Solstad Offshore (SOFF) Q2 2024 earnings summary

Executive summary

• High activity and several new contracts signed in Q2, with strong operational performance and robust market demand in both offshore oil & gas and renewables.

• Completed NOK 750 million refinancing and share issue in June, strengthening financial position and finalizing a major refinancing process.

• Group operates under one brand with shared management, unaffected by new structure; Solstad Maritime deconsolidated from Solstad Offshore in January 2024, with intention to list by Q2 2025.

• High vessel utilization, especially in South America, with rapid redeployment and significant contract wins in Brazil and renewables.

• Solstad Maritime to initiate quarterly dividends from Q3 2024.

Financial highlights

• Solstad Offshore Q2 operating income: NOK 746 million; H1: NOK 1.5 billion.

• Solstad Maritime Q2 operating income: NOK 1.55 billion; H1: NOK 2.78 billion.

• Solstad Offshore Q2 adjusted EBITDA: NOK 362 million; H1: NOK 609 million.

• Solstad Maritime Q2 adjusted EBITDA: NOK 799 million (51% margin); H1: NOK 1.47 billion.

• Cash at hand: Solstad Offshore NOK 561 million; Solstad Maritime NOK 1.48 billion.

• Equity: Solstad Offshore NOK 1.8 billion (21% ratio); Solstad Maritime NOK 6.5 billion (39% ratio).

• Net interest-bearing debt: Solstad Offshore NOK 2.35 billion; Solstad Maritime NOK 7.36 billion.

Outlook and guidance

• Offshore energy market outlook remains strong, with increasing demand for vessels and subsea services.

• Utilization and earnings expected to improve in H2 as maintenance and mobilizations are largely completed.

• On track to meet previous EBITDA guidance: Solstad Offshore FY adjusted EBITDA NOK 0.9–1.1 billion, Solstad Maritime NOK 3.3–3.5 billion.

• Solstad Maritime intends to list by Q2 2025.