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Introduction & Market Context
Moreld As (OB:MORLD) presented its second quarter and first half 2025 results on August 15, showing continued momentum and prompting management to raise its full-year EBITDA guidance. The company’s stock has responded positively, with shares trading at 21.1 NOK, up 5.24% following the presentation.
The offshore service provider, which recently completed its uplisting from Euronext Growth to Euronext Oslo Børs, continues to benefit from high investment levels on the Norwegian Continental Shelf (NCS) while maintaining a stable financial position with a leverage ratio of just 0.3x.
Quarterly Performance Highlights
Moreld reported Q2 2025 revenue of 2.6 billion NOK, bringing year-to-date revenue to 5.5 billion NOK. Adjusted EBITDA for the quarter reached 363 million NOK, with year-to-date EBITDA of 791 million NOK. This represents a slight decrease from the 428 million NOK EBITDA reported in Q1, though overall performance remains strong.
As shown in the following key financial figures chart, the company maintained a solid cash position of 945 million NOK while keeping net interest-bearing debt at 367 million NOK:
The company’s order backlog stood at 7.2 billion NOK at the end of Q2, down from 8.3 billion NOK at the end of March. However, order intake improved to 1.5 billion NOK in Q2 versus 1.3 billion NOK in Q1, indicating continued business momentum.
Detailed Financial Analysis
Moreld’s financial performance shows positive revenue and EBITDA trends compared to the same period last year, though with some quarter-to-quarter variations. The group’s adjusted EBITDA margin remains healthy, supported by strong performance in its Ocean Installer segment.
The following chart illustrates the group’s overall financial performance trends:
The company continues to operate with a capital-efficient model, benefiting from customer prepayments, though these have decreased to 128 million NOK at the end of Q2 as several larger projects were completed. Working capital fluctuations remain a normal part of operations due to timing of invoicing and prepayments.
Strong cash flow generation continues to be a highlight, with EBITDA of 351 million NOK contributing significantly to operations. The cash balance increased by 15 million NOK during the quarter despite a dividend payment of 75 million NOK (0.42 NOK per share).
Business Segment Performance
Moreld operates through three main business segments, each showing different performance patterns in Q2:
Moreld Apply (Maintenance & Modification) reported Q2 revenue of 1,190 million NOK, up 31% compared to Q2 2024 and 6% from the previous quarter. EBITDA reached 62 million NOK with a margin of 5.2%, showing high activity across contracts but with temporary OPEX impact.
Ocean Installer (Subsea Installation) continues to be the group’s profit engine, delivering Q2 EBITDA of 291 million NOK with an improved margin of 23.2%. While Q2 revenue of 1,255 million NOK represented a 21% decrease from extraordinary Q1 levels, the segment’s completion of offshore scope on two major projects drove margin improvement.
Global Maritime (Marine, Offshore, and Engineering Consultancy) showed modest growth with Q2 revenue of 213 million NOK, slightly up from the previous quarter. However, Q2 EBITDA of 8 million NOK reflected considerably lower margins compared to Q2 2024.
The company’s backlog is well-distributed across its business units, providing visibility for future operations as shown in the following chart:
Forward-Looking Statements
Following strong first-half performance, Moreld has increased its EBITDA guidance for 2025 to 1.0-1.2 billion NOK (with a midpoint of 1.1 billion NOK), reflecting management’s confidence in the company’s near-term prospects.
The outlook remains positive with high investment levels on the Norwegian Continental Shelf and strong near and mid-term visibility. The company has a robust tender pipeline with decisions on key contract awards expected in the remainder of 2025.
As illustrated in the following chart, the updated guidance represents significant growth in both absolute EBITDA and margin compared to previous years:
The company also confirmed that the next quarterly dividend is expected to remain at 0.42 NOK per share, scheduled for November. The share will trade ex-dividend rights from August 18, with dividend distribution planned around August 26.
During the Q1 earnings call, CEO Geir Austigard had expressed caution about increasing guidance until securing more contract wins. The updated guidance suggests Moreld has gained sufficient confidence in its project pipeline and market conditions to formally raise expectations, aligning with the "extraordinary high activity on bidding" mentioned in the previous quarter’s call.
With a comprehensive service portfolio spanning maintenance, subsea installation, and marine consultancy, Moreld appears well-positioned to capitalize on continued strong activity in the offshore sector while maintaining its disciplined financial approach.
Full presentation:
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