Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q4 2023 Earnings Presentation
16 slides from Odfjell Drilling's earnings presentation, Feb 15, 2024
Slide 1: Q4 2023 and Year End 2023 Results Presentation
Q4 2023 and Year End 2023 Results Presentation 15 February 2024 14.02.2024
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation dated 15 February 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 Presentation has bee
Slide 3: Agenda
Agenda 1 Q4 Highlights 2 Operational Review 3 Financial Review 4 Summary 3 3
Slide 4: Significant Activity Across Odfjell Drilling
Q4 HIGHLIGHTS Significant Activity Across Odfjell Drilling Q4 DIVIDEND (USD) Strong financial performance, despite unplanned downtime • Q4 Revenue of USD 192 million (2023 Revenue of USD 732 million) USD 14.2 m • Q4 EBITDA of USD 83 million (2023 EBITDA of USD 329 million) • Financial utilisation of
Slide 5: Agenda
Agenda 1 Q4 Highlights 2 Operational Review 3 Financial Review 4 Summary 55
Slide 6: Fully Deployed, Strong Backlog Coverage
OPERATIONAL REVIEW Fully Deployed, Strong Backlog Coverage USD ~ 2.1 bn revenue own fleet backlog Current Fleet Location Own fleet Year built Location/Operator 2023 2024 2025 2026 2027 2028 2029 Offshore Norway Deepsea Norway Priced SPS Atlantic 2009 Unpriced options Equinor (6G, UDW, HE) Deepsea Ab
Slide 7: 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 8: SPS and Capex Update
OPERATIONAL REVIEW SPS and Capex Update 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 inci
Slide 9: Agenda
Agenda 1 Q4 Highlights 2 Operational Review 3 Financial Review 4 Summary 9 9
Slide 10: 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 11: 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 12: Strong Cash Flow from Operations
FINANCIAL REVIEW Strong Cash Flow from Operations Q4 Cash Flow 153 12
Slide 13: Q4 Dividend of USD 14.2 Million
DIVIDEND Q4 Dividend of USD 14.2 Million Key details of Q4 Dividend • USD 14.2 million • 0.06 USD / share • Last day including right: 29 February • Ex-Dividend date: 1 March • Record date: 4 March • Payment date: 14 March Dividends declared in USD with actual NOK payments per share to be determined
Slide 14: Agenda
Agenda 1 Q4 Highlights 2 Operational Review 3 Financial Review 4 Summary 14
Slide 15: Q4 2023 Summary
Q4 2023 Summary • Another quarter of significant activity across the business • Fleet fully active and performing well • SPS programs on track, with Deepsea Nordkapp achieving SPS certification • Record revenue generation, with higher value contracts ahead of us • Quarterly dividend of USD 14.2 mill
Slide 16: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 16