Odfjell Technology Ltd: Q4 2024 Earnings Call Highlights Strong Revenue and Strategic Growth

Odfjell Technology Ltd (FRA:ND4) recently reported its financial and operational results for the three-month period ended 31st December 2024, showcasing strong revenue growth and strategic progress. The company's Q4 highlights include a revenue of NOK 1,450m, EBITDA of NOK 191m, EBIT of NOK 110m, and a net profit of NOK 75m. Additionally, Odfjell Technology maintained a healthy leverage ratio of 0.73X and boasted available liquidity of NOK 1,144m, further solidifying its financial position.



The company's CEO, Simen Lieungh, highlighted the strong activity levels in both Operations and Well Services during Q4, although margins were affected by changes in the contract portfolio. Notably, Odfjell Technology secured its first Powered Wired Pipe contract, a significant milestone aligning with its strategic priorities. This contract, along with a stable order backlog of NOK 13.3bn, provides strong long-term revenue visibility for the company.



Odfjell Technology's full-year 2024 results demonstrated key achievements, including successfully refinancing debt on favorable terms, upgrading its equipment pool, securing key contracts, and establishing a presence in new markets. The company reported a revenue of NOK 5.4 billion and an EBITDA of NOK 825 million for the full year. Looking ahead to 2025, Odfjell Technology anticipates market improvements and is well-positioned for global growth with improved margin levels.



The company's strong cash flow continues to support its dividend program, which currently delivers an annualised direct yield of 14% at the prevailing share price. This, coupled with the company's commitment to strategic priorities and financial discipline, positions Odfjell Technology as an attractive investment opportunity in the long term.

In conclusion, Odfjell Technology Ltd's Q4 2024 earnings call highlights strong revenue growth, strategic progress, and a solid financial position. The company's commitment to its strategic priorities, such as securing the Powered Wired Pipe contract, and its focus on financial discipline make it an attractive investment option for long-term investors. As the company continues to execute on its growth strategy, it is well-positioned to capitalize on market opportunities and generate value for shareholders.