Dolphin Drilling As · OSL:DDRIL
Dolphin Drilling As — Q1 2023 Earnings Presentation
31 slides from Dolphin Drilling As's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Results
First Quarter 2023 Results 9 May 2023
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: Today’s presenter
Today’s presenter Bjørnar Iversen Stephen Cox CEO CFO 3
Slide 4: Agenda
Agenda Q1 2023 Highlights Q1 2023 Results – Key Metrics Operational Update Market Outlook Summary Blackford Dolphin on contract with General Hydrocarbons Limited 25 March 2023 4 Borgland Dolphin - 2022 4
Slide 5: Q1 2023 & Subsequent Highlights
Q1 2023 & Subsequent Highlights • Blackford Dolphin commenced its drilling contract in Nigeria for General Hydrocarbons Limited on March 25 • Blackford Dolphin signed new contract with Peak Petroleum in Nigeria – Secures continuous work for Blackford in Nigeria until August 2025 (subject to all opti
Slide 6: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary Blackford Dolphin on contract with General Hydrocarbons Limited 25 March 2023 6 Borgland Dolphin - 2022 6
Slide 7: Q1 2023 Results – Key Metrics
Q1 2023 Results – Key Metrics Key metrics (USDm)* Q1 2023 Q4 2022 YTD 2023 Key Items Profit & Loss Charter Revenues 1,5 0,0 1,5 • Contract with General Hydrocarbons Limited Other Revenues 0,2 0,4 0,2 commenced in Nigeria on 25 March 2023 Total Revenues 1,8 0,4 1,8 • Operating expenses as anticipated
Slide 8: Headline Financial Data Points
Headline Financial Data Points Backlog Market cap Net Debt USD 122 million USD 130 million Zero +43% Notes: Market cap as of 8 May 8 2023, revenue backlog and debt as of March 31, 2023, total interest bearing debt at USD 8million 8
Slide 9: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary Blackford Dolphin on contract with General Hydrocarbons Limited 25 March 2023 9 Borgland Dolphin - 2022 9
Slide 10: Operational Update
Operational Update Blackford Dolphin Borgland Dolphin and Bideford Dolphin 6th gen. topside Smart stacked in Enhanced Aker H-3 Flekkefjord & Feda, Total rebuild in Norway 2008 Borgland Dolphin 5th gen. topside Enhanced Aker H-3 Total rebuild in 1999 Bideford Dolphin 5th gen. topside Blackford commen
Slide 11: Dolphin Drilling – Blackford 5yr special periodic survey
Dolphin Drilling – Blackford 5yr special periodic survey Delivered the project safely Initial Planning Detailed Planning Execution Zero accidents 110,000 man hours Delivered on budget 11
Slide 12: Dolphin Drilling – extensive process from contract to cash
Dolphin Drilling – extensive process from contract to cash Uniquely placed - 58 YEARS IN SERVICE - in-house management system and licenses to operate Steps Local company accreditation Manage intra-group transfers of the rig, mindset most Establish efficient for the group relationships with local par
Slide 13: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary Blackford Dolphin on contract with General Hydrocarbons Limited 25 March 2023 13 Borgland Dolphin - 2022 13
Slide 14: Global offshore rig fleet
Global offshore rig fleet - Active and available floater rig fleet close to sold out Source: Fearnleys Securities, rig weekly (2 May 2023)
Slide 15: Offshore drilling rates - dayrate for drillships and semisubs
Offshore drilling rates - dayrate for drillships and semisubs An improving market evidenced by step-up in rates Deepwater North Sea 700 700 600 600 Dayrate in USD 1’000 Dayrate in USD 1’000 500 500 400 400 300 300 200 200 100 100 - 0 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2005 2007 2009 2
Slide 16: Strong interest for Moored rigs in all key offshore basins
Strong interest for Moored rigs in all key offshore basins Ongoing rig enquiries = Rig tenders in process = Pre-screening for rig tenders = Dolphin Drilling rigs Blackford contract in Nigeria Expected start-up in March 2023 Firm contract – General Hydrocarbons Limited at USD 260k/d (incl mob fee) NE
Slide 17: Moored semisub fleet – competitive fleet below 20 rigs
