In This Article:
-
Revenue: $361 million for Q3.
-
EBITDA: $141 million for Q3.
-
Cash Flow: $166 million in cash flow.
-
Backlog: Over $2.75 billion.
-
Net Profit: $79 million for Q3.
-
Debt: New loan of $500 million; total debt of $2 billion.
-
Equity Ratio: Improved due to $75 million private placement.
-
Dividend: $50 million to be paid, with potential for more this year.
-
Guidance: Full-year EBITDA guidance lifted to $510-$520 million.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
DOF Group ASA (STU:UV3) reported a strong cash position of $166 million, indicating robust financial health.
-
The company has lifted its full-year guidance, reflecting confidence in future performance.
-
DOF Group ASA successfully closed the acquisition of Mask Supply Service, enhancing its fleet and market position.
-
The company has a strong backlog of $2.75 billion, providing revenue visibility and stability.
-
DOF Group ASA plans to resume semi-annual dividend payments, with a $50 million dividend already decided.
Negative Points
-
The North Sea spot market has been disappointing, impacting potential earnings in that region.
-
There are a few contracts below market value, which could negatively affect profitability.
-
The company faces challenges in refinancing its debt, with a significant portion maturing in January 2026.
-
Increased activity has led to lower cash flow from operating activities compared to the previous year.
-
The integration of the newly acquired Mask Supply Service will require time and resources, posing short-term operational challenges.
Q & A Highlights
Q: How do you see the North Sea spot market developing in 2025? A: Mons Aase, CEO, noted that the North Sea spot market for anchor handlers and PSVs has been disappointing in 2024. DOF Group plans to reduce exposure to this market by focusing on long-term projects and potentially divesting older vessels. The market's future depends on project activity and vessel availability, making it difficult to predict.
Q: Can you provide an update on the anchor handler tender in Brazil? A: Mons Aase, CEO, stated that the tender is due later in November but may be postponed. DOF Group plans to bid with its existing fleet and may include additional vessels from its international fleet. The tender is significant as it could secure long-term contracts for a portion of the fleet.
Q: How do you expect the engineering segment to develop next year? A: Mons Aase, CEO, mentioned that the engineering segment is expected to grow, driven by new awards and backlog development. The long-term trend is positive, but growth will depend on the ability to secure additional backlog and integrate new market opportunities.