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• EBITDA: $4.6 million for the fourth quarter.

• Net Profit: $6.7 million for the full-year 2024.

• Revenue: $10.2 million for the fourth quarter; $35.5 million for the full-year 2024.

• Net Debt: $9.4 million.

• Equity Ratio: 59%.

• Cash Balance: $4.1 million at year-end 2024.

• Operational Cash Flow: $12.5 million for the year.

• SG&A Expenses: $1.2 million for the quarter; $4.1 million for the year.

• CapEx: $2.3 million for the year.

• Cash Distribution to Shareholders: $3.7 million during 2024; NOK0.40 per share scheduled for February 17.

• Utilization: High-90%s expected going forward.

• Backlog: 14 months of firm backlog, sold out until mid-2025.

• Valuation: Enterprise value of $57 million; $28 million per vessel.

• Warning! GuruFocus has detected 6 Warning Sign with FRA:E36.

Release Date: February 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SeaBird Exploration PLC (FRA:E36) reported zero lost time incidents, highlighting their commitment to operational excellence and safety.

• The company achieved a high utilization rate, with both vessels on contract, maintaining utilization in the high-90% range.

• SeaBird Exploration PLC (FRA:E36) generated $4.6 million in EBITDA for the quarter, contributing to a strong financial performance.

• The company has a robust balance sheet with a net debt of $9.4 million and a comfortable working capital position of $3.4 million.

• The merger with Energy Drilling is expected to create significant value for shareholders, with a combined market cap moving beyond $400 million and a strong backlog supporting future cash flows.

Negative Points

• The company experienced a dip in Q2 revenues due to idle time and mobilization, impacting overall annual revenue.

• There are no immediate vessels available for flexible charters, complicating short-term operational adjustments.

• The merger terms have delayed any new dividend announcements until the new Board is in place post-merger.

• The supply side of the OBN market has contracted significantly, with only 14 active source vessels available, excluding Russian and Chinese vessels.

• SeaBird Exploration PLC (FRA:E36) had to write down a legacy receivable during the audit process, impacting EBITDA.

Q & A Highlights

Q: Can you elaborate on the dividend policy and why no new dividends were announced for the fourth quarter? A: Stle Rodahl, Executive Chairman of the Board, explained that no new dividends were proposed because the merger terms with EDrill have been set. It would be complicated if the companies distributed cash independently after setting these terms. The NOK0.40 dividend announced in November is included in the merger terms. The companies share a vision of extending SeaBird's dividend policy to pay all excess cash quarterly, supported by significant cash flow from a firm backlog.