Ventura Offshore (VTURA) Q2 2024 earnings summary

Executive summary

• Ventura Offshore, formerly Petroserv Marine, operates a fleet of deepwater drillships and semisubmersibles with a 27-year operational history and a strong presence in Brazil and internationally.

• The company maintains long-term contracts with Petrobras, totaling over 35 years of contract duration, and has a record of zero recordable incidents.

• Recent acquisition of SSV Catarina and management of Atlantic Zonda expand the fleet and contract backlog.

Financial highlights

• Adjusted revenue of $21m and adjusted EBITDA of $6.9m for the 53-day period ending June 30, 2024, with $20m from owned units and $955k from managed units.

• OPEX for owned units was $10.8m, averaging $102k per unit per day.

• Recurring SG&A was $3.2m after adjusting for $4.8m in non-recurring transaction costs.

• Cash position at $30.6m; gross interest-bearing debt increased from $130m to $185m after Catarina acquisition.

• Revenue backlog stands at $377m pro-forma for the Catarina acquisition.

Outlook and guidance

• Offshore rig demand in South America, especially Brazil, is expected to grow, with Petrobras planning to contract up to 9 rigs by 2026.

• Global upstream investment in 2024 is forecasted at $630 billion, with South America seeing a 12% increase, mainly from Brazil and Guyana.

• Ventura is well positioned to benefit from strong oil and gas demand and ongoing investment needs.