Q2 2026 Sea1 Offshore Inc Earnings Call
Bernt Omdal: Presentation of our results for the second quarter. My name is Bernt Omdal, and I am the CEO of the company. Together with our CFO, Vidar Jerstad, we will take you through this presentation. Sea1 Offshore's report for Q2 2026 was released prior to the market opening today. In this presentation, we will cover the main highlights of the report, and we will refer to the presentation issued together with the financial report. At the end of the presentation, we will open up for questions, and I suggest you post your questions in the chat function. Looking at the highlights for the quarter, we operated 15 fully owned vessels. In addition, we have four vessels under construction. All of our vessels in operation delivered a positive EBITDA margin. We had US$80 million in revenue, and we delivered $41.5 million in EBITDA.
Bernt Omdal: —presentation of our results for Q2. My name is Bernt Omdal, and I am the CEO of the company. Together with our CFO, Vidar Jerstad, we will take you through this presentation. Sea1 Offshore's report for Q2 2026 was released prior to the market opening today. In this presentation, we will cover the main highlights of the report, and we will refer to the presentation issued together with the financial report. At the end of the presentation, we will open up for questions, and I suggest you post your questions in the chat function. Looking at the highlights for the quarter, we operated 15 fully owned vessels. In addition, we have four vessels under construction. All of our vessels in operation delivered a positive EBITDA margin. We had US$80 million in revenue, and we delivered $41.5 million in EBITDA.
Speaker #1: Presentation of our results for the second quarter. My name is Bernd Tomdahl, and I'm the CEO of the company. To hand over to our CFO, Vida Jesta, we will take you through this presentation.
Speaker #1: Sea1 Offshore's report for the second quarter of 2026 was released prior to the market opening today. In this presentation, we will cover the main highlights of the report, and we will refer to the presentation issued together with the financial report.
Speaker #1: At the end of the presentation, we will open up for questions, and I suggest you post your questions in the chat function. So, looking at the highlights for the quarter: we operated 15 fully owned vessels; in addition, we have 4 vessels under construction.
Speaker #1: All of our vessels in operation delivered a positive EBITDA margin. We had $80 million in revenue, and we delivered $41.5 million in EBITDA.
Speaker #1: That is equal to an EBITDA margin of 52%. We have a book equity ratio of 53%, and our net interest-bearing debt was $259 million at the end of the quarter.
Bernt Omdal: That is equal to an EBITDA margin of 52%. We have a book equity ratio of 53%, and our net interest bearing debt was $259 million at the end of the quarter. Revenue and EBITDA is up year on year, even though Q2 figures in 2025 included a positive contribution from Sea1 Spearfish, which was sold in May 2025. We continue to deliver safe and efficient operations in all regions. This is a result of high focus on safety at all levels in the company. The utilization of the fleet in Q2 was 83%, which is somewhat down from the same quarter last year, which is a result of the low utilization in the anchor handler spot market.
Bernt Omdal: That is equal to an EBITDA margin of 52%. We have a book equity ratio of 53%, and our net interest bearing debt was $259 million at the end of the quarter. Revenue and EBITDA is up year on year, even though Q2 figures in 2025 included a positive contribution from Sea1 Spearfish, which was sold in May 2025. We continue to deliver safe and efficient operations in all regions. This is a result of high focus on safety at all levels in the company. The utilization of the fleet in Q2 was 83%, which is somewhat down from the same quarter last year, which is a result of the low utilization in the anchor handler spot market.
Speaker #1: Revenue and EBITDA are up year on year, even though second quarter figures in 2025 included a positive contribution from Sea1 Spearfish, which was sold in May 2025.
Speaker #1: We continue to deliver safe and efficient operations in all regions. This is a result of a high focus on safety at all levels in the company.
Speaker #1: The utilization of the fleet in the second quarter was 83%, which is somewhat down from the same quarter last year. This is a result of the low utilization in the anchor handler spot market.
Bernt Omdal: But it is worth pointing out that we have managed to increase both revenue and EBITDA compared to last year, and this is mainly due to the high day rates Sea1 has obtained in the spot market. Due to solid results, a strong balance sheet, good liquidity, and a significant backlog, a dividend payment of four Norwegian kroner per share was executed on 16 April. The AGM was held on 24 April. Vidar Jerstad will now give some more details regarding the results for the quarter.
Bernt Omdal: But it is worth pointing out that we have managed to increase both revenue and EBITDA compared to last year, and this is mainly due to the high day rates Sea1 has obtained in the spot market. Due to solid results, a strong balance sheet, good liquidity, and a significant backlog, a dividend payment of four Norwegian kroner per share was executed on 16 April. The AGM was held on 24 April. Vidar Jerstad will now give some more details regarding the results for the quarter.
Speaker #1: But it's worth pointing out that we have managed to increase boat revenue and EBITDA compared to last year, and this is mainly due to the high day rates Sea1 has obtained in the spot market.
Speaker #1: Due to solid results, a strong balance sheet, good liquidity, and a significant backlog, a dividend payment of 4 Norwegian kroner per share was executed on the 16th of April.
