Odfjell Technology (OTL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached NOK 1.36 billion, EBITDA was NOK 221 million, and net profit was NOK 88 million, with an order backlog of NOK 13.4 billion and available cash of NOK 846 million.

• Strong operational performance and growth across all business areas, driven by new contracts, international expansion, and add-on services.

• Dividend distribution increased to NOK 45 million in Q2, up NOK 10 million from the previous quarter, with payment approved for September.

• Strategy focuses on organic growth, M&A, and expansion into new geographies, including the Americas, Canada, Namibia, Congo, and Southeast Asia.

• Major contract wins and exercised options with Equinor, bp, and others, enhancing backlog and revenue visibility.

Financial highlights

• Q2 2024 revenue was NOK 1,359 million, up 4% year-over-year and sequentially; EBITDA was NOK 221 million, margin at 16.3%.

• Net profit for Q2 2024 was NOK 88 million, up from NOK 79 million in Q2 2023.

• Available liquidity at quarter-end was NOK 846 million, with a leverage ratio of 0.7x.

• Equity ratio improved to 32% as of 30 June 2024.

• CapEx and acquisition activity contributed to cash outflows in Q2.

Outlook and guidance

• Market outlook remains strong for 2025–2026, with robust order backlog, high tender activity, and new geographic targets.

• Growth expected from international expansion, especially in South America, Southeast Asia, and the Middle East.

• Margin improvement plan for Operations Norway remains on track.

• No specific short-term guidance, but significant ramp-up anticipated from late 2025 onward as new contracts commence.

• Oil service market outlook remains positive, with underinvestment in oil and gas driving increased demand.