Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q4 2024 Earnings Presentation
18 slides from Odfjell Drilling's earnings presentation, Feb 13, 2025
Slide 1: Q4 2024 Results Presentation
Q4 2024 Results Presentation 13 February 2025 12.02.2025
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation dated 13 February 2025 (the forward-looking statements reflect the Company's beliefs, intentions and “Presentation”), or attending any meeting or presentation held in relation current expectations concerning, among other things,
Slide 3: 1. Q4 Highlights
AGENDA 1. Q4 Highlights 3
Slide 4: Activity Across the Business
Q4 HIGHLIGHTS Activity Across the Business HIGHER DAY RATES BEGINNING TO POSITIVELY IMPACT FINANCIAL RESULTS • Q4 Revenue of USD 204 million Q4 DIVIDEND (USD) USD 30 m • Q4 EBITDA of USD 93 million • 96% Financial Utilisation DIVIDEND MORE THAN DOUBLED Revenue (USDm) • Dividend increased to 12.5 cen
Slide 5: 2. Operational Review
AGENDA 2. Operational Review 5
Slide 6: Clients and Fleet Locations
OPERATIONAL REVIEW Clients and Fleet Locations Working for Tier 1 Majors and Supermajors OWN FLEET Own Fleet Financial Utilisation 97% 98% 97% 96% 95% Deepsea Aberdeen Deepsea Atlantic Deepsea Stavanger Deepsea Nordkapp Breidablikk Field Various Projects Various Projects Various Projects Norway Norw
Slide 7: USD 2 Billion of Forward Backlog
ODFJELL DRILLING USD 2 Billion of Forward Backlog Priced Option Unpriced Options Contract ASSET 2023 2024 2025 2026 2027 2028 2029 2030 500k 504k 460k Deepsea Atlantic 400k (6G, UDW, HE) 325k 508k 460k Deepsea Aberdeen 447k (6G, UDW, HE) 385k 345k 325k 440k 447k Deepsea Stavanger 426k 433k 412k 419k
Slide 8: Near Term Growth Secured Through Firm Contract Backlog
GROW TH Near Term Growth Secured Through Firm Contract Backlog 800 Completed work USD 677m 700 USD 600m Day rate and Opex - USDk Per day 600 Firm Contract USD 494m 500 USD 450m Priced Options 400 USD 339m 101 300 Average Day Rate per Rig 200 Indicative Opex 238 100 Per Rig 0 2023 2024 2025 2026 2027
Slide 9: Market Outlook
MARKET OUTLOOK Market Outlook DEMAND FORECAST FOR NORWAY POSITIVE • Noticeable capital deployment shift from operators resulting in renewed interest in exploration and field development to arrest production declines • Tenders outstanding with demand for rigs expected to increase in the coming years,
Slide 10: 3. Financial Review
AGENDA 3. Financial Review 10
Slide 11: Strong Financial Results
FINANCIAL REVIEW Strong Financial Results Revenue (USDm) EBITDA (USDm) Net Profit (USDm) 204 24 192 194 192 194 83 85 85 83 93 45 19 44 42 45 42 9 7 6 7 7 16 15 14 147 151 145 144 158 79 81 80 77 87 Q4 Q1 2024 Q2 Q3 Q4 Q4 Q1 2024 Q2 Q3 Q4 Q4 Q1 2024 Q2 Q3 Q4 775 345 83 732 329 65 59 650 308 FY 22 FY
Slide 12: Balance Sheet and Liquidity Remains Strong
FINANCIAL REVIEW Balance Sheet and Liquidity Remains Strong Net debt (USDm) and Leverage Ratio Total Assets (USDbn) and Equity Ratio Available Liquidity (USDm) 2.3 582 2.2 2.2 2.2 2.2 217 TOTAL 575 544 532 504 165 62% 63% UNDRAWN 62% 145 115 109 99 2.0 RCF 1.8 1.8 1.7 60% 60% 1.6 129 118 118 111 CAS
Slide 13: Good Cash Flow from Operations
FINANCIAL REVIEW Good Cash Flow from Operations Q4 Cash Flow 227 109 217 108 -22 99 -1 203 --43 160 -28 132 -14 118 118 117.6 118 118 118 Total Available Available RCF Q3 Cash Cash Net Interest Net Tax paid Cash flow from Financing Q3 Dividend Q4 Cash Q4 Available Q4 Total Cash Q3 Q3 Position Genera
Slide 14: Robust Balance Sheet And Increased Distribution Capacity
ROBUST BALANCE SHEET Robust Balance Sheet And Increased Distribution Capacity AMENDED DEEPSEA NORDKAPP FACILITY NO SIGNIFICANT DEBT MATURITIES UNTIL 2028 USDm INCREASED DISTRIBUTION CAPACITY • AMENDED LOAN AGREEMENT: Achieved a more viable long-term debt level on Deepsea Nordkapp, reflecting strong
Slide 15: Dividend More than Doubled
DIVIDEND Dividend More than Doubled KEY DETAILS OF Q4 DIVIDEND • USD 30.0 million • 0.125 USD / share • Last day including rights: 27 February 2025 • Ex-Dividend date: 28 February 2025 • Record date: 3 March 2025 • Payment date 13 March 2025 Dividends will be declared in USD, actual NOK payment per
Slide 16: 4. Summary
Q4 Highlights OperationaliRe
Slide 17: Q4 2024 Summary
Q4 2024 Summary • Record EBITDA and Revenue since OTL spin off, driven by higher day rates • Dividend more than doubled. Well placed to further increase shareholder distributions going forward • More backlog secured at industry leading rates • Financially strong with reduced debt instalments agreed
Slide 18: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 18