DOF Group raised its earnings guidance for the year.
The John Fredriksen-backed offshore vessel owner now predicts an Ebitda of $500m to $520m for 2024 compared with a $490m to $520m earlier estimate.
“The order intake has been high so far this year which gives good visibility on earnings in the next 24 months,” chief executive Mons Aase said in the second-quarter report.
“We expect improved earnings in second half compared to first half due to i.a. Skandi Buzios being back on hire, Skandi Amazonas commencing a new 3-year contract after being partly off-hire, higher project activity in several regions, and certain one-off effects which impacted first-half earnings,” he added.
The order intake in the quarter was $1.05bn with a firm backlog of $2.6bn by the end of June.
In July DOF signed an agreement to acquire all the shares in Maersk Supply Service (MSS) from Maersk Supply Service Holding in a $1.1bn deal.
The acquisition will be settled partly in cash representing $577m and partly in shares representing 25% ownership for the holding company.
“The MSS transaction marks a strategic milestone for the Group and under the DOF brand we will create a leading offshore services provider and strengthen our global position through the combined company,” Aase said.
“With the world’s largest fleet of CSVs and high-end AHTS vessels, we will enhance the customer experience through increased scale, global reach and industry-leading services, combining the strong capabilities and experience of DOF and Maersk Supply Service,” he added.
The total current fleet consists of 16 anchor-handling tug supply units, 10 platform supply vessels and 31 subsea vessels, including 14 ships on management or hired in.
The combined DOF, following the acquisition of MSS, comprises a workforce of more than 5,400 employees with 78 modern offshore/subsea vessels, 65 of which are owned.
For DOF, this is an immediate fleet expansion without the need for substantial newbuilding lead time, and with significantly lower per vessel investment requirement, according to the report.
“The markets have continued to improve, especially within the subsea and AHTS segment and the Group is well positioned towards an expected increased demand for the Group’s assets and services both in the oil and gas market and the renewable markets,” the company said in an outlook.
The MSS transaction is expected to be closed during the fourth quarter, conditional on a successful competition filing in certain countries.
“I look forward to further developing the DOF Group together with my new and existing colleagues, ensuring the continued delivery of world-class services to our customers and further appreciate AP Moller Holding becoming a major shareholder,” Aase said.
The Oslo-listed company reported an Ebitda of $122m compared with $121m in the second quarter last year.
The net profit fell to $6m from $100m in the same period last year.
The net profit was affected by an unrealised currency loss of $62m.
It is a non-cash accounting effect mainly due to consolidation of the BRL accounts in Norskan affected by a weaker BRL to USD in the quarter, according to the report.
