Q1 2025: Energy Holdings reports strong start to 2025 and proposes USD 40 million cash distribution

28 May 2025 06:00 CEST

Nicosia, Cyprus, May 28, 2025 -- SED Energy Holdings Plc ("Energy Holdings")
delivered strong operational and financial results in the first quarter of
2025, driven by full fleet utilization, higher average dayrates and
disciplined cost management. Energy Holdings is the combination of the seismic
company Seabird Exploration and tender rig operator Energy Drilling, a merger
completed this week.

"We had an excellent start to the year, with all assets operating at high
efficiency and generating strong cash flows. The first-quarter results
demonstrate the earnings capacity of the combined company, with increased
scale providing a strong platform for improved financing terms and enhanced
shareholder returns," said Chief Executive Officer, Kurt M. Waldeland.

Mr. Waldeland was appointed CEO of Energy Holdings, effective this week. He
will oversee the Group's strategic and corporate functions, including capital
allocation, M&A, and growth initiatives.

A strong industrial partner
Energy Holdings is a strong industrial partner with a diversified portfolio of
resilient, cash-generative assets supported by a conservative capital
structure. The company will benefit from increased scale following the merger,
with enhanced earnings capacity, improved financing terms and strong free cash
flow generation.

The Board has proposed a first-half 2025 cash distribution of USD 40 million,
through repayment of previously paid-in capital, subject to EGM approval. The
company plans to distribute available liquidity to shareholders quarterly
starting from Q3 2025, with total shareholder distributions for FY 2025
expected to reach USD 70-90 million.

"The proposed distribution reflects our commitment to shareholder returns
while maintaining a conservative debt level, a testament to our disciplined
capital allocation strategy. With a solid revenue backlog, attractive market
outlook, and an improved capital structure, we are well-positioned to deliver
on our full-year distribution targets," Waldeland continued.

Q1 2025 highlights

* Pro-forma consolidated revenues increased to USD 59 million for Q1 2025, up
42% year-on-year and EBITDA of USD 32 million (55% margin).
* Full rig and seismic fleet on contract throughout the quarter.
* High operational performance with 98% utilization for Energy Drilling and
86% for SeaBird.
* The Board has proposed USD 40 million distribution for the first half of
2025 (equivalent to ~NOK 0.56 per share), expected to be paid in the second
half of 2025, pending approval by the general meeting.
* Conservative capital structure preserved with 0.3x EBITDA leverage at
quarter-end.
* New USD 75 million bank facility fully committed, lowering cost of debt and
supporting free cash flows, expected to close in Q2 2025.
* Firm revenue backlog was USD 444 million as of Q1 2025.
* After quarter-end, Energy Drilling signed a Letter of Intent (LoI) for a
material multi-year offshore drilling contract, subject to final execution
and customary approvals.

First quarter 2025 presentation
Energy Holdings will present its pro-forma consolidated financial results for
the first quarter of 2025 in a live audio webcast on Wednesday, May 28, 2025,
at 10:00 CEST.

The presentation and following Q&A session will be hosted by Kurt M.
Waldeland, CEO of Energy Holdings, Viggo Pedersen, CFO of Energy Drilling, and
Sveinung Alvestad, CFO of SeaBird Exploration. Questions may be submitted in
writing at any time during the presentation.

The Q1 2025 materials are enclosed to this release and available on the
company's website: https://www.energyholdings.cy
(https://www.energyholdings.cy/). A recording of the presentation will be made
available on the company's website after the live event has concluded.

Webcast link: https://events.webcast.no/viewer-registration/FZiDYaqm/register

For more information, please contact:
Investor Relations: ir@energyholdings.cy
Press: contact@energyholdings.cy

About SED Energy Holdings Plc
SED Energy Holdings Plc (ticker code "ENH") is a disciplined industrial
investor focused on owning and developing leading businesses in the energy
sector. The company targets predictable cash flows, attractive shareholder
distributions and selective growth through value-accretive investments. Its
current portfolio includes wholly owned subsidiaries Energy Drilling, a
leading owner and operator of tender assisted drilling rigs, and SeaBird
Exploration, a global provider of marine seismic acquisition data to the oil
and gas industry. Energy Holdings is listed on Euronext Oslo Børs. For more
information, please visit www.energyholdings.cy
(http://www.energyholdings.cy/).

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
release was published by Sveinung Alvestad at SED Energy Holdings Plc, on May
28, 2025, at 06:00 CEST.

More information:
Access the news on Oslo Bors NewsWeb site

647744_Energy Holdings Q1 2025 Presentation.pdf