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mttssn research · Nordic Deep Dive
Moreld (MORLD.OL)
Energy · Norwegian offshore energy services · FY2025
Analysis date: 2026-06-09
Price at analysis: NOK 19.36
Method: mttssn_streamlined_v1
Conviction: MEDIUM
HOLD
Conviction: MEDIUM
A cyclical Norwegian offshore energy-services group (engineering/fabrication/maintenance + Ocean Installer subsea) on its first full post-acquisition year. ROIC ~22% and EP +NOK ~320m are genuinely value-creative, and it is optically cheap (~12x P/E, 10%+ yield) — but it is a single-engine, IFRS-16-heavy cyclical with a shrinking backlog (book-to-bill <1x). HOLD/quality-cyclical; base NOK 20.
Adj. ROIC
21.6%
WACC 11% → spread +10.6pp
Economic Profit
+NOK 320M
+NOK ~320M @ 11% WACC (cyclical)
FCF Yield
7.3%
Owner-FCF ~7% yield (IFRS-16-adjusted, below headline)
Price / Target
NOK 19 → NOK 20
+3% base; HOLD
Revenue (LTM)
NOK 9.8B
FY2025 NOK 9,838m (+38%, acquisition-driven)
EBIT Margin
8.2%
Reported EBITDA ~2x covenant ex-IFRS-16
EV / IC
1.72×
Enterprise value / invested capital
Net Debt
NOK 1.7B
Net debt NOK 1.7bn incl leases (NOK 0.2bn ex-leases)
Thesis

Moreld provides offshore energy services — engineering, fabrication, maintenance/modifications and, via Ocean Installer, subsea construction. FY2025 revenue jumped ~38% (acquisition-driven; pro-forma growth mid-single-digit) with ROIC ~22% and economic profit +NOK ~320m against an 11% WACC. It is value-creative and cheap (~12x P/E, ~12.5% NOPAT/EV, 10%+ dividend yield).

But the quality bar is modest: Ocean Installer is ~87% of segment EBITDA (single profit engine), IFRS-16 leases dominate the financials (reported EBITDA ~2x the covenant ex-IFRS-16 figure; owner-FCF after lease principal is far below headline), and backlog shrank to ~NOK 5.9bn with book-to-bill <1x. A cheap, cyclical, concentrated services name, not a compounder.

Valuation · reverse-DCF & scenarios

At ~12x P/E / ~12.5% NOPAT-to-EV with a 10%+ yield, Moreld is cheap for current cash flow; the discount compensates for cyclicality, concentration and lease-heavy accounting.

Base NOK 20 (value, cycle holds); bull NOK 27 if offshore activity + backlog re-accelerate; bear NOK 13 on an offshore downturn exposing the operating leverage.

Market-implied growth
-9.2%
NOPAT CAGR over 5y the EV already requires
No-growth value / share
NOK 27
138% of price; rest = priced-in growth
ROIC − WACC
+10.6 pp
ROIC 21.6% vs WACC 11.0% — positive = value creation
CAP (priced-in)
0.0 yrs
years of excess returns the price implies (fades to WACC)

The market pays today’s enterprise value for roughly -9.2% NOPAT growth over 5 years. The business earns 22% on capital against a 11% cost of capital (spread +10.6 pp); the no-growth value is NOK 27/share (138% of price), so the rest is priced-in growth.

Scenario24m targetImpl. gUpsideProb.Driver
BullNOK 27+0%+39%30%Offshore activity + backlog re-accelerate
BaseNOK 20-8%+3%45%Value; cycle holds
BearNOK 13-19%-33%25%Offshore downturn exposes operating leverage
Prob-weightedNOK 20+5%100%Scenario-weighted expected value

Sensitivity — fair value / share at WACC × growth

WACC \ g0%3%5%8%10%15%
9.50%343841454857
10.25%303336394249
11.00% (base)273032353743
11.75%242628313338
12.50%222425272933

Green = fair value above the current price of NOK 19.36. The reverse-DCF conclusion is dominated by WACC and growth — see the whole surface, not a single fair value.

Method & data. NOPAT NOK 653, invested capital and ROIC 21.6% are observed (adjustments.json); WACC 11.0% and terminal g 2.5% are assumptions. EV→equity uses net debt NOK 1,731. The model holds ROIC constant (no fade) over the explicit horizon; the CAP figure instead fades excess returns to WACC.

⤓ Download the full model (.xlsx) — formula-driven sheets; flex the blue input cells and the model cascades in Excel.

Key drivers

1. Offshore activity

Sustained subsea/maintenance demand drives Ocean Installer.

2. Cheap + high yield

~12x P/E, 10%+ dividend — value with income.

3. Backlog re-build

A return to book-to-bill >1x restores visibility.

4. Deleveraging ex-leases

Low ex-lease net debt; cash supports payout.

Key risks
Conclusion

Moreld is a cheap, value-creative but concentrated and lease-heavy offshore-services cyclical (~12x P/E, 10%+ yield, ROIC ~22%). HOLD/quality-cyclical; base NOK 20.

Own small for the yield + value; the backlog trend and offshore cycle are the swing factors.

Footnote evidence & sources

Every adjustment traces to the cited note/page in the source filing — click to open it there. Source reports archived locally.

