Good morning, all, and thank you all for joining this presentation of Soiltech's fourth quarter results for 2035. Soiltech announced a strong quarter this morning with record profitability and strong performance across all key financial metrics. Presenting today will be Jan Erik Tveteraas, the CEO of Soiltech, and joining him, Tove Vestlie, the company CFO. My name is Nikolay, and I will have the pleasure of moderating this session. Please note that if you have any questions to the management, please post them through the chat function at the bottom of the screen, and we will get back to them during the Q&A session after the presentation. With that said, I'll leave the word over to you, Jan Erik and Tove.
Yeah. Hello, and good morning, everyone. Before we begin, I would like to remind all parties that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. Our comments today also include non-IFRS financial measures. Additional details and reconciliations to the most directly comparable IFRS financial measures can be found in our fourth quarter press release, which is on the webpage. With that, I will turn the word to you, Jan Erik.
Thank you, Tove, and thanks for everybody listening in to this call. I will take you through the headlines of the quarter, and I'll start out with just a summary of the first quarter here. We had revenues in the quarter of NOK 102 million. We had an EBITDA of adjusted of NOK 27 million, and we had a profit before tax of NOK 13 million. I would say that we had a good performance in the last quarter across all segments. We had a good finish to the year. We had a high activity in December, which resulted in maybe a revenue that was on the high side of our own expectations.
We managed to keep the profitability or even increase the profitability during the quarter, which we're very happy with. We had the highest margin, as a matter of fact, of the whole year in the fourth quarter. I would say the reason for this is, obviously, we are always focusing on tight cost control, but once again, we had a very strong commitment from our employees, onshore and offshore, which is, again and again, delivering good results. Also, I'd like to say a little bit about, you know, our thoughts about going to the main list. We have always had a target to go to the main list, really.
When we were listed in September, in 2024, we had the plan to go to the main list, but we missed on one point. We didn't have enough qualifying shareholders. You need to have 500 shareholders with a minimum ownership of NOK 10,000. Now we are at that level. We have been able to increase the number of qualifying shares from about 250 to more than 500 during the time we have been on exchange. Now the board has decided and given us the mandate to start the planning for going to the main list. Hopefully, we'll be able to do that, you know, before December, before summer.
Definitely, we think that going to the main list will increase the visibility towards investors and should also, as a result of that, improve the liquidity in the share. We believe that this will be good for all stakeholders in Soiltech. We can move on. Talk a little bit about the operations. We have been very active on the contracting side. The last month or so, we have signed six contracts lately, which are good contracts and quite important contracts. three of these are international, three are on the Norwegian Continental Shelf. If you look at the NCS, we signed contracts, all contracts for the three contracts, including fluid treatment or the STT.
We also have two of these contracts also included onshore waste handling, which is also an interesting area for Soiltech. I think that these contracts fits well into the portfolio that we have on the NCS. As we talked about before, we still think there is growth potential on the NCS. In the we signed three contracts. The contract with Noble Corporation in the Netherlands is a long-standing client with Soiltech on the Noble Resolute. Could be a very long, long contract, initially a short one. We have signed two contracts in the Middle East, and I'd like to say a little bit about the Middle East, because I think that has...
That region has a high potential for Soiltech. In general, the regional activity in the Middle East is definitely increasing. We all see that with the number of rigs, you know, reported to be increasing going forward. It's good to be placed for Soiltech in this area, and the Saudi Arabia and Dubai entries are really key milestones for Soiltech and will give us the opportunity to, you know, take advantages of the expected increase in activity.
The fact that we were able to sign these contracts, and in particular Saudi Arabia, is not a result of short-term activities, but it's really an effect of very long-term view on the potential for Soiltech in the region, and a lot of activities related to qualifying technologies all over portfolio of technologies with, for example, around it's a very lengthy process. It's a detailed process, but once... Now we have managed our target to have a starting point. The key for us now is to deliver good results, obviously, and on the back of that, I hope that we were able to grow our business there. I would highlight the fact that we have two very strong industrial partners in the region.
