Solstad Offshore (SOFF) Q4 2024 earnings summary

Executive summary

• 2024 saw strong market improvement, high vessel utilization, and robust financial results, with significant backlog added for 2025 and beyond.

• Book equity increased by NOK 6.8 billion in Solstad Maritime and NOK 1.3 billion in Solstad Offshore during 2024.

• Settlement of the Normand Maximus residual claim reduced debt by about NOK 1 billion and enabled dividend payments.

• Continued investments in the service segment, including acquisition of a stake in Omega Subsea, have strengthened service offerings.

• Solstad Services exceeded expectations, delivering NOK 1,300 million in revenue for 2024.

Financial highlights

• Solstad Maritime Adjusted EBITDA: NOK 799 million in Q4, NOK 3,234 million for 2024; net result NOK 2,637 million for the year.

• Solstad Offshore Adjusted EBITDA: NOK 436 million in Q4, NOK 1,379 million for 2024; net result NOK 1,283 million for the year.

• Book equity at year-end 2024: Solstad Maritime NOK 8,862 million; Solstad Offshore NOK 3,091 million.

• Service segment revenue reached NOK 1,300 million in 2024 with an EBITDA margin of 25%.

• Cash at year-end: Solstad Offshore NOK 382 million; Solstad Maritime NOK 2,013 million.

Outlook and guidance

• Solstad Maritime 2025 EBITDA guidance: NOK 3.9–4.2 billion.

• Solstad Offshore 2025 EBITDA guidance: NOK 1.3–1.6 billion.

• High contract coverage for 2025, with 85% of Solstad Offshore and 61% of Solstad Maritime vessel days booked.

• Dividend payments to continue, with Solstad Offshore targeting first payment in H2 2025 and Solstad Maritime proposing NOK 0.50/share for Q4 2024.

• Solstad Maritime intends to apply for Euronext Oslo Børs listing in Q2 2025.