Eidesvik Offshore (EIOF) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue and EBITDA declined due to two major vessel dockings, but annual freight revenue increased by 9% and adjusted EBITDA margin improved to 38%.

• Contract backlog stands at NOK 2.5 billion, with key vessels and a newbuild scheduled for delivery into a solid market.

• Balance sheet remains robust, supporting profitable growth opportunities and a positive outlook for 2025 and beyond.

• Market fundamentals remain strong, with positive outlook for 2025 and further growth expected in 2026 and 2027.

• CEO Helga Cotgrove appointed permanently in November 2024.

Financial highlights

• Q4 2024 revenue was NOK 186.8 million, down from NOK 193.7 million in Q4 2023, mainly due to vessel dockings.

• Q4 EBITDA was NOK 57.7 million, compared to NOK 71.9 million last year; adjusted EBITDA margin was 31%.

• Full-year 2024 adjusted EBITDA increased 11% to NOK 288 million, with margin at 38%.

• Profit after taxes in Q4 was NOK 11.3 million, compared to NOK 99.9 million in Q4 2023, which included a NOK 77 million impairment reversal.

• Net interest-bearing debt at year-end was NOK 499 million, up from NOK 378.4 million, mainly due to newbuild investments.

Outlook and guidance

• No major vessel dockings planned for 2025.

• Market fundamentals remain strong, with increased demand expected in 2025–2027 and limited supply of large PSVs.

• Subsea and offshore renewable markets show record backlogs and are expected to drive vessel demand.

• Positive contract coverage, with vessels coming off older contracts from 2026, seen as an opportunity.

• Any newbuild investment, including the ammonia-fueled PSV, is contingent on securing long-term contracts with satisfactory returns.