Eidesvik Offshore (EIOF) Q3 2024 earnings summary

Executive summary

• Achieved outstanding operational and financial performance in Q3 2024, with record-high EBITDA in nearly eight years and close to 100% vessel utilisation.

• Freight revenues reached NOK 207 million, up 6% year-over-year and NOK 21 million higher than Q2 2024.

• Consolidated contract backlog increased to NOK 2.85 billion, with all vessels on long-term contracts supporting stable revenue.

• Balance sheet remains healthy, with a 64% equity ratio and net interest-bearing debt of NOK 360 million.

• CEO transition occurred in the quarter, with Helga Cotgrove appointed interim CEO.

Financial highlights

• Q3 2024 revenue was NOK 207.1 million, up from NOK 195.6 million in Q3 2023; adjusted EBITDA was NOK 97 million, the highest in almost eight years, with a 47% margin.

• Profit after taxes was NOK 39.6 million, down from NOK 51 million year-over-year.

• Cash balance at period end was NOK 428 million, with NOK 77 million restricted.

• Net interest-bearing debt at NOK 360 million; NIBD/EBITDA at 1.0x.

• Year-to-date operating cash flow at NOK 268 million, up from NOK 184 million year-over-year.

Outlook and guidance

• Positioned for long-term profitable growth with a strong balance sheet and sturdy backlog.

• Market upcycle continues, with global and North Sea activity expected to rise, especially in subsea and renewables.

• Activity in the Norwegian North Sea expected to rise in 2025, while UK sector faces reduced rig activity.

• Exploring opportunities to add additional tonnage and secure new contracts at improved rates.