Speaker #1: The AGM was held on the 24th of April. Vida Jesta will now give some more details regarding the results for the quarter.
Vidar Jerstad: When comparing the 2026 and 2025 results, it's, as said, important to note that the subsea vessel, Sea1 Spearfish, was sold in May 2025. As a result, the prior year results include a gain on sale of that asset of $41.5 million, in addition to the vessel's operating contribution. In Q2 this year, operating revenues were $80.1 million. This represents a 12% increase from same quarter last year. Adjusted for the sale of Sea1 Spearfish, revenues have increased compared to last year for all segments, mainly due to higher charter rates, but also due to Ben Viking being on bareboat contract from March, generating revenues for the company. The operating expenses increased by $6 million in the quarter. This is mainly explained by the just mentioned Ben Viking being on bareboat, increasing operating expenses. Administrative expenses were $7.3 million compared to $6.4 million in the prior year quarter.
Vidar Jerstad: When comparing the 2026 and 2025 results, it's, as said, important to note that the subsea vessel, Sea1 Spearfish, was sold in May 2025. As a result, the prior year results include a gain on sale of that asset of $41.5 million, in addition to the vessel's operating contribution. In Q2 this year, operating revenues were $80.1 million. This represents a 12% increase from same quarter last year. Adjusted for the sale of Sea1 Spearfish, revenues have increased compared to last year for all segments, mainly due to higher charter rates, but also due to Ben Viking being on bareboat contract from March, generating revenues for the company. The operating expenses increased by $6 million in the quarter. This is mainly explained by the just mentioned Ben Viking being on bareboat, increasing operating expenses. Administrative expenses were $7.3 million compared to $6.4 million in the prior year quarter.
Speaker #2: When comparing the 2026 and 2025 results, it's, as said, important to note that the subsidiary vessel Sea1 Spearfish was sold in May 2025. As a result, the prior year results include a gain on the sale of that asset of $41.5 million, in addition to the vessel's operating contribution.
Speaker #2: In the second quarter of this year, operating revenues were $80.1 million. This represents a 12% increase from the same quarter last year. Adjusted for the sale of Sea1 Spearfish, revenues have increased compared to last year for all segments, mainly due to higher charter rates, but also due to Ben Viking being on bareboat contract from March, generating revenues for the company.
Speaker #2: The operating expenses increased by $6 million in the quarter. This is mainly explained by the just-mentioned Ben Viking being on bareboat, increasing operating expenses.
Speaker #2: Administrative expenses were $7.3 million, compared to $6.4 million in the prior year quarter. The increase was primarily driven by the weakening of the US dollar against the Norwegian, Brazilian, and Australian currencies, as a significant portion of the company's administrative cost base is denominated in these currencies.
Vidar Jerstad: The increase was primarily driven by the weakening of the US dollars against the Norwegian, Brazilian, and Australian currencies, as a significant portion of the company's administrative cost base is denominated in these currencies. EBITDA rose to $41.5 million from $39.6 million, representing a 5% increase. Depreciation and amortization expenses were $13.3 million. An impairment cost of half a million dollars is due to redistribution of previous reversal of impairments between vessels. The adjustment is technical and not based on any market value assessment. Operating profit ended at $27.8 million. Net financial items were negative by $3.8 million. In addition to the interest expenses recognized in the profit and loss statement, borrowing costs of $1.4 million for Q2 have been capitalized as part of assets under construction. The net profit to shareholders was $22.7 million for the quarter, or $0.15 per share.
Vidar Jerstad: The increase was primarily driven by the weakening of the US dollars against the Norwegian, Brazilian, and Australian currencies, as a significant portion of the company's administrative cost base is denominated in these currencies. EBITDA rose to $41.5 million from $39.6 million, representing a 5% increase. Depreciation and amortization expenses were $13.3 million. An impairment cost of half a million dollars is due to redistribution of previous reversal of impairments between vessels. The adjustment is technical and not based on any market value assessment. Operating profit ended at $27.8 million. Net financial items were negative by $3.8 million. In addition to the interest expenses recognized in the profit and loss statement, borrowing costs of $1.4 million for Q2 have been capitalized as part of assets under construction. The net profit to shareholders was $22.7 million for the quarter, or $0.15 per share.
Speaker #2: EBITDA rose to $41.5 million from $39.6 million, representing a 5% increase. Depreciation and amortization expenses were $13.3 million. An impairment cost of half a million dollars is due to the redistribution of a previous reversal of impairments between vessels.
Speaker #2: The adjustment is technical and not based on any market value assessment. Operating profit ended at $27.8 million. Net financial items were negative by $3.8 million.
Speaker #2: In addition to the interest expenses recognized in the profit and loss statement, borrowing costs of $1.4 million for the second quarter have been capitalized as part of assets under construction.
Speaker #2: The net profit attributable to shareholders was $22.7 million for the quarter, or $0.15 per share. This next slide presents the operating margins for our four main reporting segments.
