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Introduction & Market Context
Solstad Offshore (OB:SOFF) presented its first quarter 2025 results on May 7, showcasing a period of strategic developments despite slight year-over-year declines in key financial metrics. The offshore energy services provider maintained strong vessel utilization in a market characterized by high tendering activity, particularly in Brazil, with management noting limited impact from global political turmoil.
The company’s stock closed at 38.55 NOK on May 6, representing a 2.39% increase ahead of the earnings presentation, reflecting positive market sentiment toward the offshore service vessel sector.
Quarterly Performance Highlights
Solstad Offshore reported overall fleet utilization of 93% for Q1 2025, with Construction Support Vessels (CSV) achieving 100% utilization while Anchor Handling Tug Supply (AHTS) vessels reached 84%. Despite this strong operational performance, financial results showed modest year-over-year declines.
As shown in the following financial highlights chart, the company posted revenue of USD 69 million (compared to USD 71 million in Q1 2024) and Adjusted EBITDA of USD 30 million (down from USD 36 million):
Net result for the quarter stood at USD 24 million, compared to USD 38 million in the same period last year. The company maintained a firm backlog of USD 190 million, slightly below the USD 202 million reported in Q1 2024, but emphasized high visibility for the remainder of 2025.
Strategic Initiatives
The quarter was marked by several strategic developments that position the company for future growth. Most notably, Solstad Offshore completed its investment in Omega Subsea AS, now holding a 35.8% stake in the company. Omega Subsea continues its expansion with orders for 12 new Remotely Operated Vehicles (ROVs) for delivery in 2026 and beyond.
The company’s investments in associated companies and joint ventures represent a significant portion of its value, as detailed in this breakdown:
Perhaps the most significant upcoming event is the planned listing of Solstad Maritime on Euronext (EPA:ENX) Oslo Børs, expected to commence trading on or around May 16, 2025. Solstad Offshore holds a 27.3% stake in Solstad Maritime, which owns 32 high-end AHTS and CSV vessels. The listing represents a major milestone in the company’s strategic evolution.
The following slide details Solstad Maritime’s key figures ahead of its listing:
Financial Position and Outlook
Solstad Offshore has significantly strengthened its financial position, with book equity rising to USD 311 million (39% equity ratio) compared to USD 189 million (24%) in Q1 2024. The company has also substantially reduced its Adjusted Net Interest-Bearing Debt (NIBD) to USD 107 million from USD 201 million a year earlier.
The company’s backlog and tendering activity remain robust, providing visibility for future operations:
In a notable development for shareholders, management announced its intention to initiate quarterly dividends from Q3 2025. Solstad Offshore will also benefit from its share of Solstad Maritime’s dividend, amounting to approximately USD 9.5 million.
Forward-Looking Statements
Looking ahead, Solstad Offshore maintained its full-year 2025 guidance, projecting Adjusted EBITDA between USD 120-150 million. This includes operational Adjusted EBITDA of USD 60-70 million and share of results from associated companies and joint ventures of USD 60-80 million.
The company highlighted continued positive market outlook with high tendering activity, particularly in Brazil. Recent contract awards include a 4-year agreement with Petrobras for AHTS Normand Turquesa, commencing in Q1 2026.
As summarized in the company’s presentation, the offshore market remains favorable despite global uncertainties:
With its strengthened balance sheet, strategic investments, and upcoming dividend initiation, Solstad Offshore appears well-positioned to capitalize on opportunities in the offshore energy services market throughout 2025 and beyond.
Full presentation:
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