My name is Øyvind Larsen, and I will be your moderator today. You have a Q&A function at the top of your screen where you can ask questions, and I will read them out after the company has presented. The questions will be asked anonymously. With that, I'll leave the word to Harald Thorstein and Daniel Samuelsen, which will go through the presentation.
Thank you very much, Øyvind. Let's start on the summary slide. Jacktel had another quarter with 100% operational and financial utilization. We delivered an EBITDA of $8.8 million. We had a net profit of $2.3 million. We had a strong cash flow in the quarter, bringing our net interest-bearing debt down to $44 million. By end of the quarter, we had firm EBITDA backlog of $58 million and $82 million if you include our options. In March, we secured another extension with Equinor, bringing the firm contract with Equinor to 27th of May. That is today. We are now done with the Equinor contract. As we speak, Haven is in transit from Draupner, where we have worked with Equinor, to Valhall, where we will commence our contract with Aker BP. We are getting back to the details here.
Paying dividends is a key priority for Jacktel, and we are pleased to announce a distribution of $0.025 per share for the first quarter of 2026. As you are seeing, that dividend will be paid on the 11th of June. In Q1, we reached another milestone, which was the listing on Euronext Growth. This was something we have had contemplated for a year. We were just keen on finding the right timing, the right window. Happy with the process. We got listed in March, and here we are. If you take us to the next slide, Øyvind. As I said, dividend is a key priority for us on the board of Jacktel. The board aims at distributing all excess cash to shareholders on a quarterly basis. The dividend declared today is our third quarterly dividend payment.
We paid our first dividend following the Q3 last year in 2025. This was kind of a catch-up dividend being triggered by the refinancing we did in October last year. That dividend was quite a lot higher than the cash flow we had in Q3 2025. We paid $ 0.05 per share for Q3 2025, for Q4 2025, we paid $ 0.02 and now increased that dividend or the dividend for Q1 2026 to $ 0.025 per share. We are keen to continue paying these quarterly dividends. If you look into the simple bar chart on the right-hand side on the slide, we illustrate our kind of cash flow forecast for 2026. Our EBITDA forecast in 2026 is approximately $40 million. We believe we will deliver $40 million. That's the starting point.
We are paying amortization of $10 million, so reducing our debt of $10 million through the financial year of 2026. We pay interest on our debt on $6.5 million. We have a very small amount of CapEx scheduled for 2026. That brings the cash generation following that service to approximately $23 million per share. What is not included in this overview is the proceeds we raised when we did the small capital raise for our Euronext Growth listing of approximately $3 million. There is $3 million that has been brought into the company in addition to this. As you see from that will bring the cash generation following that service on CapEx close to $0.10 per share for 2026. This should give you a good proxy for our dividend capacity or distribution for the coming quarters.
What we want to address is that our amortization is quite steep. We pay $10 million in amortization per year, which we believe is good and prudent today. That means that we are quickly reducing our debts and interest cost, which is good. Following the $5 million amortization we paid in April this year, our gross debt today is $65 million. According to our loan agreement, that amortization will continue to be $10 million going forward. What we see is that when the debt is down to around $50 million, which it will be 1.5 years from now, we believe we should target a debt structure with no amortization. We believe $50 million is a good long-term debt level for the company, where basically we see no reason to have any amortization if you are down to $50 million.
That means after 1.5 years from now, if we do this and are successful, we are increasing our distribution capacity from where we are today, meaning you don't have the amortization of $10 million, and our interest costs should also be reduced. We will continue with the current debt we have at least for 1.5 years from now. This is just highlighting that there is further potential down the road by reducing amortization. For now, we are happy with amortization, and that brings down interest cost and is reducing our debt. Okay. Øyvind. Daniel, operational update.
