In This Article:
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Revenue: Increased by 24% compared to 2023.
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EBITDA: Grew from $88 million to $134 million in the subsea regions.
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Backlog: $3.25 billion, with expectations to grow significantly in the next 3-6 months.
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Fleet Utilization: 85% for the period.
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Debt Level: Reduced significantly, with strong cash flow aiding debt repayments.
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Cash Flow from Operations: $176 million, higher than EBITDA for the quarter.
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Net Debt: Maintained at levels similar to the end of Q1, despite new loans.
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Guidance for 2025: Revenue between $1.8 billion and $1.9 billion; EBITDA between $720 million and $800 million.
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CapEx: Expected between $270 million and $290 million, with $130 million to $140 million for maintenance.
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Order Intake: $2 billion in 2024, with a book-to-bill ratio of 1.4x.
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Cash Position: Strong year-end cash position despite high debt repayments.
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DOF Denmark Acquisition: Contributed $46 million in revenue and $7 million in EBITDA for two months.
Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DOF Group ASA (FRA:UV3) reported a strong backlog of $3.25 billion, providing a solid foundation for future growth.
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The company's revenue increased by 24% compared to the previous year, indicating robust financial performance.
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EBITDA from subsea regions grew significantly from $88 million to $134 million, highlighting strong operational performance in this segment.
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The acquisition of DOF Denmark is expected to enhance earnings from both vessel ownership and subsea services.
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The refinancing process is on schedule, with commitments from major banks, and the company plans to pay its first quarterly dividend of $0.3 per share in the second quarter.
Negative Points
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Fleet utilization was at 85%, which, while decent, indicates room for improvement.
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The company faced a significant non-cash loss on currencies due to USD debt in a BRL-denominated company, affecting the P&L.
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DOF Denmark's initial contribution was affected by one-offs and a weak spot market, resulting in lower-than-expected EBITDA.
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There is uncertainty regarding the integration of DOF Denmark into the DOF commercial model, which could impact future earnings.
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The company faces challenges in optimizing its fleet, with plans to potentially sell non-core or older vessels, which could affect operations if not managed carefully.
Q & A Highlights
Q: What are your thoughts on the Subsea 7 and Saipem merger and its impact on DOF? A: Mons Aase, CEO, believes the merger could be positive for DOF as it reduces competition in the industry, potentially opening up more opportunities for DOF in both sales and construction projects.