Odfjell Technology Ltd
OSE:OTL
Odfjell Technology Ltd
Odfjell Technology Ltd. engages in drilling operations, engineering and well services. The Company’s segments include Well Services, Drilling Operations and Engineering. The Well Services segment provides casing and tubular running services (both automated and conventional), drilling tool and tubular rental services, specialist well intervention products and services for exploration wells and for production purposes. The Drilling Operations segment offers platform drilling services on both fixed production platforms and on floating production platforms with subsea blowout preventers (BOP) along with the management of and performance of the same services on leased Jack-up rigs. The Engineering business area offers engineering and integrity services, ranging from design and engineering to building supervision, project management and operational support for units in operation, newbuild projects, SPS/RS recertification projects and yard stays.
Odfjell Technology Ltd. engages in drilling operations, engineering and well services. The Company’s segments include Well Services, Drilling Operations and Engineering. The Well Services segment provides casing and tubular running services (both automated and conventional), drilling tool and tubular rental services, specialist well intervention products and services for exploration wells and for production purposes. The Drilling Operations segment offers platform drilling services on both fixed production platforms and on floating production platforms with subsea blowout preventers (BOP) along with the management of and performance of the same services on leased Jack-up rigs. The Engineering business area offers engineering and integrity services, ranging from design and engineering to building supervision, project management and operational support for units in operation, newbuild projects, SPS/RS recertification projects and yard stays.
Revenue: Odfjell Technology reported Q3 revenue of NOK 1.4 billion, with revenue and EBITDA both improving compared to previous quarters.
EBITDA Improvement: Q3 EBITDA reached NOK 202 million, up from NOK 193 million in Q2 and Q1, with adjusted EBITDA at NOK 204 million; underlying operations have strengthened.
Strong Backlog: Order backlog remains high at NOK 12–13 billion, though slightly lower than before, giving good visibility for future activity.
Dividend Stability: Dividend payments continue at an attractive 11% yield, but management signals that dividends could be paused or reduced if significant M&A opportunities arise.
Market Outlook: Management sees near-term market softening and timing uncertainty due to global volatility but remains optimistic for strong demand from 2027 onward.
Performance Improvement Program: Ongoing cost discipline and restructuring have improved margins and operational efficiency, with further benefits expected into Q4.
CapEx and Guidance: CapEx was elevated in 2025 but is expected to normalize to NOK 200–250 million in 2026; working capital and cash flow are also expected to improve in Q4.
