Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Investor Presentation (March 2024)
21 slides from Odfjell Drilling's investor presentation, Mar 12, 2024
Slide 1: Investor Presentation
Investor Presentation 12 March 2024 12.03.2024
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation and appendices dated 12 March 2024 (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 Presenta
Slide 3: Solid Operationally Focused Business with Industry Leading Fleet
OUR COMPANY Solid Operationally Focused Business with Industry Leading Fleet • 51 years of pioneering harsh environment drilling Excellent operational performance and backlog • Fleet of advanced, modern and flexible rigs Contract Backlog • Working for some of the industry’s most reputable names USD
Slide 4: The World's Most Flexible Drilling Units - Fully Deployed
OUR FLEET The World's Most Flexible Drilling Units - Fully Deployed Offshore Norway Deepsea Aberdeen Deepsea Nordkapp Deepsea Yantai Svalin Development Alvheim Development Exploration Deepsea Atlantic Johan Sverdrup Phase 2 Deepsea Stavanger Exploration Offshore Namibia Odfjell Drilling own fleet Od
Slide 5: Sold Out Until 2026 – Rolling Off Legacy Day Rates
OPERATIONAL REVIEW Sold Out Until 2026 – Rolling Off Legacy Day Rates Increasing Own Fleet Revenue Backlog, Excluding Bonuses and Add-ons (USD m) Contracts Secured During 2023 Location/Operator 2023 2024 2025 2026 2027 2028 2029 Rig Client Contract Start Date / Location Value and Deepsea Atlantic
Slide 6: Market Dynamics Persisting in the Medium to Long Term
MARKET OUTLOOK Market Dynamics Persisting in the Medium to Long Term Semi-Submersible Unit Demand vs Utilisation Clear Preference for Tier 1 Units Remains Utilisation • Preference for Tier 1 HE semi submersibles among clients 100% Tier 1 (n=17) Tier 2 (n=7) Tier 3 (n=12) • Higher performance, operab
Slide 7: Considerable upside potential at higher day rates
MARKET OUTLOOK Considerable upside potential at higher day rates Historical Harsh Environment dayrate development (USDk/day) Illustrative Odfjell Drilling EBITDA (USDm) at different day rates HE dayrates (RHS) Current market rate Average peak (2012-2014) 650 600 Most 550 Recent ~500 ODL Fixture 500
Slide 8: Compelling Upside
VALUATION Compelling Upside Undervalued Amongst Peers Most Rewarding for Shareholders Longterm EV / EBITDA Multiples Cash flow to Equity ODL vs Average Amongst Peers 70 7 60 6 50 5 40 4 30 3 2 20 1 10 0 0 2024e 2025e 2026e Odfjell Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Drilling Odfj
Slide 9: Investment thesis
SUMMARY Investment thesis Harsh environment market leader with exceptional operational track record, DW and UDW capabilities Sold out fleet, with all rigs moving on from legacy day rates to higher value contracts Strong market dynamics, entering a long-term robust upcycle Dividend paying, with ambit
Slide 10: Appendix
Appendix 10
Slide 11: Superior Operations and Uptime
OUR STRATEGY Superior Operations and Uptime Normalised well delivery time (days) Financial Utilisation 2016 - current 100.0% 100% 90.0% 7-year average Financial Utilisation of 97.5% 80.0% 70.0% Peer 1 +32% 60.0% 50.0% 40.0% 30.0% Peer 2 +45% 20.0% 10.0% 0.0% Q3 Q2 Q2 Q1 2016 Q2 Q4 Q1 2017 Q2 Q3 Q4 Q
Slide 12: Positive Income Growth Through the Year
FINANCIAL REVIEW Positive Income Growth Through the Year Revenue (USDm) EBITDA (USDm) Net Profit (USDm) 184 186 192 85 87 83 171 80 6 167 73 5 7 44 4 38 39 5 26 36 29 77 83 83 79 21 24 139 145 147 147 70 134 11 2 Q4 Q1 2023 Q2 Q3 Q4 Q4 Q1 2023 Q2 Q3 Q4 Q4 Q1 2023 Q2 Q3* Q4 732 650 308 329 222 83 FY
Slide 13: Robust Balance Sheet and Strong Liquidity
FINANCIAL REVIEW Robust Balance Sheet and Strong Liquidity Net debt (USDm) and Leverage Ratio Total Assets (USDbn) and Equity Ratio Available Liquidity (USDm) 685 687 294 Total 2.3 2.3 274 645 620 2.2 249 582 2.2 2.1 Undrawn 2.5 165 RCF 2.4 60% 60% 153 2.2 132 2.1 57% 2.0 55% 54% 157 Cash 138 129 11
Slide 14: SPS and Capex for 2024
SPS & CAPEX FOR 2024 SPS and Capex for 2024 Deepsea Nordkapp Completed SPS Remaining SPS Programs • First rig to complete SPS in the North Sea without taking the rig to shore • Average capex allocation of approximately USD 40 – 45 million per • During SPS, the rig was in full operation with no QHSE
Slide 15: Instalment Profile
INSTALMENT PROFILE Instalment Profile 500 Current Instalment Profile (2024 – 2029) 450 400 359 350 67 300 • Refinancing completed in 2023 achieving the Company’s intended goals 250 • No significant debt maturities until 2028 200 164 • Capital structure allows the Company 150 21 120 292 significant f
Slide 16: Debt Facilities Overview
DEBT FACILITIES Debt Facilities Overview Instrument USD 390m senior secured USD 197m senior secured term USD 175m senior secured USD 125m senior secured st 1 lien bond (Aberdeen & loan facility (Nordkapp) revolving credit facility revolving credit facility Atlantic) (Stavanger RCF tranche) (Stavange
Slide 17: Sustainability in Odfjell Drilling - creating long-term value
SUSTAINABILITY Sustainability in Odfjell Drilling - creating long-term value Our focus is on enhancing our competitiveness, reputation and long-term resilience, while Efficiency alsointensity adjusted meeting thefleet owned evolving expectations of stakeholders and regulators 7.00 14.0 6.00 12.0 Tho
Slide 18: Priorities
SUSTAINABILITY Priorities Environmental impact People Ethics & safety & governance AMBITION AMBITION AMBITION Industry leader in environmental Ensure the highest safety standard, and Committed to high ethical standards, performance protect employee’s health and well-being compliance and integrity TA
Slide 19: Strong Activity in Norwegian Continental Shelf Forecasted
CORE MARKET Strong Activity in Norwegian Continental Shelf Forecasted Norwegian Reserve Replacement Forecast Undiscovered Resources by Area (million scm oe) Barents Sea North 90 250 Barents Sea South 80 830 70 200 545 575 60 445 150 50 40 100 30 OIl Gas 20 50 OIl Gas 10 0 0 Norwegian Sea 2018 2019 2
Slide 20: Complex conditions make Odfjell Drilling an ideal match for Namibia
EMERGING MARKET Complex conditions make Odfjell Drilling an ideal match for Namibia Ocean Current and Rig Capabilities in the South of Africa Top 10 liquid discoveries since 2000 Angola current Hercules Benguela current Deepsea Mira Deepsea Bollsta Aguinhas current Kashagan Buzios Liza Libra/Mero Tu
Slide 21: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 21
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