Solstad Offshore: A Strategic Pivot to Long-Term Contracted Growth

Q2 2026: Backlog up 82%, dividend raised 50%, and a new SBM JV locks in a 14-year vessel contract

SOFF.OL · Earnings Call · 2026-07-15

A Quarter of Execution

Solstad Offshore ASA delivered a second quarter that combined steady operational performance with strategic moves. The company posted total adjusted EBITDA of $41 million, up from $32 million a year ago, with operational EBITDA climbing to $22 million from $17 million. “It has been a strong and active quarter for the company with improved operational performance, important contract wins, increased the backlog visibility, and a continued capital distribution to our shareholders.” — Lars Peder Solstad, CEO · 2026-07-15 The quarter also included a successful arbitration case win, which will bring a $14.5 million cash benefit and a booked $7 million P&L gain. The backlog increased markedly: firm backlog for owned vessels reached $432 million, up 82% year-over-year, helped by the Normand Maximus letter of intent and the Brazilian anchor handler contracts. CFO Kjetil Ramstad highlighted: “The firm backlog for Solstad Offshore owned vessels of $432 million at quarter end versus $238 million last year.” — Kjetil Ramstad, CFO · 2026-07-15 This visibility underpins the company's decision to narrow full-year guidance to $60-70 million operational adjusted EBITDA, excluding JV contributions, as CEO Lars Peder Solstad stated: “We are narrowing the operational adjusted EBITDA guidance range from $50 million-$70 million, up to $60 million-$70 million for the full year.” — Lars Peder Solstad, CEO · 2026-07-15

A Strategic Bet on Long-Term Contracted Growth

The most significant announcement was the new specialized mooring and installation vessel to be built at CIMC Raffles, ordered through a new joint venture with SBM Offshore. This vessel will commence a 14-year contract with SBM upon delivery in 2029, replicating the NISA model that has been successful for two decades.

We have also taken important strategic steps through the new joint venture we have established with SBM Offshore, and the ordering of a specialized mooring and installation vessel to further strengthen our long-term position in an attractive offshore market.
Lars Peder Solstad, CEO · 2026-07-15

The vessel will have unique capabilities down to 4,000 meters of water depth, addressing expected long-term demand from FPSO developments, maintenance, and potential floating wind. This builds on the existing JV portfolio. NISA, the mooring installation JV, was fully utilized in the quarter and is nearly fully booked for the second half. Omega Subsea continues to grow, having posted $96 million revenue and $27 million EBITDA over the trailing twelve months, with 16 ROVs in operation and 14 more on order. Management noted that Omega will require capital for growth over the next year or so, but will then enter a dividend position.

Backlog, Balance Sheet, and Shareholder Returns

The improved earnings and backlog are translating into capital returns. The quarterly dividend was increased by 50% to $0.15 per share, implying an approximately 8.5% yield at the time of the announcement. The company's adjusted net interest-bearing debt stands at a modest $28 million, down from $83 million a year earlier, and book equity improved to $478 million, giving an equity ratio of 44%. The cash position rose to $83 million from $60 million. The new Maximus contract, once finalized, will also support the financing of the purchase option. Management had previously flagged interest in exercising the option. In February, CEO Lars Solstad said, “The optional price is well in the money compared to the value of the vessel. It will be very natural that we use that option.” — Lars Solstad, CEO · 2026-02-12 The current quarter provides a path to do so with better visibility.

Market Outlook and Positioning

The offshore market remains robust. The company's anchor handling exposure is concentrated in Brazil, where all three owned vessels are on long-term contracts, and the global anchor handling market is strong for larger, project-capable vessels. In the CSV segment, activity is good but project-oriented, with some idle capacity. The company remains positive on South America, West Africa, and the North Sea. As management noted in the prior call, “we are positive to achieve a good utilization for that vessel either on that contract or on alternative opportunities in Brazil” — Lars Solstad, CEO · 2025-10-30 – a sentiment that has proven correct with the Topazio securing a four-year Petrobras contract. With a strengthened backlog, a new long-term contracted asset, and a balance sheet that supports both growth and returns, Solstad Offshore is positioning itself as a focused player in high-end offshore services. The market has rewarded the operational consistency, but the strategic pivot toward long-term contracted JV assets may be the more durable story.