Solstad Offshore (SOFF) Q3 2024 earnings summary

Executive summary

• Achieved strong operational performance and high fleet utilization in Q3 2024, with Solstad Offshore at 97% and Solstad Maritime at 89%, and continued positive market outlook.

• Solstad Offshore reported Q3 revenue of NOK 766 million and adjusted EBITDA of NOK 328 million; YTD revenue NOK 2,280 million, adjusted EBITDA NOK 938 million.

• Solstad Maritime reported Q3 revenue of NOK 1,630 million and adjusted EBITDA of NOK 975 million; YTD revenue NOK 4,414 million, adjusted EBITDA NOK 2,442 million.

• Initiated quarterly dividends for the first time in years, with NOK 0.5 per share for Q3, returning NOK 233 million to shareholders.

• Backlog additions of USD 53 million after quarter end at attractive margins.

Financial highlights

• Solstad Offshore Q3 operating income: NOK 766 million; YTD: NOK 2.3 billion; adjusted EBITDA: NOK 328 million.

• Solstad Maritime Q3 operating income: NOK 1.6 billion; adjusted EBITDA: NOK 975 million (60% margin); YTD revenue NOK 4,414 million.

• Solstad Offshore equity ratio: 22%; cash position NOK 629 million; adjusted NIBD NOK 2,269 million.

• Solstad Maritime equity ratio: 41%; cash position NOK 2,252 million; adjusted NIBD NOK 6,487 million.

• Solstad Services YTD revenue around NOK 900 million with an average adjusted EBITDA margin of 23%.

Outlook and guidance

• Positive market outlook with high demand expected to continue, especially in Brazil and deepwater regions.

• Solstad Offshore guides adjusted EBITDA of NOK 1.0–1.2 billion for 2024; Solstad Maritime guidance maintained at NOK 3.3–3.5 billion.

• High tender activity and several contract awards expected near term.

• Quarterly dividends planned to continue at current levels, subject to review.