Solstad Offshore ASA

Second-quarter operating income was $105 million versus $78 million last year, adjusted EBITDA was $41 million versus $32 million, and net result was $38 million versus $39 million. Operational adjusted EBITDA was $22 million versus $17 million last year, and share of result from JVs and associated companies was $19 million versus $15 million. For the first half, operating income was $191 million versus $147 million, adjusted EBITDA was $75 million versus $62 million, and net result was $67 million versus $62 million. Fleet utilization was 85% in the quarter and 82% for the first half, down from 100% and 96% respectively. Book equity was $478 million, equity ratio was 44%, adjusted net interest-bearing debt was $28 million, and cash was $83 million. Firm backlog for owned vessels was $432 million, up from $238 million a year ago. Management narrowed full-year operational adjusted EBITDA guidance to $60 million-$70 million, excluding JV and associate contributions, and raised the quarterly dividend to $0.15 per share, totaling about $12 million.

Lars Peder Solstad framed the quarter as strong and active, pointing to improved operational performance, contract wins, and better backlog visibility. He emphasized strategic moves including the SBM Offshore joint venture, the order of a specialized mooring and installation vessel, and the sale of Normand Tonjer, which should bring about $19 million in cash. His tone was constructive and optimistic, especially on market demand, saying activity remains high and visibility for coming years is solid.

Kjetil Ramstad highlighted the financial improvement: operating income reached $105 million, adjusted EBITDA was $41 million, and first-half adjusted EBITDA was $75 million, up 21% year over year. He noted higher cash of $83 million, lower adjusted net interest-bearing debt of $28 million, and book equity of $478 million with a 44% equity ratio, supported by strong operations and limited capex. He also detailed the debt structure, including a $70 million term loan, a $40 million BNDES facility, and the dividend increase to $0.15 per share.

In Q&A, management was asked about future dividend distributions from the NISA joint venture and Omega Subsea. Lars Peder Solstad said Omega Subsea is in steep growth and will likely need capital for another year to 1.5 years before becoming dividend-paying, while NISA is debt-free and should become a dividend payer going forward due to solid utilization. Another question addressed the Normand Maximus dry dock, which management estimated at around 60 days.