Vidar Jerstad: This next slide presents the operating margins for our four main reporting segments. The charts on the left show Q2 performance compared to previous year, while the charts on the right show share year-to-date performances. All figures are presented before G&A expenses. Operating margin for the subsea segment declined due to the sale of Sea1 Spearfish. Excluding this effect, the remaining subsea fleet delivered operating margin improvements of 8% in the quarter and 6% year to date. The anchor handling segment continued its strong performance with operating margin increasing by 18% during the quarter and 34% year to date. Operating margins for our two Brazilian PSVs improved by 20% during the quarter and 14% year to date. Operating margins in the oil spill recovery vessel segment were temporarily impacted by maintenance activity on one vessel. Overall, the underlying margin trend remained positive across all segments.
Vidar Jerstad: This next slide presents the operating margins for our four main reporting segments. The charts on the left show Q2 performance compared to previous year, while the charts on the right show share year-to-date performances. All figures are presented before G&A expenses. Operating margin for the subsea segment declined due to the sale of Sea1 Spearfish. Excluding this effect, the remaining subsea fleet delivered operating margin improvements of 8% in the quarter and 6% year to date. The anchor handling segment continued its strong performance with operating margin increasing by 18% during the quarter and 34% year to date. Operating margins for our two Brazilian PSVs improved by 20% during the quarter and 14% year to date. Operating margins in the oil spill recovery vessel segment were temporarily impacted by maintenance activity on one vessel. Overall, the underlying margin trend remained positive across all segments.
Speaker #2: The charts on the left show second-quarter performance compared to the previous year, while the charts on the right show share year-to-date performance. All figures are presented before G&A expenses.
Speaker #2: Operating margins for the subsidy segment declined due to the sale of Sea1 Spearfish. Excluding this effect, the remaining subsidy fleet delivered operating margin improvements of 8% in the quarter and 6% year-to-date.
Speaker #2: The anchor handling segment continued its strong performance, with operating margin increasing by 18% during the quarter and 34% year-to-date. Operating margins for our two Brazilian PSVs improved by 20% during the quarter and 14% year-to-date.
Speaker #2: Operating margins in the oil spill recovery vessel segment were temporarily impacted by maintenance activity on one vessel. Overall, the underlying margin trend remained positive across all segments.
Speaker #2: These slides summarize Sea1 Offshore's financial position at quarter end. Book equity increased to 53%, reflecting the company's continued financial strength. Gross interest-bearing debt amounted to $299 million, and net interest-bearing debt was $260 million.
Vidar Jerstad: This slide summarizes Sea1 Offshore's financial position at quarter end. Book equity increased to 53%, reflecting the company's continued financial strength. Gross interest-bearing debt amounted to $299 million, and net interest-bearing debt was $260 million. During the quarter, Sea1 strengthened its liquidity position through the refinancing of the Sea1 Dorado facility, increasing funding by $28 million. In addition, the revolving credit facility for the well intervention vessels was increased from $100 million to $150 million. The facility remained fully undrawn at quarter end, providing $150 million of immediately available liquidity. The company's $315 million new build facility was drawn by $4.4 million at quarter end. Approximately $185 million is available pre-delivery to fund yard installments, with the remainder to be drawn upon vessel delivery. The facility is fully independent of any commercial contract commitments.
Vidar Jerstad: This slide summarizes Sea1 Offshore's financial position at quarter end. Book equity increased to 53%, reflecting the company's continued financial strength. Gross interest-bearing debt amounted to $299 million, and net interest-bearing debt was $260 million. During the quarter, Sea1 strengthened its liquidity position through the refinancing of the Sea1 Dorado facility, increasing funding by $28 million. In addition, the revolving credit facility for the well intervention vessels was increased from $100 million to $150 million. The facility remained fully undrawn at quarter end, providing $150 million of immediately available liquidity. The company's $315 million new build facility was drawn by $4.4 million at quarter end. Approximately $185 million is available pre-delivery to fund yard installments, with the remainder to be drawn upon vessel delivery. The facility is fully independent of any commercial contract commitments.
Speaker #2: During the quarter, Sea1 strengthened its liquidity position through the refinancing of the Sea1 Dourado facility, increasing funding by $28 million. In addition, the revolving credit facility for the well intervention vessels was increased from $100 million to $150 million. The facility remained fully underwritten at quarter end, providing $150 million of immediately available liquidity.
Speaker #2: The company's $315 million newbuild facility was drawn by $4.4 million at quarter-end. Approximately $85 million is available pre-delivery to fund yard installments, with the remainder to be drawn upon vessel delivery.
Speaker #2: The facility is fully independent of any commercial contract commitments. Overall, Sea1 continues to maintain a solid balance sheet, strong liquidity, and substantial financial flexibility.
Vidar Jerstad: Overall, Sea1 continues to maintain a solid balance sheet, strong liquidity, and a substantial financial flexibility. Now the cash flow for H1 2026. We started the year with $86 million in cash. We have received $60 million from operations. We have paid net interest of $5 million. Capital expenditures amounted to $40 million, of which $20 million was invested in existing fleet and $20 million in the new build program. We have increased interest-bearing debt by $2 million. We have paid dividend of $63 million and ended H1 of this year with $39 million in cash on our accounts. So far this year, Sea1 has continued to execute its fleet renewal strategy, continued investing in its existing assets, and in addition, maintained shareholder distributions.
