Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q3 2023 Earnings Presentation
18 slides from Odfjell Drilling's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Results Presentation
Q3 2023 Results Presentation 2 November 2023 02.11.2023
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation dated 2 November 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
Slide 3: Agenda
Agenda 1 Q3 Highlights 2 Operational Review 3 Financial Review 4 Summary 3 3
Slide 4: Records Results, Driven by Operational Performance
Q3 HIGHLIGHTS Records Results, Driven by Operational Performance Q3 DIVIDEND (USD) Another quarter of record financial results USD 14.2 m • EBITDA of USD 87 million • Revenue of USD 186 million Revenue (USDm) 184 186 165 167 171 Entire fleet deployed, working on some of the most demanding projects g
Slide 5: Key Financials
Q3 HIGHLIGHTS Key Financials Order Backlog (USDm) Available Liquidity (USDm) 274 Total 2.3 2.2 2.0 2.1 Total 1.9 0.6 0.5 0.5 Options 153 0.6 0.5 132 Undrawn RCF Firm 1.7 1.7 1.6 1.4 1.4 155 157 138 117 121 Cash Q3 Q4 Q1 2023 Q2 Q3 Q3 Q4 Q1 2023 Q2 Q3 Equity ratio Net Debt (USDm) and Leverage Ratio*
Slide 6: Agenda
Agenda 1 Q3 Highlights 2 Operational Review 3 Financial Review 4 Summary 66
Slide 7: All Eight Units Operational
OPERATIONAL REVIEW All Eight Units Operational Offshore Norway Deepsea Aberdeen Deepsea Nordkapp Deepsea Yantai Breidablikk Development Alvheim Development Exploration Deepsea Atlantic Johan Sverdrup Phase 2 Deepsea Stavanger Exploration Hercules ODL Fleet Rig Offshore Namibia, Exploration Deepsea M
Slide 8: Increasing Cash Generation Secured
OPERATIONAL REVIEW Increasing Cash Generation Secured USD ~2.1bn revenue backlog Contract Option Frame agreement / Alliance agreement Own fleet USD Revenue firm contracts 1.6bn Revenue priced options 0.5bn Total revenue backlog ~2.1bn Own fleet Year built Location/Operator 2022 2023 2024 2025 2026 2
Slide 9: Market Dynamics Persisting in the Medium to Long Term
MARKET OUTLOOK Market Dynamics Persisting in the Medium to Long Term Harsh Environment Rigs Supply and Demand Creating Continued Demand for Years to Come Harsh Environment Semisubmersibles Supply Supply / Utilisation Supply remains tight 100% • Harsh Environment semi submersibles fleet reduced by 33
Slide 10: Considerable Upside Potential at Higher Dayrates
MARKET OUTLOOK Considerable Upside Potential at Higher Dayrates Illustrative EBITDA1 (USDm) 325 Source: Company Data 1 Illustrative Odfjell Drilling EBITDA at different average dayrate levels, assuming all other factors equal as last 12 months. 10
Slide 11: Agenda
Agenda 1 Q3 Highlights 2 Operational Review 3 Financial Review 4 Summary 11 11
Slide 12: Condensed Consolidated Income Statement
FINANCIAL REVIEW Condensed Consolidated Income Statement USD million Q3 23 Q3 22 YTD 23 YTD 22 FY 22 EBITDA (USDm) Continuing operations Operating revenue 186 165 541 483 650 85 87 Personnel expenses (66) (48) (193) (153) (207) 81 80 Other operating expenses (34) (35) (102) (102) (135) 73 EBITDA 87
Slide 13: Robust Balance Sheet and Sound Cash Position
FINANCIAL REVIEW Robust Balance Sheet and Sound Cash Position USD million Q3 23 Q3 22 Q4 22 Assets Property, plant and equipment 2,014 1,953 1,938 Available Liquidity (USDm) Intangible assets 3 3 3 274 Total Deferred tax asset 1 1 0 Non-current receivable 29 - - Other non-current assets - 10 8 132 1
Slide 14: Strong Cash Flow from Operations
FINANCIAL REVIEW Strong Cash Flow from Operations USD million Q3 23 Q3 22 YTD 23 YTD 22 FY 22 Cash flows from operating activities: Profit/(loss) before tax from continuing operations 23 12 40 57 88 CAPEX (USDm) Profit before tax from discontinued operations - - - 10 10 Adjustment for interest, prov
Slide 15: Q3 Dividend of USD 14.2 Million
DIVIDEND Q3 Dividend of USD 14.2 Million Key details of Q3 Dividend • 0.06 USD / share • Ex-Dividend date: 10 November • Record date: 13 November • Payment date: 22 November Dividends declared in USD. Actual NOK payment per share will be determined based on the exchange rate at record date. 15 15
Slide 16: Agenda
Agenda 1 Q3 Highlights 2 Operational Review 3 Financial Review 4 Summary 16
Slide 17: Q3 2023 Summary
Q3 2023 Summary • Strong operational quarter • Entire fleet active and performing well • Highest quarterly EBITDA and revenue • Quarterly dividend of USD 14.2 million • Positive market outlook in the medium and long term, resulting in impairment reversal • Strong order backlog, with higher value con
Slide 18: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 18