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Odfjell Technology (OTL) investor relations material

Odfjell Technology Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary21 Aug, 2025

Executive summary

  • Maintained global presence in over 30 countries, with Q2 2025 revenue of NOK 1,373 million and a contract backlog of NOK 12.9 billion, supported by new contracts and major extensions in key regions.

  • EBITDA for Q2 2025 was NOK 193 million, impacted by NOK 11 million in restructuring costs, and net profit was NOK 82 million.

  • Dividend distributions totaled NOK 120 million YTD 2025, with a current yield of 11% and continued stable payouts.

  • Performance Improvement Program led to headcount reduction and cost savings, with most restructuring costs already incurred.

  • Strategic investments and partnerships, including a 10% stake in Reelwell AS and collaboration with OSP, support future growth.

Financial highlights

  • Q2 2025 revenue: NOK 1,373 million; EBITDA: NOK 193 million; EBITDA margin: 14%; net profit: NOK 82 million.

  • Order backlog at NOK 12.9 billion, with NOK 7.4 billion as firm backlog and 766 million NOK in new contract awards during Q2.

  • Dividend of NOK 60 million paid in Q2, maintaining an 11% yield.

  • Cash and cash equivalents at 30 June 2025: NOK 565 million; leverage ratio at 1.27x.

  • Free cash flow for Q2 2025 was -NOK 73 million, impacted by high capex and working capital build-up.

Outlook and guidance

  • Market remains resilient but faces growth leveling due to oil price volatility and supply imbalances; strong demand expected for Well Services and stable Operations market.

  • CapEx front-loaded for strategic projects, with reduction expected from Q4 2025 onwards.

  • Efficiency programs and targeted growth in new markets, such as Brazil and the Gulf of Mexico, are expected to drive margin expansion from 2026.

  • Ongoing performance improvement program to drive further efficiency and margin gains.

  • High tender activity and new contract opportunities anticipated, especially in plug abandonment and rail services.

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Frequently asked questions

Odfjell Technology Ltd. is a technology and engineering company that provides services to the oil and gas sector. The company operates through three primary segments: Well Services, Operations, and Projects & Engineering. Its Well Services division offers casing and tubular running services, drilling tool rental, and specialized well intervention products. The Operations segment supports drilling and well completion on client rigs, covering activities such as plug and abandonment and platform drilling. The Projects & Engineering segment delivers engineering solutions, including design, project management, and operational support for both new and existing offshore units. Odfjell Technology is headquartered in Aberdeen, UK, and its shares are listed on the Oslo Stock Exchange.

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