DOF Group (DOFG) CMD 2024 summary

Strategic positioning and market outlook

• Expanding global presence and fleet scale through the Maersk Supply Service acquisition, adding 22 modern vessels and enhancing capacity in key markets, making the group the largest owner of high-end subsea and anchor handling vessels globally.

• Positioned as a leading integrated offshore service provider, with a record-high backlog above $3.1 billion and strong contract visibility through 2029, supported by significant contract commencements in H2 2024 and 2025 at higher rates.

• Recent bids and tenders in offshore floating wind align with core competencies, with potential large project awards in 2025 and active bids totaling $2 billion.

• Charter-in fleet model provides flexibility and strong margins without CapEx, supporting a deleveraging strategy.

• No significant threat from new vessel builds; newbuild activity limited to a small segment of the fleet.

Regional performance and business development

• Atlantic region delivers integrated subsea services across oil, gas, and renewables, with a versatile fleet, solid backlog, and proven project execution.

• Brazil operations lead in high-end vessels, with strong contract renewals, expansion beyond Petrobras, and high vessel utilization supported by flag protection rules.

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

• Renewables focus on floating wind, cable repair, and early engagement in FEED studies, with expansion into Korea and UK leveraging oil & gas expertise.

• Maersk Supply Service fleet offers immediate, attractively priced capacity, with most vessels rolling off contracts in 2025, ready to capture new market opportunities.

Financial strategy and capital allocation

• H2 2024 EBITDA guidance set at $265–285 million, with several high-value contracts commencing late 2024 and into 2025.

• Targeting net interest-bearing debt/EBITDA of 1.5x–2.0x by 2025, with refinancing planned ahead of 2026 maturities and robust cash flow.

• Introduction of quarterly dividends planned from Q2 2025, with an initial payout of $0.3 per share and potential for increases as earnings grow.

• Acquisition is fully financed, with attractive multiples and expected synergies in fleet utilization and cost.

• Refinancing aims to simplify the corporate structure, improve capital flexibility, and support dividend strategy.