Jacktel (JACK) Q3 2024 earnings summary

Executive summary

• Successfully completed all preparatory work for Equinor and AkerBP contracts on budget by end of September 2024, with Haven installed at Draupner field in early November for a 10-month contract.

• Strong order backlog extends through 2027, with potential for further earnings if contract gaps are minimized and options exercised.

• Plans to initiate dividend payments in 2025 and pursue a listing on Euronext Growth in Q1 2025 to improve share liquidity.

Financial highlights

• Q3 2024 operating income was $11.6M, up from $8.2M in Q3 2023; YTD 2024 operating income reached $28.6M, up from $24.1M YTD 2023.

• Q3 2024 EBITDA was negative $3.1M (vs. positive $3.9M in Q3 2023); YTD 2024 EBITDA was $5.4M (vs. $12.8M YTD 2023).

• Q3 2024 net loss was $8.2M (vs. $2.7M loss in Q3 2023); YTD 2024 net loss was $10.1M (vs. $3.6M loss YTD 2023).

• Operating expenses increased to $14.7M in Q3 2024 (from $4.3M in Q3 2023), mainly due to higher reimbursable and project costs.

• Q3 2024 operational cash flow was $4.7M; net cash flow for the quarter was negative $4.9M, with $3.9M in cash at quarter-end.

Outlook and guidance

• Robust contract backlog supports stable operations and cash flow through 2027, with additional upside from option exercises and minimized contract gaps.

• Long-term market outlook is positive, driven by global energy demand and expansion in oil, gas, and offshore wind sectors.

• Commitment to commence dividend distributions in 2025 and pursue Euronext Growth listing in Q1 2025.