Solstad Maritime Asa

Good morning and welcome to the fourth quarter and full year 2025 presentation of Solstad Maritime. This presentation will be held by Kjetil Ramstad, CFO, and myself Lars-Peder Solstad, CEO of the company. There will be a Q&A session after the presentation, and please use the QR code on the screen and ask questions through that chat function that you will find there. If we take a quick look at the disclaimer before we move on to the business update for the quarter, and fourth quarter and full year of 2025 has been better than we communicated to the market back in October 25. adjusted EBITDA came in at $303 million versus $290 million guided. And the main reason for that is a stronger anchor handling spot market in the North Sea and also better utilization on some of the key CSVs that we have in our fleet. We have experienced an increased demand for our services, especially the last four to five months. And this seems also to continue into 2026. This goes for project related work, but it also goes for longer term opportunities. In fourth quarter, we managed to have a much higher utilization on our anchor handler spot slash North Sea fleet, where we had the Norman Sapphire on a medium term contract in the Mediterranean in nearly the full quarter. And that is also back again now in 26. So we are back again on a medium term contract outside the North Sea now as well, which is securing good utilization on healthy rates for that vessel. and also we have seen the two other vessels we have trading in the North Sea spot market has had very good utilization and strong rates in fourth quarter that has also continued into first quarter and we see that especially the vessels, large anchor handling vessels that also has ROV on board has had the premium utilization and rates compared to the remaining fleet in the quarter. we have also we saw that or we did a few smaller project with our CSV fleet that had open market exposure in fourth quarter and nearly all of them or all of them has been had also nearly full utilization after year end and into 26 and we have also managed to secure important longer-term contracts for the Norman Navigator and the Norman Sentinel that will secure utilization and good margins well into second half of 2027 for both vessels and potentially also beyond that. We have three CSVs with a relatively open contract structure for 2026. So we have a strong focus on securing new contracts for those. Those vessels are the Norman Cutter, presently operating in Brazil, and Norman Jarstein operating in the North Sea. And we see strong interest in the market for that type of vessels, and that is on project-related work, but also on more longer-term work. In addition to those two, we also have a gap in the schedule for the vessel Norman Energy that is presently working in Angola. We have a gap of about a year that we need to fill between present contract and a new five year contract that Norman Energy will start on spring 2027. But as I said, we have We are bidding actively and are quite optimistic to secure work for the relevant periods for all these vessels. We also had four vessels preparing for long-term Petrobras contracts in fourth quarter, and the status as per today is that three of them are now on hire. They went on hire recently to Petrobras, while the fourth vessel will be on hire very soon. These contracts were reported last year and they all have a duration of four years and they will contribute very nicely from the time of one hire and onwards, all four of them. We also sold one of our vessels in fourth quarter. Our second oldest CSV was sold. The present client had a purchase option on the vessel, which they exercised, and the vessel will be delivered to new owner around 1st June, the Norman Clipper, and will have a positive cash effect to Solsta Maritime of around 18 million US dollars. As we announced before Christmas, we have also made an amend and extend arrangement to our loan facility where maturity has been pushed out by two years to 2029. Annual installments are reduced with $40 million and also interest rates are reduced. So Kjetil will come back to that later in the presentation. If we take a closer look at some of the key numbers for the quarter and the full year, we see that utilization of the fleet was lower than the year before. The mentioned vessels preparing for the new contracts in Brazil was an important factor in the quarter in that respect. but still the adjusted EBITDA is not far off what we achieved in 2024. 74 million US dollars in the quarter versus 78 last year or 2024 the same quarter. And for the full year of 2025, we are better than the year before. We had 303 million US dollars in adjusted operational result versus 297 the year before. The order intake has been solid in terms of contract value, but also the contracts are done at solid margins. We have signed new contracts in fourth quarter for 272 million US dollars, which is equals to a book-to-bill factor of 1.9. And if we look at the year in total, we had a book-to-bill factor of 1.4. So a solid year when it comes to signing new contracts. We also continue to pay quarterly dividends and we are announcing 15 million dollars in total for fourth quarter equals to 0.032 per share dollars and meaning that around 100 million US dollars will be distributed or has been distributed to shareholders for the financial year of 2025. So all in all, it has been a solid fourth quarter where we have secured important contracts for some of our key vessels. We are reducing our financial costs as well as position ourselves with our fleet for a market that we believe looks better. and taking a closer look at the market and despite that we have had a volatile oil price in the quarter and parts of last year, we don't experience any slowdown in activity from our clients. More the opposite. It seems to us like the record high backlog held by the subsea contractors now starts to give an increased positive effect to the ship owners. It is also positive that there has been anchor handling vessels moved out of the North Sea and to other regions, which has then given a better supply-demand balance in the North Sea for the larger anchor handlers, which has also, as I already mentioned, resulted in higher utilization and higher rates for that type of vessel. We also see that in addition to what the more traditional spot market for anchor handlers in the North Sea, we also see that the project market seems to be quite active in 2026, meaning that a portion of the large anchor handling fleet will probably be used on mooring projects outside the North Sea as well as on projects also in the North Sea which will again give a better balance in the more traditional spot market which bodes well for the utilization and the rates on those type of vessel going forward. Brazil is still very active. From the Solstar side, we now, and if we look at the combination of the fleet in Solstar Maritime and Solstar Offshore, we have about half the fleet is presently working in Brazil. Some are on long-term contracts and some are more on project related work for a few months and then moving to other regions. But as I said, at the moment we have about 20 vessels operating on the continental shelf of Brazil. and the present order book we have and combined with the bidding activity that we see indicate that we have a decent year ahead for our company. Looking at the backlog, for the next 24 months, we have already booked about 500 million US dollars in EBITDA backlog. which is historically high and in addition to that we have about 40% available vessel days in 2026 and also about 50% available vessel days in 2027. In a market that looks pretty good. We have part of our fleet, as I've already been discussing a bit, but this is working in the spot slash project market. And we foresee that we will be involved in quite a few projects with our anchor handlers going forward. So that will secure more backlog and utilization on good rates for that part of the fleet, we foresee. and we see that there are opportunities for the vessels for the csvs that is presently uncommitted in regions in Brazil in the North Sea and in other regions for shorter term work but also for contracts with longer duration will be delivered quite a few new vessels to the market in mainly in 27 28 which will give increased competition and may put pressure on margins some time ahead. On the other hand, these vessels have a high cost. They have a high break-even rate and that break-even rate represents a good profit margin for our vessels in the same class. So for vessels that we have that potentially could be available in 27, 28, we can be very competitive if we have to. We signed several new contracts in fourth quarter and also in 2025 in total. And the book to bill of 1.9 for the quarter and 1.4 for the year is strong. And even if part of 2025 was slower than we liked, we still see that the margins on the term contract we have signed are still held on a stable, healthy level. Dan Kjetil, I will ask you to take us through some of the key numbers.

