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Introduction & Market Context
Moreld As (OB:MORLD) presented its first quarter 2025 results on May 15, revealing strong performance across its business segments and prompting management to raise its full-year guidance. The engineering services provider, which operates primarily in the energy sector, saw its stock rise 4.1% to 12.7 NOK following the announcement, recovering some ground after recent market volatility.
The company, which completed its IPO in 2024, continues to leverage its asset-light business model across oil, gas, and selected offshore wind markets. With a workforce of 3,000 employees across 32 offices globally, Moreld has established itself as a full-scale engineering service provider with a focus on three key areas: Maintenance & Modifications, Subsea Construction & Installation, and Marine/offshore/engineering consultancy services.
As shown in the following overview of the company’s structure and key metrics:
Quarterly Performance Highlights
Moreld reported impressive first quarter results, with revenue reaching 2.9 billion NOK, representing an 18% increase compared to the previous quarter. Adjusted EBITDA came in at 428 million NOK, reflecting a robust EBITDA margin of 14.7%. The company’s net interest-bearing debt stood at 448 million NOK, while its order backlog remained solid at 8.3 billion NOK.
The quarter was marked by high utilization levels across operations, supported by the mobilization of over 400 personnel. Profitability was driven by the degree of completion of major projects, particularly in the Ocean Installer segment, which delivered record results.
The following slide summarizes the key financial highlights for Q1 2025:
Among recent significant developments, Moreld issued a new $130 million bond in the Nordic market in January 2025, fully redeeming its previous $225 million bond facility. The company also extended the charter for its "North Sea Giant" vessel until at least Q4 2029, securing a key operational asset for the medium term. Additionally, management proposed a first quarterly dividend of NOK 0.42 per share, pending approval at the annual general meeting scheduled for May 20th.
Detailed Financial Analysis
Moreld’s financial performance showed significant improvement both quarter-over-quarter and year-over-year. The company’s EBITDA margin expanded to 14.7%, driven by high activity levels and profit recognition on large projects.
The financial results are visualized in the following chart showing revenue, EBITDA, and leverage ratio trends:
Breaking down performance by business segment, Moreld Apply reported revenue of 1.1 billion NOK for Q1, with EBITDA (excluding IFRS 16) of 95 million NOK, representing a 12% increase compared to the strong fourth quarter. The segment saw revenue growth of over 15% quarter-over-quarter (excluding pass-through), with high operational tempo at the Equinor Draupner offshore project and the Bolliden Odda Zinc plant installation onshore.
Ocean Installer emerged as the standout performer, delivering record Q1 results with revenue of 1.6 billion NOK (a 52% increase from Q4) and EBITDA of 329 million NOK. This exceptional performance was driven by high utilization and profit recognition from projects that started in Q4. The segment’s financial results are illustrated below:
Global Maritime reported more modest but stable results, with revenue of 0.2 billion NOK and EBITDA of 5 million NOK. While activity was on par with the previous quarter, the segment faced lower demand for its services during the winter season in the North Sea. However, management noted that activity increased throughout Q1, with international growth in Marine services and Warranty up 23% year-over-year.
Strategic Initiatives & Outlook
Moreld’s order backlog provides a strong foundation for future growth, with 8.3 billion NOK in orders at the end of Q1. Of this amount, 5.1 billion NOK is secured for 2025, representing significant revenue visibility for the remainder of the year. The company reported order intake of approximately 1.3 billion NOK during the quarter.
The breakdown of the backlog by year and by company segment is illustrated in the following chart:
The company maintains a capital-efficient operating model with a high share of customer prepayments, targeting prepayments on all major contracts. This approach has contributed to Moreld’s strong financial position, with low debt levels following its IPO. As of March 31, 2025, the company’s gross interest-bearing debt consisted of a $130 million senior secured bond issued in February 2025, with 191 million NOK in unused credit facilities available.
The debt structure is detailed in the following breakdown:
Forward-Looking Statements
Based on the strong first-quarter performance, Moreld has increased its 2025 EBITDA (excluding IFRS 16) guidance to 0.95-1.2 billion NOK, up from the previous guidance mentioned in the 2024 annual report. This upward revision reflects management’s confidence in continued strong performance across its business segments.
The updated guidance is presented in the following slide:
Looking ahead, Moreld is preparing for several important corporate events, including its Annual General Meeting on May 20th, where shareholders will vote on the approval of quarterly dividends and the conversion to a public limited company (ASA). The company is also planning an uplisting to Euronext (EPA:ENX) Oslo Børs, with the lock-up period set to end on June 19th.
Tender activity remains high across all business segments, with decisions on contract awards expected in the second half of the year. Ocean Installer reported a strong tender pipeline with extensive bidding for larger long-term SURF (Subsea Umbilicals, Risers, and Flowlines) scopes, while Global Maritime is focusing on securing larger marine operations scopes and new frame agreements.
With its diverse portfolio of services, strong order backlog, and improved financial position, Moreld appears well-positioned to capitalize on opportunities in both traditional energy markets and emerging sectors, supporting its trajectory of growth and profitability for the remainder of 2025.
Full presentation:
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