Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Solstad Offshore ASA (STU:SZL) reported a strong financial performance in 2024 with high utilization rates and robust financial figures.
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The company achieved a significant net result of 2.6 billion NOK, contributing to an improvement in book equity by 6.8 billion NOK.
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Solstad Offshore ASA (STU:SZL) has a solid order intake for the year, exceeding 10 billion NOK, providing strong visibility into 2025 and beyond.
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The company plans to pay a dividend of 0.5 NOK per share for the fourth quarter, maintaining its dividend policy.
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The service segment continues to grow, achieving a revenue of about 1.3 billion NOK in 2024 with an EBITDA margin of around 25%.
Negative Points
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The adjusted EBITDA for Solstad Offshore ASA (STU:SZL) was slightly behind the guidance from the third quarter.
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The anchor handling segment experienced volatility, particularly with vessels exposed to the spot market.
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The company faces high CapEx years in 2024 and 2025, which could impact financial flexibility.
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Utilization in the North Sea spot market for anchor handlers has been slower than expected.
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The net interest-bearing debt remains significant, although it has been reduced following the settlement of the Maximus residual claim.
Q & A Highlights
Q: Is the Norman Jousstein working on an Omega Sub C project in Africa, and will we see more such projects? A: It's not an Omega Sub C project. Norman Jousstein is mobilized with ROVs from Omega Sub C, working on a project for a main subsea contractor in West Africa. We expect to mobilize another vessel with a similar setup in the second quarter, which may be the Norman Mermaid or another vessel. (CEO)
Q: Can you elaborate on the different EBITDA margins in the service segment between Solstad Offshore and Solstad Maritime? A: Generally, the margins are the same across both segments. It depends on what we achieve from the end client, but the service margin remains consistent whether the earnings are from the maritime or offshore side. (CEO)
Q: What is the net interest-bearing debt for Solstad Offshore, and does it include the Norman Maximus loan payments? A: The net interest-bearing debt for Solstad Offshore is 4.6 billion NOK after the Maximus settlement. Adjusting for leases from Solstad Maritime, the net interest-bearing debt is 1.4 billion NOK. (CFO)
Q: Can you provide more information on the acquisition price for 36% of Omega Sub C? A: The price is confidential, but we believe it was a fair deal that adds significant value to Solstad. (CEO)