Dolphin Drilling As · OSL:DDRIL
Dolphin Drilling As — Q4 2023 Earnings Presentation
26 slides from Dolphin Drilling As's earnings presentation, Feb 26, 2024
Slide 1: Fourth quarter 2023 financial results
Fourth quarter 2023 financial results 26 February 2024
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 Chief Executive Chief Financial VP Corporate Finance Officer Officer / IR
Slide 4: Agenda
Agenda Q4 2023 Highlights Q4 2023 results – key financials Company and operational update Market outlook Summary Borgland Dolphin Borgland Dolphin - 2022
Slide 5: Q4 2023 highlights incl. subsequent events
Q4 2023 highlights incl. subsequent events Awards signed in Q4 2023 and Q1 2024 • Paul B. Loyd, Jr. – signed new contract with Harbour Energy to February 2028 + option periods • Signed 5-year Master Service Agreement with Harbour Energy related to future rig demand • Borgland – signed contract with
Slide 6: Paul B. Loyd Jr. will return 7x the acquisition price from firm and option backlog
Paul B. Loyd Jr. will return + 7x the acquisition price from firm and option backlog Deal to acquire Paul B. Loyd, Jr. and Leader closed the 15th of February 2024 Paul B. Loyd Jr. contract backlog overview USDm 335 Incl. USD 20m in estimated SPS cost in 2025 (of which Harbour will contribute with US
Slide 7: Agenda
Agenda Q4 2023 Highlights Q4 2023 results – key financials Company and operational update Market outlook Summary Borgland Dolphin Blackford Dolphin Borgland Dolphin - 2022
Slide 8: Income Statement (Unaudited)
Financial Information Income Statement (Unaudited) Key notes USDm Q4 2023 Q3 2023 FY 2023 FY 2022 Charter Revenues 20.4 20.8 61.0 18.8 • Blackford revenue rate charged to GHL @ Other Revenues 0.2 0.4 1.3 2.3 standby for the majority of Q4 Mobilisation Revenues 3.0 3.0 9.0 0.0 Total Revenues 23.6 24.
Slide 9: Balance Sheet (Unaudited)
Financial Information Balance Sheet (Unaudited) Key notes USDm YE 2023 YE 2022 • Accounts Receivable driven by GHL late payments (versus no rigs on contract at Current Assets: the end of 2022) Total Cash 34.0 35.8 Accounts Receivable 47.2 1.1 • Net receivable position of General Inventory 30.4 20.3
Slide 10: Cash flows (Unaudited)
Financial Information Cash flows (Unaudited) Key notes • Working capital negatively impacted by late receipts from GHL USDm FY 2023 FY 2022 • Deposits paid to Transocean are also Operating Cash Flows included in working capital impact Net Income (7.2) (68.4) Add-Back: D&A + Impairment Reversal (13.4
Slide 11: Blackford - Nigeria Update
Blackford - Nigeria Update • Blackford on contract late March 2023 and successfully drilled to 2,400m on EWO-2 exploration prospect reporting positive results • Payments have been seriously delayed throughout contract. Net amounts due from GHL at Dec ‘23 were USD 37.8m • USD 5.0m in further payments
Slide 12: Tax claim - HRMC
Tax claim - HRMC Borgsten Dolphin – Tender Support Vessel (TSV) Summary of Status / History • As previously disclosed in various documentation Dolphin Drilling has been in a long running dispute with HMRC regarding the tax treatment of income derived from a contract for the Borgsten Dolphin in 2014/
Slide 13: Agenda
Agenda Q4 2023 Highlights Q4 2023 results – key financials Company and operational update Market outlook Summary Borgland Dolphin Blackford Dolphin Borgland Dolphin - 2022 13
Slide 14: 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 14
Slide 15: Dolphin Drilling – significant values from a growing backlog
Dolphin Drilling – significant values from a growing backlog $ 1.1bn Blackford Borgland Fleet growth +13x LOA/LOI/Options Improve earnings visibility Improve PBLJ Leader operational footprint $ 480 Consolidate Firm moored semisub $ 85 rig market Q3-2022 Q1-2024 Notes: Revenue backlog includes Letter
Slide 16: Fleet Status Report
Fleet Status Report FIRM LOA/LOI Effective February 2024 Options SPS Stacked / mobilisation Harsh Environment Moored Semi Submersibles + Indicates future options exist Rig Client Location 2024 2025 2026 2027 GHL Nigeria Blackford Mobilisation Oil India Oil India Stacked Norway Borgland EnQuest Undis
Slide 17: Rig backlog - providing for long-term earning visibility
Rig backlog - providing for long-term earning visibility EBITDA (est.) backlog on 3 rigs incl LOI High visibility into 2025 - operational leverage in 2026+ 120 100 % 90 % Estimated EBITDA backlog in $ million Rig fleet contract type/availability in % 100 80 % 70 % 80 60 % 60 50 % 40 % 40 30 % 20 % 2
Slide 18: Borgland – preparation for contract start-up in the UK
Borgland – preparation for contract start-up in the UK Reactivation plan including completing Special Period Survey (SPS) Main project activities prior to transit to Las Palmas/SPS • Planning of mobilization incl. single voyage certificate (21-28 days) • Planning and negotiation with yard (28 days)
Slide 19: Agenda
Agenda Q4 2023 Highlights Q4 2023 results – key financials Company and operational update Market outlook Summary Paul B. Lloyd Jr., UK Blackford Dolphin, Nigeria Borgland Dolphin - 2022
Slide 20: Dolphin Drilling – Delivers on original plan
Dolphin Drilling – Delivers on original plan Return rigs to work Revenue backlog Opportunistic growth $1.1bn Paul B. Loyd, Jr. 3 +13x LOA/LOI/Options $335m 2 +7x Options 1 $85m $44m Firm Firm Q3 2022 Q1 2024 Q1 2025(e) Q3 2022 Q1 2024 Purchase price Cash flow (est.) 20
Slide 21: Semisubmersible moored rig demand
Semisubmersible moored rig demand The number of RFIs & tenders is increasing in multiple basins 10 RFIs Despite ongoing political challenges, the UKCS remains the largest user of moored rigs, and with the current uptick in demand customers are now paying 10 Live 5 Live more & contracting for longer
Slide 22: Agenda
Agenda Q4 2023 highlights Q4 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 01 Dolphin returning rigs to work – 3 rigs contracted Revenue backlog 02 Booked $1.1bn in revenue backlog including Letter of Intent $1.1 billion 03 Closed rig purchase, take active role consolidating moored rigs 04 Focused on converti
Slide 24: Q&A
Q&A
Slide 25: Dolphin Drilling – public listing in Norway
Ownership structure Dolphin Drilling – public listing in Norway 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 initiator of > 50 IPOs Othe
Slide 26: Oslo – DDRIL.OL
Oslo – DDRIL.OL Investor Relations contact: ingolf.gillesdal@dolphindrilling.com, +4792045320