We have the Estidama Environmental Solutions , which is a very good partner in Saudi, and then we have Wellbore Integrity Solutions, which is a party to the Dubai contract. Talk about Wellbore Integrity Solutions, they are, what can I say? Privately held U.S. company, very with long experience and have operations in many regions of the world. I hope that this cooperation with them is just a start for Soiltech, where we can collaborate on other projects going forward. Esdarma, we had talked about before. They are a fantastic company. They have large infrastructure in place in Saudi, and we see also that can be a base for us for growing there, but also growing in the region.
All in all, not least important is these activities that we have, you know, with our focus on reuse, reduction of waste and reuse of waste and recovery of waste is exactly what is included in the government in Saudi Arabia's 2030 Vision, where the vision is to, you know, reduce the waste and be able to recycle waste. I feel that we are there at the right time. If we then look at Europe and rest of the world outlook, I would say I haven't seen for many years so good visibility in Norway. We see this if we look around all the news about extension of contracts for rigs, and this is obviously very positive for Soiltech.
We think that based on the energy situation in Europe and the global situation, I think we are in a position in Norway to be able to actually grow our business there. For the rest of the world, we are looking at growth opportunities in selected markets. A quick look on the contract status here. We marked the changes since last update in with green here to make it easier to follow. First of all, I say that there were no contracts kind of finishing since the last update, so it's all adding the thre more contracts that we talked about, the Deepsea Antares, the Lara, and also the floater in undisclosed client.
This is a good complement and good basis for us really to grow our activities in Norway. We can move on to international. Here we in effect increased three new contracts, as we talked about, the Noble Resolute, the on-land contract in Saudi, and also the Wellbore Integrity Solutions will be performed on a jackup. That's the sort of contract, but the jackup is not named yet, so we will still have to see what rig it will be in that region. We are increasing our international portfolio. This is obviously a target to add more contracts to that portfolio. Having said that, I will leave the word over to Tove to go through the financials in more detail.
Good, Jan Erik. I am very pleased to take you through Soiltech's strong performance this quarter. All figures that I will mention today are in Norwegian kroner, unless otherwise stated. We delivered solid fourth quarter revenues of NOK 102 million, compared to NOK 81 million in Q4 2024. That corresponds to a 26% year-on-year increase, and is in line with our third quarter. Adjusted EBITDA came in at NOK 27 million, corresponding to a very solid margin of 27%, which is slightly up from 26% in the same period last year. Profit before tax came in at NOK 13 million, corresponding to a margin of 13%. We move on to the full year results. We delivered record revenues in 2025 of NOK 401 million, which is increased from NOK 274 million in 2024.
That is a 46% increase year-on-year. Adjusted EBITDA came in at NOK 96 million, compared to NOK 63 million in 2024, equal to an increase of 51%. This corresponds to a margin of 24%, which is then up from 23% last year. Profit before tax was NOK 41 million, compared to NOK 11 million in 2024. Please note that in 2024, we expensed NOK 18 million in merger and IPO-related expenses. Profit margin in 2025 improved to 10%, increasing from 4% last year. If we look at the business segments, we had an absolute growth in both segments. The strongest growth was in solid waste management. In 2025, the two segments were almost equal in terms of fluid treatment segment increased from NOK 193 million in 2024 to NOK 215 million in 2025.
solid waste management grew in the same period from NOK 80 million to NOK 186 million, so more than NOK 100 million increase. If we then take a step back and look at the longer term development, we can look at the charts on the right. This illustrates the structural growth in our business since 2019. Revenue has increased from NOK 229 million in 2023, to NOK 274 million in 2024, and to NOK 401 million now in 2025. This means that over the past two years, we have almost doubled in revenue, while also strengthening our profitability. Over the past six years, we have delivered a compound annual growth rate of 35% in revenue, and in the same period, a 45% in Adjusted EBITDA.
