Energy Morning - 17 June 2025

Sea1 Offshore (Buy, TP: NOK30.00) - Another strong performance

A strong start to the year included EBITDA and FCF above our estimates and consensus, driven by a solid operating performance, higher mobilisation income than we expected, and the reversal of an earlier recognised loss. We consider most items primarily isolated to Q1, and have made limited, but positive, estimate revisions, with few changes to its contract backlog since Q4. We reiterate our BUY and NOK30 target price.

Sea1 Offshore (Buy, TP: NOK30.00) - Waiting for newbuilds

We forecast Q1 EBITDA of USD30m versus consensus of USD33m, as we expect low utilisation of the AHTS fleet due to yard stays and other idle time during the quarter. The recent sale of Sea1 Spearfish (above our NAV) was notable, in our view, and the stock is trading at a P/NAV of 0.6x. The sizeable newbuild programme (remaining capex of cUSD400m versus current EV of USD527m) is limiting near-term FCF and creating a more back-end-loaded cash flow profile than peers. We reiterate our BUY, but have ...

Energy Morning - 15 April 2025

Sea1 Offshore (Buy, TP: NOK35.00) - Solid backlog coverage

With EBITDA and net debt pre-announced, we see limited room for surprises in the full Q4 report. Sea1 Offshore’s backlog coverage remains among the best in the sector, and we calculate a firm EBITDA backlog of cUSD550m, (covering 82% of its current EV) and cUSD1bn including options. We expect the company to continue prioritising shareholder distributions and that it will seek alternative financing options for the newbuilds, but we also see current liquidity and FCF generation sufficient to cover...

Sea1 Offshore - Initiation of coverage - Visibility on long-term cash ...

Around one-third of our 2025–2026e EBITDA is covered by two well-intervention vessels (WIVs) contracted to at least 2030. The remainder is levered to Sea1 Offshore’s AHTS fleet, where visibility is more limited, but the company has shown an ability to find longer-term work outside the volatile North Sea market. The run-rate dividend yield of 18% is among the highest in the sector. We initiate coverage with a BUY and NOK42 target price.