Dolphin Drilling As · OSL:DDRIL
Dolphin Drilling As — Q2 2023 Earnings Presentation
32 slides from Dolphin Drilling As's earnings presentation, Aug 15, 2023
Slide 1: Second quarter 2023 results
Second quarter 2023 results 15 August 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 Q2 2023 Highlights Q2 2023 results – key metrics Company and operational update Market outlook Summary Blackford Dolphin Borgland Dolphin - 2022
Slide 5: Q2 2023 highlights
Q2 2023 highlights • Second quarter EBITDA USD 1.6 million improved by USD 18.6 million from the first quarter • Blackford Dolphin 97.2% operational uptime and reduced Opex to USD 116k/day – Blackford revenue backlog of USD 201 million • Firm USD 100 million plus USD 101 million options 52% – Blackf
Slide 6: Headline financial data points
Headline financial data points Firm Q2 EBITDA Net debt backlog USD 377 million USD 1.6 million Zero +USD 253 million +USD 19 million Notes: Revenue backlog and debt as of 30 June, 2023, total interest-bearing debt (excluding working capital financing) 6
Slide 7: Agenda
Agenda Q4 2022 Highlights Q4 2022 results – key metrics Company and operational update Market outlook Summary Blackford Dolphin Borgland Dolphin - 2022 7
Slide 8: Q2 2023 results – key metrics
Q2 2023 results – key metrics Key metrics (USDm)* Q2 2023 Q1 2023 YTD 2023 Key items Profit & Loss Charter Revenues 18.3 1.5 19.8 • After a period of 10 days awaiting permits, Blackford Other Revenues 3.5 0.2 3.7 operated for 81 days during the quarter at an average of 97.2% earnings efficiency Tota
Slide 9: Q2 2023 results – EBITDA development
Q2 2023 results – EBITDA development Key items 19 0.26 1.6 1.7 • Blackford working for the full quarter from 10 0.6 -2.5 April, 2023, following pending local permits, -0.7 compared to seven days of standby rate booked in the first quarter of the year • Reduced layup cost associated with Borgland • M
Slide 10: Agenda
Agenda Q4 2022 Highlights Q4 2022 results – key metrics Company and operational update Market outlook Summary Blackford Dolphin Borgland Dolphin - 2022 10
Slide 11: Operational update
Operational update Paul B. Loyd Jr. contracted to Harbour until the fourth quarter of 2027 plus option periods to 2032 Borgland Dolphin and Bideford Dolphin, actively marketed and smart stacked in Norway Leader cold stacked in the UK Blackford contracted to GHL in Nigeria until the second quarter of
Slide 12: 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 12
Slide 13: Strategic acquisition of two x Harsh Environment semisubs
Strategic acquisition of two x Harsh Environment semisubs New fleet overview Paul B. Loyd Jr. – long term positive cash flow contribution Borgland Dolphin Blackford Dolphin Bideford Dolphin Leader – cold stacked moored semisub with deepwater capability Enhanced Aker H-3 Enhanced Aker H-3 Enhanced Ak
Slide 14: Dolphin Drilling building revenue backlog
Dolphin Drilling building revenue backlog to USD 815 million USD million 438 101 377 - 124 85 85 - Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Fixed Options Segment Rig Client Location 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 Blackford GHL Nigeria USD 232,500 HE de
Slide 15: Agenda
Agenda Q4 2022 Highlights Q4 2022 results – key metrics Company and operational update Market outlook Summary Paul B. Lloyd Jr., UK. Blackford Dolphin, Nigeria Borgland Dolphin - 2022
Slide 16: Global offshore rig fleet – increased demand across all segments
Global offshore rig fleet – increased demand across all segments vs Q1 Source: Fearnleys Securities, rig weekly (8 August 2023) 16
Slide 17: Increased interest for moored rigs in all key offshore basins
