Ventura Offshore (VTURA) Q4 2024 earnings summary

Executive summary

• Secured major Petrobras contracts for Carolina, Sepia, and Atapu, adding $363M in firm backlog and extending contract visibility to 2029 or 2033 if all options are exercised.

• Incorporated in Bermuda in Feb 2024, acquired UER in May 2024, expanding to three owned and one managed vessel, all under long-term contracts with major oil companies.

• Completed acquisition of SSV Catarina in July 2024, which began a long-term charter with ENI in Indonesia, and maintained strong operational performance despite downtime on Victoria.

• Achieved industry leadership with a competitive cost structure and successful mobilization of Zonda.

• Successfully settled a 17.5% earn-out agreement for Catarina for $8M, expected to be highly accretive.

Financial highlights

• Q4 Adjusted EBITDA reached $17.4M, with net income of $23.5M; Q4 adjusted revenue was $60.1M, with $59.2M from drilling operations and $0.8M in management fees.

• Q4 reported revenue was $96M, including $22.9M in non-cash amortization and $30M in reimbursed expenses.

• Year-to-date (Feb–Dec 2024): Revenues $241.9M, Net Income $57.7M, Operating Income $78.5M, EPS $0.75.

• Closed Q4 with $46.5M in cash, $12.1M in restricted cash, and total assets of $662M.

• Gross interest-bearing debt at $185.8M, with $175M in bonds and $10.8M in revolving credit.

Outlook and guidance

• Expect recurring SG&A to normalize at $5M per quarter in 2025, down from $7.2M in Q4 due to non-recurring listing costs.

• Global floater demand projected to grow at a 4% CAGR from 2025 to 2029, with Petrobras leading offshore spending.

• Confident in recontracting Victoria given upcoming Petrobras tenders and stable rig demand in Brazil.

• No material financial impact expected from the ANP suspension of Carolina; ongoing discussions with Petrobras.

• DS Zonda expected to commence operations in Brazil in Q1 2025 under a three-year contract with Petrobras.