Dolphin Drilling As · OSL:DDRIL
Dolphin Drilling As — Q3 2023 Earnings Presentation
31 slides from Dolphin Drilling As's earnings presentation, Nov 28, 2023
Slide 1: Third quarter 2023 results
Third quarter 2023 results 28 November 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 presenters
Today’s presenters Bjørnar Iversen Stephen Cox Ingolf Gillesdal CEO CFO VP Corporate Finance / IR
Slide 4: Agenda
Agenda Q3 2023 Highlights Q3 2023 results – key financials Company and operational update Market outlook Summary Borgland Dolphin Borgland Dolphin - 2022
Slide 5: Q3 2023 highlights (incl. subsequent events)
Q3 2023 highlights (incl. subsequent events) Operational highlights – EBITDA USD 4.6 million, an increase of USD 3.0 million versus prior quarter – Blackford Dolphin 98.3% operational efficiency and opex reduced to USD 106,000/day Fleet update – Signed contract for Borgland with EnQuest from April 2
Slide 6: Headline financial data points
Headline financial data points Firm EBITDA backlog Q3 EBITDA backlog* USD 422 million USD 220 million USD 4.6 million +USD 45 million +USD 3.0 million Notes: Revenue backlog as of 28 November, 2023 *Estimated rig EBITDA backlog excludes USD $32 million in mobilization and SPS contributions and exclu
Slide 7: Agenda
Agenda Q3 2023 Highlights Q3 2023 results – key financials Company and operational update Market outlook Summary Borgland Dolphin Blackford Dolphin Borgland Dolphin - 2022
Slide 8: Financial Information
Financial Information Income Statement (Unaudited) Key notes (USDm) Q3 2023 Q2 2023 YTD 2023 FY 2022 • Blackford on contract for the full quarter vs 10 days off in Q2 (waiting for permits) Profit & Loss Charter Revenues 20.8 18.3 40.7 18.8 • Mobilisation revenues and costs related to Other Revenues
Slide 9: Financial Information
Financial Information Balance Sheet (Unaudited) Key notes (USDm) 2023 Q3 YE 2022 • USD 65 million net proceeds has been raised following the placement and subsequent repair Current Assets: offering in July and September Total Cash 59.9 35.8 Accounts Receivable 40.9 1.1 • Accounts receivable increase
Slide 10: Financial Information
Financial Information Cash flows (Unaudited) Key notes • Working capital – negatively impacted by lack of receipts from General Hydrocarbon Limited • Investments – Includes capex, SPS payments and deposits paid to Transocean as per the acquisition agreement • Financing – proceeds has been raised fol
Slide 11: Blackford - Nigeria Update
Blackford - Nigeria Update Receivables • Blackford on contract late March 2023 Q2 – Q3 • Successfully drilled to 2,400m on EWO-2 exploration prospect (3) • Number of delays through lack of client supplied equipment and services during program • Rig remains on location in standby @ 95% day rate • Cli
Slide 12: Financing Term Sheet Main Conditions
Financing Term Sheet Main Conditions Provider Maritime Asset Partners Quantum USD 65 million less Debt Service Reserve Account Security Ring-fenced to PBL rig and cash flows – all other assets remain unencumbered Tenor 3.75 years Rates 9.75% fixed interest rate 12-month grace period on principal rep
Slide 13: Illustrative EBITDA and Cash Flow Potential – 3 rigs
Illustrative EBITDA and Cash Flow Potential – 3 rigs Key assumptions • PBL USD 175k dayrate and USD 70-80K opex • Borgland USD 200-220k dayrate and USD 70-80K opex • Blackford USD 230-250k dayrate and USD 105-115k opex • Stacked rigs include daily opex of USD 8k for Bideford and USD 3k for Leader •
Slide 14: Agenda
Agenda Q3 2023 Highlights Q3 2023 results – key financials Company and operational update Market outlook Summary Borgland Dolphin Blackford Dolphin Borgland Dolphin - 2022
Slide 15: Dolphin Drilling - focused on moored semi-submersible rigs
Dolphin Drilling - focused on moored semi-submersible rigs Land rig Jackup Moored Semi-submersible DP Semi-submersible Drillship Water depth: 65m – 1,800m 15
Slide 16: Paul B. Loyd, Jr. and Transocean Leader rig acquisitions
Paul B. Loyd, Jr. and Transocean Leader rig acquisitions Status Update The project People • Commenced • Personnel retention – The implementation project commenced 26 June 2023 – PBLJ crew intact and will move over to Dolphin Drilling • Resources • Consistency in safety, operational performance and i
