Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q2 2023 Earnings Presentation
19 slides from Odfjell Drilling's earnings presentation, Aug 23, 2023
Slide 1: Q2 2023 Results Presentation
Q2 2023 Results Presentation 23 August 2023 1
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation dated 23 August 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 Q2 Summary 2 Operational Review 3 Financial Review 4 Dividend & Summary 3 3
Slide 4: Strong Quarter with Key Activities Completed
Q2 SUMMARY Strong Quarter with Key Activities Completed Successfully completed refinancing Backlog ($bn) • Diversified capital sources and removed any significant maturities until 2028 2.3 2.2 Total 1.9 2.0 1.9 • Refinancing facilitates the Company’s future growth strategy and flexibility to 0.6 0.5
Slide 5: Key Financial Results
Q2 SUMMARY Key Financial Results Revenue (USDm) EBITDA (USDm) Available Cash (USDm) 184 85 249 Total 81 80 171 79 155 157 167 144 138 132 Undrawn RCF 163 165 73 117 Cash Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 Equity ratio (%) Leverage ratio (x) Net Debt (USDm) 56% 57% 57% 2.4 2.
Slide 6: Agenda
Agenda 1 Q2 Summary 2 Operational Review 3 Financial Review 4 Dividend & Summary 66
Slide 7: Fully Deployed Fleet
OPERATIONAL REVIEW Fully Deployed Fleet Ultra harsh environment Harsh environment Benign environment ODL Fleet Rig Owned and managed fleets are all now deployed and on contract. 7
Slide 8: Strong Visibility for Cash Generation Across the Fleet
OPERATIONAL REVIEW Strong Visibility for Cash Generation Across the Fleet USD ~2.2bn revenue backlog Contract Option Frame agreement / Alliance agreement Own fleet USD Revenue firm contracts 1.7bn Revenue priced options 0.5bn Total revenue backlog ~2.2bn Own fleet Year built Current Location/Operato
Slide 9: Market outlook
OPERATIONAL REVIEW Market outlook Supply and demand dynamic remains strong • Dayrates continue to increase for our units – Strong commodity prices and positive macro-economic indicators continue to support demand for our services – Supply side remains tight, with no newbuild or stacked capacity like
Slide 10: Agenda
Agenda 1 Q2 Summary 2 Operational Review 3 Financial Review 4 Dividend & Summary 10 10
Slide 11: Condensed consolidated income statement
FINANCIAL REVIEW Condensed consolidated income statement USD million Q2 23 Q2 22 YTD 23 YTD 22 FY 22 EBITDA (USDm) Continuing operations 85 Operating revenue 184 163 355 318 650 81 80 Other gains and losses - - - - 0 79 Personnel expenses (64) (51) (128) (104) (207) 73 Other operating expenses (35)
Slide 12: Robust balance sheet and sound cash position
FINANCIAL REVIEW Robust balance sheet and sound cash position USD million 30.06.2023 30.06.2022 31.12.2022 Assets Available Cash (USDm) Property, plant and equipment 1,876 1,987 1,938 Intangible assets 3 3 3 249 Total Deferred tax asset 1 0 0 Non-current receivable 28 - - Undrawn Other non-current a
Slide 13: Strong cash flow from operations
FINANCIAL REVIEW Strong cash flow from operations USD million Q2 23 Q2 22 YTD 23 YTD 22 FY 22 Cash flows from operating activities: Profit/(loss) before tax from continuing operations 13 23 17 45 88 CAPEX (USDm) Profit before tax from discontinued operations - - - 10 10 Adjustment for interest, prov
Slide 14: No significant debt maturities until 2028
COMPLETED REFINANCING No significant debt maturities until 2028 Amortisation Samsung yard credit RCF Reduction USDm 359 Successfully completed refinancing 360 340 • Raised USD 390 million via 320 67 significantly oversubscribed rated 300 bond 280 • Amended and extended USD 197 260 million Deepsea No
Slide 15: Agenda
Agenda 1 Q2 Summary 2 Operational Review 3 Financial Review 4 Dividend & Summary 15
Slide 16: Updated Dividend Policy
DIVIDEND Updated Dividend Policy • The Company’s ambition is to provide shareholders with a competitive return on their shares through a combination of share price appreciation and a direct return in the form of dividends. • The Company will, in the first phase of the programme, target a quarterly d
Slide 17: USD 14.2 Million Initial Quarterly Dividend
DIVIDEND USD 14.2 Million Initial Quarterly Dividend Key details of Q2 Dividend • 0.06 USD / share • Ex-Dividend date: 1 September • Record date: 4 September • Payment date: 13 September Dividends will be declared in USD. Actual NOK payment per share will be determined based on the exchange rate at
Slide 18: Q2 2023 Summary Highlights Outlook
SUMMARY Q2 2023 Summary • Quarterly dividend programme implemented, with first distribution of USD 14.2 million for Q2 2023, with cash distribution to be made during Q3 2023. • Successfully completed refinancing, facilitating the Company’s future growth strategy and giving increased liquidity Highli
Slide 19: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 19