Solstad Offshore Q3 Net Income Jumps 142% as Cash Position Strengthens - Markets and investing

Solstad Offshore reported third-quarter net income of $63 million and adjusted EBITDA of $41 million. A gain from selling part of Normand Tonjer and higher contributions from joint ventures helped lift results, while fleet utilization fell to 92%.

Solstad Offshore reported net income of $63 million for the third quarter of 2026, up from $26 million a year earlier. Adjusted EBITDA rose 41% to $41 million from $29 million, although operational adjusted EBITDA declined to $17 million from $19 million.

The results included an accounting gain of about $24 million from the September sale of the company’s 56% stake in the vessel Normand Tonjer. Joint ventures and associated companies contributed a combined $24 million, compared with $10 million in the same quarter last year. Operating income increased to $125 million from $73 million.

Fleet utilization was 92%, down from 97% a year earlier. Solstad said year-to-date utilization was 85%, compared with 97% in 2025, citing a delayed Petrobras contract start for Normand Topazio and idle time for Normand Tonjer earlier in the year.

The company’s cash balance reached $151 million at quarter-end, compared with $87 million a year earlier. Book equity was $528 million, up from $375 million, while the equity ratio increased to 47% from 44%. Excluding the present value of the Normand Maximus purchase option and leases related to Solstad Maritime vessels, adjusted net interest-bearing debt was in a cash-positive position of $39 million.

Solstad declared a quarterly dividend of $0.30 per share, totaling about $25 million. The company said $0.12 per share, or approximately $10 million, is an extraordinary payment linked to the Normand Tonjer sale. The dividend is scheduled to be paid on or about November 20, 2026.

Management said 95% of available vessel days were covered by firm contracts for the fourth quarter of 2026, with 85% covered for 2027. The company reported a firm backlog of about $400 million for owned vessels, alongside approximately $560 million tied to Solstad Maritime vessels operating through its Brazil setup. Its full-year 2026 guidance for operational adjusted EBITDA remains $60 million to $70 million.

After the quarter ended, Solstad declared the $125 million purchase option for Normand Maximus, with delivery scheduled for October 2027. The vessel has a firm 26-month contract with Saipem, extending into the second quarter of 2029, with a further 11 months of options. CEO Lars Peder Solstad said the company intends to finance the purchase with external debt.

The company’s supplied results did not include actual earnings per share or revenue figures, so they cannot be compared directly with the forecasts provided. Shares rose 4.63% to $72.30 in pre-market trading, according to the supplied data.

Sources: Investing.com News.