Moored semisub fleet – competitive fleet below 20 rigs Rig fleet split by rig status and competitive position Rig Name Country Contract status Available date Olinda Star India Contracted 11-sep-2023 Stena Spey UK Contracted 14-sep-2023 Hakuryu-5 Malaysia Contracted 19-okt-2023 Well-Safe Defender UK
Slide 18: UK Semi Market Nearing Sold Out for 2023
UK Semi Market Nearing Sold Out for 2023 Contracted rigs in UK more than doubled – lately EPL increase caused delay to ongoing tenders UK semi rig count has declined >50% since 2016 Dolphin well-positioned for upcoming tenders No. of rigs Under contract Contracted Total supply UK available rigs 2023
Slide 19: Improved int’l rig demand/rates – rig supply approaching 10 rigs
Norway Semi Market – 5 rigs exiting in 2023 Improved int’l rig demand/rates – rig supply approaching 10 rigs No. of rigs Total Contracted Total Supply 2023 2024 -38% 32 1 Deepsea Stavanger 30 2 Transocean Norge 28 3 Scarabeo 8 26 4 Transocean Enabler 24 5 Deepsea Atlantic UK contract 22 20 6 Deepsea
Slide 20: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary Blackford Dolphin on contract with General Hydrocarbons Limited 25 March 2023 20 Borgland Dolphin - 2022 20
Slide 21: Robust organization – positioned for growth
Core strategic priorities Robust organization – positioned for growth A Improving market conditions for existing B Keppel newbuilds C Management opportunities D Opportunistic growth fleet • Limited rig availability • Opportunity to acquire • Experienced contractor • Opportunistically look to globall
Slide 22: Material focus areas defined by Dolphin
ESG Material focus areas defined by Dolphin Dolphin Drilling will soon publish its first annual sustainability report, and through an internal materiality assessment defined topics that reflect the most material issues relevant to our operations Spill prevention Emissions Health and safety Diversity
Slide 23: Summary
Summary Dolphin Drilling well positioned in industry recovery Blackford Dolphin 6th gen. topside Enhanced Aker H-3 Total rebuild in 2008 01 Dolphin Drilling generates positive cash flow with Blackford Dolphin on contract in Nigeria Borgland Dolphin 5th gen. topside Enhanced Aker H-3 Total rebuild in
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: Dolphin Drilling – public listing in Norway
Ownership structure Dolphin Drilling – public listing in Norway 27% 35% 38% Established sector lead Remained a major owner of ~800 shareholders primarily investor – instrumental owner Dolphin Drilling through the consisting of Norwegian, UK and initiator of > 50 IPOs downcycle and US investors Other
Slide 27: Financial Information
Financial Information Unaudited Management Presentation Income Statement Income Statement (USDm) 2023 2022 2023 Q1 Q4 YTD Charter Revenue 1,5 - 1,5 Total Other Revenue 0,2 0,4 0,2 Total Revenue 1,8 0,4 1,8 Total Rig Operating Expenses (9,9) (6,9) (9,9) Total Project Costs (2,7) (2,7) (2,7) Total Lay
Slide 28: Financial Information
Financial Information Unaudited Management Presentation Balance Sheet Cash Flows Balance Sheet (USDm) 2023 2022 2023 Statement of Cash Flows (USDm) 2023 2022 2023 Q1 Q4 YTD Q1 Q4 YTD Current Assets: Operating Cash Flows Unrestricted Cash & Cash Equivalents 17,4 28,0 17,4 Net Income (19,8) (21,1) (19
Slide 29: The Offshore Drilling Pioneer
The Offshore Drilling Pioneer Blackford Dolphin Borgland Dolphin 6th gen. topside 5th gen. topside Enhanced Aker H-3 Enhanced Aker H-3 Total rebuild in 2008 Total rebuild in 1999 Bideford Dolphin Keppel opportunity 5th gen. topside 2 x 7th gen. Enhanced Aker H-3 CS60 Eco Aker MH Total rebuild in 199
Slide 30: Largest shareholders
Largest shareholders Top 20 shareholders Investor Number of shares % of top 20 % of total Type Country 1 BARCLAYS CAPITAL INC 43 215 400 42.1 % 34.8 % Nominee United States 2 S.D. STANDARD ETC PLC 31 596 400 30.8 % 25.4 % Ordinary Cyprus 3 VERDIPAPIRFONDET DNB SMB 2 965 729 2.9 % 2.4 % Ordinary Norw
Slide 31: Oslo – DDRIL.OL
Oslo – DDRIL.OL Investor Relations contact: ingolf.gillesdal@dolphindrilling.com, +4792045320