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Eidesvik Offshore ASA reported its third-quarter 2025 earnings, revealing stable revenues but a decline in EBITDA. The company maintained its revenue at NOK 205 million, mirroring the same period last year, while EBITDA dropped to NOK 88 million from NOK 97 million in Q3 2024. Despite the dip, Eidesvik’s EBITDA margin improved from Q2 2025. The stock remained stable following the announcement, with no significant change in its price.
Key Takeaways
- Revenues remained flat at NOK 205 million compared to Q3 2024.
- EBITDA decreased to NOK 88 million, but the margin improved to 43%.
- The company paid a NOK 30 per share dividend in August.
- Eidesvik is constructing two new vessels, with one delayed to Q3 2026.
- The North Sea PSV market is currently oversupplied, affecting rates.
Company Performance
Eidesvik Offshore ASA’s performance in Q3 2025 showed stability in revenue but a decline in EBITDA compared to the same quarter last year. The EBITDA margin, however, saw an improvement from the previous quarter, indicating operational efficiencies. The company continues to benefit from nearly full vessel utilization and a robust contract backlog, despite challenges in the North Sea PSV market.
Financial Highlights
- Revenue: NOK 205 million (flat YoY)
- EBITDA: NOK 88 million (down from NOK 97 million YoY)
- EBITDA Margin: 43% (improved from 38% in Q2 2025)
- Profit After Taxes: NOK 43.5 million
- Cash Balance: NOK 291 million
- Equity Ratio: Increased to 64% from 62%
Outlook & Guidance
Eidesvik Offshore maintains a positive long-term outlook, anticipating market improvements between 2026 and 2028. The company is focusing on operational excellence and exploring opportunities for its available vessels. It has also projected stable EPS and revenue forecasts for FY2025 and FY2026.
Executive Commentary
CEO Helga Cotgrove emphasized the company’s strong utilization rates, stating, "We continue to deliver very strong utilization of close to 100% in both segments." She also highlighted the global energy outlook, noting, "Per ExxonMobil’s 2025 global outlook, oil and natural gas will still make up more than half of the global energy mix in 2050."
Risks and Challenges
- Oversupply in the North Sea PSV market could pressure rates.
- Delays in vessel deliveries might impact future operational capacity.
- Fluctuations in global energy demand could affect long-term contracts.
- Currency exchange rates may impact financial results due to international operations.
The earnings call provided insights into Eidesvik’s strategic focus on maintaining high vessel utilization and adapting to market conditions, despite current challenges in the offshore energy sector.
Full transcript - Eidesvik Offshore ASA (EIOF) Q3 2025:
Helga Cotgrove, CEO, Eidesvik Offshore ASA: Good morning, everybody, and welcome to Eidesvik Offshore ASA’s Q3 2025 presentation. Attending this webcast from our end is our CFO, Lars Tufteland Engelsen, and myself, CEO Helga Cotgrove. We will address any questions submitted during the webcast at the end of the presentation. We kindly ask you to take note of the text on the disclaimer slide. We had freight revenues of NOK 205 million in the quarter. This is flat compared to NOK 207 million for the same period last year and slightly up from Q1 2025. Sorry, Q2 2025. Our EBITDA was NOK 88 million compared to NOK 97 million in Q3 2024. The EBITDA margin was 43%. The decrease is due to reduced profit-based allocation compensation from one of our vessels quarter on quarter. We’re seeing an improvement from Q2 EBITDA margin of 38%. Lars will provide further details on the financials.
Consolidated backlog is close to NOK 3.3 billion, an increase of around NOK 350 million from Q3 2024. We have increased our equity ratio from 62% to 64% since the year-end. When combining this with our newbuild program of two new vessels, this confirms our strong balance sheet and solid operations. Our cash balance is now NOK 291 million, down from NOK 396 million at year-end due to the newbuild investments, where we are financing the equity portion with cash on hand. In August, we paid a dividend to our shareholders of NOK 30 per share. Subsequent to the quarter, we’re happy to report that our valued customer, Aker BP, extended its contract on the PSV Viking Lady in direct continuation of the existing contract. Aker BP has also extended its final firm period for the Viking Prince till end February 2026.
