Sea1 Offshore (SEA1) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $107.6 million, up from $88.8 million in Q2 2023, driven by higher charter rates and increased demand, with 17 fully owned vessels delivering positive EBITDA margin.

• Net profit for Q2 2024 was $160.2 million, mainly due to a $159.1 million net reversal of prior years' vessel impairments.

• Completed sale of nine vessels to Siem, receiving 35.7% of shares and $117.5 million in debt assumption, reducing the fleet to 17 vessels.

• Board authorized a NOK 5 per share dividend for September 2024, reflecting strong results and outlook.

• Maintained a robust contract backlog and positive long-term market outlook across all segments.

Financial highlights

• Q2 2024 revenue was $107.6 million, up from $88.8 million in Q2 2023; proforma revenue was $74.3 million.

• EBITDA for Q2 2024 was $52.2 million (49% margin), up from $45.9 million (52%) in Q2 2023; proforma EBITDA was $35.2 million.

• Net profit before minorities was $160.2 million (proforma $124.5 million); operating profit surged to $179.2 million, driven by impairment reversal.

• Cash and cash equivalents stood at $85.9 million; total equity at June 30, 2024 was $702.2 million.

• Firm contract backlog at June 30, 2024 was $821.5 million, more than double the prior year.

Outlook and guidance

• Strong contract backlog of $841 million, with $600 million in options and good coverage for 2024 and 2025.

• Board authorized a NOK 5 per share dividend for September 2024, reflecting confidence in future performance.

• Market prospects remain strong, with increased multi-year contracts and high-end fleet demand.

• Long-term outlook is positive, supported by stable oil prices and growing demand in both fossil and renewable energy sectors.