Viking Supply Ships (VSSAB) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw fluctuating but overall decreasing market conditions, with North Sea AHTS rates under pressure post-project season; slight activity uptick on the Norwegian side late in the quarter.

• Revenue for Q4 from continuing operations was MSEK 94 (58), EBITDA MSEK -34 (-41), and profit after tax including discontinued operations MSEK -91 (-86) compared to Q4 2023.

• Year-to-date revenue for continuing operations was MSEK 679 (359), EBITDA MSEK 231 (63), and profit after tax including discontinued operations MSEK 111 (-88).

• Sale of PSV vessels in Q1 2024 generated a capital gain of MSEK 97 and positive liquidity effect of MSEK 194; PSV and Ship Management segments now reported as discontinued operations.

• Outsourcing of commercial and ship management to Sea1 completed in Q4, reducing operational costs and restructuring the organization.

Financial highlights

• Q4 2024 revenue for continuing operations: MSEK 94 (Q4 2023: 58); EBITDA: MSEK -34 (-41); result after tax including discontinued operations: MSEK -91 (-86).

• Year-to-date 2024 revenue: MSEK 679 (359); EBITDA: MSEK 231 (63); result after tax including discontinued operations: MSEK 111 (-88).

• Q4 average fixture rates for AHTS fleet: USD 36,200 (44,600); utilization: 46% (33%).

• Equity at year-end: MSEK 2,170; equity ratio: 72.6% (67.6%); cash and cash equivalents: MSEK 166 (172).

• Interest-bearing liabilities at year-end: MSEK 716 (770); unutilized credit facility: MSEK 404.

Outlook and guidance

• Q1 2025 North Sea AHTS market expected to show typical winter weakness with occasional rate uplifts.

• 2025 project outlook and expected increase in semi rig count on Norwegian side seen as promising for larger AHTS vessels.

• British North Sea expected to face lower activity due to regulatory challenges.

• Anticipated increasing demand outside North Sea driven by global rig activity, FPSO installations, decommissioning, and floating wind support.