Dolphin Drilling As · OSL:DDRIL
Dolphin Drilling As — Q1 2024 Earnings Presentation
23 slides from Dolphin Drilling As's earnings presentation, May 29, 2024
Slide 1: Q1 2024 presentation
Q1 2024 presentation 29 May 2024
Slide 2: Important information
Important information This presentation, any appendices and any additional information supplied with it or subsequently communicated to any person in connection therewith (the “Presentation”) has been prepared by Dolphin Drilling AS (the “Company”) and its subsidiaries (together with the Company, th
Slide 3: Agenda
Agenda 1 Q1 2024 key financials and events 2 Dolphin rig fleet 3 Drilling market supply/demand 4 Summary
Slide 4: Qtr 1 Overview and Highlights
Qtr 1 Overview and Highlights Q1 Metrics Q1 Items, Key Information and Subsequent Events Within Quarter • Acquisition of Paul B. Loyd, Jr and Leader completed Revenues1 Adj EBITDA2 EPS • Successful transition of 106 employees to Dolphin • $65m financing facility with MAP closed and drawn down in ful
Slide 5: Key Financials Q1 2024
Key Financials Q1 2024 Quarterly revenue backlog developmentKey fromnotes IPO Q1 2024 1 400 Total Revenues $10.1 EBITDA ($17.0) 1 200 Firm Options Net Profit ($16.8) 1 000 In USD million Total cash $36.3 800 Non-restricted cash $27.6 600 Total assets $206.1 400 Total debt $80.0 Total equity $87.7 20
Slide 6: Strong backlog providing long-term earning visibility
Strong backlog providing long-term earning visibility Re-contracting in an anticipated strong UDW and high-end floater market Fleet contract coverage1 Estimated revenue backlog2 Estimated rig EBITDA backlog2,3 100 % 300 140 Rig fleet contract type / availablility in % (3 rigs) Estimated Rig EBITDA b
Slide 7: Key Issues - Detailed Updates
Key Issues - Detailed Updates BLACKFORD / NIGERIA HMRC – granted acceptance to appeal to Supreme Court (UK) • On 22 March 2024, Dolphin and GHL entered into an amendment to the • As previously disclosed in various public announcements and documents Dolphin contract, extending the term of the contrac
Slide 8: Agenda
Agenda 1 Q1 2024 key financials and events 2 Dolphin rig fleet 3 Drilling market supply/demand 4 Summary
Slide 9: At a glance
At a glance Leading operator of moored semi-submersibles with a revenue backlog of $1.1bn1 (incl. options and LOIs) Delivering on strategy Potential for commercial and operational management of • 3 rigs contracted with a total firm revenue backlog of $465m and $639m in options/LOI, 3rd party rigs wi
Slide 10: Moored rig fleet – all contracted
Moored rig fleet – all contracted Versatile fleet enabling operational excellence across all regions Borgland Dolphin Blackford Dolphin Paul B. Loyd Jr. Enhanced Aker H-3 Enhanced Aker H-3 Aker H-4.2 Rebuild year 1997-1999 2006-2008 1990 Operating water depth 210 - 1,500 ft 210 - 6,000 ft 210 – 1,96
Slide 11: Strong contract coverage from 2025 and onwards
Strong contract coverage from 2025 and onwards All 3 rigs secured contracts Fleet status as of May 2024 2024 2025 2026 2027 2028 2029 Rig name Current status Country Client Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Nigeria GHL Blackford Contracted Mobilization India Oil
Slide 12: Borgland Dolphin SPS Underway
Borgland Dolphin SPS Underway Unit Now En-Route from Norway to Las Palmas Dolphin Operates a Proven SPS Project Team ➢ Delivered Blackford SPS On Budget in 2022 ➢ Borgland SPS planned 1 year in advance ➢ Borgland Long Lead Items Ordered ➢ Shipyard Contracts In-Place Dolphin Utilises a Proven Shipyar
Slide 13: Agenda
Agenda 1 Q1 2024 key financials and events 2 Dolphin rig fleet 3 Drilling market supply/demand 4 Summary
Slide 14: Moored harsh semi-submersible market about to inflect
Moored harsh semi-submersible market about to inflect Strong recovery in highest specification floater segments expected to drive moored semi market UDW market has seen a strong recovery… …and the moored semi market is set to follow UDW fixtures Harsh-environment moored ($k/day) Massive recovery in
Slide 15: Structurally tight global moored semi market
Structurally tight global moored semi market Reduced rig count and high utilization serves as a significant tailwind for the moored semi market Utilization back at 2015 levels1 Moored semi market at extremely tight levels1 Utilization (%) # of rigs 100 33 95 90 85 14 80 75 19 1 cold stacked rig is m
Slide 16: Total moored semi-submersible rig fleet
Total moored semi-submersible rig fleet With an expected low competition from high spec rig segments, cold stacked rigs required reactivation Rig Name Rig Manager Country Contract status Available date Stena Spey Stena UK Held for sale 18-des.-2023 Atlantic Star Constellation Oil Services Brazil Con
Slide 17: Moored SemiSub Demand – Seeing a Steady Global Increase
Moored SemiSub Demand – Seeing a Steady Global Increase Dolphins fleet of mobile assets can relocate to capitalise hot-spot regions Strong Addressable Market for Dolphins UKCS “home” market has Dolphin within Global Floater Demand increasing demand visibility Source – Fearnleys Drillers Weekly – Wee
Slide 18: UK semi market – fleet reduced as several rigs exit/scrapped
UK semi market – fleet reduced as several rigs exit/scrapped Highly consolidated UK market with limited availability among few players UK semi rig count has declined >50% since 2016 Dolphin well-positioned for upcoming tenders Contracted Under contract Total supply 2024 2025 2026 No. of rigs Rig nam
Slide 19: Agenda
Agenda 1 Q1 2024 key financials and events 2 Dolphin rig fleet 3 Drilling market supply/demand 4 Summary
Slide 20: Positioned for value creation
Positioned for value creation Strong market fundamentals enable visibility on attractive free cash flow potential Completed the acquisition of Paul B. Loyd Jr. at highly attractive economics Increasing enquiries from customers Increasing number of request for information (RFIs) and tenders for moore
Slide 21: Summary
Summary Leading operator of moored semi-submersibles with an extensive track record and fit-for-purpose fleet 1 of harsh environment workhorse rigs Highly attractive market fundamentals and long-term economic environment for offshore drilling 2 on the back of historical low rig supply and increasing
Slide 22: Q&A
Q&A
Slide 23: Oslo – DDRIL.OL
Oslo – DDRIL.OL Investor Relations contact: ingolf.gillesdal@dolphindrilling.com, +4792045320