Q2 2026 Sed Energy Holdings PLC Earnings Call Transcript
Key Points
- Record Q2 2026 revenue of $71.5 million, up nearly 40% year-over-year, and adjusted EBITDA of $42.6 million, up over 60%.
- Strong balance sheet with net debt of only $18 million and a low leverage ratio of 0.1x, providing financial flexibility.
- Sixth consecutive quarterly distribution of $25 million proposed, with total shareholder returns of $132.5 million since inception, about 30% of market cap at creation.
- Robust firm backlog of $342 million, providing earnings visibility into 2027.
- High operational performance with all rigs and vessels on contract, achieving record EBITDA margin of 65% for Energy Drilling.
- No new contracts signed during the quarter, with six tenders delayed due to Middle East geopolitical uncertainty.
- SeaBird Exploration's economic utilization dropped to 76% due to contract transitions and mobilization, impacting quarterly results.
- Geopolitical volatility is causing delays in customer investment decisions and slowing tender awards in both drilling and seismic markets.
- The broader shallow water market recovery has been slower than expected, with operator confidence hit by Middle East uncertainty.
- SeaBird's EBITDA margin was only 21%, reflecting the impact of mobilization and transition periods.
Welcome to this presentation of the financial results for the second-quarter of 2026 for Energy Holdings. My name is Kurt Waldeland, and I am the CEO of Energy Holdings. I am joined today by Viggo Pedersen and Sveinung Alvestad. Before we begin, I kindly ask you to review the disclaimer slide regarding forward-looking statements.
Energy Holdings is an industrial holding company focused on the offshore energy service industry, uniquely positioned with a robust backlog and a conservative capital structure. Our two subsidiaries, Energy Drilling and SeaBird Exploration, are both leaders in their respective segments, operating in highly attractive niches of the oil and gas service industry with primary exposure to brownfield development. Since the establishment of the company last year, a key priority for us has been to distribute available liquidity to our shareholders.
This commitment remains unchanged, and we are very pleased to announce our sixth consecutive quarterly distribution for the second quarter of 2026.
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