Vidar Jerstad: Overall, Sea1 continues to maintain a solid balance sheet, strong liquidity, and a substantial financial flexibility. Now the cash flow for H1 2026. We started the year with $86 million in cash. We have received $60 million from operations. We have paid net interest of $5 million. Capital expenditures amounted to $40 million, of which $20 million was invested in existing fleet and $20 million in the new build program. We have increased interest-bearing debt by $2 million. We have paid dividend of $63 million and ended H1 of this year with $39 million in cash on our accounts. So far this year, Sea1 has continued to execute its fleet renewal strategy, continued investing in its existing assets, and in addition, maintained shareholder distributions.
Speaker #2: And now the cash flow for the first half of 2026. We started the year with $86 million in cash. We have received $60 million from operations.
Speaker #2: We have paid net interest of $5 million. Capital expenditures amounted to $40 million, of which $20 million was invested in the existing fleet and $20 million in the new build program.
Speaker #2: We have increased interest-bearing debt by $2 million. We have paid a dividend of $63 million and ended the first half of this year with $39 million in cash on our accounts.
Speaker #2: So far this year, Sea1 has continued to execute its fleet renewal strategy, continued investing in its existing assets, and, in addition, maintained shareholder distributions.
Speaker #2: But
Speaker #1: Moving on to our contract backlog. Sea1 Offshore has a backlog of about $1,129 million, whereof $504 million is options. The largest part of our backlog is related to the subsea fleet, which represents 83% of our backlog.
Bernt Omdal: Moving on to our contract backlog. Sea1 Offshore has a backlog of about $1,129 million, whereof $504 million is options. The largest part of our backlog is related to the subsea fleet, which represents 83% of our backlog. For the remaining of 2026, we have a firm backlog of about $105 million. Our OSV fleet now consists of 15 own vessels as listed on the slide. In addition, we have four offshore energy support vessels under construction and eight vessels under our technical and commercial management. Sea1 Offshore has now two well intervention vessels, one offshore construction vessel, six anchor handlers, two PSVs, four oil spill recovery vessels, and we have four new builds under construction. In addition, we have eight offshore vessels under all commercial and technical management. All four new builds are on schedule with regards to delivery time.
Bernt Omdal: Moving on to our contract backlog. Sea1 Offshore has a backlog of about $1,129 million, whereof $504 million is options. The largest part of our backlog is related to the subsea fleet, which represents 83% of our backlog. For the remaining of 2026, we have a firm backlog of about $105 million. Our OSV fleet now consists of 15 own vessels as listed on the slide. In addition, we have four offshore energy support vessels under construction and eight vessels under our technical and commercial management. Sea1 Offshore has now two well intervention vessels, one offshore construction vessel, six anchor handlers, two PSVs, four oil spill recovery vessels, and we have four new builds under construction. In addition, we have eight offshore vessels under all commercial and technical management. All four new builds are on schedule with regards to delivery time.
Speaker #1: For the remainder of 2026, we have a firm backlog of about $105 million. Our OSV fleet now consists of 15 owned vessels, as listed on the slide.
Speaker #1: In addition, we have four offshore energy support vessels under construction and eight vessels under our technical and commercial management. Sea1 Offshore now has two well intervention vessels, one offshore construction vessel, six anchor handlers, two PSVs, four oil spill recovery vessels, and we have four new builds under construction. In addition, we have eight offshore vessels under our commercial and technical management.
Speaker #1: Our four new builds are on schedule with regard to delivery time. The first one, Sea1 Diamond, which you see in these pictures here, was launched last month.
Bernt Omdal: The first one, Sea1 Diamond, which you see on these pictures here, was launched last month. The delivery date is end of January. The following vessel, Sea1 Citrine, will be delivered three months after Sea1 Diamond. So far, no commitments has been made. We are working on getting contracts in place. In case we do not find long-term contracts as favorable rates, we will concentrate on well-paid short-term contracts. On this slide, we have listed all our fully owned vessels and vessels operated commercially and technically by us. The company has, as mentioned before, a very good global footprint, which is important for the utilization of the fleet. We will continue to move vessels around the world where we can perform safe operations based on sustainable conditions. For the anchor handler segment, there are mainly shorter contracts and campaigns.
Bernt Omdal: The first one, Sea1 Diamond, which you see on these pictures here, was launched last month. The delivery date is end of January. The following vessel, Sea1 Citrine, will be delivered three months after Sea1 Diamond. So far, no commitments has been made. We are working on getting contracts in place. In case we do not find long-term contracts as favorable rates, we will concentrate on well-paid short-term contracts. On this slide, we have listed all our fully owned vessels and vessels operated commercially and technically by us. The company has, as mentioned before, a very good global footprint, which is important for the utilization of the fleet. We will continue to move vessels around the world where we can perform safe operations based on sustainable conditions. For the anchor handler segment, there are mainly shorter contracts and campaigns.
Speaker #1: The delivery date is the end of January. The following vessel, Sea1 Citrine, will be delivered three months after Sea1 Diamond. So far, no commitments have been made.
