Q2 2025 Solstad Offshore ASA Earnings Call Transcript
Key Points
- Solstad Offshore ASA (LTS:0G2Z) achieved 100% fleet utilization in the second quarter, indicating strong operational efficiency.
- The company reported a significant increase in EBITDA to $32 million, a 28% rise compared to the same quarter last year.
- Solstad Offshore ASA signed new contracts worth over $400 million, strengthening its position in Brazil and ensuring future revenue streams.
- The company plans to start distributing quarterly dividends based on third quarter 2025 results, indicating a commitment to returning value to shareholders.
- Solstad Offshore ASA has a strong backlog of $770 million, providing visibility and stability for future operations.
- The market momentum has softened, with a slowdown in the number of new opportunities and increased competition for existing projects.
- The subsea market remains highly competitive, with project durations typically ranging from one to six months, which may impact long-term planning.
- The floating wind market, while promising, is not expected to see substantial activity until the end of the decade, delaying potential revenue from this sector.
- The vessel Normand Installer experienced a slow start in the first half of the year, impacting its financial performance.
- The company faces potential challenges in maintaining high utilization rates for certain vessels, with some contracts potentially ending by the end of the year.
Good morning and welcome to Solstad Offshore's second quarter and first half presentation. And this has been a quarter with a very high activity and a solid operational and financial results.
Today's presentation will be held by CFO, Kjetil Ramstad; and myself, CEO, Lars Peder Solstad, and after the presentation we will open up for Q&As, so please ask your questions in the chat.
If we take just a quick look at the disclaimer before we move on to the second quarter highlights and a business update.
Obviously, the listing of Solstad Maritime, where Solstad Offshore owns 27.3% in mid-May was an important milestone for the company, and I am happy to see that Solstad Maritime has been well received by investors and analysts.
The outlook for our industry and the market fundamentals are still positive, but the steep activity increase that we saw earlier has now leveled out for now, and it has leveled out on a relatively high level and with day rates we achieved still being on healthy levels. We have had
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