Slide 17: Dolphin Drilling – continues to build backlog and scale
Dolphin Drilling – continues to build backlog and scale 1 3 Fleet growth Dolphin Drilling 1 rig fleet 1. Blackford Dolphin 2. Paul B. Loyd 2 Jr. 3. Borgland Dolphin Improve earnings 4. Transocean Leader visibility 5. Bideford Dolphin Improve 2 4 5 operational footprint Consolidate UK rig market in a
Slide 18: Dolphin Drilling building revenue backlog
Dolphin Drilling building revenue backlog to USD 941 million Borgland – adding significant new order backlog 1 000 900 800 700 519 In USD million 600 418 Firm Options 500 400 300 200 378 422 80 100 85 85 124 - Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Segment Rig Client Location 3Q 2023 4Q 202
Slide 19: Agenda
Agenda Q3 2023 Highlights Q3 2023 results – key financials Company and operational update Market outlook Summary Paul B. Lloyd Jr., UK Blackford Dolphin, Nigeria Borgland Dolphin - 2022
Slide 20: Semisubmersible moored rig demand
Semisubmersible moored rig demand List of identified opportunities ~10 tenders /requests ~5 tenders /requests Blackford contract in ~5-10 Nigeria tenders /requests Expected start-up in March 2023 Firm contract – General Hydrocarbons Limited at USD 260k/d (incl mob fee) NEW: LOA signed for 120- 485 d
Slide 21: UK semi market – trend is 3-5 year contracts
UK semi market – trend is 3-5 year contracts Renewed drilling activity + increased focus on completing required P&As Contracted Option Frame agreement 2024 2025 2026 2027 2028 2029 Rig name Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Ocean Patriot 2 Paul B. Loyd Jr. 203
Slide 22: Agenda
Agenda Q3 2023 highlights Q3 2023 results – key financials Company and operational update Market outlook Summary Borgland Dolphin Blackford Dolphin Borgland Dolphin - 2022
Slide 23: Summary
Summary Dolphin Drilling is well positioned in industry recovery EBITDA at USD 4.6 million improved by USD 3.0 million versus prior quarter 01 Blackford Dolphin had 98.3% operational uptime in the quarter Revenue backlog Borgland - signed contract with EnQuest 02 LOA received from Oil India with Q3
Slide 24: Dolphin Drilling – public listing in Norway (post planned repair issue)
Ownership structure Dolphin Drilling – public listing in Norway (post planned repair issue) 53% 28% 19% ~1000 shareholders primarily Remained a major owner of Established sector lead consisting of Norwegian, UK Dolphin Drilling through the investor – instrumental owner and US investors downcycle and
Slide 25: Vision, Mission & Values
Vision, Mission & Values Purpose Deeply committed to delivering pioneering drilling services for the future. Vision Mission To be the most trusted drilling services We work hand in hand with our customers and team, delivering unmatched levels of continue to move the industry forward, customer servic
Slide 26: Q&A
Q&A
Slide 27: Appendix
Appendix
Slide 28: Board of directors with extensive industry experience
Board of directors with extensive industry experience Board of directors Martin Nes Øystein Stray Spetalen Paul Marchand Alf Ragnar Løvdal Chairman Board member Board member Board member • Member of the board since • Member of the board since • Member of the board since • Member of the board since 2
Slide 29: Management bringing extensive experience and expertise
Management bringing extensive experience and expertise Seasoned management team able to deliver accelerated growth Senior management Bjørnar Iversen Stephen Cox Johan Finnestad Jon Oliver Bryce Per Vangsgaard Ingolf Gillesdal Chief Executive Chief Financial Chief Operating Chief Strategy Chief Techn
Slide 30: Material focus areas defined by Dolphin Drilling
Material focus areas defined by Dolphin Drilling ESG Dolphin Drilling published its first annual sustainability report earlier this year. Through an internal materiality assessment defined topics that reflect the most material issues relevant to our operations. Spill prevention Emissions Health and
Slide 31: Oslo – DDRIL.OL
Oslo – DDRIL.OL Investor Relations contact: ingolf.gillesdal@dolphindrilling.com, +4792045320