Floatel International (FLOAT) Q2 2024 earnings summary

Executive summary

• Four out of five vessels were active in Q2 2024, achieving 67% fleet utilization, with key charters in Norway, the UK, and Brazil, and one vessel idle.

• Secured new contracts and letters of intent for future assignments in the North Sea, Australia, and Canada, extending visibility into 2026.

• Successfully refinanced with a new $350m senior secured bond and established a $25m revolving credit facility.

• Maintained 100% commercial uptime and no lost time injuries, with one recordable injury in the quarter.

Financial highlights

• Q2 2024 revenue was $42m, up from $40m in Q2 2023; recurring EBITDA was $12.1m (29% margin), up from $10.9m (27% margin) year-over-year.

• Result after income taxes was a loss of $24.2m, compared to a $4m loss in Q2 2023, mainly due to refinancing costs.

• Earnings per share (basic and diluted) were -$0.23, compared to -$0.05 in Q2 2023.

• Net interest-bearing debt increased to $297m.

• Cash and cash equivalents at June 30, 2024, were $35m.

Outlook and guidance

• Active fleet has limited availability until 2027, with strong tendering activity and high demand for assignments starting in 2025 and beyond.

• Backlog at end of June 2024 was $421m firm and $227m in options, with 41% of backlog in 2025, 19% in 2026, and 22% in 2027.

• Global ASV fleet utilization rose to 72% in Q2 2024; market expected to tighten from 2025 due to increased demand and reduced supply.