Northern Ocean Ltd. · OSL:NOL
Northern Ocean — Pareto Energy Conference 2024
13 slides from Northern Ocean's conference presentation, Sep 11, 2024
Slide 1: Pareto Conference
Pareto Conference 11 September 2024
Slide 2: Important information and disclaimer
Important information and disclaimer IMPORTANT INFORMATION. THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR TO ANY
Slide 3: At a glance
At a glance Both rigs are deployed in the high-activity area of West Africa Rig location THE WORLD'S MOST SOPHISTICATED HARSH ENVIRONMENT OFFSHORE FLEET Listed on USD 159m USD 200m 2QTD 2024 revenue Oslo Stock Exchange market cap Firm contracts Unexercised options Rig Operator 2024 2025 Bollsta 5.5
Slide 4: Investment highlights
Investment highlights 1 Best-in-class semi-submersible drilling rigs – capable of drilling in all basins 2 Strong underlying demand for harsh environment rigs – limited spare capacity 3 Cash breakeven of USD ~360k/day(1) – next SPS December 2028 4 USD 500k/day equal FCFE of USD +100m(2) 5 Robust cap
Slide 5: Summary of transformative refinancing completed in June 2024
Summary of transformative refinancing completed in June 2024 Transaction summary ▪ In June 2024, NOL completed an equity transaction of USD 60 million as part of a full refinancing that extended debt maturities well into 2026 and funded certain working USD 60m in new equity capital requirements ▪ Al
Slide 6: The world's most sophisticated harsh environment rigs
The world's most sophisticated harsh environment rigs DEEPSEA BOLLSTA DEEPSEA MIRA …Successfully WORKING FOR BLUE CHIP CUSTOMERS… Built (yard): Hyundai Heavy Industries Built (yard): Hyundai Heavy Industries Delivered: 2019 Delivered: 2018 Design: Moss Maritime CS-60E Design: Moss Maritime CS-60E NC
Slide 7: Capable of working across all basins
Capable of working across all basins Key operating areas Current location of Tier 1 fleet1 Ultra harsh environment Harsh environment Norway Australia UK West Africa Canada Black Sea 1 Barents Sea 1 North Sea 1 West of Alaska Shetland 2 Newfoundland 10 Golden triangle 2 Namibia South Africa Falkland
Slide 8: Attractive fixtures across basins
Attractive fixtures across basins Utilization for benign and harsh environment semi-subs1 Contract semi-subs fixtures2 Harsh environment Harsh environment Benign environment 100% 600 Utilization of harsh Harsh environment semis environment fleet well currently contracting at above 90% 500 leading da
Slide 9: Next in line for contracts
Next in line for contracts Modern harsh-environment semi-submersibles by availability1 Latest Tier 1 contract fixtures Rig Name Operator2 Location 2024 2025 2026 2027 2028 2029 ▪ Recent fixtures in Norway has been in the USD Tier 13 ~500k/day area Deepsea Bollsta Shell Namibia Firm contracts West Ph
Slide 10: Significant upside with all-in breakeven well below market
Significant upside with all-in breakeven well below market Pro-forma illustrative earnings sensitivity Unit Breakeven USD 360k Dayrate of USD 450k Latest NCS USD 500k Utilization % 95% 95% 95% Opex incl. mgmt. fee USDk/day (180) (180) (180) Illustrative rig EBITDA (2 rigs) USDm 118 181 215 G&A “ (8)
Slide 11: Harsh-environment peers valued above USD 400m per unit
Harsh-environment peers valued above USD 400m per unit Implied values YE24 USDm 637 NOL implied USD 156m / NOK ~5.5/share higher depreciated values +85% assuming 25 years of economic life per rig 416 335 Rig age: Avg. fleet age: Avg. fleet age: 5 years ~11 years ~5.5 years Transocean Norge Odfjell D
Slide 12: Harsh-environment consolidation needed
Harsh-environment consolidation needed Overview of “single assets” Rig name Hercules Rig name Scarabeo 8 Owner SFL Corp Owner Saipem Year delivered 2008 Year delivered 2012 Design GVA 7500 Design Moss Maritime CS50 Contract end Q4 2024 Contract end Q4 2025 Rig name West Phoenix Rig name Ocean GreatW
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