Speaker #1: We are working on getting contracts in place. In case we do not find long-term contracts at favorable rates, we will concentrate on well-paid short-term contracts.
Speaker #1: On this slide, we have listed all our fully owned vessels and vessels operated commercially and technically by us. The company has, as mentioned before, a very good global footprint, which is important for the utilization of the fleet.
Speaker #1: We will continue to move vessels around the world where we can perform safe operations based on sustainable conditions. For the anchor handler segment, there are mainly shorter contracts and campaigns.
Speaker #1: In Australia, we currently have three anchor handlers: Sea1 Aquamarine, Sea1 Emerald, and Andreas Viking. They are all operating on term contracts. Sea1 Sapphire and Sea1 Amethyst just completed a short contract in Malaysia.
Bernt Omdal: In Australia, we currently have three anchor handlers, which is Sea1 Aquamarine, Sea1 Emerald, and Andreas Viking. They are all operating on term contracts. Sea1 Sapphire and Sea1 Amethyst just completed a short contract in Malaysia. In Canada, we have Avalon Sea and Ben Viking working on term contracts there. The remaining anchor handling fleet are all trading in the North Sea spot market. We have one construction vessel in operation, that is the Sea1 Dorado. She is on a firm contract operating in Brazil. The two well intervention vessels, Sea Helix 1 and 2, they are both on long-term contracts working offshore Brazil. We have still two PSVs in our fleet, Sea1 Atlas and Sea1 Giant. They are both on term contracts also in Brazil.
Bernt Omdal: In Australia, we currently have three anchor handlers, which is Sea1 Aquamarine, Sea1 Emerald, and Andreas Viking. They are all operating on term contracts. Sea1 Sapphire and Sea1 Amethyst just completed a short contract in Malaysia. In Canada, we have Avalon Sea and Ben Viking working on term contracts there. The remaining anchor handling fleet are all trading in the North Sea spot market. We have one construction vessel in operation, that is the Sea1 Dorado. She is on a firm contract operating in Brazil. The two well intervention vessels, Sea Helix 1 and 2, they are both on long-term contracts working offshore Brazil. We have still two PSVs in our fleet, Sea1 Atlas and Sea1 Giant. They are both on term contracts also in Brazil.
Speaker #1: In Canada, we have Avalon Sea and Ben Viking working on term contracts there. The remaining anchor handler fleet are all trading in the North Sea spot market.
Speaker #1: We have one construction vessel in operation, which is the Sea1 Dourado. She is on a firm contract operating in Brazil. And the two well intervention vessels, Sea Helix One and Two, are both on long-term contracts working offshore Brazil.
Speaker #1: We still have two PSVs in our fleet, Sea1 Atlas and Sea1 Giant. They are both on term contracts, also in Brazil. And for our smaller Brazilian fleet, we have the oil spill recovery vessels Sea1 Maragogi and Sea1 Maratizes.
Bernt Omdal: For our smaller Brazilian fleet, we have the oil spill recovery vessels, Sea1 Maragogi and Sea1 Maranhao, both on term contracts with Petrobras. The fast crew vessels, Sea1 Penutiba and Sea1 Piata, both on long-term bareboat agreements. Just a few comments to the market. The geopolitical tension continues to shape our operating environment, and it creates demand and opportunities for our industry. For the construction support vessel market, long-term demand fundamentals remain strong, with subsea backlogs from leading EPCs at record levels. However, new vessels we deliver in the next two years may moderate day rate levels. The anchor handler market was tight throughout Q2. Higher rig activity on the UK sector, combined with project work, was the main driver. Despite record high day rates, the overall utilization remained moderate and is expected to be a challenge as we enter into the winter months.
Bernt Omdal: For our smaller Brazilian fleet, we have the oil spill recovery vessels, Sea1 Maragogi and Sea1 Maranhao, both on term contracts with Petrobras. The fast crew vessels, Sea1 Penutiba and Sea1 Piata, both on long-term bareboat agreements. Just a few comments to the market. The geopolitical tension continues to shape our operating environment, and it creates demand and opportunities for our industry. For the construction support vessel market, long-term demand fundamentals remain strong, with subsea backlogs from leading EPCs at record levels. However, new vessels we deliver in the next two years may moderate day rate levels. The anchor handler market was tight throughout Q2. Higher rig activity on the UK sector, combined with project work, was the main driver. Despite record high day rates, the overall utilization remained moderate and is expected to be a challenge as we enter into the winter months.
Speaker #1: Both are on term contracts with Petrobras, and the fast crew vessels Sea1 Pendotiba and Sea1 Piata are both on long-term bareboat agreements. Just a few comments to the market.
Speaker #1: The geopolitical tension continues to shape our operating environment, and it creates demand and opportunities for our industry. For the construction support vessel market, long-term demand fundamentals remain strong, with subsea backlogs from leading EPCs at record levels.
Speaker #1: However, new vessels with delivery over the next two years may moderate day rate levels. The anchor handler market was tight throughout the second quarter. Higher rig activity on the UK sector, combined with project work, was the main driver.
