlog. So we win contracts all the time, big and small, but so we maintain our position. The market is showing that the market is good.
If our predictions for 2025 and onward remains valid, I think we can look at some interesting years ahead of us. Jone, the financial information is yours.
Thank you, Simen. Hello, I will start on page 15. It's a strong quarter and a strong year for OTL, with revenue and EBITDA growth and significant free cash flow, mainly due to working capital improvement in Q4. EBITDA in Q4 is NOK 223 million, compared to NOK 212 million in Q3 2023, and NOK 197 million in Q4 2022. For the year, EBITDA is NOK 840 million, compared to NOK 700 million, no, NOK 673 million in 2022, which means a growth, as Simen said, of 25%. Net profit in Q4 is NOK 136 million, and for the year is NOK 344 million. The cash generated from operation is NOK 551 million in Q4 2023, compared to NOK 45 million in Q3 and NOK 296 million in Q4 2022.
We had an improvement in working capital with NOK 334 million in Q4. And finally, on this page, CapEx level in line with plans and growth strategy. Let's have a look on the business area on the next page, starting with Well Services. Another good quarter for Well Services, with growth in revenue and EBITDA compared to Q3 2023 and Q4 2022, mainly driven by good operation globally, new contracts in Namibia, Netherlands, and Malaysia, and effects from ongoing cost efficiency program. 2023 is a good year for Well Services, with 30% growth in revenue compared to 2022, and 29% growth in EBITDA. I would say that Well Services is now well-positioned for further development in existing and new region, with a very high focus on capital discipline and high-margin business opportunities. Operation is the next one.
Operations delivered steady operations performance with a margin level of 7.4% for 2023. The revenue and EBITDA in Q4 2023 are approximately in line with Q3 2023 figures, and somewhat lower EBITDA compared to Q4 2022, due to additional costs caused by bad weather and reduction in bonus achievements. For 2023, there was a growth in revenue of 21% compared to 2022, and a reduction of EBITDA of 5%. There's a high tender activity ongoing now, as Simen said, which is actually good news for us, since an increase in scale of business is a very important for operations. The next business area is Project & Engineering, what we call P&E, delivered a strong quarter with a normalized and good margin level of approximately 15%.
P&E delivered growth in revenue and EBITDA compared to Q3 2022, 2023 and Q4 2022, mainly driven by a high activity in SPS project and modification work at Aasta Hansteen. Good project execution in other projects, and high utilization in all departments. For 2023, there has been a growth in revenue of 70% compared to 2022, and a growth in EBITDA of 112%. I would say that we have established a strong foundation in P&E. We are well positioned to further develop the service offering in an existing segment, and also positioning OTL for future energy transition business opportunity. The next one is the cash. Strong cash management finished in Q4 2023, resulting in a free cash flow of NOK 493 million, and NOK 353 million improved cash, driven by significant improvement in working capital in Q4.
The working capital is improved with NOK 50 million for the year, even if you have an increase in revenue with 30% in 2023 compared to 2022. The cash availability is now NOK 913 million in 2023, compared to NOK 560 million in Q4 2022. I will close the financial part of the presentation, showing you the trailing twelve months LTM figures, which demonstrate good performance and development in both revenue and EBITDA. It's still very important for us to have a kind of a controlled growth strategy with the focus on high margin business opportunity, ensure very strong cost and capital discipline, as Simen said, to ensure robustness and predictability in future financial performance. To summarize, we feel that we are delivering on our strategy. We are well positioned for growth in a strong market.
The cash flow supporting both investment and returning cash to shareholders. We have good cash position and low net debt, and also that the financial performance in 2023 supports a potential dividend growth in 2024. We are always working with improvements, so we have a kind of a systematic execution of business improvement progress ongoing to further strengthen our performance in the business. We are now ready for questions, the Q&A session.
