Golden Energy Offshore Services (GEOS) Q1 2024 earnings summary

Executive summary

• Revenue surged 139% year-over-year to NOK 74 million in Q1 2024, driven by fleet expansion and successful integration of new vessels.

• EBITDA and Adjusted EBITDA reached NOK 2.9 million, up from negative NOK 1.5 million in Q1 2023, reflecting improved operational performance.

• Despite a weak North Sea spot market and lower utilization (82%), the company secured several new contracts at attractive rates, with most commencing in Q2 2024.

• Backlog stands at NOK 313 million firm with NOK 280 million in options, providing strong revenue visibility for the remainder of 2024.

• Strategic initiatives included the completion of the Vroon vessel acquisition, conversion to ASA, and preparations for a potential uplisting to Oslo Børs.

Financial highlights

• Revenues increased to NOK 74.1 million from NOK 30.9 million in Q1 2023, mainly due to fleet growth.

• Operating expenses rose 119% to NOK 71.2 million, impacted by fleet expansion and one-off legal/financial fees.

• EBIT was negative NOK 15.7 million, down from negative NOK 3.8 million in Q1 2023, due to higher depreciation and financial costs.

• Net loss for the period was NOK 103.6 million, compared to NOK 33 million loss in Q1 2023, mainly from unrealized currency losses.

• Cash flow from operations improved to NOK 45.9 million, up from negative NOK 38 million in Q1 2023.

Outlook and guidance

• High tender activity and increasing TCEs point to a promising operational and financial outlook for the rest of 2024.

• Backlog covers approximately 84% of 2024, with strong contract rates and improved vessel valuations.

• The company is well-capitalized and positioned to pursue new opportunities, with ongoing regulatory preparations for an Oslo Børs uplisting.