Speaker #1: Despite record-high day rates, overall utilization remained moderate and is expected to be a challenge as we enter the winter months. The global anchor handler market is expected to gradually improve, with some regional variations.
Bernt Omdal: The global anchor handler market is expected to gradually improve with regional variations. Both the APAC region and South America is softening a bit in the short term, but we are still positive about the market in these regions for the years to come. To summarize, we delivered a strong quarter with high activity. We continue to deliver first-class operations with excellent HSEQ performance. Our new building program on track with the first vessel to be delivered January 2027. We have a solid financial position, and we have a strong backlog with quality clients. There is a positive long-term market outlook. That was the end of the presentation, and we will now open up for questions. Okay. We have got some questions in the chat function, and together with me, I have Vidar and Andreas Kjøl, our CCO, to answer these questions.
Bernt Omdal: The global anchor handler market is expected to gradually improve with regional variations. Both the APAC region and South America is softening a bit in the short term, but we are still positive about the market in these regions for the years to come. To summarize, we delivered a strong quarter with high activity. We continue to deliver first-class operations with excellent HSEQ performance. Our new building program on track with the first vessel to be delivered January 2027. We have a solid financial position, and we have a strong backlog with quality clients. There is a positive long-term market outlook. That was the end of the presentation, and we will now open up for questions. Okay. We have got some questions in the chat function, and together with me, I have Vidar and Andreas Kjøl, our CCO, to answer these questions.
Speaker #1: Both the APEC region and South America are softening a bit in the short term, but we are still positive about the market in these regions for the years to come.
Speaker #1: To summarize, we delivered a strong quarter with high activity. We continue to deliver first-class operations with excellent HSAQ performance. Our new building program is on track, with the first vessel to be delivered in January 2027.
Speaker #1: We have a solid financial position, and we have a strong backlog with quality clients. There is also a positive long-term market outlook. That was the end of the presentation, and we will now open up for questions.
Speaker #1: Okay, we have got some questions in the chat function, and together with me, I have Vidal and Andreas Scherl, our CCO, to answer these questions.
Speaker #1: One of the questions is regarding our well intervention vessels. There's a question regarding how many days were spent in dry docking. We spent just, I think it was, 33 days in dock, but we have earned maintenance days.
Bernt Omdal: One of the question is regarding our well intervention vessels. A question regarding how many days spent on the dry docking. We spent, I think it was 33 days in dock, but we have earned maintenance days, so we are on full hire during this docking period. The sister vessel, she is scheduled for dry docking in January next year. Then there is a question regarding the anchor handler Ben Viking, which is owned by Viking Supply Ships. We took that vessel on a bareboat contract and turned us around and secured a time charter deal with a client in Canada. This contract comes to an end probably late September, the way it looks today. Then there is another question regarding the anchor handlers availability. You say it was tight in Q2, and also you say that utilization was low. How is this possible?
Bernt Omdal: One of the question is regarding our well intervention vessels. A question regarding how many days spent on the dry docking. We spent, I think it was 33 days in dock, but we have earned maintenance days, so we are on full hire during this docking period. The sister vessel, she is scheduled for dry docking in January next year. Then there is a question regarding the anchor handler Ben Viking, which is owned by Viking Supply Ships. We took that vessel on a bareboat contract and turned us around and secured a time charter deal with a client in Canada. This contract comes to an end probably late September, the way it looks today. Then there is another question regarding the anchor handlers availability. You say it was tight in Q2, and also you say that utilization was low. How is this possible?
Speaker #1: We are on full hire during this docking period. The sister vessel is scheduled for dry docking in January next year. And then, there is a question regarding the anchor handler Ben Viking, which is owned by Viking Supply.
Speaker #1: We took that vessel on a bareboat contract and turned around and secured a time charter deal with a client in Canada. This contract comes to an end probably late September, the way it looks today.
Speaker #1: Just then, there is another question regarding the anchor handlers' availability. You say it was tight in the second quarter, and also you say that utilization was slow.
Speaker #1: How is this possible? Well, that's a good question. I mean, normally the utilization and day rates go hand in hand. But the way the market has been this summer, or this year, the utilization has been rather low. But Sea1 Offshore has managed to hold back and secure really good day rates, and in our books, we have recorded all-time high average fixture rates for the anchor handlers.
Bernt Omdal: Well, that's a good question. Normally, the utilization and day rates goes hand in hand. But the way the market has been this summer or this year, the utilization has been rather low, but Sea1 Offshore have managed to hold back and secured really good day rates. In our books, we have recorded the all-time high average fixture rates for the anchor handlers.
Bernt Omdal: Well, that's a good question. Normally, the utilization and day rates goes hand in hand. But the way the market has been this summer or this year, the utilization has been rather low, but Sea1 Offshore have managed to hold back and secured really good day rates. In our books, we have recorded the all-time high average fixture rates for the anchor handlers.
Speaker #2: And we got a question here regarding dividend and dividend policy. Just to remind you, the last two years the company has paid $230 million in dividends.