Thank you. Ladies and gentlemen, if you would like to ask a question through the phone, please press star one on your telephone keypad. Thank you. We'll pause for just a moment while waiting for them to queue for questions. Once again, please press star one to ask a question. Thank you. I don't see any questions coming through the audio. I'm turning to Gert for webcast questions. Over to you, Gert. Thank you.
Thank you. We have received a few questions. I'll pick out a few of them, and I think additional questions can be directed towards me. To start off, we have a question from Grande Erickson, and I think I'll direct that to you, Simen. He is asking what we think the revenue growth will be for the different segments in 2024 and 2025.
Yes. Again, I, we never guide on these things. I. We have talked about that before. But, but, as I said in my speech, is that, the market is good. Though 2024 is a market, is a, is a year where, where at least we see waiting for the next wave of activities. 2023, 2024, as we said, for quite a long time, I, I'm also have the honor, in quotes, to be the chairman of the board of drilling, and so I know the drilling activity, the, the offshore floating activity in the market quite well, and we see exactly the same.
So I expect we are working with growth plans for 2024, but we also see maybe a more potential in 2025 and onwards, based on the rig count and activity, planned activity and the awards of contract. The lead time from today, from when you get the contract and when you start to operate, is longer and longer. That's the best indicator for a better market. So the lead time from award till commencement is longer, good indicator. So the growth we have seen from 2022 to 2024 is good. If that will be the same in 2025 or Q4 this year, remains to be seen. So I won't say more, but I'm absolutely positive.
Okay. We have also a question from Jørgen Andreas Lande. And he's asking about the reactivation of rigs is a good revenue and growth driver for OTL, and in this context, the Middle East region have been a force to reckon with. With the recent announcements from Saudi Aramco, has this either impacted your market outlook in any way, or have you already witnessed real impacts?
Reactivation of rigs is a good business for us, and for our own group, again, back to our own group, our rigs has not been reactivated. They've been active all the time, but we have seen reactivation and modification of assets. We also manage today where P&E, Projects & Engineering, has a significant input to do the upgrades and the modifications necessary for activation. We also support activation of drill ships all around.
We also support, you know, because the wave of installing technology for reducing emissions, like what we have done in Norway because o ne of the reasons Equinor and BP has been so active, they have also applied new technology for reducing emissions, which has reduced emissions significantly over the last 10 years. And that's gonna come into the global market. When the rig activity goes up in 2025 and onwards, there will be more demand on reducing emissions. That's a good thing for us. With the jackup situation down in Saudi, we have a significant part of the jackups they're gonna activate for well services. Nothing yet on modification activities, but we expect that to come. With the jackup activity coming up in Malaysia or Southeast Asia, we see also a combination of operation and projects, and upgrades and well services.
So all these are kind of a bundling of services into those areas are quite important. The jackup business down in Middle East is very interesting for us. We are one of the very few that operates in Saudi, with license to operate there, so important market to us. Next.
Yeah, I think this question I'll direct to Jone. There is a question about capital allocation and how we balance between the shareholder returns, and with the leverage. In my mind, I think with the low leverage ratio, the dividend payments of NOK 25 million a quarter, where will we be going forward, and what's the prospect of a bond refinancing? Could you say something about that, Jone?
Yeah, I can start with the dividend program. We have, as we said, established a program, which actually Q4 2023 is part of. New evaluation and potential update of the program will be done prior to Q1 2024 reporting. When it comes to the financing, the bond tenor is four years until February 2026. RCF is four years until January 2026. The first call of the bond is August 2022, with a call price of 103.
2024.
2024, of course. We are, of course, working with this now when it comes to refinancing, and we'll conclude on this shortly, and the targets will be to reduce the spread, improve the terms, and improve the financial flexibility.
I think there's some other questions regarding that, which is answered by that. I think that concludes the Q&A session. I thank you all for joining the call today, and please contact me if you have any further questions. And I say thank you and wish you a nice weekend.
Thank you.