SED Energy Holdings Plc ('Energy Holdings') delivered solid third-quarter results, supported by high technical utilization and strong operational execution. Revenue and EBITDA increased year-over-year, reflecting more active rigs at higher day rates, while two rigs completed yard work ahead of new long-term contracts that commenced in the fourth quarter.
The Board has proposed a USD 20 million shareholder distribution for the third quarter and updated full-year guidance to total distributions of USD 80-85 million.
'Building on the momentum from the first half of the year, the third quarter marked another period of strong operational delivery and consistent financial performance. Both Energy Drilling and SeaBird Exploration continue to operate with high technical utilization, supporting cash flow generation. We are pleased to announce a proposed distribution of USD 20 million for the quarter, demonstrating our commitment to delivering superior shareholder returns,' said CEO Kurt M. Waldeland.
With its entire fleet fully utilized and on contract, Energy Holdings enters the coming quarters with strong earnings visibility. Combined with a firm backlog of USD 521 million and net interest-bearing debt of only USD 23 million, this provides flexibility to maintain attractive shareholder distributions while pursuing value-accretive opportunities.
'Energy Holdings is delivering on what we set out to achieve: operating a portfolio of resilient, cash-generative assets that provide visibility, flexibility, and consistent returns. With all assets in operation, strong operational execution, and no significant capital expenditure ahead, we are well positioned to deliver strong free cash flows, maintain attractive shareholder distributions, and pursue value-accretive opportunities aligned with our long-term strategy,' Waldeland continued.
Q3 2025 highlights:
- Strong revenue and EBITDA growth year-on-year driven by solid operational execution and continued high fleet utilization at improved day rates.
- Continued capital discipline with leverage maintained at a low 0.2x last twelve months adj. EBITDA.
- New OBN source contracts secured for Fulmar Explorer and Eagle Explorer.
- Solid firm revenue backlog of USD 521 million, including post-quarter contract extension for the Fulmar Explorer.
- Proposed third quarter 2025 distribution of USD 20 million to be paid in the first quarter of 2026, subject to EGM approval.
- Updated full-year distribution guidance in the range of USD 80-85 million (from prev: USD 70-90 million).
- EDrill-2 and GHTH both completed yard work and commenced new long-term contracts in the fourth quarter.
Sveinung Alvestad to take on Group CFO responsibilities
Sveinung Alvestad has accepted to take on Group CFO responsibilities for Energy Holdings alongside his current role as CFO of SeaBird Exploration, under the existing intracompany management agreement. In his role as CFO of SeaBird Exploration, Sveinung has driven strategic initiatives and played a key role in the company’s turnaround. Since the merger, he has been instrumental in ensuring an efficient integration and establishing a solid financial framework for Energy Holdings. He brings over a decade of experience from investment banking and energy markets, and has a proven track record in financial strategy and execution.
'I am pleased to see Sveinung take on a broader role within the group,' said CEO, Kurt M. Waldeland. 'We have strong capabilities across our companies, supported by top talent and resources that position us well for the future. Sveinung has shown financial leadership and strategic insight, and his expanded role will provide continuity and strengthen financial coordination across the organization.'
Third quarter 2025 presentation
The third quarter 2025 materials are available on the company's website: www.energyholdings.cy/investors/financial-reports/.
Source: Energy Holdings
