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Introduction & Market Context
Solstad Offshore (OB:SOFF) presented its second quarter 2025 results on July 14, showing significant improvement across key financial metrics amid positive long-term demand in offshore energy services. The presentation, delivered by CEO Lars Peder Solstad and CFO Kjetil Ramstad, highlighted the company’s strengthening market position, particularly in Brazil, where it secured several long-term contracts.
The offshore service provider achieved 100% fleet utilization during the quarter, up from 97% in the same period last year, despite what management described as a "more competitive" subsea market with typically shorter contract durations of 1-6 months in most regions.
Quarterly Performance Highlights
Solstad Offshore reported adjusted EBITDA of $32 million for Q2 2025, representing a 28% increase from $25 million in Q2 2024. Revenue rose to $78 million, up from $58 million in the same quarter last year, while net result surged to $39 million compared to just $4 million in Q2 2024.
The company’s order intake reached $403 million during the quarter, including new contracts in Brazil and a 4-year Petrobras contract for the AHTS Normand Turquesa commencing in Q1 2026. This contributed to a strengthening backlog, with firm orders for Solstad Offshore vessels at $238 million and Solstad Maritime vessels at $533 million.
Fleet utilization was exceptional across all vessel types, with both Construction Support Vessels (CSV) and Anchor Handling Tug Supply (AHTS) vessels achieving 100% utilization in the quarter, compared to 97% overall utilization in the same period last year.
Strategic Initiatives
A key development during the quarter was the listing of Solstad Maritime on Euronext (EPA:ENX) Oslo Børs on May 16, 2025. Solstad Offshore maintains a 27.3% ownership stake in this entity, with Aker as the majority shareholder. The company reported that Solstad Maritime declared a Q2 2025 dividend of approximately $35 million, of which Solstad Offshore’s share amounts to approximately $9.5 million.
The presentation emphasized the company’s strategic focus on Brazil, where local presence has enabled it to secure long-term contracts. The company highlighted its strong foothold in the region with office locations and vessel presence, positioning it to capitalize on what it describes as "long-term opportunities for both CSVs and AHTS" in the Brazilian market.
As shown in the following chart of backlog development, the company has significantly increased its order visibility, particularly for Solstad Maritime vessels due to three new 4-year contracts in Brazil:
Detailed Financial Analysis
Solstad Offshore’s balance sheet showed marked improvement, with book equity rising to $349 million, representing a negative 40% of total assets, compared to $193 million and negative 23% in the prior year. The company reported cash holdings of $60 million, up from $53 million a year earlier.
Most notably, adjusted net interest-bearing debt (NIBD) decreased substantially to $83 million from $211 million in Q2 2024, reflecting the company’s ongoing deleveraging efforts. This improvement in the debt position strengthens Solstad Offshore’s financial flexibility and supports its announced intention to initiate quarterly dividends based on Q3 2025 results.
The company’s investments in associated companies and joint ventures continue to contribute positively to results. In addition to Solstad Maritime, these include a 50% stake in Normand Installer S.A. (a joint venture with SBM Offshore) and a 35.8% stake in Omega Subsea, which owns and operates ROVs and survey services.
Forward-Looking Statements
Solstad Offshore maintained its full-year 2025 guidance, projecting adjusted EBITDA between $120-150 million. This consists of operational adjusted EBITDA of $60-70 million (with $34 million achieved year-to-date through Q2) and $60-80 million from associated companies and joint ventures (with $28 million achieved year-to-date).
The company’s backlog visibility is increasing, with firm contract days secured well into 2027. Management noted that the market remains attractive for available vessels beyond 2025, supporting their positive long-term outlook for offshore energy services.
Looking ahead, Solstad Offshore emphasized four key points in its summary: another quarter of solid operational and financial performance, high tendering and award activity in Brazil where local presence is a key enabler, strong order intake with increased visibility for 2025 and beyond, and continued value creation through investments in associated companies and joint ventures.
With its strengthened financial position, high utilization rates, and growing backlog, Solstad Offshore appears well-positioned to capitalize on favorable market conditions in the offshore energy sector, particularly in Brazil where it has secured significant long-term contracts.
Full presentation:
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