SED Energy Holdings delivered a strong fourth quarter, concluding a transformational year for the Group. Revenue and EBITDA increased significantly year-over-year, supported by higher activity and improved day rates. During the quarter, Energy Drilling commenced long-term contracts for EDrill-2 and GHTH, completing the transition to a fully contracted fleet and providing strong earnings visibility into 2026 and beyond.
The Board has proposed a USD 22.5 million shareholder distribution for the fourth quarter, bringing full year 2025 distributions to USD 82.5 million.
'The fourth quarter marked a strong conclusion to a pivotal year for Energy Holdings. Following the successful formation of the Group in the first half of the year, we completed the final quarter with all assets operational, strong earnings visibility, and a clear framework for continued value creation,' said Kurt M. Waldeland, CEO.
In February 2026, the Company amended the repayment profile of its debt facility, significantly reducing annual mandatory repayments. This amendment demonstrates how Energy Holdings continues to unlock financial synergies from the merger, reflecting the increased scale, diversification, and cash flow visibility of the combined Group. The improved repayment profile further strengthens the financial flexibility of the company while maintaining a conservative capital structure and supporting future cash flows.
'Looking ahead, the combination of full fleet utilization, long-term contracts, high earnings visibility and enhanced financial flexibility, provides a strong basis for substantially higher shareholder distributions in 2026 compared to 2025. While distributions remain a priority, we also continue to assess selective growth opportunities that strengthen our industrial platform and enhance long-term value. We enter 2026 with confidence in our strategy, our teams, and our ability to continue delivering on our commitments,' Waldeland continued.
Q4 2025 highlights:
- Revenue and EBITDA increased year-over-year, driven by solid operational execution and high fleet utilization at improved day rates.
- Full fleet active and on contract following contract commencements for EDrill-2 and GHTH during the quarter.
- Strong balance sheet with industry-leading leverage of 0.4x last twelve months adjusted EBITDA at quarter-end.
- In the first quarter of 2026, the Company secured amendments to its debt facility reducing annual amortization from approximately USD 20 million to approximately USD 8 million.
- The Board has proposed a USD 22.5 million distribution for the fourth quarter of 2025, bringing total 2025 distributions to USD 82.5 million.
- Firm backlog of USD 466 million, including post-quarter extensions for both the Eagle Explorer and the Fulmar Explorer, securing firm commitments to mid-May and mid-June 2026, respectively.
Fourth quarter 2025 presentation The fourth quarter 2025 materials are enclosed and available on the company's website: www.energyholdings.cy/investors/financial-reports/.
Source: Energy Holdings
