Solstad Maritime will see growth with a 15% revenue jump

Investment Memorandum – Solstad Maritime ASA (OSE: SOMA)

1. Executive Summary

Solstad Maritime ASA (“Solstad” or the “Company”) is a Norway-based offshore marine services provider focused on high-end vessels supporting oil & gas and renewable energy operations globally. The company operates a fleet of 32 vessels and has established a strong position in subsea construction and anchor-handling services. [financialreports.eu], [marketscreener.com]

The investment thesis is supported by:

• Strong offshore energy cycle recovery (oil & gas + renewables)
• High utilization and improving pricing environment
• Visible backlog and strong order intake
• Attractive shareholder returns through dividends

However, risks remain linked to offshore cyclicality and leverage.

2. Business Overview

Solstad Maritime provides specialized offshore tonnage and related services to energy markets worldwide, including subsea construction, offshore wind support, and anchor-handling operations. [financialreports.eu], [markets.ft.com]

Fleet Composition

• Total vessels: 32
• Construction Support Vessels (CSV): 22
• Anchor Handling Tug Supply (AHTS): 10 [markets.ft.com], [solstad.com]

Global Presence

Key regions:

• Brazil
• North Sea
• Southeast Asia
• Australia
• Africa [solstad.com]

The company serves major oil companies, offshore contractors, and renewable energy developers. [marketscreener.com]

3. Industry Context

The offshore service vessel (OSV) market is recovering due to:

• Increased offshore oil & gas capex
• Growing offshore wind installations
• Tight vessel supply after years of underinvestment

Solstad is positioned in higher-spec segments (CSV/subsea), which typically exhibit:

• Higher margins
• Longer contract durations
• Better resilience vs commoditized PSV markets

4. Financial Performance

Recent Financial Highlights (FY 2025)

• Revenue: ~USD 590 million [quartr.com]
• Adjusted EBITDA: USD 303 million [solstad.com]
• Net income: USD 213 million [quartr.com]
• Equity ratio: ~54% [quartr.com]
• Net debt: USD ~545 million [quartr.com]

Q1 2026

• Adjusted EBITDA: USD 103 million (vs USD 82m YoY) [live.euronext.com]
• Order intake: USD 177 million [live.euronext.com]
• Dividend: ~USD 40 million (USD 0.086/share) [live.euronext.com]

Historical Growth Trend

• Revenue (2024): ~NOK 6.0bn (~USD ~550–600m equivalent) [solstad.com]
• EBITDA growth supported by improved utilization and pricing

Guidance (2026)

• EBITDA: USD 330–380 million [quartr.com]
• Capex: USD 55–75 million [quartr.com]

5. Backlog & Contract Visibility

• Strong order intake (e.g., USD 272m in Q4 2025) [quartr.com]
• Book-to-bill ratios near or above 1.0x
• Medium- / long-term contracts securing visibility into 2027 [quartr.com]

Backlog visibility is a key driver of earnings stability in offshore services.

6. Shareholder Structure

• Aker Capital AS: ~57%
• Solstad Offshore ASA: ~30% [solstad.com]

Highly concentrated ownership provides:

• Strategic stability
• Potential governance alignment

7. Investment Thesis

Key Positives

1. Strong Offshore Cycle Upswing Demand for subsea vessels and offshore wind support is rising globally.
2. High-End Fleet Exposure Focus on CSV/AHTS improves margins and utilization vs commoditized segments.
3. Operational Leverage Incremental utilization drives EBITDA expansion significantly.
4. Attractive Capital Returns Commitment to distributing majority of free cash flow via dividends. [quartr.com]
5. Improving Balance Sheet Flexibility Additional financing capacity (USD 100m facility announced in 2026). [live.euronext.com]

8. Key Risks

1. Oil Price Volatility Offshore spending remains correlated to oil prices.
2. Cyclical Industry Vessel oversupply risk if newbuild cycle resumes.
3. Leverage Exposure Net debt still significant (~USD 545m). [quartr.com]
4. Regional Concentration Exposure to Brazil and North Sea may add geopolitical/operational risk.

9. Valuation Snapshot (Market Data)

• Market cap: ~NOK 13.4bn [stockanalysis.com]
• P/E: ~5.8x [stockanalysis.com]
• Dividend yield: ~4.1% [stockanalysis.com]

This implies:

• Discounted valuation vs broader shipping peers
• Reflects cyclicality but offers upside in sustained upcycle

10. Conclusion

Solstad Maritime presents a levered play on the offshore energy recovery, combining:

• High-quality fleet exposure
• Strong earnings momentum
• Increasing shareholder distributions

While risks remain inherent to the offshore services sector, the company’s backlog, improving utilization, and disciplined capital allocation position it as an attractive opportunity within the OSV space.

If you want, I can turn this into a full 15–20 page investment banking pitch (with valuation models, comps, and DCF) or tailor it to a buy-side memo style.