Odfjell Technology (OTL) Q1 2026 earnings summary

Executive summary

• Closed acquisitions of Kaseum and Razor, expanding intervention and plug abandonment services and establishing a scalable platform in a structurally growing market.

• Secured major multi-year contracts, including a 5.5-year deal with ConocoPhillips (Ekofisk) and a contract with EnQuest (Magnus field), strengthening backlog and revenue visibility.

• Q1 2026 operating revenue increased to NOK 1,374 million, up 3% year-over-year, mainly from Well Services growth.

• Dividend payments paused for Q2 and Q3 2026 to prioritize balance sheet robustness and support growth ambitions, with plans to resume in Q4 2026.

• Available liquidity exceeded NOK 1 billion after a NOK 600 million bond tap and RCF repayment.

Financial highlights

• Q1 2026 revenue was NOK 1,374 million; adjusted EBITDA reached NOK 204 million (14.8% margin); reported EBITDA was NOK 188 million, including one-off acquisition costs.

• Net profit for Q1 2026 was NOK 49 million, down from NOK 79 million in Q1 2025.

• Cash from operations was NOK 45 million, lower than Q4 due to seasonal working capital build; net cash from operating activities was -3.5 million NOK.

• Total liquidity at quarter-end was NOK 1,027 million.

• Backlog at quarter-end was NOK 11.6 billion, with NOK 7.3 billion firm and NOK 1.7 billion in new contract awards in Q1.

Outlook and guidance

• Market activity expected to remain stable through 2026, with a stronger uptick anticipated from 2027 onward, especially in harsh environment regions and international markets.

• Well Services segment poised for growth, particularly internationally, leveraging Kaseum and Razor capabilities.

• Dividend distribution expected to resume in late 2026, subject to growth opportunities and balance sheet strength.

• No further major acquisitions planned; focus shifts to organic growth and platform development.

• Projects & Engineering faces near-term softness but medium/long-term opportunities in offshore and energy transition projects.