Thanks, Harald. Yes. Haven has been on contract with Equinor at the Draupner field the entire quarter and delivered 100% gangway connection and a smooth operation. In March, Equinor extended the contract to 27th of May, meaning that Haven will be towed directly from Draupner to Valhall, eliminating the gap between the contracts, increasing the utilization, and saving cost. As Harald said, we have jacked down Haven at Draupner and have commenced the tow to Valhall, and we are currently being steadily towed by Skandi Master and Thor Viking. We had no high potential incidents in Q1, but we had a lost time incident when a crew member tripped over a pipe and fractured his elbow. Can move to the next slide.
Thank you, Daniel. This slide shows the contract overview for Jacktel. As of today, as we said, we just finalized our Equinor contract. Pleased to say that the feedback we have received from Equinor is that they are very happy with our operations. We have delivered 100% gangway connection, stable good operations throughout the 19 months we have worked with Equinor. Now the focus is the next contract, which will commence shortly with Aker BP. Expect to commence that in the coming days. The Aker BP contract is 15 months firm plus six months options, taking the contract into 2028. We are very confident and strongly believe that the options will be exercised. We have the same view on the Equinor contract. On the Equinor contract, the options were exercised, and we were also able to secure some additional extension on the contract.
We have a bit the same view with Aker BP on the Valhall project. Let's see. Our focus now is to mobilize safely to Valhall, connect Haven with the gangway and get started on the contract and deliver good operations to Aker BP, let's see what happens with the options and with the contract. If you go to the next page, Øyvind, this slide shows our EBITDA backlog. You see in 2026, our EBITDA is forecasted to be $40 million. 2027, including options, the estimate is $44 million. You see, it's higher than 2026. That reflects slightly improved commercial terms in the contract we now are about to start with Aker BP. Obviously, the focus we have now is to build that backlog into 2028 and beyond, I'll get back to that in the summary of this presentation.
We are positive to the market and to our ability of securing additional backlog, in particular in the oil and gas market where we work today. We also see opportunities in the offshore wind market, where we have referred to one example here, which is Macro Offshore, where Daniel is the CFO. They manage Haven. They have another rig in their fleet that they own. They secured a six years firm plus four-year options contract with Siemens Energy for that rig in Q4 last year. Crossway Eagle, which is that rig, is a slightly smaller rig than we have with Haven, so that contract was not an option for Haven. It highlights how the operators in the offshore wind industry see accommodation as a potential bottleneck going forward, securing that capacity.
That could also be a long-term opportunity for us. If we go, continue Øyvind, and we go more into the details of the income statement, Daniel.
Yeah. In Q1, Jacktel received charter hire of $15.3 million from Equinor and had $0.6 in reimbursable items. Operating expenses equaled $7 million, where $5.6 of these relate to vessel OpEx, $0.4 to reimbursable cost, and $1 million to SG&A. We have seen some increase in vessel OpEx in the quarter due to some helicopter delays and increased sick leave, which are both seasonal for crew members, as well as some strengthening of NOK compared to dollar. SG&A-wise, we had some increase due to one-off items related to the Euronext Growth listing. Jacktel had an EBITDA of $8.8 million and a net profit of $2.3 million in Q1. We move on to the balance sheet, the only asset of Jacktel is the 2011-built accommodation rig, Haven. We had a substantial cash position of $26.3 million per Q1.
The interest-bearing debt that we have on our balance sheet relates to the $70 million bond loan, which is listed on the Nordic ABM. If we move on to the cash flow, we had strong cash flow from our operating activities amounting to $8.1 million. Net cash flow from financing activities amounted to $2.7 million due to the capital increase related to being listed on Euronext Growth. We do pay installments and interests in April and October on our bond loan, so only the Q2 and Q4 reports will show debt service in the cash flow statement. The net change in cash amounted to $11 million in the quarter, bringing total cash to $26.3 million.
Thank you, Daniel. I think just want to highlight, I think some of the uniqueness we have in Jacktel is the very high cash conversion, where you see that EBITDA more or less is equals or cash flow. Obviously, we have to adjust for installments on interest, but yeah, very high cash conversion, which we hopefully will benefit from also going forward. Our focus, Macro's focus managing the rig and the focus on the board is to make sure that we stay in control and that we focus on this, we focus on the cash flow to make sure that our cash conversion is almost like 100%. Cash flow is everything in this business. EBITDA doesn't mean anything unless you are able to convert it to cash. That's very much the focus, has been the focus, and will be the focus going forward.
