From Seismic Precision to Offshore Power
SeaBird Exploration Plc (”SeaBird” or ”the Company”) is a market-leading provider in the growing seismic service sector, operating with a lean, asset-light business model, utilizing two Ocean Bottom Node (“OBN”) vessels with a 99% utilization rate and a 24-month backlog including options. SeaBird’s revenue derives from collecting offshore seismic data of oil deposits through the OBN-system, a technique that now represents 40% of all offshore seismic data gathering, addressing the increased demand of data for Exploration and Production (“E&P”) companies. Recently, SeaBird announced a transformational merger with Energy Drilling, expanding into offshore drilling and strengthening cash flow stability with a 24-month dividend yield estimated at up to 50%. With strong market tailwinds in OBN and a diversified revenue base post-merger, SeaBird presents a compelling investment case in a structurally growing industry.
- Expanded Premium Asset Base
The Company owns two of the top 6 actively operating OBN vessels and now benefits from a fleet of tender-assisted rigs through the merger with Energy Drilling. The demand for high-quality offshore services has increased, while the number of active vessels and rigs remains constrained, creating a highly favourable market dynamic, where the newly integrated Energy Drilling assets provide additional long-term revenue security.
The Company holds a 24-month contract backlog with multi-year agreements for SeaBird’s OBN vessels, estimated to be worth around USD 50m. Additionally, Energy Drilling brings a backlog of USD 490m, with 80% of available rig days contracted for 2025 and 2026. The contracts are estimated to generate an FCFF of USD 273m, supporting a potential 50% dividend yield for the next 24 months.
The OBN seismic market accounts for over 40% of offshore seismic activity, and total spending in the segment is projected to grow at a CAGR of 5% until 2032, reaching an estimated market size of USD 4.9bn. Simultaneously, the offshore drilling sector remains a critical component of global oil and gas exploration, with Energy Drilling’s tender rigs playing a key role in supporting regional natural gas production.