Unfortunately, we received information from the yard that the newbuild Viking Viggo will be delayed for delivery from April 2026 to Q3 2026. This is very disappointing, and we’re working closely with the yard to control the situation to the extent possible. At the moment, newbuild 76 is still on schedule, and we are monitoring this with the yard to ensure progress is in line with the scheduled delivery date based on what we’ve now learned on Viking Viggo. We continue to deliver very strong utilization of close to 100% in both segments. Utilization is a combination of contract coverage, technical uptime, operational excellence, and ability to man vessels. The Eidesvik team has an unwavering focus on all these parameters. Unfortunately, we had a lost time incident, an LTI, in the quarter.
This is something we do not want to happen, and we can only continue our undiminished focus on continued improvement in the HSE area. Our goal is that all employees shall leave work in the same or better condition than when they entered the workplace. Our contract backlog is now close to NOK 3.3 billion. This includes our share of the JV with Subsea7. This is up from same quarter last year. We have reduced contract coverage going forward. From October, we’ve had PSV Viking Queen available in the spot market. PSV Viking Avant and PSV Viking Princess will both currently be available from year-end. We are actively exploring opportunities for these vessels. Even though long-term fundamentals remain sound, unpredictability continues to influence the market in the short term. OPEC+ is keeping off its reversal of previous production cuts, and global geopolitical uncertainty persists.
This continues to drive volatility in the oil price. The OSV market has seen a flat development in the quarter, although with region variances. Longer-term demand outlook within offshore energy services continues to be positive. The leading EPC and Subsea contractors continue to report record-high backlogs and tendering activity in the offshore energy space. Per ExxonMobil’s 2025 global outlook, oil and natural gas will still make up more than half of the global energy mix in 2050, and it’s essential to meet the world’s energy needs. This confirms the need for sustained investment in oil and gas development long-term in combination with investment growth in renewable and lower-emission technologies. The PSV spot market in the North Sea was very soft over the summer, but September saw increased activity and very high rates in the Norwegian sector.
The North Sea market is currently oversupplied, creating pressure on both rates and utilization for vessel owners. This is not helped by only a limited number of longer-term charters being awarded. The market is still expected to improve in 2026 and 2027 based on expected increased activity levels. Within Subsea, the large EPC contractors have so far been slow at adding vessel capacity, even with record-high backlog. Both the Subsea and renewable market continue to be strong, even if a slowdown in fixtures and rates has been observed within the Subsea IMR space. It should be noted that the rates are still attractive for vessel owners. 2026 and even more, 2027 and 2028, are expected to be very active with solid rates and utilization. In the renewable sector, the previously noted activity is continuing, and there is increased interest in securing tonnage long-term.
Vessels with dual market capabilities are attractive. Over to Lars for the financials.
Lars Tufteland Engelsen, CFO, Eidesvik Offshore ASA: Thank you, Helga. Please note all numbers are in Norwegian kroner. Revenue in Q3 was NOK 204.6 million compared to NOK 207.1 million in Q3 2024, which represents a minor decrease. The reduction derives mainly as last year’s quarter was positively impacted by a profit allocation compensation on one of the vessels. EBITDA was NOK 87.6 million compared to NOK 96.5 million in Q3 2024. Personnel expenses in the quarter increased compared to Q3 2024 due to general salary adjustments, and other operating expenses increased mainly due to unplanned repairs needed for several of our vessels. Compared to Q2 this year, the high utilization is the main driver for the increase in both freight revenue and EBITDA, in addition to a decrease in personnel expenses. Joint ventures had a profit of NOK 0.2 million compared to a loss of NOK 1.1 million in Q3 2024.
