DOF Group (DOFG) Investor Update summary

Fleet overview and recent acquisition

• Acquired 22 high-end vessels, including CSVs, anchor handlers, and a cable layer, with an average age of 8.5 years for $881 million, representing 0.66x broker values at closing, with asset values rising since.

• The fleet is positioned for global projects, especially in mooring and subsea, with high utilization and strong earnings potential expected from 2025 onward.

• Four I-class CSVs are among the most modern globally, with significant earnings upside as contracts renew at higher market rates.

• Fleet deployment strategy leverages subsea service scopes and utilizes AHTS vessels as project vessels to boost earnings.

• H1-25 will see impacts from vessel transits and upgrades, enabling added subsea services across the fleet.

Market outlook and contract activity

• High tender activity is observed globally, with strong demand for high-end anchor handlers and CSVs in regions like Brazil, APAC, and North America.

• Clients are approaching earlier for 2026–2027 projects, indicating robust future demand and market confidence.

• The term market for anchor handlers is strong, with recent tenders in Brazil seeing limited competition and high day rates.

• Several vessels have firm contracts extending into 2027 and options into 2030, supporting stable future earnings.

• A new field support vessel for the White Rose field in Canada is under a 15-year firm contract, with options extending to 2052.

Earnings guidance and financials

• Preliminary 2025 EBITDA guidance for the group is $720–800 million, with DOF Denmark expected to contribute $150–200 million, including transition costs for vessel upgrades.

• Second half 2025 is expected to see a higher run rate, with annualized EBITDA north of $200 million, and further increases anticipated in 2026 as more contracts renew at market rates.

• EBITDA contribution from firm contracts for 2025 is estimated at approximately $125 million.

• Dividend ambitions remain unchanged, with CapEx for vessel upgrades largely financed and limited impact on cash flow.

• DOF Denmark's enterprise value at closing was $900 million, enabling immediate fleet expansion and optimization.