Vidar Jerstad: We got a question here regarding dividend and dividend policy. Just to remind you, the last two years, the company has paid $230 million in dividends. So I would categorize the company as investor friendly. However, Sea1 has no dividend policy. The decision regarding the dividends lies with the board of directors. So future capital allocation and dividends will be based on the company's financial outlook and market conditions.
Vidar Jerstad: We got a question here regarding dividend and dividend policy. Just to remind you, the last two years, the company has paid $230 million in dividends. So I would categorize the company as investor friendly. However, Sea1 has no dividend policy. The decision regarding the dividends lies with the board of directors. So future capital allocation and dividends will be based on the company's financial outlook and market conditions.
Speaker #2: So, we are—I would categorize the company as investor-friendly. However, Sea1 has no dividend policy; the decision regarding dividends lies with the Board of Directors.
Speaker #2: So, future capital allocation and dividends will be based on the company's financial outlook and market conditions.
Speaker #1: Then there is another question regarding the market. Can you update the duration on the Avalon Sea contract? We believe the Avalon Sea will come off its current contract at the end of September.
Bernt Omdal: Then there is another question regarding the market. Can you update the duration on the Avalon Sea contract? We believe the Avalon Sea will come off our current contract end of September.
Bernt Omdal: Then there is another question regarding the market. Can you update the duration on the Avalon Sea contract? We believe the Avalon Sea will come off our current contract end of September.
Speaker #1: Let me see here.
Andreas Kjøl: We also got a question whether to repeat the information regarding the revolving credit facility. Yes, the revolving credit facility is of $150 million and it is undrawn, all available.
Andreas Kjøl: We also got a question whether to repeat the information regarding the revolving credit facility. Yes, the revolving credit facility is of $150 million and it is undrawn, all available.
Speaker #2: We also got a question about whether to repeat the information regarding the facility. Yes, the revolving credit facility is $150 million and it's undrawn.
Speaker #2: All available.
Speaker #1: Then there is a question regarding our new builds. They are, as mentioned in the presentation, all on schedule. The first one is set for delivery in January 2027.
Bernt Omdal: Then there is a question regarding our new builds. They are, as mentioned in the presentation, all on schedule. First one with delivery January 2027. So far no commitments have been made. We are working on getting contracts in place. In case we do not find a long-term contract at favorable rates, then we will concentrate on well-paid short-term contracts. We have also committed ROVs to the vessels. So we are ready to trade those vessels when they are delivered. Then there is a question regarding the three vessels operating in Australia. When do these contract expire? Looking at the rig contracts which the three vessels are supporting, we believe that the contract will end probably during December. But depends on the last well, that is optional well. One question, do you anticipate any impact on West Asia conflict going forward as it is still uncertain?
Bernt Omdal: Then there is a question regarding our new builds. They are, as mentioned in the presentation, all on schedule. First one with delivery January 2027. So far no commitments have been made. We are working on getting contracts in place. In case we do not find a long-term contract at favorable rates, then we will concentrate on well-paid short-term contracts. We have also committed ROVs to the vessels. So we are ready to trade those vessels when they are delivered. Then there is a question regarding the three vessels operating in Australia. When do these contract expire? Looking at the rig contracts which the three vessels are supporting, we believe that the contract will end probably during December. But depends on the last well, that is optional well. One question, do you anticipate any impact on West Asia conflict going forward as it is still uncertain?
Speaker #1: So far, no commitments have been made. We are working on getting contracts in place. If we do not find a long-term contract at favorable rates, then we will concentrate on well-paid, shorter-term contracts.
Speaker #1: We have also committed ROVs to the vessel, so we are ready to trade those vessels when they are delivered. Let me see. Then there is a question regarding the three vessels operating in Australia.
Speaker #1: When do these contracts expire? Looking at the rig contract, which the three vessels are supporting, we believe that the contract will end probably during December.
Speaker #1: But it depends on the last well—that's an optional well. One question: Do you anticipate any impact on the West Asia conflict going forward, as it is still uncertain?
Bernt Omdal: Well, if you mean the Middle East, we are not directly impacted by it as we have no vessels trading there. There is a question, why don't you participate in the anchor handler project market? Well, we are targeting whatever tender that is out there. Now we are discussing whether or not to put on a crane, actively compensated crane on one of the anchor handlers. So if that is decided, then we are more into the anchor handler project market as well.
Speaker #1: West Asia conflicts—well, you mean the Middle East. I mean, we are not directly impacted by it, as we have no vessels trading there.
Bernt Omdal: Well, if you mean the Middle East, we are not directly impacted by it as we have no vessels trading there. There is a question, why don't you participate in the anchor handler project market? Well, we are targeting whatever tender that is out there. Now we are discussing whether or not to put on a crane, actively compensated crane on one of the anchor handlers. So if that is decided, then we are more into the anchor handler project market as well.
Speaker #1: There's a question: why don't you participate in the anchor handler project market? Well, we are targeting whatever tender is out there. Right now, we are discussing whether or not to put an active heave compensated crane on one of the anchor handlers.
Speaker #1: So, if that is decided, I mean then we are more into the project anchor handler, project market as well.
Andreas Kjøl: Odin and Urby is currently ongoing on a project contract.
