Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q1 2021 Earnings Presentation
21 slides from Odfjell Drilling's earnings presentation, May 27, 2021
Slide 1: Odfjell Drilling
DRILLING
Slide 2: Important information
Important information By reading this company presentation dated 27 May 2021 (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 Odfj
Slide 3: Contents
Contents • Introduction to ODL • Q1 2021 - key summary • Segment reporting • Financial information • Summary Page 3
Slide 4: Key Financials Q1 2021
Key Financials Q1 2021 $ 182 Mill $ 194 Mill Revenue Cash $ 45 Mill 2.75x Odfjell Drilling is a listed international drilling, well service EBITDA Leverage ratio (adj) and engineering company with more than 2,500 employees and operations in approx. 20 countries. Odfjell Drilling was established in 1
Slide 5: Q1 - key summary
Q1 21 - key summary - More wells allocated to Deepsea Atlantic - Lundin and Equinor work to Deepsea Stavanger - Aker BP exercised second option to Deepsea Nordkapp - 5 year platform drilling contract with Taqa in the UK - Alliance agreement with bp for platform drilling services - Firm bank commitme
Slide 6: MODU - Continued strong operations
Mobile Offshore drilling Units (MODU) - Continued strong operations Q1 2021 Financial Utilization 1 Financial Utilization Q1 21 Q1 20 FY 20 Deepsea Stavanger 0,0 % 98,6 % 99,2 % Deepsea Atlantic 85,9 % 99,1 % 98,9 % Deepsea Bergen n/a 92,7 % 92,7 % Deepsea Aberdeen 97,2 % 74,8 % 92,1 % Deepsea Nordk
Slide 7: MODU - Contract status
Mobile Offshore drilling Units (MODU) - Contract status Day rate Drilling unit Year built Location /operator (KUSD/day)* Deepsea Atlantic Norway 2009 309 (6G, UDW, HE) Equinor Deepsea Stavanger Norway 2010 295/275/309 (6G, UDW, HE) AkerBP/Lundin/Equinor Deepsea Aberdeen Norway 2014 455/319 (6G, UDW,
Slide 8: Energy – Platform Drilling - Portfolio secured by medium to long-term contracts
Energy – Platform Drilling - Portfolio secured by medium to long-term contracts Customers Platforms Location Heidrun Norw ay Johan Sverdrup Norw ay Mariner UK Brage Norw ay Greater Ekofisk Field (1) Norw ay 3 UK Platforms (2) UK 5 UK Platforms (3) UK Bruce UK 2021 2022 2023 2024 2025 2026 2027 2028
Slide 9: Well Services - global presence and diversified services
Well Services - global presence and diversified services Product lines Tubular Running Services Casing While Drilling Well Intervention Services Drill Tool Rental Services • Conventional and remote-operated • Casing While Drilling • Wellbore clean-up tools and • Drilling tools rentals including casi
Slide 10: Earnings visibility through USD 2.5 billion order backlog
Earnings visibility through USD 2.5 billion order backlog Total revenue backlog per year1 Firm Options Firm contracts USD 1.6 billion 1 000 Priced options USD 0.9 billion Total backlog USD 2.5 billion 800 711 600 561 9 473 - 431 400 108 655 278 553 473 97 200 323 181 55 - 2021 2022 2023 2024 After 1
Slide 11: Market outlook
Market outlook General • COVID-19 outbreak and volatility in oil price create large uncertainties • E&P companies will monitor the market closely and adjust their activities accordingly => Decreasing E&P activity due to overall uncertainty MODU • Significant oversupply in the global rig market • Har
Slide 12: Financial information
Financial information
Slide 13: Group summary financials
Group summary financials Condensed consolidated income statement P&L - (USD million) Q1 21 Q1 20 FY 20 Operating revenue 182 197 930 Other gains/losses 0 0 3 Personnel expenses -95 -78 -340 Other operating expenses -42 -37 -172 EBITDA 45 82 420 Depreciation -45 -49 -204 Operating profit (EBIT) 0 33
Slide 14: Segment reporting - MODU financials
Segment reporting - MODU financials MODU Key Financials (USD million) Condensed P&L - (USD million) Q1 21 Q1 20 FY 20 Revenues 704 Operating revenue 114 142 704 EBITDA 37 70 375 Depreciation and impairments -36 -41 -169 EBIT 0 29 206 114 142 Book value rigs 2 074 2 141 2 089 Q1 21 Q1 20 FY 20 EBITDA
Slide 15: Segment reporting - Energy financials
Segment reporting - Energy financials Energy Key Financials (USD million) Condensed P&L - (USD million) Q1 21 Q1 20 FY 20 Revenues 156 Operating revenue 47 36 156 EBITDA 2 3 15 Depreciation and impairments -0 -0 -0 EBIT 2 3 15 47 36 EBITDA-margin 4,5 % 7,3 % 9,8 % EBIT-margin 4,5 % 7,3 % 9,7 % 1 Q1
Slide 16: Segment reporting - Well Services financials
Segment reporting - Well Services financials Well Services Key Financials (USD million) Condensed P&L - (USD million) Q1 21 Q1 20 FY 20 Revenues 104 Operating revenue 27 28 104 EBITDA 6 9 32 Depreciation and impairments -6 -6 -25 EBIT 0 3 7 27 28 Book value of equipment 65 75 69 Cost price for equip
Slide 17: Group - eliminations, corporate overhead & net financial items
Group - eliminations, corporate overhead & net financial items Group – eliminations, corporate overhead & net financial items (USD million) Q1 21 Q1 20 FY 20 EBIT - MODU 0 29 206 EBIT - Energy 2 3 15 EBIT - Well Services 0 3 7 EBIT for reportable segments 3 35 228 Eliminations/corporate -2 -2 -11 Gr
Slide 18: Summary statement of financial position
Summary statement of financial position Group statement of financial position Assets (USDm) 31.03.21 31.03.20 31.12.20 Equity and liabilities (USDm) 31.03.21 31.03.20 31.12.20 Deferred tax asset 1 1 1 Total paid-in capital 565 565 565 Intangible assets 29 25 29 Other equity 623 483 633 Property, pla
Slide 19: Summary statement of cash flow
Summary statement of cash flow Group statement of cash flow Cash Flow - (USDm) Q1 21 Q1 20 FY 20 Profit before income tax -11 24 146 Adjustment for provisions and other non-cash elements 56 44 267 Change in working capital 12 -7 3 Cash from operations 58 62 416 Interest paid -13 -18 -67 Income tax p
Slide 20: Summary Q1 2021
Summary Q1 2021 MODU: - Continue to build backlog and be a preferred partner in the Harsh Environment - Attractive harsh environment assets and healthy outlook Energy: - Awarded 5 year contract for platform drilling and maintenance services for Taqa in the UK - Signed a strategic alliance agreement
Slide 21: CEO, CFO and Investor Relations contacts
CEO Odfjell Drilling AS Simen Lieungh CFO Odfjell Drilling AS Atle Sæbø Vice President Corporate Finance & Investor Relations Eirik Knudsen, eikn@odfjelldrilling.com +47 934 59 173 Next event: Q2 2021 results tentatively scheduled to be published 26 August 2021 For more information see: www.odfjelld