OceanPact Serviços Marítimos (OPCT3) Q3 2024 earnings summary

Executive summary

• Backlog increased by R$664 million in 3Q24, reaching approximately R$3 billion, driven by new contracts and renewals, reflecting strong commercial activity.

• Consolidated adjusted EBITDA reached R$104 million in 3Q24, with stable revenue and a 19% year-over-year increase in average net daily rate to R$159,000.

• Vessel utilization was 75% in 3Q24, impacted by mobilizations and dockings, but all mobilized vessels are now operational under improved contracts.

• Services segment faced temporary weakness due to vessel docking and lower Subsea and Geociências revenues, but secured a significant decommissioning contract and expects normalization in 4Q24.

• The company is advancing innovation in autonomous vessels, expanding internationally, and received Ecovadis bronze sustainability accreditation.

Financial highlights

• Consolidated net revenue was R$388 million in 3Q24, up 1% quarter-over-quarter but down 14% year-over-year.

• Adjusted EBITDA margin declined to 27% from 31% in the previous quarter.

• Vessel segment net revenue was R$252 million, up 7% quarter-on-quarter; adjusted EBITDA rose 30% to R$68 million.

• Services segment net revenue was R$136 million with EBITDA of R$37 million, impacted by lower Subsea and Geociências revenues and one-off ROV costs.

• CapEx totaled R$140 million in 3Q24, mainly due to vessel mobilizations and maintenance.

Outlook and guidance

• 4Q24 is expected to be strong, with all vessels operating and higher daily rates, potentially delivering record EBITDA.

• Vessel utilization rate for 2024 projected at 79%, slightly below guidance, with 2025 expected to be in line with 2024 depending on contract renewals and new bids.

• Management maintains a selective contract strategy, focusing on value creation and active bidding for expiring contracts.

• High CapEx anticipated for 2025, contingent on RSV bid outcomes and contract strategies.

• Management is monitoring macroeconomic and market risks, including currency and interest rate volatility.