Obviously, to generate the cash flow, we need clients, and we need a market. I think the key for us, in order to secure those contracts, is to make sure that we have good, strong relationships with the most relevant clients in the North Sea. I feel that with the work we now have done for Equinor and the process so far with Aker BP, we are in a good position. They see that Jacktel and Haven, with support from Macro, we deliver the goods. We deliver quality, safe, stable operations, which gives us a good starting point for discussing further contract opportunities. We are optimistic regarding contract opportunities from 2028 and beyond. We are in discussions regarding concrete opportunities. I would say that we see opportunities across the North Sea, but in particular, on the Norwegian Continental Shelf.
In Norway, the operators or oil and gas companies, they are out of focus on enhancing or maintaining production from existing installations. This implies upgrades and modifications and development of existing infrastructure, which will drive demand for accommodation. In Norway, we also experienced that the regulator, Havtil, is increasing their focus on the longevity and maintenance of existing installations, which also will drive bed capacity going forward. All in all, we are positive about the outlook. We work hard to build backlog from 2028 onwards. The focus for the last years have been delivering on the Equinor contract, and Aker BP, and to make sure that we were able to narrow the gap between those contracts. That has been the key commercial and operational focus. That gap has been narrowed to a bare minimum. It's impossible to do it. We couldn't have done better when it comes to that.
Now it's all hands on deck and strong focus on securing the next contracts. It's not like we are rushing. We are patient, and we work constructively with potential clients, but let's see what we are able to achieve. As I also stated earlier in the presentation, in the long term, we also see the offshore wind market, as an opportunity, and that could also be an opportunity for more long-term contracts. My prediction is that the next contracts we will receive for the 2028, 2029, 2030 is still within oil and gas, but let's see. With that, Øyvind, I don't know if there are any questions.
Thank you, Harald and Daniel. We have received quite a few questions, so we can just kick it off. The first one is, how many days of hire will occur between the Equinor and Aker BP contract?
Well, Daniel, we are counting.
It will be a few days. We are using two to three days to get from Draupner to Valhall, depending a little bit on weather, and then we are going to install the bridge. It will be a few days. Of course, we work as hard as possible to get that to a minimal, but it will depend a little bit on the weather, but five to six days.
Thank you.
This is the focus now. From what I understand, Daniel, the weather window looks very good-
Yeah.
... as well.
Yep.
Knock on wood. So far, so good.
Yeah.
Just to highlight, there are also demob or mobilization involved in those contracts.
Thank you. Could you say something about how the day rate of the new contracts compare to the Equinor contract in terms of increase or decrease in day rate or percentage?
I think if you do, you can calculate. If you look at our EBITDA forecast for next year at $44 million, I think you can do some estimates and see that it is like. yeah. The current contract has been approximately mid $170,000, and this is in the $1 80,000, kind of. We also have cost escalation in this contract, which we didn't have in Equinor contracts. We have a bit more protection for potential cost escalation.
Thank you. Could you also say something about what type of work you will be doing at Valhall?
We will do exactly the same work that we have done on Draupner in many ways. What we deliver is accommodation services. We basically put the bridge in place, and we have 444 cabins that we have availability for people to live in. People fly in by helicopter, live at our platform and walk over to the host platform and do the work, get back to have lunch, dinner, and relax when they're off. They have also many different office facilities that they can use. Basically, the delivery is the same.
I think also one thing to mention about the Valhall project is that we will be connected to electricity from shore, so we don't have to run our generators, and obviously we are reducing our carbon footprint quite a lot. While we provide a similar service, there are two different kind of projects. If you look at Equinor with Draupner, that was more an upgrade and modification of an existing platform. What we're going to do now with Valhall, you can go into Aker BP and see what they write about those projects. This is a major development project, where they are installing new offshore installations, platforms, and it's a major development on that field. Two different type of projects that we support. Those kind of projects we also see for the future, and maybe more towards maybe upgrade and modifications, maintenance type of work.
