High Arctic Overseas Announces 2025 Second Quarter Results
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CALGARY, Alberta, Aug. 28, 2025 (GLOBE NEWSWIRE) -- High Arctic Overseas Holdings Corp. (TSXV:HOH) ("High Arctic Overseas" or the "Corporation") has released its second quarter 2025 financial and operating results. The unaudited condensed interim consolidated financial statements (the "Financial Statements") and management's discussion & analysis ("MD&A") for the quarter ended June 30, 2025, will be available on SEDAR+ at www.sedarplus.ca. All amounts are denominated in United States dollars ("USD"), unless otherwise indicated.
The common shares of the Corporation began trading on the TSXV on August 16, 2024 under the trading symbol HOH.
Mike Maguire, Chief Executive Officer, commented on the Corporation's second quarter 2025 financial and operating results:
"Over the last quarter, while drilling activities have remained subdued, we have continued our diversification strategy by seeking both acquisition and organic growth opportunities within PNG with a focus on the wider extractive industries. We are encouraged by the opportunities being presented.
"Our extensive experience servicing top tier customers in the challenging PNG environment positions us well to extend current capabilities and assets into other service offerings, commencing with our recent establishment of the High Arctic Fire Services division.
"I remain excited about our prospects to play a strategic role servicing the major projects anticipated in PNG over the second half of the decade."
2025 SECOND QUARTER HIGHLIGHTS
Adjusted EBITDA loss for Q2 2025 of $184 is a marginal improvement against Q1 2025 loss of $202;
Drilling activities remained consistent with Q1 2025 with continuation of Rig 103 suspension and Rigs 115 and 116 cold stacked;
Manpower and rental services activity levels reduced against Q1 2025 as a customer's major project wind down;
General & Administrative expenses have reduced to $693 in Q2 2025 compared to $916 in Q1 2025 with the establishment the corporate function in Australia; and
Disciplined cashflow management resulted in exiting Q2 2025 with working capital of over $20 million.
2025 YEAR TO DATE HIGHLIGHTS
Adjusted EBITDA loss for H1 2025 of $386 against a gain in H1 2024 of $5,042 is a reflection of drilling operations being suspended through H1 2025;
Revenue and operating margins significantly reduced compared to H1 2024, largely as a result of rig 103 operating in H1 2024 versus being suspended in H1 2025;
Manpower and rental service activity levels reduced for H1 2025 against H1 2024 mainly as a result of reduced Drilling Operations that require support equipment;
General & Administrative expenses have reduced to $1,609 in H1 2025 compared to $2,270 in H1 2024 to align with reduced operational activities.
In the above results discussion, the three months ended June 30, 2025 may be referred to as the "quarter" or "Q2 2025" and the comparative three months ended June 30, 2024 may be referred to as "Q2 2024". References to other quarters may be presented as "QX 20XX" with X/XX being the quarter/year to which the commentary relates. References to the six months ended June 30, 2025, may be referred to as the "first half" or "H1 2025" and the comparative six months ended June 30, 2024 may be referred to as "H1 2024".
Business strategy
Our business strategy focused on Papua New Guinea is underpinned by the following cornerstones:
Leveraging our core PNG planning and logistics capability to diversify our service offerings;
Deploying idle assets into profitable operations;
Strengthening local content & participation in the PNG finance and investment communities;
An established and efficient corporate structure; and
Seeking opportunities to expand and root the business in the Australasian region.
2025 Strategic Objectives
Relentless focus on safety excellence and quality service delivery;
Reduce general and administrative expenditures;
Grow the manpower business in Papua New Guinea;
Maximize potential participation in future major Papua New Guinea projects; and
Pursue expansionary transactions that increase shareholder value.
Since the Corporation and HAES-Cyprus were both wholly-owned by HWO, the transfer of all of the outstanding ordinary shares of HAES-Cyprus to the Corporation was deemed a common control transaction. The Corporation's Financial Statements are presented under the continuity of interests basis. Financial and operational results contained within this Press Release present the historic financial position, results of operations and cash flows of HAES-Cyprus for all prior periods up to August 12, 2024, under HWO's control. The financial position, results of operations and cash flows from April 1, 2024 (the date of incorporation of the Corporation) to August 12, 2024, include both HAES-Cyprus and the Corporation on a combined basis and from August 12, 2024, forward include the results of the Corporation on a consolidated basis upon completion of the Arrangement.
For reporting purposes in the Financial Statements, the MD&A and this Press Release, it is assumed that the Corporation held the PNG business prior to August 12, 2024, and as such, information provided includes the financial and operating results for the three and six months ended June 30, 2025, including all comparative periods.
RESULTS OVERVIEW
The following is a summary of select financial information of the Corporation:
Three months ended June 30,
Six months ended June 30,
(thousands of USD except per share amounts)
2025
2024
2025
2024
Operating results:
Revenue
2,368
7,629
4,878
18,763
Net income (loss)
(522
)
(29
)
(1,747
)
2,472
Per share (basic and diluted)(1)(2)
(0.04
)
(0.002
)
($
0.14
)
$
0.20
Operating margin(3)
509
2,997
1,223
7,312
Operating margin as a % of revenue(3)
21.5
%
39.3
%
25.1
%
39.0
%
EBITDA(3)
19
1,623
(267
)
5,211
Per share (basic and diluted)(1)(2)
$
0.00
$
0.13
($
0.02
)
$
0.42
Adjusted EBITDA(3)
(184
)
1,512
(386
)
5,042
Adjusted EBITDA as a % of revenue(3)
(7.8
%)
19.8
%
(7.9
%)
26.9
%
Per share (basic and diluted)(1)(2)
($
0.01
)
$
0.12
($
0.03