Increased interest for moored rigs in all key offshore basins List of identified opportunities = Pre-screening and rig tenders = Dolphin Drilling rigs Blackford contract in Nigeria Expected start-up in March 2023 Firm contract – General Hydrocarbons Limited at USD 260k/d (incl mob fee) NEW: LOA sign
Slide 18: Moored semisub fleet – Int’l competitive fleet below 20 rigs
Moored semisub fleet – Int’l competitive fleet below 20 rigs Rig fleet split by rig status and competitive position Rig Name Country Current Status Available date Stena Spey UK Contracted 15-aug-2023 Olinda Star India Contracted 11-sep-2023 Atlantic Star Brazil Contracted 16-nov-2023 Ocean Patriot U
Slide 19: UK semi market nearing sold out for 2023
UK semi market nearing sold out for 2023 Contracted rigs in UK more than doubled – lately EPL increase caused delay to ongoing tenders UK semi rig count has declined >50% since 2016 Dolphin well-positioned for upcoming tenders Under contract Contracted Total supply UK available rigs 2023 2024 32 Rig
Slide 20: Norway Semi Market – seven rigs exiting in 2023
Improved int’l rig demand/rates – rig supply approaching 10 rigs Norway Semi Market – seven rigs exiting in 2023 Total Contracted Total Supply -38% 32 2023 2024 30 28 Rig name jan feb mar apr mai jun jul aug sep okt nov des jan feb mar apr mai jun jul aug sep okt 26 1 Deepsea Stavanger 24 2 Transoce
Slide 21: Agenda
Agenda Q4 2022 highlights Q4 2022 results – key metrics Company and operational update Market outlook Summary Blackford Dolphin Borgland Dolphin - 2022
Slide 22: Robust organisation – positioned for growth
Robust organisation – positioned for growth Core strategic priorities A Improving market conditions for existing B Keppel newbuilds C Management opportunities D Profitable growth fleet • Limited rig availability • Opportunity to manage • Experienced contractor • Bolt on acquisitions globally two lat
Slide 23: 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 24: Summary
Summary Dolphin Drilling is well positioned in industry recovery 01 Second quarter EBITDA at USD 1.6 million improved by USD 18.6 million from the first quarter. Blackford Dolphin had 97.2% operational uptime and reduced Opex Blackford revenue backlog of USD 201 million (firm USD 100 million plus US
Slide 25: Dolphin Drilling – public listing in Norway
Ownership structure Dolphin Drilling – public listing in Norway (post planned repair issue) 52% 28% 20% ~1100 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 26: Q&A
Q&A
Slide 27: Appendix
Appendix 27
Slide 28: Financial information
Financial information Unaudited Management Presentation Income Statement (USDm) 2023 2023 2023 Q2 Q1 YTD Charter Revenue 18.3 1.5 19.8 Total Other Revenue 3.5 0.2 3.7 Total Revenue 21.8 1.8 23.5 Total Rig Operating Expenses (10.5) (9.9) (20.4) Total Project Costs (3.4) (2.7) (6.1) Total Lay-up Expen
Slide 29: Financial Information
Financial Information Unaudited Management Presentation Balance Sheet (USDm) 2023 2023 2023 Statement of Cash Flows (USDm) 2023 2023 2023 Q2 Q1 YTD Q2 Q1 YTD Current Assets: Operating Cash Flows Unrestricted Cash & Cash Equivalents 8.1 17.4 8.1 Net Income (1.6) (19.8) (21.5) Restricted Cash 6.3 4.2
Slide 30: Board of directors with extensive industry experience
Board of directors with extensive industry experience Board of directors Martin Nes Øystein Stray Spetalen Paul Marchand Julius Kling Alf Ragnar Løvdal Chairman Board member Board member Board member Board member • Member of the board since • Member of the board since • Member of the board since • M
Slide 31: 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 Steen E. Damgaard Per Vangsgaard Ingolf Gillesdal Chief Executive Officer Chief Financial Officer Chief Operating Officer C
Slide 32: Oslo – DDRIL.OL
Oslo – DDRIL.OL Investor Relations contact: ingolf.gillesdal@dolphindrilling.com, +4792045320