SpeedCast International Limited reported consolidated earnings results for the first six months ended June 30, 2018. For the six months, the company reported revenue grew USD 304.9 million against USD 246.3 million a year ago. Underlying EBITDA grew 14% to USD 60.4 million against USD 53.2 million a year ago. Underlying NPATA grew 37% to USD 21.1 million against USD 15.4 million a year ago. Strong operating cash flows (89% of Underlying EBITDA) generated as a result of improved working capital discipline. Net debt increased from USD 388 million at 31 December 2017 to USD 430 million at 30 June 2018 as a result of investment in growth including debt refinancing costs and USD 20 million for the UltiSat acquisition earnout. Profit before income tax was USD 748,000 compared to loss before income tax of USD 5,066,000 a year ago. Profit for the half year was USD 573,000 compared to loss of USD 5,135,000 a year ago. Profit Attributable to Owners of the Company was USD 540,000 compared to loss attributable to owners of the company of USD 5,182,000 a year ago. Diluted profit per share was 0.22 cents compared to loss per diluted share of 2.17 cents a year ago. Net cash inflows from operating activities was USD 27,612,000 compared to USD 37,338,000 a year ago. Payments for property, plant and equipment was USD 21,105,000 compared to USD 10,054,000 a year ago. Payments for intangible assets was USD 7,539,000 compared to USD 1,395,000 a year ago.

For the year 2018, the company expects Underlying EBITDA for the full year 2018 to be in the range of USD 135 million to USD 145 million. Full year 2018 Energy revenue expected to be down 10% compared to full year 2017, with 2H 2018 revenue recovery based on the existing backlog and pipeline. While delayed, the recovery in the offshore energy market is now expected to be stronger than previously forecasted.

The company is forecasting revenue of USD 85 million to USD 90 million in the second half based on a detailed bottoms-up forecast, customer by customer, contract by contract. The second half EBITDA margin is expected to be well above the first half EBITDA margin.

Upswing is expected for Speedcast revenue in 2019 and 2020. Overall, the Energy industrial activity levels are rising, and the deepwater offshore CapEx will be increasing in 2019 and 2020.