Sea1 Offshore Inc (FRA:S5H0) Q4 2025 Earnings Call Highlights: Strong Financial Performance and …

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Thu, February 12, 2026 at 10:00 PM GMT+9 3 min read

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This article first appeared on GuruFocus.

Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Sea1 Offshore Inc (FRA:S5H0) reported a strong EBITA margin of 52% for the fourth quarter.

The company achieved a high fleet utilization rate of 93% during the quarter.

A new contract was awarded for C1 Atlas in Brazil with favorable terms, enhancing future revenue streams.

The company has a solid financial position with a book equity ratio of 54% and access to a $100 million undrawn revolving credit facility.

Sea1 Offshore Inc (FRA:S5H0) has a strong backlog of $1,270 million, with significant coverage for 2026 and 2027.

Negative Points

Net financial items were negative by $10.5 million, including a currency loss of $5.8 million.

The subsea segment experienced a decline in margin due to a reduced fleet.

The company has significant net interest-bearing debt of $209 million.

There is no established dividend policy, creating uncertainty for shareholders regarding future payouts.

The APEC region and South America markets are softening in the short term, which may impact future operations.

Q & A Highlights

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Q: How do your new builds compare to other new buildings? A: Our new builds are high-end sophisticated vessels with 250-ton cranes, optimized for efficient operation with low fuel consumption and emissions. They are based on an ST 245 design and can serve both the oil and gas and renewable markets. (CEO)

Q: What is the contract status for C1 Sapphire and Avalon C? A: Avalon C has a firm contract until July this year, with further options available. C1 Sapphire’s contract ends in April. (CEO)

Q: Can you provide details on the new build financing? A: C1 has secured a $350 million loan agreement. Approximately $85 million will be available before vessel delivery for pre-delivery yard installments, with the remainder drawn upon delivery. The facility remains undrawn but represents committed future funding. (CFO)

Q: Are the well intervention vessels included in the subsea backlog? A: Yes, the well intervention vessels are included in the subsea backlog. (CEO)

Q: What are your thoughts on the subsea new build order book? A: We anticipate a few vessels coming out in 2027 and 2028, but we believe the market can absorb these new builds, with modern vessels preferred over older ones. (CEO)

Q: What is the company’s stance on dividends? A: C1 paid $73 million in dividends in 2024 and $94 million in 2025. However, there is no fixed dividend policy. Future dividends will depend on the company’s financial outlook and market conditions. (CFO)

Story Continues  

Q: How much has been invested in the new build vessels so far? A: We have invested $74 million in the new build vessels, with $66 million for installments. (CFO)

Q: What is the duration of the current contract for C1 Amethyst? A: There are approximately 33 weeks remaining on the current contract for C1 Amethyst. (CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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