Floatel International (FLOAT) Q4 2024 earnings summary

Executive summary

• Three out of four active units were on charter in Q4 2024, with overall fleet utilization at 37% for the quarter; utilization excluding Floatel Reliance was 46%, and full-year utilization was 52%, both below global ASV averages.

• The firm orderbook at the end of December 2024 stood at $338 million, with options of $154 million; strong contract coverage extends into 2025 and 2026, and potential backlog could reach $404 million if LOIs are converted.

• Floatel Reliance sale process is ongoing, with the asset classified as held for sale and expected to conclude before March 2025.

• Recurring EBITDA for Q4 2024 was $9 million, with a margin of 28%; full-year recurring EBITDA was $50 million, margin 32%.

• Net loss for Q4 2024 was $13 million, with basic and diluted EPS at -$0.12.

Financial highlights

• Q4 2024 revenue was $32 million, up from $26 million in Q4 2023; full-year 2024 revenue reached $157 million, up from $138 million in 2023.

• Operating result for Q4 was -$2.7 million; full-year operating result was $20.2 million.

• Net finance costs increased to -$9.8 million in Q4; full-year net finance costs were -$50 million.

• Cash balance at year-end was $45 million, with $350 million in senior secured bonds outstanding and net interest-bearing debt at $285 million.

• Capex for the quarter was $5 million, mainly for Floatel Superior SPS and Floatel Endurance upgrades.

Outlook and guidance

• The active fleet is nearly fully booked for 2025, with limited availability until 2027 due to high contract coverage and strong tendering activity.

• Increased demand for offshore accommodation services is expected, with limited global supply, especially in the North Sea and Brazil, supporting utilization and rates.

• Oil price volatility and geopolitical uncertainty persist, but direct operational impact has been limited.