Solstad Offshore Q3 2025 presentation: Net profit doubles as debt levels plummet

Introduction & Market Context

Solstad Offshore (OB:SOFF) presented its Q3 2025 financial results on October 30, 2025, highlighting strong performance despite some market headwinds. The company’s stock closed at $44.50, down 2.25% following the presentation, as investors reacted to the recently revised guidance. While the offshore energy services provider faces challenges in the North Sea region, its strategic positioning in Brazil continues to provide stability and growth opportunities.

The company emphasized that long-term demand in offshore energy services remains positive globally, though short-term demand is lower than previously expected. Recent oil price developments represent a source of uncertainty going forward, which the company is monitoring closely.

Quarterly Performance Highlights

Solstad Offshore delivered solid financial results in Q3 2025, with revenue increasing to $73 million from $68 million in the same period last year. The company’s net result more than doubled to $26 million, compared to $11 million in Q3 2024, demonstrating significant bottom-line improvement.

Vessel utilization remained strong at 97% during the quarter, matching the same level achieved in Q3 2024. The AHTS fleet recorded 96% utilization (down from 99% last year), while the CSV fleet improved to 98% (up from 96%).

As shown in the following financial highlights slide, Solstad maintained consistent operational performance while significantly strengthening its balance sheet:

Adjusted EBITDA for the quarter came in at $29 million, slightly above the $28 million reported in the same quarter last year. Year-to-date adjusted EBITDA reached $91 million, compared to $89 million for the same period in 2024.

Strategic Positioning and Backlog

A key highlight from the presentation was Solstad Offshore’s strong order intake of $222 million during the quarter, primarily driven by several new long-term contracts in Brazil. This includes a 3-year contract for Normand Turmalina commencing in Q1 2026 and a 1-year option declaration for Normand Superior starting in Q1 2026.

The company’s global footprint and strategic focus on key markets is illustrated in this market update slide:

Solstad’s backlog provides solid visibility for future earnings, with firm backlog for Solstad Offshore vessels at $280 million and for Solstad Maritime vessels at $640 million. The backlog and contract coverage is visually represented in the following charts:

The company highlighted that Brazil continues to offer long-term and project opportunities for both the CSV and AHTS segments, which helps offset the reduced activity in the North Sea. Management emphasized that local presence in main regions is key to exploiting market opportunities.

Financial Position and Debt Reduction

One of the most impressive aspects of Solstad’s quarterly performance was the significant improvement in its financial position. The company reduced its adjusted net interest-bearing debt (NIBD) to $57 million, down from $206 million in the same period last year, representing a substantial deleveraging of the balance sheet.

The company’s cash position strengthened to $87 million, up from $60 million in Q3 2024. Book equity increased to $375 million (44% of total assets), compared to $203 million (24%) in the prior year period.

The following slide details the company’s debt structure and lease obligations:

Solstad Offshore also maintains strategic investments in associated companies and joint ventures, which contribute significantly to its financial results. These investments include a 27.3% stake in Solstad Maritime, a 50% stake in Normand Installer S.A., and a 35.8% stake in Omega Subsea.

As shown in the following slide, these investments generated a combined share of result of $10.4 million in the quarter:

Forward-Looking Statements and Guidance

On October 9, 2025, Solstad Offshore updated its full-year 2025 adjusted EBITDA guidance from $120-150 million to approximately $115 million. The revised guidance reflects lower short-term demand than previously expected, particularly in the North Sea region.

The company’s financial guidance for 2025 is detailed in the following slide:

Despite the guidance revision, Solstad Offshore announced its intention to distribute a cash dividend of $0.05 per share for Q3 2025, totaling approximately $4 million. This reflects management’s confidence in the company’s financial stability and future prospects.

The company summarized its outlook by noting several market opportunities for available vessels into 2026 and highlighting its strong order intake of $222 million, which increases visibility for 2026 and beyond. However, management cautioned that recent oil price developments represent a source of uncertainty going forward.

Overall, Solstad Offshore’s Q3 2025 presentation portrayed a company with solid operational performance, significantly improved financial health, and strategic positioning in growth markets, particularly Brazil, while acknowledging challenges in the North Sea and uncertainties related to oil price developments.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.