We have a quite boring service. We are there, four legs to the seabed with a gangway, and we deliver that gangway connection and good quality accommodation. That's kind of what we do.
Thank you. We've gotten some questions around when we can expect any news regarding new contracts, and in that regard, also regarding opportunities in oil and gas versus offshore wind. We saw that the Crossway Eagle, which is managed by Macro Offshore, got the long-term contract with Siemens. Any read across from that contract to what opportunities you're seeing in the offshore wind? If you can give some color around that.
I think, as I said, I believe the next contract we will announce or next contract news from us will be within oil and gas. I believe we will get better earnings and rates in that market. Having that said, we also have discussions and have sent our spec details and given rate indications also within offshore wind. We believe that for the next years, we will work and support the oil and gas industry in the North Sea. Yeah. I don't know if you have anything else to add, Daniel, regarding Crossway Eagle and the wind market, which you guys are working now. It's a smaller rig.
Yeah. In general, day rate expectation from clients would be lower in the wind market. As you said, Harald, I think Haven, in order to get a good day rate, has the highest probability in Norway, which is the market where she is built for specifically as well. In general, in the offshore wind market in Europe, there are a lot of things happening. What we have seen over the last few years is that projects move farther from shore into deeper waters, meaning that the rigs that they have used in the past cannot be used anymore. They need equipment that has been used in oil and gas because the projects are more comparable to that. The wind fields are very large, so the substations that they require are quite comparable to offshore oil and gas platforms these days.
As a general rule of thumb, what we see in tenders is that substations require from 9 - 12 months to commission. If you do the math and look at the different projects coming up from 2028 to 2035, there are quite a bit of those.
I think it's one reflection is that up until now, Crossway Eagle, as far as I know, has worked predominantly supporting the oil and gas industry. Now that rig is locked away for offshore wind for 10+ years , if the options are exercised. The rig recently has worked in the U.K. oil and gas, and Denmark oil and gas. In a way, that rig being taken away to a different industry is creating a potential tighter market for accommodation services within oil and gas.
Even though we never were competing and never had any conflict of interest with Crossway Eagle because we are different assets, there is still some kind of a positive effect of Crossway being taken away to offshore wind. It's the same we can say about semi floaters going from the North Sea to Brazil or Australia. We don't really compete with semis, but obviously they are a reference. They going out to the North Sea could create a tighter market for us.
Thank you.
What is important for us is obviously utilization is everything in this market. We'll obviously push rates to make as much money as possible, but utilization is everything. That is how we see it.
Thank you. We have gotten some questions around the day rates from offshore wind compared to oil and gas, and if I understand you correctly from what you just said, is that you expect the next contract to be within oil and gas, and that day rates to be higher than what you see in offshore wind now. Is that correct assumption?
Yeah, that is correct. When we have submitted rates to offshore wind today, if it's a really long contract, you can say, "Is it worthwhile if you could lock Jacktel into a 10-year contract? Could you be willing to do something on the rates compared to what you have today?" Maybe. Because you can lock in a fantastic cash flow, appealing debt structure, and really boost the valuation of the company. It's obviously something to consider, but people work oil and gas. I'm very confident for the next years. That's how I see it.
On the timeline for these tenders, when do you expect to have something concrete, and be able to announce your next contract?
There are some tenders, but it is also bilateral kind of discussions. I will not promise anything on that. As soon as possible. What we see in this market, the lead time from you have something agreed until you have a contract that you can announce in oil and gas industry, it takes time. I will not promise anything or give an indication on when we expect any announcement. That we are positive, that is for sure.
Thank you. Next question is, who will pay for the support vessels, taking the vessel from Draupner to Valhall?
That's our clients. We don't pay for it.
When is the next SPS on the rig and any rough numbers on CapEx involved in such SPS?
We completed the main SPS in 2024, just before we went on the Draupner contract. We did a comprehensive 10-year SPS where we inspected the spud cans. The next main part of the SPS will be done in 2029. It's hard to say a figure.
