Odfjell Technology (OTL) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered stable performance with operating revenue of NOK 1,330 million and EBITDA of NOK 193 million, including NOK 4 million in restructuring costs.

• Net profit rose to NOK 79 million from NOK 51 million year-over-year, with margin improvements in Operations and Projects & Engineering.

• Order backlog reached NOK 13.1 billion, providing strong revenue visibility and supporting future growth.

• Dividend of NOK 60 million paid for the third consecutive quarter, yielding 14%.

• Strategic NOK 40 million investment in Reelwell AS for a 10% stake, supporting digital drilling technology.

Financial highlights

• Q1 2025 revenue was NOK 1,330 million, up from NOK 1,283 million in Q1 2024; EBITDA margin was 14.5–15%.

• Net profit for Q1 2025 reached NOK 79 million, with EPS of NOK 2.00 basic.

• Free cash flow was negative at NOK -37 million, impacted by high capex and working capital build-up.

• Available liquidity at quarter-end was NOK 938 million, with a net cash position of NOK 413 million and leverage ratio of 0.9–0.95x.

• Working capital increased by NOK 73 million in Q1, standing at NOK 353 million (6% of LTM revenue).

Outlook and guidance

• Higher activity and financial improvements expected in Q3 and Q4 2025, driven by new contracts and improvement initiatives.

• Significant reduction in capex anticipated from H2 2025, with 2026 capex expected at NOK 200–250 million barring major projects.

• Growth anticipated in Plug & Abandonment market and expansion in South America, Western Africa, Middle East, and Asia-Pacific.