SED Energy Holdings (ENH) Q2 2025 earnings summary

Executive summary

• The merger of Energy Drilling and SeaBird Exploration formed a robust, diversified offshore services company with a strong contract backlog and conservative capital structure.

• Achieved high operational performance, with technical utilization above 98% and significant revenue growth year-over-year.

• Completed refinancing on improved terms, reducing financing costs and reinforcing liquidity.

• Ongoing tax audit in Thailand resulted in a $9.9 million withholding tax provision, impacting net profit.

• Focused on maximizing shareholder value through disciplined capital allocation and robust distributions.

Financial highlights

• Q2 2025 revenue was $52 million, up 47%–57% year-over-year; H1 2025 revenue reached up to $113.5 million, up 60%.

• Adjusted EBITDA for Q2 2025 was up to $26 million; H1 2025 adjusted EBITDA reached $60.7 million, up 75%.

• Net loss for Q2 2025 was $6.2 million, impacted by merger and tax costs; underlying net profit was $12.5 million.

• Cash and cash equivalents at June 30, 2025, stood at $80 million.

• Net interest-bearing debt reduced to $25.6 million; leverage ratio at 0.2x–0.3x.

Outlook and guidance

• Full-year 2025 shareholder distribution guidance is $70–$90 million, with $40 million approved for H1 2025.

• Commitment to quarterly shareholder distributions starting Q3 2025.

• Revenue is expected to increase in 2026 based on existing contracts and market outlook.

• Company is well positioned to capitalize on long-term drilling and seismic opportunities.