Odfjell Technology (OTL) Q2 2025 earnings summary

Executive summary

• Maintained a global presence in over 30 countries, with a strong liquidity position and equipment pool valued at NOK 4.6 billion.

• Q2 2025 operating revenue reached NOK 1,373 million, up NOK 14 million year-over-year, with growth across all segments except Corporate/GBS.

• Order backlog stands at NOK 12.9 billion, with significant new contract wins and major extensions in the Middle East, Central Asia, and with Dragon Oil and ConocoPhillips.

• Dividend distributions total NOK 444 million since 2022, with NOK 120 million paid in 2025 and an additional NOK 60 million approved for September 2025, maintaining an 11% yield.

• Performance Improvement Program initiated in early 2024, resulting in restructuring costs and an 80 FTE headcount reduction, with efficiency gains expected in H2 2025.

Financial highlights

• Q2 2025 revenue was NOK 1,373 million, with EBITDA at NOK 193 million (including NOK 11 million in restructuring costs), and an EBITDA margin of 14%.

• Net profit for Q2 2025 was NOK 82 million, down from NOK 88 million in Q2 2024.

• LTM revenue totaled NOK 5.5 billion, and LTM EBITDA was NOK 778 million.

• Cash and cash equivalents at 30 June 2025 were NOK 565 million, with available liquidity at NOK 766 million.

• Free cash flow for Q2 2025 was -NOK 73 million, impacted by high capex and working capital build-up.

Outlook and guidance

• Expectation of higher income, earnings, and revenue in the second half of 2025 and into 2026, with margin expansion driven by efficiency programs.

• CapEx levels are front-loaded for strategic growth and are set to reduce from Q4 2024 onwards.

• Market remains resilient despite some softening, with a healthy tender pipeline and targeted growth in under-represented markets like Brazil and the Gulf of Mexico.

• Continued strong demand expected for Well Services, stable Operations market, and improving Projects & Engineering segment, especially in green initiatives.