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1. Company Snapshot

1.a. Company Description

Solstad Offshore ASA operates offshore service and construction vessels for offshore and renewable energy industry worldwide.It provides platform supply vessel, anchor handling vessel, subsea construction, and renewable energy services.The company offers subsea construction and renewable energy services, such as geotechnical work, walk to work services, grouting, SURF operations, deep sea mining, cable laying and repair, trenching and burial, ROV support, installation of subsea equipment, survey work, IMR operations, node seismic operations, and diving and topside maintenance work.


It operates a fleet of 25 construction service vessels, 26 anchor handling tug support vessels, and 45 platform supply vessels.The company was founded in 1964 and is headquartered in Skudeneshavn, Norway.

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1.b. Last Insights on SOFF

Solstad Offshore ASA faced negative drivers, including a challenging long-term recovery narrative. Despite a one-off gain of $60.3 million driving a 55.7% net profit margin, annual earnings declined 37.5% over five years. The company's Q3 2025 earnings call highlighted strong fleet utilization and significant contracts in Brazil. However, short-term market challenges and a reliance on one-off gains may impact future performance. The company's proposed dividend and contract wins showcase resilience, but underlying trends require scrutiny.

1.c. Company Highlights

2. Solstad Offshore's Q3 2025 Earnings: Strong Utilization and Contract Wins

Solstad Offshore reported a robust third quarter in 2025, with adjusted EBITDA reaching $29 million, up from $28 million last year. Earnings per share (EPS) came in at $3.6, surpassing analyst estimates of $2.89. The company's revenue growth is expected to continue, with analysts estimating a 12.6% increase in revenues for the next year. The firm's strong financial performance was driven by a 97% fleet utilization, in line with the year-to-date average.

Publication Date: Nov -18

📋 Highlights
  • 97% Fleet Utilization: with $222 million in new contracts, including a 3-year deal for Normand Turmalina.
  • Adjusted EBITDA Growth: $29 million (up from $28 million YoY), driven by strong long-term contract stability.
  • Backlog Doubles: to $280 million, reflecting robust long-term demand, especially in Brazil.
  • Revised Financial Guidance: Adjusted EBITDA at $150 million, operational guidance $60-70 million, and $50 million joint venture share.
  • Dividend Plan: $0.05 per share ($4 million total), supported by a 27.3% stake in Solstad Maritime and strategic joint ventures.

Contract Wins and Backlog

The company secured $222 million in new contracts during the quarter, including a 3-year deal for Normand Turmalina and an extension for Normand Superior. As a result, the firm backlog for Solstad Offshore vessels doubled to $280 million compared to last year. According to Lars Solstad, CEO, the company is discussing long-term opportunities for Normand Tonjer, which is currently idle, and the vessel is on a planned yard stay.

Financial Guidance and Dividend

Solstad Offshore adjusted its financial guidance to reflect Solstad Maritime's reduced EBITDA forecast, with adjusted EBITDA guidance of $150 million. The company plans to distribute a dividend of $0.05 per share, totaling approximately $4 million. The dividend announcement was accompanied by a robust financial position, with a Net Debt / EBITDA ratio of 0.32.

Valuation and Outlook

Solstad Offshore's current valuation metrics indicate a relatively attractive position, with a P/E Ratio of 2.58 and an EV/EBITDA of 3.28. The company's Return on Equity (ROE) stands at 61.11%, demonstrating its ability to generate strong returns for shareholders. As the offshore industry continues to evolve, Solstad Offshore's strong foothold in Brazil and stable day rates position the company for long-term growth.

Investment Considerations

Investors may also consider Solstad Offshore's Free Cash Flow Yield of 12.12%, which suggests a healthy cash generation capability. Additionally, the company's ROIC of 83.9% highlights its efficiency in allocating capital. With a stable rate development on contracts and minimal pressure on day rates, Solstad Offshore appears well-positioned for continued success.

3. NewsRoom

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Solstad Offshore (OB:SOFF) One-Off Gain Drives Profit Margin Spike, Challenging Long-Term Recovery Narratives

Nov -01

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Solstad Offshore ASA (FRA:SZL) Q3 2025 Earnings Call Highlights: Strong Fleet Utilization and ...