Thank you, Lars. If we start with the financial highlights for the fourth quarter and full year 25, the fleet had a utilization of 79% in the fourth quarter, a little bit lower than last year. For the full year of 25, we had an overall utilization of 79%, down from 86% last year. The lower utilization is mainly driven by a large regulatory docking program for the fleet in combination with lower commercial utilization including several mobilizations to Brazil from other regions particularly in the fourth quarter Revenue for the fourth quarter was 148 million dollars compared to 144 million same quarter last year. For the full year of 25 revenues have increased compared to last year. US dollar 590 million in 25 versus 563 last year. Adjusted EBITDA for the fourth quarter was $74 million compared to $78 million last year. For the full year of 2025, the adjusted EBITDA was also higher than last year, 303 versus 297. The net result for the quarter was 89 million dollars compared to 104 in 24. For the full year of 2025, we are delivering $213 million versus $240 million for last year. Firm backlog of almost $1.1 billion compared to $843 million last year, which is an increase of approximately 30%. The booked equity at year end was $880 million, up from $696 million last year. That reflects an increase of approximately $100 million, giving an equity ratio of 54%. equity has increased by the net result in the period offset also by dividends paid to the shareholders cash position at quarter end was 78 million dollars versus 177 million dollars last year The main reason for the lower cash position is dividend paid for 2025, as cash flow from operations in 2025 have been offset by cash flow from investment and debt servicing. The adjusted net interest bearing debt was 545 million dollars at the year end 25 down from 589 million dollars last year. The main driver is debt repayments of approximately 140 million dollars offset by the lower cash position as mentioned. The company will distribute approximately $15 million of dividends to its shareholders in the fourth quarter. And for the year of 2025, it will distribute approximately $100 million to its shareholders. If we take a look at the adjusted net interest bearing debt overview in the right top corner, we see that the fleet loan amounts to $621 million. And if we adjust for accrued interest and cash, the adjusted net interest bearing debt is $545 million. The net debt amount to 571 when we include leases, mainly ROV rental. And if you look then on the right hand side, the graph below, this shows the amortization overview on the fleet loan that was extended to a majority to first quarter 29. where we will repay approximately 90 million annually compared to 131 previously. The interest margin was also amended in this exercise. Then if we go to the updated outlook and guiding for 2026, the new guiding for 2026 will be as follows. The full year 2026 adjusted EBITDA will be in the range of 330 to 380 million dollars. The tax payable is expected to be around $5-15 million. The capex will be between $55-75 million, substantially down from last year's level. and net interest is expected around 35 to 45 million dollars and lastly the scheduled debt repayments and amortization of 90 million dollars. Then the company intends to continue to distribute quarterly dividends corresponding to the majority of the annual free cash flow to equity. Based on this, our ambition is to increase the dividends going forward. Then if we go to the next slide, the dividends of fourth quarter, as mentioned, we would distribute approximately $15 million to the shareholders, equaling 0.032 per share. The dividend will be paid in NOC and then the NOC amount will be announced prior to the payment. Then the key dates, the last day to receive dividend is the 20th of February 26, the X date 23rd of February, The record date will be the 24th of February, and the distribution date will be on or about the 26th of February 26th. And with that, I will leave the world back to you, Lars, to summarize.

