Viking Supply Ships (VSSAB) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was MSEK 279, up from MSEK 151 in Q2 2023, driven by more vessels in operation and higher utilization.

• EBITDA for Q2 reached MSEK 95 (23), and profit after tax was MSEK 51 (-6) compared to the same quarter last year.

• Year-to-date revenue was MSEK 508 (321), EBITDA MSEK 156 (60), and profit after tax MSEK 157 (3), including a capital gain of MSEK 97 from vessel sales.

• The company entered a 90-day contract in Canada with options extending into late Q3 2024 and ended a long-term icebreaker management contract with the Swedish Maritime Administration.

• Announced outsourcing of ship and commercial management to Sea1 Offshore Inc Group, aiming for cost reductions and broader market exposure.

Financial highlights

• Q2 2024 net sales: MSEK 279 (Q2 2023: 151); EBITDA: MSEK 95 (23); profit after tax: MSEK 51 (-6).

• Year-to-date net sales: MSEK 508 (321); EBITDA: MSEK 156 (60); profit after tax: MSEK 157 (3).

• Earnings per share after tax: SEK 3.8 (-0.4) for Q2; SEK 11.9 (0.3) year-to-date.

• Equity at quarter-end: MSEK 2,140; equity ratio: 71.1% (Q2 2023: 94.3%).

• Cash and cash equivalents at quarter-end: MSEK 190; unutilized credit facilities: MSEK 424.

Outlook and guidance

• North Sea market expected to remain volatile for the rest of 2024, influenced by global vessel demand.

• Anticipated increased demand in Brazil, Canada, West Africa, and Australia due to rig activity and FPSO projects.

• Outsourcing of ship management to Sea1 Offshore expected to yield substantial cost savings from Q1 2025.