Andreas Kjøl: Odin and Urby is currently ongoing on a project contract.
Speaker #2: Odin and Ruby are currently ongoing on that project contract.
Bernt Omdal: Well, that is day-to-day work. We are chasing whatever is out there, and hopefully we will be able to secure well-paid contracts for our anchor handlers. We are targeting high day rates. That has paid off for Sea1 Offshore so far. There is a question regarding the current market rates for 350-ton crane segment. The last fixture we have recorded or heard rumors about, then it was at $75 per day. There is a question regarding the PSV market. We only have two PSVs, and they are built and are operating in Brazil. So it is only the Brazilian PSV market that we are concentrating about. The North Sea PSV market is not our core business. Maybe you can answer this one, Andreas.
Speaker #1: Let me see. Do you expect to secure any term work for your anchor handlers? Well, that is day-to-day work. We are chasing whatever is out there, and hopefully we will be able to secure well-paid contracts for our anchor high day rates that have paid off for Sea1 Offshore so far.
Bernt Omdal: Well, that is day-to-day work. We are chasing whatever is out there, and hopefully we will be able to secure well-paid contracts for our anchor handlers. We are targeting high day rates. That has paid off for Sea1 Offshore so far. There is a question regarding the current market rates for 350-ton crane segment. The last fixture we have recorded or heard rumors about, then it was at $75 per day. There is a question regarding the PSV market. We only have two PSVs, and they are built and are operating in Brazil. So it is only the Brazilian PSV market that we are concentrating about. The North Sea PSV market is not our core business. Maybe you can answer this one, Andreas.
Speaker #1: There is a question regarding the current market rates for 250 ton crane segment. The last fixture we have recorded or heard the rumors about then it was at 75 US dollars per day.
Speaker #1: Let's see. There's a question regarding the PSV market. I mean, we only have two PSVs, and they are built and are operating in Brazil.
Speaker #1: So, it's only the Brazilian PSV market that we are concentrating on. So, the North Sea PSV market is not our core business. Maybe you can answer this one, Andreas.
Speaker #1: How do you see the supply balance in the North Sea going forward? Are there risks of vessels moving in from other regions?
Bernt Omdal: How do you see the supply balance in the North Sea going forward? Risks of vessels moving in from other regions.
Bernt Omdal: How do you see the supply balance in the North Sea going forward? Risks of vessels moving in from other regions.
Andreas Kjøl: Of course, our competitors sees also the high rates in the North Sea. But we operate our big fleet of high spec vessel, have first class operations. So it is a good market for us to perform in, and it is not easy for other competitors to enter the market.
Andreas Kjøl: Of course, our competitors sees also the high rates in the North Sea. But we operate our big fleet of high spec vessel, have first class operations. So it is a good market for us to perform in, and it is not easy for other competitors to enter the market.
Speaker #2: Of course our competitors also see the high rates in the North Sea. But we operate a big fleet of high-spec vessels and have first-class operations.
Speaker #2: So, it's a good market for us to perform in, and it's not easy for other competitors to enter the market.
Speaker #1: Yeah. There's a question regarding Sea1 Sapphire and Sea1 Amethyst. What's the outlook for those vessels? I mean, currently we are trading in the Asia Pacific, call it a spot market, trying to build up several short-term contracts.
Bernt Omdal: Yeah. There is a question regarding Sea1 Sapphire and Sea1 Amethyst outlook for those vessels. Currently we are trading the Asia Pacific, call it spot market, trying to build up several short-term contracts. One of them will now enter into a 47-day contract offshore Malaysia. It is a challenging market when you are not on term contracts, but we have managed to secure well-paid contracts so far this year.
Bernt Omdal: Yeah. There is a question regarding Sea1 Sapphire and Sea1 Amethyst outlook for those vessels. Currently we are trading the Asia Pacific, call it spot market, trying to build up several short-term contracts. One of them will now enter into a 47-day contract offshore Malaysia. It is a challenging market when you are not on term contracts, but we have managed to secure well-paid contracts so far this year.
Speaker #1: One of them will now enter into a 47-day contract offshore Malaysia. So, it is a challenging market when you are not on term contracts.
Speaker #1: But I mean, we have managed to secure well-paid contracts so far this year.
Speaker #2: We also see that the Australian market will improve in the second quarter of 2027, with two new rig contracts coming up that will need high-class anchor handling vessels.
Andreas Kjøl: We also see the Australian market will improve in Q2 2027 with the two new rig contracts coming up, needing I-class anchor handling vessels.
Andreas Kjøl: We also see the Australian market will improve in Q2 2027 with the two new rig contracts coming up, needing I-class anchor handling vessels.
Speaker #1: Yeah, so there were no more questions posted. If you have any other questions, please use the chat function. All right.
Bernt Omdal: Yeah. There was no more questions posted. If you have any other questions, please use the chat function, please. All right. If no further questions, we will end this session, and we thank you all for attending. Have a good weekend. Thank you.
Bernt Omdal: Yeah. There was no more questions posted. If you have any other questions, please use the chat function, please. All right. If no further questions, we will end this session, and we thank you all for attending. Have a good weekend. Thank you.
