SED Energy Holdings (ENH) Q4 2025 earnings summary

Executive summary

• Achieved a transformational year with the successful merger of Energy Drilling and SeaBird Exploration, expanding operational scale and reducing single asset risk, with all rigs and vessels fully utilized and on contract.

• Fourth consecutive quarterly distribution proposed at $22.5 million, bringing total 2025 distributions to $82.5 million, over 20% of pro forma capitalization at merger.

• Amended debt facility reduced annual amortization by nearly 60%, enhancing liquidity and financial flexibility.

• Entering 2026 with high earnings visibility, robust backlog, and disciplined capital allocation.

• Robust balance sheet with industry-leading leverage ratio of 0.4x and net interest-bearing debt of $47.1 million.

Financial highlights

• Q4 2025 revenue reached $61.2 million, up 48% year-over-year; full-year revenue was $225.4 million, up 59%.

• Q4 2025 adjusted EBITDA was $30.1 million, up 32% year-over-year; full-year adjusted EBITDA was $114.8 million, up 61%.

• Q4 2025 net profit was $12.6 million, up 19% year-over-year; full-year net profit was $28.1 million, down 4% due to merger costs and tax settlement.

• Adjusted full-year net profit (excluding one-off items) was $49 million.

• Year-end cash balance was $36.3 million; revenue backlog at year-end was $466 million.

Outlook and guidance

• Expecting a substantial increase in shareholder distributions in 2026, supported by strong backlog and all assets on contract.

• 2026 CapEx guidance is $18 million, reflecting normalized levels.

• Market fundamentals remain supportive, with robust offshore energy demand and a solid pipeline of projects in Asia-Pacific.

• Drilling activity in Malaysia projected to grow 15% year-over-year in 2026; shallow-water rig market expected to tighten.

• OBN seismic segment remains strong, with SeaBird positioned for high utilization.