Slide 1: Q3 2022 Presentation
Q3 2022 Presentation 24 November 2022
Slide 2: Important information
Important information By reading this company presentation dated 24 November 2022 (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 been prepared by
Slide 3: Agenda
Agenda Highlights Commercial update Financial results Q3 2022 Summary Q&A
Slide 4: Highlights Q3 2022
HIGHLIGHTS Highlights Q3 2022 • Strong operational performance delivering an EBITDA of USD 81 million in the quarter • Increased performance bonus and fuel incentives Harsh-environment drilling company with deepwater capabilities and pay in the quarter proven track record through 50 years experience
Slide 5: Yellow Well Factories – Going Digital and Green
GOING DIGITAL AND GREEN Yellow Well Factories – Going Digital and Green ZERO EMISSION DIGITAL FACTORY DRILLING
Slide 6: Solid backlog with further upside potential beyond 2024
COMMERCIAL UPDATE Solid backlog with further upside potential beyond 2024 Firm contracts USD 1.4 billion Priced options USD 0.6 billion Total backlog USD 2 billion Own Fleet Year built Location/Operator Deepsea Atlantic Norway 2009 (6G, UDW, HE) Equinor Deepsea Stavanger Norway 2010 (6G, UDW, HE) Eq
Slide 7: Continued strengthening of the global drilling market
COMMERCIAL UPDATE Continued strengthening of the global drilling market • High energy prices, focus on energy security and high cash flow generation from E&P companies • Investments in oil and gas production are expected to increase significantly in coming years • Have seen significant reduction in
Slide 8: Demand from harsh-environment and deepwater markets
COMMERCIAL UPDATE Demand from harsh-environment and deepwater markets • Odfjell Drilling’s fleet capable of operating in all Strong international clients markets including both ultra harsh-environment and deepwater / ultra-deepwater areas • Interesting opportunities and tenders in the UK, Norway and
Slide 9: Strong EBITDA in the quarter
FINANCIAL RESULTS Q3 2022 Strong EBITDA in the quarter USD million Q3 22 Q3 21 YTD 22 YTD 21 FY 21 Continuing operations Strong EBITDA in the quarter Operating revenue 165 154 483 429 572 Other gains and losses - - - - 7 • For the Own Fleet segment there Personnel expenses (48) (49) (153) (150) (200
Slide 10: Robust balance sheet and sound cash position
FINANCIAL RESULTS Q3 2022 Robust balance sheet and sound cash position USD million 30.09.2022 30.09.2021 31.12.2021 USD million 30.09.2022 30.09.2021 31.12.2021 Paid-in capital 445 565 565 Property, plant and equipment 1953 2137 2109 Other equity 825 675 703 Intangible assets 3 28 29 Total equity 12
Slide 11: Strong cash flow from operations
FINANCIAL RESULTS Q3 2022 Strong cash flow from operations USD million Q3 22 Q3 21 YTD 22 YTD 21 FY 21 Profit before tax from continuing operations 12 29 57 43 66 Profit before tax from discontinued operations 0 3 10 6 11 Adjustment for interest, provisions and non-cash elements 66 58 185 171 230 Ch
Slide 12: On our way to cash dividend
DEBT DELEVERAGING On our way to cash dividend Strong credit metrics • EBITDA backlog/NIBD1) 1.5x • Leverage ratio 2.4 • Loan to value2) 36% • Equity-ratio 57% 1) Estimated EBITDA backlog for illustrative purposes based on contract backlog and recent EBITDA margin of 55% for Own Fleet and adjusted ne
Slide 13: Summary
SUMMARY Summary Q3 Highlights • Strong operational performance delivering an EBITDA of USD 81 million • Increased performance bonus and fuel incentives pay in the quarter • Added significant amount of contract backlog • Robust balance sheet and sound cash position Outlook • Solid contract backlog wi
Slide 14: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com For more information visit our website: www.odfjelldrilling.com