Adjustment / figureValueSourceWhy mttssn treats it this way
Revenue and other operating income9,838Consolidated statement of profit and loss / Note 4Revenue from contracts with customers 9,828,694 + other operating income 9,635 = 9,838,329 (NOK thousand) = 9,838.3m. Prior year 7,136.4 (Ocean Installer only from Q3 2024). Note 4 splits by segment: Moreld Apply 4,616, Ocean Installer 4,413, Global Maritime 828.
EBITDA (reported, IFRS-16)2,225Consolidated statement of profit and lossEBITDA subtotal 2,225,089 (NOK thousand). IFRS-16-inflated; the APM reconciliation (p.162) bridges to EBITDA excl IFRS-16 of 1,074,591 after removing 1,150,498 of lease cost.
Adjusted EBITDA excl. IFRS 161,101Key figures 2025 / APM (p.162)Company headline APM: EBITDA excl IFRS-16 1,074,591 + non-recurring transaction cost 26,384 = 1,100,975 (NOK thousand) = ~1,101m ('~NOK 1.1bn'); the figure used for the 0.2x leverage ratio and the company's EBITDA guidance. Margin 11.2%.
Depreciation, amortisation and impairment1,403Statement of profit and loss / Notes 13-15Total D&A 1,403,418 (NOK thousand). Of this, IFRS-16 right-of-use depreciation is 1,183,281 (Note 15, p.140) — so PP&E + intangible amortisation is only ~220.1. No impairment recognised.
Operating result (EBIT)811Consolidated statement of profit and lossOperating result (EBIT) 810,512 (NOK thousand) after D&A and share of associates loss (11,160). Used as the base; adjusted EBIT = 810.5 + 26.4 transaction cost = 836.9.
Non-recurring transaction cost (add-back)26.38Alternative Performance Measures (Adjusted EBITDA excl IFRS 16 bridge)Non-recurring transaction cost 26,384 (NOK thousand) — Ocean Installer integration, Feb-2025 bond refinancing and June-2025 uplisting costs. One-off; added back to derive clean run-rate EBIT/NOPAT.
Income tax expense / nominal rate-92.63Note 20 Taxes (rate reconciliation)Tax expense 92,626 (NOK thousand) on PBT 377,280 = 24.6% effective. Reconciliation uses 22% nominal Norwegian rate (expected tax 83,002). Confirms ordinary 22% regime, not the 78% petroleum tax. Statutory 22% used for NOPAT.
Net profit for the year / EPS285Statement of profit and loss / Note 29Profit of the year 284,654 (NOK thousand), all attributable to parent. Basic & diluted EPS NOK 1.59 (vs -4.05 in 2024, which carried 439.7 FV losses and 172.0 from discontinued ops).
Total equity (incl. NCI)790Consolidated statement of financial position / Note 28, 31Total equity 790,482 (NOK thousand): equity attributable to parent 791,104 + non-controlling interests (622). Paid-in capital 683,981 + retained earnings 107,122.
Interest-bearing loans and borrowings (bond)1,281Note 16 Interest-bearing liabilitiesSingle USD 130m senior secured bond, net book value 1,280,745 (NOK thousand): nominal 1,310,283 less 29,538 unamortised fees. Coupon 9.875%, matures 11 Feb 2030. RCF (200 undrawn) excluded. No other financial debt.
Lease liabilities (IFRS-16, total)1,541Note 15 LeasingCurrent 745,602 + non-current 795,824 = 1,541,425 (NOK thousand); present value of vessel/office charters. Right-of-use assets 1,476,653 (of which vessels 1,133,656). INCLUDED in invested capital — chartered vessels are core operating assets.
Cash and short-term deposits1,091Consolidated statement of financial position / Note 27Cash and short-term deposits 1,090,859 (NOK thousand) at 31 Dec 2025 (down from 1,500,144). 491.9 (~5% of revenue) retained as operational cash for a milestone-billed services model; 599.0 treated as excess and stripped from IC.
Net interest-bearing debt (company NIBD)1,761Alternative Performance Measures (NIBD)Company NIBD = GIBD 2,851,708 - cash 1,090,859 = 1,760,849 (NOK thousand), INCLUDING IFRS-16 leases. NIBD excl IFRS-16 = 219,424 (the 0.2x leverage-ratio basis). File net_debt 1,731.3 = bond NBV + leases - cash (29.5 lower than company NIBD because company adds back amortised bond fees in GIBD).
Order backlog (total contracted)5,929Note 4 segment reporting (order backlog table)Total contracted backlog 5,928,866 (NOK thousand): Apply 2,134,666, Ocean Installer 3,320,000, Global Maritime 474,200; of which 4,574,702 for delivery in 2026. Down from 9,941 a year earlier (book-to-bill <1x).
Analysis history

How the mttssn view has evolved — each prior dated note is preserved.

Quality · Buffett tenets8 / 15
Understandable business
Moreld — Norwegian offshore energy-services group (engineering, fabrication, maintenance/mods; Ocean Installer subsea); acquisition-built, IFRS-16-heavy.
Durable moat
Low: project/services, cyclical with offshore activity; the edge is capability + installed relationships, not pricing power.
Able & honest management
Active consolidator (Ocean Installer); deleveraged ex-leases; high payout.
Financial strength
IFRS-16 dominates (chartered vessels); single profit engine (Ocean Installer ~87% of segment EBITDA); backlog book-to-bill <1x.
Margin of safety
Cheap: ~12x P/E, ~12.5% NOPAT/EV and a 10%+ dividend yield — value if the cycle holds.