I believe you have indicated around $5 million or something, Daniel, haven't you?
Yeah, a few million dollars.
It's not given that we have to go to a yard even. That's something that we are working on.
Yeah. We do not have all this rotating equipment, of course, like the drillers have. SPS is quite a bit lower compared to drilling rigs, of course.
We don't have thrusters.
No.
Thank you.
What I said previously, it's a big piece of steel, obviously. It's a jacking system, and it's a very well-built rig. It's more straightforward, maintenance-wise and CapEx-wise. We are making sure now during operations that the rig is maintained and if we have any issues, we do a proper job to detect what the issue is, and we make sure that it doesn't happen again. Now that's a key priority now when we work with our clients, to make sure that the rig is shipshape 100% at any time. Without wasting money.
Thank you. What is the estimated loss per day for off-hire between the contracts?
Well, the loss per day is that we don't get the rate per day, and then if you say the rate is around $180,000-ish, and you multiply that with five to seven days, you get there. At the same time, we have a mob and demob fee there as well.
Yes, just to highlight that this is quite a unique situation where we are able to tow directly from one contract to another, that we have a relatively high cost saving related to that compared to the original plan.
We see that we are guiding or indicating $40 million in EBITDA this year. In Q1, we delivered $8.8 million. Now we are into Q2 and then Q3 and Q4. If we are to deliver $40 million, we obviously have to deliver higher EBITDA for the next quarters to come. Again, knock on wood, we have to stay focused on this mobilization, and hopefully it goes smoothly. We could not have, as Daniel said, it's a unique kind of situation where you just go smoothly, directly from one to the other.
Thank you. Do you expect lower OpEx due to the rig running on electricity on Aker BP?
Well, we don't pay for the fuel, so I guess the answer is no. Daniel?
Not a substantial amount, no. We will have to run the engines from time to time, so there will be some service required, some maintenance required, either way, to keep them in good order.
I've been thinking, maybe it's less wear and tear on our engines, but at the same time, it's also good for the engine to run. At least we get net-net, I think it's positive for all parties. It's positive for Haven and Jacktel and obviously also positive for Aker BP and-
Yeah.
... the environment, I guess, with less CO2 emissions.
Thank you. We have a few questions on the market. Can this niche market be consolidated, or is there already too few suppliers?
I think about the accommodation market. I think that you can still consolidate the market, obviously it was a public process a few years ago between Prosafe and Floatel that was stopped by antitrust in Norway, I believe. Yeah. For us, Jacktel, there is no kind of antitrust. I don't see any antitrust stopping any consolidation activity involving Jacktel, unless there is a major roll-up. One jack-up rig. Yeah. We have opportunity to participate in consolidation for sure. Unless we think about buying all the floater guys, which is not on the agenda.
Yeah, we got a question here. If you are looking at or seeing any attractive assets that you could acquire?
It's something we monitor. We don't have any ongoing discussions, any concrete plans. As we have stated previously, our main focus is on Haven and to make sure that we are able to get as much cash out of that rig as possible. Obviously, we are looking at accretive deals, or we'll evaluate accretive deals. We have turned down a lot of opportunities throughout the years, which we don't regret today. For sure, we believe deal-making could make sense here, and we are very much open-minded to discuss opportunities. Again, we don't have to do a deal.
Thank you. Further on the competitive landscape, noting that jackup Noble Reacher was converted to accommodation unit. Do you have any information about or any views on this being a potential competitive supply in the market with more conversions?
I guess Noble Reacher, Daniel maybe have more intel than me. You see there are some larger jackups, CJ70s, working as accommodation in the market today. From what we hear, they are operated on OpEx of close to $100,000, at rate levels around where we are, delivering less than 50% of the amount of beds that we have. I don't think it's a real attractive business for the clients or the rig owner. We believe also converting some of these larger jackups to accommodation will be very expensive.
On this Reacher, we have heard various stories. What will happen with that rig? I don't know, really. We don't see it as a major threat.
