Golden Energy Offshore Services reports loss after ‘collapse in day rates’

GEOS chief executive Per Ivar Fagervoll said, “The fourth quarter of 2025 marked one of the most challenging periods the offshore supply market has experienced in more than a decade. Under ordinary circumstances, with our modern fleet, high utilisation track record, and competitive operating platform, the quarter would have delivered a materially stronger financial result.

“Instead, the market downturn weighed heavily on revenue generation and working capital, requiring decisive and immediate action. Against this backdrop, GEOS took a series of difficult but necessary steps to secure the long-term resilience of the company after a sharp reduction in activity, over-supply and a rapid collapse in day rates.” GEOS said fleet utilisation fell to 58% in Q4  2025 and average day rates declined to historically low levels.

“During the quarter we began the process of strengthening the balance sheet through equity issuance, and after the balance sheet date, the group concluded the sale of three vessels, right-sizing the fleet to the current market conditions,” Mr Fagervoill said.

He said that, as a result of its actions, GEOS “entered 2026 as a more financially resilient company,” with refinancing complete and its cost base reset. “The company now has a robust balance sheet,” Mr Fagervoll said, “ensuring sufficient liquidity to withstand a prolonged market downturn, should it occur. In addition, the net proceeds from the three vessel sales provide the company with the flexibility to return capital to shareholders, subject to a resolution by our board of directors.

“Looking ahead, while we anticipate continued volatility, we remain encouraged by the forward indicators we observe,” Mr Fagervoll said. “Tendering activity is gradually improving, operator spending plans for 2026-2027 remain intact, and the structural supply side of the PSV market continues to tighten as older vessels exit. Our vision remains unchanged: to operate the youngest and most energy-efficient PSV fleet in the North Sea, delivering high-quality services to top-tier clients while creating long-term value for our shareholders.”

Mr Fagervoll said it was worth reflecting on how Q4 2025 would have looked under normal market conditions. “With our young and efficient fleet, 2025 would likely have delivered significantly stronger cash flow, higher earnings, and improved leverage metrics,” he said. “The fundamental competitiveness of our platform has not changed – rather, the market cycle has temporarily obscured underlying strength. Importantly, the fair value of our fleet continues to exceed book value by a considerable margin, and the current share price therefore represents a substantial discount to our net asset value.”

In Q4 2025, GEOS had revenues of Nkr44M (US$4.5M) compared with Nkr173M in the same quarter last year, a 75% decrease. For the year 2025, GEOS had total revenues of Nkr370M compared with Nkr513M in 2024, a 28% decrease. EBITDA of Nkr61M for Q4 2025 compared with Nkr99M in Q4 2024, a decrease of Nkr160M. For the year 2025, EBITDA of Nkr32M compared with Nkr215M in 2024, a decrease of Nkr183M. The loss in Q4 2025 amounted to Nkr138,607M, compared to Nkr33M a year ago.