Also, for all these years, we have had positive net profits. If we then turn to the key financials on the next slide. For information, you know, all the financial statements are available in the quarterly report. We have already now covered the main income statement items, but let me briefly comment on the SG&A cost and finance cost before we move on to the balance sheet.
SG&A was reduced to 16% of revenue, down from 19% in 2024. This illustrates the scalability of the Soiltech business model. Refinancing during the year has also reduced our interest costs, positively impacting our finance expenses. Our equity ratio remains solid at 42%. Total assets increased from NOK 591 million from NOK 434 million last year.
This is primarily due to investments in operating equipment to support further growth. If we turn to the key financial metrics, earnings per share were NOK 1.21 for the quarter and NOK 3.97 year-to-date. Return on capital employed was 15%, and net interest-bearing debt to EBITDA was NOK 2.27 at year-end, well within our covenants of NOK 3.75. If we then move to the next slide and look at the cash flow. If we then start on the left, available liquidity as of 1st January 2025 was NOK 74 million. This includes cash of NOK 35 million and undrawn bank facilities of NOK 39 million. If you look further on the graph, above the line, you see then cash coming in, and below the line, you see cash going out.
During 2025, we generated a very strong operating cash flow of NOK 112 million, which is then the green bar. Investing activities amounted to NOK 98 million, primarily related to investments in new equipment within solid waste management segment. These two resulted then in a positive free cash flow of NOK 14 million. I would also like to mention that we invested also NOK 63 million in equipment financed through financial lease. This is not reflected in the cash flow, which is in accordance with IFRS 16. Financing activities, which we see on the next yellow bars, include new borrowings, repayments of loans and leases, interest payments, and proceeds from employee share option exercises.
We then end the year with NOK 58 million in cash, NOK 142 million in undrawn loan facilities, giving them a total available liquidity of NOK 200 million at year-end 2025. This provides a solid financial foundation for our continued growth. Thank you for your attention, and with that, I will hand over to Jan Erik to go through the outlook.
Thank you, Tove. Yes, you know, we're at the outlook section, and I'll go through, you know, the way the main points, the way we see the outlook for Soiltech going forward. After this, I hope we have some time for some Q&As. If I look at Soiltech now, I think which is key for us is the strong order backlog that we have, you know, the contract portfolio that we have with very solid counterparties or clients, you know? We are steadily adding to that backlog of contracts, which of course, is a key for us. For us, it's a key to do a very good performance every day, and that is what giving us jobs.
We have this basis, which means that we have quite a good network and a good overview of the market, really, since we are on so many rigs. This is giving us opportunity to grow and increase, you know, the scope of work on existing contracts, too. I think that's one very important thing for us. If we wanna look at what possibilities we have going forward, then we have a very strong financial position, as Tove just said. After the refinancing, we have secured good, what can I say, drawing facilities, bank facilities, which will enable us to increase our business on a short notice. This is of course.
Those two things are key when you want to evaluate the potential for further growth. If you look into the current quarter, I think that we expect to be in line with the previous quarter, and then we see an increase in activity, you know, from Q2 and onwards. We have a pretty good outlook for Soiltech, I would say. Again, we talked about the market visibility. It's definitely very strong. That enables us to be more aggressive, I would say, in terms of investments, because we see there's a long-term demand for our services, it goes both for Europe and as Middle East as we talked about. One important matter here is, of course, ongoing initiatives that we have.
I mean, we have many ongoing initiatives that started, what can I say? Often 12 months ago. It takes a long time. Of course, I cannot give any details on all these initiatives, but the key for Soiltech is to start very early and try to develop opportunities and then work on these opportunities, because that takes a long time. Once we announce the contract, we may have been working on that contract for 12 months.
I can say that we have several very good initiatives now ongoing when it comes to market opportunities, but also with the continued development and improvement of our own technologies, because that is something also, I think, which is very core to Soiltech, that we always try to improve the way we operate so that we can give our clients a better service. We have a lessons learned process internally, where we always collect information from all the rigs that we have to see, you know, the feedback that we get from clients on how we can improve and make our technologies more effective. This is also a key point for us.
