Constellation Oil Services Holding SA reported a net profit of $1 million for the second quarter of 2026, down sharply from $53 million a year earlier, as a $50 million non-cash warrant provision offset operational gains. The company’s adjusted net profit, excluding the one-off charge, totaled $51 million.
Revenue reached $207 million, missing the consensus estimate of $212.44 million by 2.6%, while earnings per share came in at $0.38, below the forecast of $0.4241. Despite the shortfall, adjusted EBITDA surged 129% year-over-year to $126 million, with a margin of 50%, up from 40% in the prior-year period. Net operating revenue totaled $252 million, a 44.8% increase from $139 million in Q2 2025.
The company’s financial performance reflected strong operational execution, with fleet uptime at 99% in the first half of 2026 and contract coverage of 95% for 2026. Adjusted EBITDA for the first six months of the year reached $224 million, while cash flow from operating activities rose to $134 million from $110 million a year earlier. Cash and short-term investments stood at $226 million as of June 30, 2026.
Net debt declined to $422 million, with net leverage at 1.2 times, down from 1.8 times at year-end 2025. The company anticipates leverage could fall below 1 time by the end of 2026. General and administrative expenses increased 23.5% to $21 million in the first half, while net financial expenses rose to $60 million from $8 million a year earlier, driven by a $50 million warrant provision and $16 million in bond interest.
Constellation Oil Services completed a $650 million senior secured notes offering due 2033 at a 7.7% coupon, attracting demand more than 3.7 times the offering size. The refinancing is expected to reduce annual interest expense by approximately $11 million and lower annual principal amortization from $75 million to $50 million.
The company’s stock rose 3.76% to $138 following the results, extending its year-to-date gain to 18% and one-year return to over 54%. Analyst price targets range from $18 to $21, while the company trades at an EV/EBITDA multiple of 6.17 times.
CEO Rodrigo Ribeiro highlighted a fundamentally healthy offshore floater market, with global utilization at 87% and contracting activity double last year’s levels. He noted no current negotiations with Petrobras regarding new contracts and confirmed all 2027 contracts are extensions of existing rigs. Ribeiro also pointed to Petrobras’ recent hydrocarbon discovery in the Foz do Amazonas Basin as a positive signal for the region, though further drilling is required to assess commercial volumes.
