Sea1 Offshore (SEA1) Q3 2024 earnings summary

Executive summary

• Operated 34 vessels in Q3 2024, with 17 fully owned after selling nine vessels, all delivering positive EBITDA margins and 91% fleet utilization.

• Achieved strong operational and financial performance, with high safety focus and improved day rates.

• Completed sale of nine vessels, refinanced debt, repaid $69M maturing in 2024, and entered two new credit facilities totaling $150M, enhancing financial flexibility.

• Declared and paid NOK 5 per share dividend in September 2024; received $25M settlement from Siem Marlin sale.

• Secured multi-well contract in Australia for three anchor handlers, starting Q2 2025, and extended key contracts, boosting backlog.

Financial highlights

• Q3 2024 revenue was $81.6M, down from $85.6M year-over-year due to vessel sales; EBITDA rose to $45.1M (55% margin) from $41.5M (48%).

• Net profit after taxes at $27.7M; profit attributable to shareholders at $25.9M, up 93% year-over-year.

• Operating profit reached $30.2M; net financial items negative $2.2M, aided by $2.8M impairment reversal.

• Cash and cash equivalents at quarter-end were $127M, up from $99.8M; net interest-bearing debt reduced to $244.4M from $405.3M year-over-year.

• Net cash flow from operations for the first nine months was $108.4M; book equity at $428.5M.

Outlook and guidance

• Firm contract backlog of $815M, with $643M in options as of October 2024; strong coverage for 2024–2026, especially in PSV and subsea fleets.

• Expectation of higher rate levels and more term opportunities, particularly in anchor handler segment.

• Positive long-term market outlook for all segments, driven by energy security and renewables growth.

• Increasing number of multi-year contracts signals strategic positioning by charterers.

• Company well-positioned with modern fleet, strong balance sheet, and robust contract backlog.