SED Energy Holdings (ENH) Q2 2025 earnings summary

Executive summary

• Completed the merger of Energy Drilling and SeaBird Exploration in May 2025, forming a diversified offshore oil and gas services platform with enhanced scale, robust backlog, and conservative capital structure.

• Achieved strong revenue growth and high operational performance, with technical utilization of 99% for Energy Drilling and 96% for SeaBird in Q2 2025.

• Maintained a contract backlog of $567 million, supporting superior earnings visibility and future distributions.

• Completed refinancing on improved terms, reducing financing costs and reinforcing financial flexibility.

• Ongoing tax audit in Thailand resulted in a $9.9 million withholding tax provision for Sep 2022–Jun 2025.

Financial highlights

• Q2 2025 revenue reached $52 million, up 47% year-over-year; H1 2025 revenue was $113.5 million pro forma, up 60% year-over-year.

• Adjusted EBITDA for Q2 2025 was $26 million, up 17% year-over-year; H1 2025 adjusted EBITDA was $60.7 million pro forma, up 75%.

• Net loss of $6.2 million in Q2 2025 due to merger and tax costs; underlying net profit was $12.5 million.

• Cash and cash equivalents at June 30, 2025, stood at $79.6 million.

• Net interest-bearing debt reduced to $25.6 million; leverage ratio at 0.2x–0.3x LTM adjusted EBITDA.

Outlook and guidance

• Full-year 2025 shareholder distribution guidance of $70–$90 million reaffirmed, with $40 million to be paid in late September or early October.

• Commitment to quarterly shareholder distributions starting Q3 2025.

• Revenue expected to increase in 2026 based on existing contracts and strong operational performance.

• Strong market outlook for offshore drilling and seismic services, especially in Southeast Asia.

• Actively evaluating accretive growth opportunities and strengthening the portfolio.