Operating result was NOK 41 million in the quarter compared to NOK 48.6 million in the same quarter in 2024. Net financial items improved from minus NOK 4.4 million to plus NOK 3.9 million quarter on quarter. The improvement is mainly due to an increase in capitalized borrowing cost on the new builds according to IFRS 23. Profit after taxes in Q3 was NOK 43.5 million compared to NOK 44.2 million in Q3 2024. If we take a look at our segments, we see in our supply segment, revenue quarter on quarter increased to NOK 112 million compared to NOK 109 million in Q3 2024. This is mainly due to minor rate adjustments. EBITDA went from NOK 47 million to NOK 48 million in the segment. The EBITDA margin remained stable at 43%. The utilization was close to 100% in both Q3 2024 and 2025. We own six vessels in this segment and, in addition, have management of two.
For Subsea and renewables, revenue decreased from NOK 110 million to NOK 104 million quarter on quarter. The reduction derives mainly as last year’s quarter was positively impacted by a profit allocation compensation on one of the vessels, as mentioned earlier in the presentation. The numbers include our consolidated numbers, plus 50% of revenue from the vessel 7VK. EBITDA decreased from NOK 60 million to NOK 48 million, and EBITDA margin is 46%, which is a decrease from 54% in Q3 2024. We wholly or partly own four vessels in the segment and have one under management. All these vessels in this segment are on long contracts. On the next page, we see that our fixed assets have increased from end last year, mainly due to the investment in two newbuild vessels, which is currently being built at Sefine Shipyard in Turkey. Both newbuilds are treated as assets under construction.
Our equity percentage is 64% compared to 62% at year-end and reflects our strong balance sheet. Net interest-bearing debt by the end of the quarter was NOK 512 million compared to NOK 499 million at year-end last year. The increase is mainly due to payment of yard installment on the second new build. Net interest-bearing debt, excluding IFRS 16, over-adjusted EBITDA the last 12 months is 1.5. Operating cash flow year-to-date is NOK 198 million compared to NOK 268 million for the same period last year. The reduction is mainly related to movement in the working capital. On the investment side, spending is mainly due to investment in the second new build. Cash flow from finance is mainly due to payment of installments, interest, and dividend, offset by contribution from minority interest in the second new build.
Cash balance at the end of the period is about NOK 291 million, and NOK 58 million of this is restricted. Now back to Helga for closing remarks.
Helga Cotgrove, CEO, Eidesvik Offshore ASA: As a summary, we are highlighting the following. As always, outstanding operational performance. We are working on contract renewals for available vessels. Unfortunately, there is a delay for the newbuild Viking Viggo, but the vessel is still priced favorably and is coming into an expected positive market. We continue to focus on profitable growth opportunities. Over to Q&A.
Moderator/Operator: Thank you, Helga. We have received one question which goes like this: Industry report states clients in Norway are about to improve efficiency on the PSV pool. How do you expect this to impact supply demand going forward?
Helga Cotgrove, CEO, Eidesvik Offshore ASA: Yeah, I think that that is something that has been going on for some time. I think it should be noted that the supply and demand balance is narrow. We’re seeing that with the movements in the spot market. Up and down on pricing, it can, you know, for some period, be cost recovery, on other times being up to NOK 500,000 a day for a PSV. Because it’s so narrow and there hasn’t been a lot of new PSVs for a long time coming into the market. We don’t think there’s going to be a major impact, but it should be noted that the vessel owners are monitoring this very closely and adjusting. Exploring other opportunities to adjust for this.
Moderator/Operator: Thank you. Another question is several subsea vessels have become available globally and sitting idle in recent months. How do you explain this change in demand seen recently?
Helga Cotgrove, CEO, Eidesvik Offshore ASA: I think it varies a bit. Based on the size of vessels and where they’re based. We’ve seen that the North Sea has seen a bit of projects being pushed to the right, which has led to some shorter-term idle. Again, we are positive to this going forward, looking at a backlog for our customers that the vessel utilization will be strong and prices will be strong going forward.
Moderator/Operator: Thank you. That concludes the received questions.
Helga Cotgrove, CEO, Eidesvik Offshore ASA: So then we’re saying thank you to everybody joining our Q3 conference call and wish you all a nice day.
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