Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q4 2022 Earnings Presentation
22 slides from Odfjell Drilling's earnings presentation, Feb 16, 2023
Slide 1: Q4 2022 Presentation
Q4 2022 Presentation 16 February 2023
Slide 2: Important information
Important information By reading this company presentation dated 16 February 2023 (the “Presentation”), or attending any meeting or presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been prepared by
Slide 3: Agenda
• Q4 Summary • Operational Review Agenda • Financial Review • Fleet Update • Summary 3
Slide 4: Q4 Summary
Q4 Summary
Slide 5: Operational Highlights
Q4 Summary Operational Review Financial Review Fleet Update Summary Own fleet utilisation at 97.9% (98.1% FY22) during the period, continuing our record of exceptional asset utilisation. Multiple new contracts and option agreements secured during the period with new and existing customers including
Slide 6: Financial Highlights
Q4 Summary Operational Review Financial Review Fleet Update Summary Strong financial performance during the period • USD 167m Revenue (USD 650m FY22) • 2.5x Leverage Ratio 170 165 • 54% Equity Ratio 160 • Repurchased preference 155 shares from Akastor ASA for 150 approximately USD 95 million. 145 Q1
Slide 7: Commercial Update & Outlook
Commercial Update & Outlook
Slide 8: Fleet Activity Q4 2022
Q4 Summary Operational Review Financial Review Fleet Update Summary Offshore Norway Fleet Activity Q4 2022 Deepsea Aberdeen Deepsea Stavanger Deepsea Nordkapp Deepsea Yantai Breidablikk Development Exploration Alvheim Development Exploration Deepsea Atlantic Johan Sverdrup Phase 2 Canada Q2 2023 Her
Slide 9: Strong Visibility for Cash Generation Across Fleet
Q4 Summary Operational Review Financial Review Fleet Update Summary Strong Visibility for Cash Generation Across Fleet Firm contracts USD 1.4 billion Priced options USD 0.5 billion Total backlog USD 1.9 billion Own Fleet Year built Location/Operator Deepsea Atlantic Norway 2009 (6G, UDW, HE) Equinor
Slide 10: Market Outlook
Q4 Summary Operational Review Financial Review Fleet Update Summary • All time high cash flow generation among E&Ps driving increased investments • Covid-19 tax incentives in Norway resulting in multiple new PDO’s submitted before year end • UK’s 33rd licensing round received as many applications as
Slide 11: Financial Review
Financial Review
Slide 12: Condensed consolidated income statement
Q4 Summary Operational Review Financial Review Fleet Update Summary Condensed consolidated income statement USD million Q4 22 Q4 21 FY 22 FY 21 Continuing operations Operating revenue 167 143 650 572 Revenue Other gains and losses 0 7 0 7 650 700 Personnel expenses (54) (50) (207) (200) 572 600 Othe
Slide 13: Robust balance sheet and sound cash position
Q4 Summary Operational Review Financial Review Fleet Update Summary Robust balance sheet and sound cash position USD million 31.12.2022 31.12.2021 USD million 31.12.2022 31.12.2021 Equity and liabilities Assets Paid-in capital 370 565 Property, plant and equipment 1,938 2,109 Other equity 838 703 In
Slide 14: Strong cash flow from operations
Q4 Summary Operational Review Financial Review Fleet Update Summary Strong cash flow from operations USD million Q4 22 Q4 21 FY 22 FY 21 Cash flows from operating activities: Profit/(loss) before tax from continuing operations 31 23 88 67 Profit before tax from discontinued operations - 5 10 11 Adju
Slide 15: Fleet Update
Fleet Update
Slide 16: Special Periodic Survey & Fleet Capex
Q4 Summary Operational Review Financial Review Fleet Update Summary Special Periodic Survey & Fleet Capex Deepsea Deepsea Nordkapp Aberdeen • SPS Program: • Average capex allocation of approximately USD 40million per unit • Off-hire time between 2 - 4 weeks 2023 2024 2025 • Fleet Capex: • Annual mai
Slide 17: How We Manage SPS Programs
Q4 Summary Operational Review Financial Review Fleet Update Summary How We Manage SPS Programs SPS optimisation Success criteria • Control scope of work • Dedicated SPS organization Early involvement of 3rd Initiated rotation program for high critical equipment party suppliers Evidence docking • Sta
Slide 18: Further Investment for the Energy Transition
Q4 Summary Operational Review Financial Review Fleet Update Summary Further Investment for the Energy Transition Odfjell Drilling has incorporated a number of emissions reducing initiatives, including: • Deepsea Atlantic, Stavanger, Aberdeen & Nordkapp : – Outfitted with Hybrid Battery Power that en
Slide 19: Summary
Summary
Slide 20: Summary
Q4 Summary Operational Review Financial Review Fleet Update Summary Summary Q4 Highlights • Continued focus on financial discipline, with several initiatives completed • EBITDA of USD 80 million • Strong operational performance across the business • Backlog remains strong with our client number and
Slide 21: Q&A
Q&A
Slide 22: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com