And finally, which is, is reallyimportantis to see thata key driver for our business is the the ever tougher enviroment regulations ongoing in Norway and too and also international which is of course good for uswith the tech nology and strategy we have. Foe example, that in Norway it's not possible anymore too, export any, how can you say waste both other countries. So any oily water or anything, you know, that is being generatedin Norway has to stay in Norway, cannot go to specialist, other places which is, of course, increasing the totak market in Norway.
Now, lately, probably even a little bit stronger than we have seen. More solid proves that the market is growing for Soiltech. That concludes my presentation.
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Maybe I can start out a little bit on that. There was many questions there. I think the first one was on the available equipment currently. The answer to that is that, yeah, we still have available equipment available through the contracts that we have announced. You know, all those six contracts, we are using a current equipment, you know, in which in stock. We not need to buy any equipment there.
When we look at, let can I say, the outlook for the remainder of 2026, I would say that it will depend on the success that we have on the current initiatives, you know, and it would depend on, what can I say, the size of these projects and where it ends out, really. Subject to, you know, achieving new contract awards, then I think we would probably be in the market for investing more equipment, which would then be a positive for us, based on the returns on equipment or the equipment returns that we require. Obviously, we have the financing capacity available with our bank facilities.
If you look at further ahead into 2027, definitely what we are doing now is to, can I say, build a foundation for growing on a substantial basis. I think, you know, with what we have done now strategically in Norway to position ourself as a full service provider, that will give us opportunities to provide more equipment and more services to our existing clients in Norway. International, we see that we are in a phase where, for example, we are selling in fluid treatment service. We managed to do it in Saudi. I think there's definitely a big, very big potential. Nobody can imagine how the big potential is, but we need to do a good job and do step by step.
Also we see in other global areas, we have a cooperation with Noble, the two, on a global basis, and we are working with them to see where we can find the opportunities, you know, for expanding international. For Soiltech, it will always be good to invest in new equipment. That means that we have a growth. The answer is yes. I foresee that, you know, in 2027, 2026, and 2027, we're going to invest in more equipment.
Perfect. Thank you. More related to growth or a sort of expansion strategy. You mentioned strong market visibility in Europe, and you talked about the Norwegian market. Would you say that the Norwegian market is largely covered, and do you expect to gain share, or is the market growing as a whole for your services, of course?
Sure. I would say that the Norwegian market is growing. You know, there is, for example, one new rig coming into the market, the Noble GreatWhite, which will come to the market in next year for Aker BP. We know that, what can I say? Vår Energi has announced they are in the market for one rig. I think I would say the market in general is at least not being reduced in terms of rig activity, maybe growing then a little bit, 'cause there will be a lot of exploration and development, really, b ut I see the potential for us in solid waste management in Norway.
We are smaller, maybe in fluid treatment. we are on maybe 50%-55% of the rigs, or 60%, I don't know exactly, whereas in solid waste management, we still have a way to go. I think for Soiltech, as such, we should be able to gain some market share in Norway if we do a good job.
Perfect. Over to the Middle East, can you please elaborate on your ramp-up plans in the Middle East? Can we expect more contract announcements in 2026? Extension to that, how advanced are talks with potential clients, for instance, Saudi Aramco?
I don't want to share any details on how advanced we are in any client discussion, but I can say that we have a pretty good overview over the Middle East market now, having been there for some time. We know there is very good opportunities for us on the back of the contacts we have. Now, we're gonna start up in Saudi in Q2, and I think we were gonna start up in Dubai in Q2-Q3. I think the key for us then is to have a successful start with this contract.
On the back of that, we are building a track record in the region, and we have many discussions internally and with our partners on how we can grow the business. It's hard to say because you have clients. I need to turn off this phone. We are in discussions with clients, and we have been that for some time, so there's nothing we can guarantee. I can tell you that we really see the potential there, and we are increasing our efforts in that Middle East region. Our aim is to definitely grow our business in that region.
