Eidesvik Offshore (EIOF) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered stable operational and financial performance, with freight revenue of NOK 197.8 million and adjusted EBITDA of NOK 70.7 million, maintaining high fleet utilization at 95%.

• Consolidated contract backlog reached NOK 2.95 billion, the highest in nine years, with all vessels on long-term contracts and major extensions, notably Viking Energy with Equinor until 2030.

• Strong balance sheet with equity ratio at 61%, net interest-bearing debt/EBITDA at 1.0, and cash balance of NOK 444 million at period end.

• The Apollo project will convert Viking Energy to ammonia fuel, supported by a EUR 5 million EU grant and Equinor financing, with operations starting 1H 2026.

• Positioned for profitable growth, supported by robust financial indicators and a positive market outlook across all segments.

Financial highlights

• Q2 2024 revenue was NOK 197.8 million, with adjusted EBITDA of NOK 70.7 million and adjusted EBIT of NOK 29.4 million; profit after tax was NOK 32.5 million.

• Cash and equivalents at quarter-end were NOK 444 million, with net interest-bearing debt at NOK 378 million.

• Operating cash flow year-to-date exceeded NOK 200 million, up from NOK 100 million last year.

• Dividend of NOK 18.3 million paid in the quarter, funded from cash on hand.

• EBITDA margin for Q2 was 38%–42%, down from 54% in Q2 2023.

Outlook and guidance

• Strong backlog and positive market outlook across all operating segments, with robust day rates and high contract coverage.

• Positioned for future growth, with opportunities to capitalize on improving market conditions and appetite for new builds dependent on long-term contracts.

• Offshore wind and subsea segments see record-high backlog, strong tender pipeline, and increasing margins.