Thank you. and as already stated, we have had a fourth quarter that ended better than we guided back in October with an adjusted EBITDA of 303 million versus 290 guided. It was a solid quarter where we experienced market improvements This was also reflected in the order intake where we signed new contracts for more than 270 million dollars for the quarter and those are all done at good EBITDA margins. The positive trend has continued into 26 and where we already have signed substantial contracts and we are also tendering actively on interesting projects for our available vessels. We continue our shareholder friendly approach and continue to distribute dividends on a quarterly basis. And based on the activity level we see, our markets looks pretty good going forward. So by that, we say thank you and we move over to Q&As.

Okay, we have a few questions incoming. So the first question, can you please give an update on Australis and Baltic in APEC? What is the status on the charter side for those vessels?

Norman Australis and Norman Baltic are smaller CSVs working both in the oil and gas and in the renewable energy markets in Asia Norman Australis is presently on a contract in Indonesia and we are bidding actively for work thereafter in both within oil and gas and renewable energy. There are quite a few opportunities. When it comes to Norman Baltic, that vessel has been working through the winter on a project in Taiwan. We're still there for still a couple of more months. And again, we are discussing further work with present client and also bidding alternative work. So there are work for those vessels in the region as we have historically also had.

How do you view the market for anchor handlers in the Australian market, taking into account the rig activity in the area? Do you expect to make any changes to the vessel composition?

Last year we had, as some of you will remember, we had four anchor handlers trading in the Australian markets. We have reduced that from four to three by moving the Norman Sirius to a long-term contract in Brazil. Of the three remaining vessels we have in Australia, two of them are fixed for the majority of this year to one of the main oil companies in the region. And the third one is trading the spot market. we are the rig activity itself is not very high at the moment but it's more or less compensated by a more active let's say project market so at the moment the third vessel is working in let's say more on a project market but we foresee that we will still be able to to have good utilization on that vessel. And the plan is to keep the three vessels in the region.

Then next question is, how do you see the North Sea anchor handling market for 2026?

It has definitely started very well. It has been a tight market, especially for the vessels, the anchor handlers with ROVs, with premium rates, and as I mentioned also in the presentation we see that there are quite a few projects that will require that type of vessels in 26 so as it looks it could be a fairly fairly tight anchor handling market in the North Sea in 26 but as always there will be periods with high rates and other periods where we will see probably vessels alongside in Bergen normally. But in average, I will foresee that the market will be better than we have seen the previous years.

And then the next question is, how do you foresee the project market in the Atlantic Basin for 26 for anchor handlers? Previously, we have done quite some work in the project market with anchor handlers. How do you see that market developing in 26?

There are quite a few projects. We are in negotiations on a few of them. There will be a substantial portion of the let's say the spot fleet will probably be occupied on projects so it's a busier project market this year than we have seen the last couple of years so that looks pretty good and that goes for projects in the North Sea it goes for other places in Europe and also outside the European waters

Thank you. That concludes the Q&A.

Okay, so thanks for listening in everyone and have a nice day ahead.