Oct -30

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Sep -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.71%)

6. Segments

Subsea

Expected Growth: 6.5%

Solstad Offshore ASA's Subsea segment growth of 6.5% is driven by increasing demand for offshore oil and gas exploration, rising deepwater production, and growing adoption of subsea technologies. Additionally, the company's strategic partnerships, fleet modernization, and cost-cutting initiatives contribute to its growth momentum.

Anchorhandling Vessels

Expected Growth: 5.5%

Solstad Offshore ASA's Anchorhandling Vessels segment growth of 5.5% is driven by increasing offshore oil and gas exploration activities, rising demand for anchorhandling services in deepwater projects, and the company's strategic fleet expansion and modernization efforts, which enhance operational efficiency and competitiveness.

Renewable

Expected Growth: 8.5%

Solstad Offshore ASA's 8.5% growth in Renewable segment is driven by increasing demand for offshore wind farms, rising investments in renewable energy, and growing government support for sustainable energy sources. Additionally, the company's strategic partnerships and expanding fleet of specialized vessels have enabled it to capitalize on the growing market.

Other

Expected Growth: 5.0%

Solstad Offshore ASA's 5.0% growth in 'Other' segment is driven by increasing demand for offshore windfarm support vessels, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on cost reduction initiatives and operational efficiencies have contributed to the growth.

7. Detailed Products

Platform Supply Vessels (PSV)

Solstad Offshore ASA provides Platform Supply Vessels (PSV) that are designed to transport cargo, equipment, and personnel to and from offshore oil and gas platforms.

Anchor Handling Tug Supply (AHTS) Vessels

Solstad Offshore ASA offers Anchor Handling Tug Supply (AHTS) Vessels that are designed to provide anchor handling, towing, and supply services to offshore oil and gas platforms.

Construction Support Vessels (CSV)

Solstad Offshore ASA provides Construction Support Vessels (CSV) that are designed to support the construction and installation of offshore oil and gas platforms, wind farms, and other subsea infrastructure.

Remotely Operated Vehicle (ROV) Services

Solstad Offshore ASA offers Remotely Operated Vehicle (ROV) Services that provide underwater inspection, maintenance, and repair services to the offshore oil and gas industry.

Crew Boats

Solstad Offshore ASA provides Crew Boats that are designed to transport personnel to and from offshore oil and gas platforms.

8. Solstad Offshore ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

Solstad Offshore ASA operates in a niche market with limited substitutes, but the increasing adoption of renewable energy sources and energy-efficient technologies poses a moderate threat.

Bargaining Power Of Customers

Solstad Offshore ASA's customers, primarily oil and gas companies, have limited bargaining power due to the specialized nature of the company's services and the lack of alternative providers.

Bargaining Power Of Suppliers

Solstad Offshore ASA's suppliers, including shipbuilders and equipment providers, have moderate bargaining power due to the company's dependence on a few key suppliers and the high switching costs.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise and equipment.

Intensity Of Rivalry

The offshore support vessel market is highly competitive, with several established players competing for a limited number of contracts, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 88.20%
Debt Cost 17.47%
Equity Weight 11.80%
Equity Cost 17.47%
WACC 17.47%
Leverage 747.76%

11. Quality Control: Solstad Offshore ASA passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Solstad Offshore

A-Score: 5.0/10

Value: 7.5

Growth: 2.2

Quality: 9.1

Yield: 0.6

Momentum: 8.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
KNOT Offshore Partners

A-Score: 4.6/10

Value: 8.9

Growth: 2.3

Quality: 4.9

Yield: 5.6

Momentum: 4.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Seanergy Maritime Holdings

A-Score: 4.5/10

Value: 7.8

Growth: 2.2

Quality: 3.8

Yield: 9.4

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Cadeler

A-Score: 4.0/10

Value: 7.3

Growth: 5.8

Quality: 5.9

Yield: 0.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Top Ships

A-Score: 2.8/10

Value: 9.6

Growth: 2.0

Quality: 4.4

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Globus Maritime

A-Score: 1.9/10

Value: 9.2

Growth: 1.3

Quality: 1.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.8$

Current Price

42.8$

Potential

-0.00%

Expected Cash-Flows