Thank you. We have some questions on dividend capacity. You indicated a dividend target of around $ 0.09 per share for 2026. Does this target still stand after Q1, or do you now see potential for higher distribution given the strong cash balance as of year-end and solid contract backlog?
I believe if you say that on the slide, we show $ 0.09, but if you include some of the cash that we have and also raised, I believe $ 0.10 is absolutely feasible, which means the dividend we pay now, $0.025 , is something that should be doable throughout the years or throughout this year for the remaining quarters. Again, this is something we decide as a board from quarter to quarter. We look at the cash position, we look at the cash flow forecast, short and long term, and obviously the backlog we have and if there are any operational issues. It's not like we have a magic formula we look at. It's a bit like, okay. This makes sense. Let's do it.
Based on how we see it today, the current level we have, $0.025, is something we should be able to deliver for the remaining quarters this year.
Thank you. What is the long-term vision for the company? You mentioned that when the company reach a debt level at around $50 million, that should be a prudent debt level. Will then the plan be to pay out excess cash for the remaining life of the asset?
Yeah, we don't have a kind of extensive business plan and a vision and stuff for the company. We are simple people. Unless we have another plan, the plan is to optimize the cash flow from operations from this rig and to pay out excess cash as dividends. Obviously, if we see opportunities that will give better return for our shareholders, that's something that obviously will be evaluated. For now, the plan is to keep going as we do now, and let's see. Do I believe that something will happen over the next years if we continue to deliver? I guess so. Will someone try to buy us? I don't know. Will we consolidate with someone, or we'll be by someone? I don't know. It's not unlikely that something will happen. That's just me thinking out loud.
For now, this is the focus, and we have Jacktel, and we will seek to continue what we do today and try to do it well.
Thank you. We have two final questions. Do you have any guidance on incremental G&A related to being publicly listed?
We got a very good deal with Pareto when we did the listing. I guess we did most of the cost initially. You saw in Q1 we incurred some extra costs. Other than that, we don't see any significant additional costs from being listed. Not really. I think what we accrued in Q1, P&L-wise, cost-wise, Daniel, was it $200,000 or something?
Yes, around that.
Yeah.
Thank you.
We are really doing what we can to operate a tight ship here. We believe the listing made sense because it makes trading in the stock easier. I think that you have seen. We are pleased that we did that. We already had to report almost like a Euronex-listed company] because of our financing. It has really not made any big difference.
What was the construction price of Haven? Any thoughts on what such unit would cost to build today?
What we have said about the construction cost is like $600 million we have talked about, Daniel?
Yes.
In that range. It was an expensive unit to build. Was not a straightforward project, where they did some conversions on the rig during the process. You will be able to build it for less than $600 million today, but we don't have a quote for a yard. Yard prices are high these days, and so this will be Do you have any estimate, Daniel? Estimate? Guesstimate?
I think in many ways, I think you could compare it to the most premium rigs that our competitors has, the semis. I think it would be comparable to that because, of course, they have thrusters and so on, but they're also spec-ed for the Norwegian Continental Shelf. That is a relatively large part of the high construction cost.
Yeah. It will be high, but we have not asked a yard, and we will not ask a yard. We have no plans asking a yard. We'll not do a new build.
Thank you. The final question is, a competitor announced a firm contract in Norway with startup in 2029. Should we read this as a signal of a tighter accommodation market?
It's a long lead time, for sure. I guess so. That was not a contract that this was for a semi, I believe. It was not something that we could participate on, but it's a long lead time, so I guess yes. Some do focus on securing accommodation early, yes. Let's see. That market is also, I think, is a bit driven also by Brazil. You see that they need more and more accommodation, and rigs are tied up there with long-term contracts. Maybe that makes some of the operators elsewhere increasingly focused on securing capacity.
Thank you. That was all the questions we have received. Do you want to add some final remarks, Harald, before we log off?
No. Thank you for participating to everyone, and thank you, Øyvind, for hosting and arranging the call. Yeah, we will keep on working and keep on delivering distributions and strong operations, hopefully. Let's see.
Thank you.
Thank you.