All right. Also related to the Middle East expansion, can you please elaborate on your main points of differentiation versus competitors in the Middle East, such as TWMA? I understand they are primarily working with ADNOC.
Well, I think, first of all, if you look at TWMA, their focus is, like you say, they are doing treatment of cuttings or thermal treatment of cuttings, primarily in Abu Dhabi for ADNOC. We are not offering the same type of technology or service like they are. We are focusing on, at the fluid treatment. this is an area where if you look at our technology, it's the same technology that we have been using otherwise in the world, which is a mechanical technology, not, what can I say, chemical-based technology. I think the big difference between us and all the clients is the type of technology in the Middle East, where we are the one that are using mechanical.
The others are using chemical-based technology to separate the oil and water and the solids. We have seen here, at least in our opinion, you know, with the experience we have for the last 10-15 years, that our mechanical technology is very effective in terms of being able to reduce the waste. We think that we have a very favorable technology, you know, in that region, and that's why we have a competitive advantage. But it takes some time. We need to show the clients, which haven't tested this technology before, that we can deliver, you know, what we promise, so to speak. But once we have been able to establish this track record, then I think we're able to grow on the back of that.
Perfect. Do you expect any variations in economics on your international contracts versus the contracts you have in Norway or in Europe?
models. But I think that, by being aware of that, we should be able to achieve our, you know, economical targets on return. And I think the volume portion of this is also interesting in that region." *Wait, "I think that, by being aware of that, we should be able to achieve..."* Is there a "that" after "I think"? Original: "But, uh, I think that, um, uh, we were able, by being aware of that, we should be able to achieve..." Yes, "I think that". *Wait, "economical targets on return".* Is it "return" or "returns"? Original: "economical targets on return." (Singular). Earlier: "have the same returns." (Plural). I will keep them as spoken. *Wait, "day rate".* Original: "what day rate you can expect". *Wait, "oil service providers".*
relative to sort that, we should be able to receive higher volumes of services delivered, which can compensate, you know, somewhat for the some lower prices." * Is "that we could" a false start? * "I think once we're getting in there, that we could... at least relative to sort that, we should be able to receive..." * It's a bit of a stutter/false start. * "I think once we're getting in there, a
Well, perfect. Next question I believe is best directed towards you, Tove. I am very interested in hearing about your working capital management. Unusual to see strong year-over-year growth with more than 100% cash conversion and positive movements in working capital. Are you using your RCF or is it mainly receivables management?
I would say it's mostly receivables management. I could also say that, you know, I think that what we have seen is that, you know, let's say, operational efficiencies and because we have. Strengthen our organization in the receivables part. I see that we have, let's say, much less outstanding. We follow up more and closer on a day-to-day basis. We have very much focused on this in contract negotiations. Yeah, so I would say that we are not relying on RCFs to generate operating cash flow.
Perfect. Thanks. Yes, a question related to sort of a geopolitical question. Have tensions in the Middle East impacted projects? I.e., have you experienced logistical challenges in establishing operations in the regions due to geopolitical tensions?
No, we haven't seen anything of that.
Okay. Then sort of on your revenues and backlog. Firstly, what is the current order backlog entering 2026, if you have made any estimate there? Yeah, it was two questions asking the same thing. Basically, what is the current order backlog entering 2026, is the question.
I don't have the exact numbers for that now. I will start this work now with this. New contracts come up and, yeah, so I don't have the exact numbers for that.
All right. Let me see if there are anything, any more questions here. Yeah, I think, yeah, actually, that was the last question. That concludes this Q.&A. session. I would like to thank you all for participating, and thank you for letting us host your quarterly presentation. With that, I'll leave the word over to you, Jan Erik and Tove, for some concluding remarks. Thanks.
Thanks, Nikolay, for excellent management of the meeting. Thanks to everybody for listening in, and look forward to see you next time. Tove, do you have anything you would like to say?
I assume there are quite a lot of having winter holidays this week in Oslo. Enjoy your holidays, and we will look forward to next week's holiday. Okay, have a nice day.
Okay. Take care.
Bye.