This article first appeared on GuruFocus .
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Revenue:$175 million in Q1, up 11% compared to Q1 last year.
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EBITDA:Impacted by nonrecurring events, with potential $30 million increase if these events hadn't occurred.
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Fleet Utilization:82%, slightly lower than last year.
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Backlog:$6.9 billion, with significant growth expected.
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Guidance:Revenue guidance increased to $880 million; net interest guidance raised by $5 million.
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Dividend:Increased to $0.37 per share, up from $0.35.
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Working Capital:$85 million negative impact due to operational working capital changes.
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Leverage:Impacted by IFRS 16 lease debt, affecting leverage ratio negatively.
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Release Date: May 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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DOF Group ASA ( STU:UV3 ) executed a large project in Congo involving over 600 people and six vessels, delivering ahead of schedule with a satisfied client.
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The company reported an 11% increase in revenue for Q1 2026 compared to the same quarter last year, indicating growth.
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DOF Group ASA has a strong backlog of $6.9 billion, providing good visibility and a promising outlook for 2026 and beyond.
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The company lifted its revenue guidance to $880 million, reflecting better-than-expected performance and a strong market outlook.
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DOF Group ASA declared an increased dividend of $0.37 per share, up from $0.35, indicating confidence in future earnings.
Negative Points
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Q1 2026 was impacted by nonrecurring events related to vessel upgrades and mobilization for new contracts, affecting EBITDA by more than $30 million.
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Fleet utilization was at 82%, lower than the previous year, partly due to nonrecurring events and vessel mobilizations.
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The company experienced a high working capital buildup in Q1, which negatively impacted cash flow.
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DOF Group ASA faced an incident with the Skandi Amazonas in Brazil, though the financial impact for 2026 is expected to be limited.
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The sale of the Skandi Connector cable vessel was below market expectations, reflecting a soft market outlook for cable vessels in the near term.
Q & A Highlights
Q: Can you clarify the expectation for increased order intake in the second half of 2026? Does it mean exceeding the $2.5 billion from the first half? A: We haven't specifically commented on exceeding $2.5 billion. Our focus is on filling open spots and meeting revenue guidance. The $2.5 billion includes large contracts, and we aim to exceed the first half's order intake, but no specific figures were provided.
Q: Can you provide details about the Skandi Amazonas incident in Brazil? A: We confirm an incident occurred, but it's too early to provide details on duration or impact. We have insurance coverage, and we expect limited financial impact on 2026 earnings. Our focus is on the safety of personnel and resolving the situation.
Q: What is the size of the crane being fitted on one of the new HSS vessels, and when is it planned? A: The crane will be fitted in March or April next year, before the main operational season begins.
Q: The sale price of the connected cable layer was rumored to be below market expectations. Can you comment on this? A: The sale price reflects the current market conditions and our assessment of the vessel's future market prospects. The market value is determined by the projects available for the vessel, and we believe the sale was appropriate given the outlook.
Q: Does DOF plan to compete with larger companies like Item 7 in the market for large service projects? A: No, competing with larger companies on massive projects is not our strategy. Instead, we focus on smaller projects where we can leverage our strengths. We aim to position ourselves for opportunities in the $100 million to $150 million range.
Q: Can you quantify the total cost of one-offs or nonrecurring elements in Q1? A: It's challenging to specify exact costs for one-offs as they are part of planned mobilizations and projects. However, the EBITDA loss due to these elements is estimated at around $30 million.
Q: What is the outlook for regional EBITDA margins in the coming quarters? A: We expect regional EBITDA margins to increase throughout the year, following a similar pattern to previous years where margins improved towards the end of the year.
Q: Is there an explicit ambition to keep dividends unchanged throughout the year, or is there room for variation? A: While we don't guide on dividends, the increase from $0.35 to $0.37 per share reflects our confidence in the business. Dividends are influenced by backlog strength and earnings development.
Q: Are there any repairs or maintenance expected this quarter that could impact EBITDA? A: It's difficult to predict from the top of my head, but not to the magnitude seen in Q1. Our guidance considers known factors, and we aim to deliver within the $840 million to $880 million range.
Q: Why sell the Skandi Laser when the market for HSTS and 250-ton cranes looks promising? A: We are focusing on high-spec vessels and expect higher earnings from new acquisitions. The sale aligns with our strategy to high-grade the fleet while maintaining a cash-positive approach.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
