Eidesvik Offshore (EIOF) Q1 2025 earnings summary

Executive summary

• Freight revenues reached NOK 198.8 million in Q1 2025, up 11% year-over-year and sequentially, marking the highest since 2017, driven by near 100% fleet utilisation and improved day rates.

• EBITDA was NOK 72.2 million, up from NOK 67.4 million in Q1 2024, with a margin of 36%, the highest Q1 since 2017, though rising OPEX and sick leave are pressuring margins.

• Profit after taxes rose to NOK 29.3 million from NOK 11.3 million year-over-year.

• Contract backlog increased to NOK 3.6 billion, with 37% from renewables, reflecting improved market rates and newbuild/contract extensions.

• 100% fleet utilisation achieved in both supply and subsea/renewables segments.

Financial highlights

• Operating income reached NOK 198.8 million, up from NOK 183.4 million in Q1 2024.

• Adjusted EBITDA increased 14% to NOK 72.2 million, margin at 36% for Q1 2025.

• Net interest-bearing debt rose to NOK 570 million due to newbuild progress; cash balance at quarter-end was NOK 285 million, down from NOK 396 million.

• Net financial items improved to NOK 6.8 million from minus NOK 12.5 million, aided by capitalized borrowing costs and positive currency effects.

• Cash flow from operating activities decreased to NOK 41.9 million, mainly due to working capital movements.

Outlook and guidance

• Market conditions are improving, with high demand for vessels, strong contract coverage, and a record-high backlog supporting a positive long-term outlook.

• Continued growth expected, with focus on long-term profitable contracts and partnerships.

• No dividends planned for 2025; priority is on investment opportunities.

• New builds are progressing on schedule, with deliveries expected to support future growth.

• Supply vessel demand in the North Sea is expected to rise as drilling and rig activity increase.