DOF Group (DOFG) CMD 2024 summary

Strategic positioning and growth

• Record-high backlog of $3.1bn, with contract visibility through 2029 and significant commencements at higher rates in late 2024 and 2025.

• Maersk Supply Service acquisition adds 22 vessels, expanding global scale and capacity; integration is expected to deliver cost synergies and operational efficiencies.

• Positioned to deliver integrated subsea services across oil & gas and renewables, supported by a global fleet, organization and charter-in flexibility.

• Floating wind bids align with core capabilities; active bids total $2bn, with potential large project awards in 2025.

• No plans for newbuilds; CapEx focused on maintenance and subsea equipment.

Financial outlook and capital returns

• 2H24 EBITDA guidance of USD 265–285 million; higher-rate contracts commence in late 2024 and continue into 2025.

• Deleveraging targets NIBD/EBITDA of 1.5x in 2025, supported by cash flow and refinancing plans ahead of 2026 maturities.

• Quarterly dividends planned from Q2 2025, initially $0.3 per share, with future increases dependent on earnings and cash position.

• Maersk Supply Service transaction is fully financed and expected to lower leverage and increase future dividend capacity.

• Refinancing aims to simplify the corporate structure and improve capital flexibility; bank and bond markets provide financing options.

Regional and market updates

• Atlantic region has a versatile fleet, strong backlog and integrated oil & gas and renewables services; Brazil benefits from high utilization, limited vessel availability and higher-rate contracts.

• DOFCON JV operates six state-of-the-art vessels on long-term Petrobras contracts, with a positive outlook for fleet expansion.

• Brazilian operations are expanding beyond Petrobras, with flag protection rules and growing demand for decommissioning and subsea services.

• Floating wind market expected to exceed 6 GW by 2030; activity is expected to ramp up from 2027–2029, with high vessel requirements and barriers to entry.

• Subsea and anchor-handling markets have rising day rates and limited new supply; PSV vessels are non-core, with divestments expected as market values improve.