Dolphin Drilling As · OSL:DDRIL
Dolphin Drilling As — Q4 2022 Earnings Presentation
29 slides from Dolphin Drilling As's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter 2022 Results
Fourth Quarter 2022 Results 28 February 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 presenter
Today’s presenter Bjørnar Iversen Stephen Cox CEO CFO 3
Slide 4: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary 4 Borgland Dolphin - 2022 4
Slide 5: Q4 2022 & Subsequent Highlights
Q4 2022 & Subsequent Highlights • Mobilization of Blackford Dolphin from Mexico to Las Palmas following completion of Pemex contract • Arrived Las Palmas late November 2022 • Received 2nd mobilization payment from GHL • 5-year recertification scope completed by early February 2023 • Capital cost of
Slide 6: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary 6 Borgland Dolphin - 2022 6
Slide 7: Q4 2022 Results – Key Metrics
Q4 2022 Results – Key Metrics Key metrics (USDm)* Q4 2022 Q3 2022 YTD 2022 Key Items Profit & Loss Charter Revenues 0,0 0,0 18,8 • Q3/4 2022 minimal revenue generation Other Revenues 0,4 0,1 2,3 following completion of Pemex and Norway Total Revenues 0,4 0,1 21,1 scopes earlier in year EBITDA (17,6)
Slide 8: Headline Financial Data Points
Headline Financial Data Points Backlog Market cap Debt USD 85 million USD 150 million Zero Notes: Market cap, revenue backlog and debt as of February 27, 2023 8
Slide 9: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary 9 Borgland Dolphin - 2022 9
Slide 10: Operational Update
Operational Update Blackford Dolphin Borgland Dolphin and 6th gen. topside Bideford Dolphin Enhanced Aker H-3 Smart stacked in Total rebuild in 2008 Flekkefjord & Feda, Blackford Dolphin Norway Special Periodic Survey Arrived 24th November On tight tow to Nigeria 9th February Borgland Dolphin 5th ge
Slide 11: Update Blackford
Update Blackford Blackford to start drilling in Nigeria from early March 2023 2022 2023 2024 Activity Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Departure from Mexico Transit to Las Palmas SPS1 Transit to Nigeria Drilling for GHL2 New contract • Blackford
Slide 12: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary 12 Borgland Dolphin - 2022 12
Slide 13: Standard moored semis contracted by region – 2010 vs. today
Standard moored semis contracted by region – 2010 vs. today Contracted rig fleet reduced from 105 to 23 rigs Norway 13.7 0.0 UK 2010 2023 12.0 6.0 2010 2023 US GoM China 11.7 9.0 4.1 0.0 Mexico West Africa 2010 2023 2010 2023 2.2 9.6 SE Asia/India 6.6 0.0 1.0 3.0 2010 2023 2010 2023 2010 2023 Brazil
Slide 14: Strong interest for Moored rigs in all key offshore basins
Strong interest for Moored rigs in all key offshore basins 20 rig enquiries last 90 days = Rig tenders in process = Pre-screening for rig tenders = Direct enquiry = Dolphin Drilling rigs Blackford contract in Nigeria Expected start-up in March 2023 Firm contract – General Hydrocarbons Limited at USD
Slide 15: Less Competition from Greatly Declined Moored Semi Count
Less Competition from Greatly Declined Moored Semi Count Current supply 36 rigs Contracted moored semis down 100 rigs from peak… No. of rigs Total Contracted Total Supply 140 130 -100 120 Significant reduction in global fleet 110 100 90 80 70 Niche market with few competitors remaining 60 50 40 30 2
Slide 16: Moored semisub fleet – competitive fleet below 20 rigs
MOORED SEMISUB FLEET – competitive fleet below 20 rigs Rig fleet split by rig status and competitive position Rig Name Country Contract status Available date Ocean Patriot UK Contracted 1-jul-2023 Olinda Star India Contracted 11-sep-2023 Stena Spey UK Contracted 14-okt-2023 Hakuryu-5 Malaysia Contra
Slide 17: UK Semi Market Nearing Sold Out
UK Semi Market Nearing Sold Out Contracted rigs in UK more than doubled over the past years UK semi rig count has declined >50% since 2016 Dolphin well-positioned for upcoming tenders Under contract Contracted Total supply UK available rigs No. of rigs 32 2023 2024 30 Rig name J F M A M J J A S O N
Slide 18: Increased investments and sanctioning in UK
Increased investments and sanctioning in UK Oil and gas investments set to almost double over the next years UK investments set to almost double towards 2025 Sanctioning to increase significantly USD Million 12 000 2 000 15 +87% Resources sanctioned, million bbl (LHS) 10 000 Aggregate greenfield cap
Slide 19: Agenda
Agenda Q4 2022 Highlights Q4 2022 Results – Key Metrics Operational Update Market Outlook Summary 19 Borgland Dolphin - 2022 19
Slide 20: Robust organization – positioned for growth
Core strategic priorities Robust organization – positioned for growth A Improving market conditions for existing B Keppel newbuilds C Management opportunities D Opportunistic growth fleet • Limited rig availability • Opportunity to acquire • Experienced contractor • Opportunistically look to globall
Slide 21: Summary
Summary Dolphin Drilling well positioned in industry recovery 01 moves Blackford Dolphin contract start up in Nigeria Dolphin into positive operating cash flow Near term opportunities to add to Blackford 02 backlog at increased day rates Increased tender activity for standard moored rigs 03 in all g
Slide 22: Q&A
Q&A 22
Slide 23: Appendix
Appendix 23
Slide 24: Dolphin Drilling – public listing in Norway
Ownership structure Dolphin Drilling – public listing in Norway 27% 35% 38% Established sector lead Remained a major owner of ~600 shareholders primarily investor – instrumental owner Dolphin Drilling through the consisting of Norwegian, UK and initiator of > 50 IPOs downcycle and US investors Other
Slide 25: Financial Information
Financial Information Unaudited Management Presentation Balance Sheet Cash Flows Statement of Cash Flows 2022 2022 2022 ($ in millions) 4th Qtr 3rd Qtr Full Year Operating Cash Flows Net Income (18.2) (23.4) (67.5) Add-Back: Depreciation and Amortization 1.7 2.7 7.6 Less gain on disposal of assets -
Slide 26: Financial Information
Financial Information Unaudited Management Presentation Income Statement 26
Slide 27: The Offshore Drilling Pioneer
The Offshore Drilling Pioneer Blackford Dolphin Borgland Dolphin 6th gen. topside 5th gen. topside Enhanced Aker H-3 Enhanced Aker H-3 Total rebuild in 2008 Total rebuild in 1999 Bideford Dolphin Keppel opportunity 5th gen. topside 2 x 7th gen. Enhanced Aker H-3 CS60 Eco Aker MH Total rebuild in 199
Slide 28: Largest shareholders
Largest shareholders Top 20 shareholders Investor Number of shares % of top 20 % of total Type Country 1 BARCLAYS CAPITAL INC 43 215 400 41.3 % 34.8 % Nominee United States 2 S.D. STANDARD ETC PLC 31 596 400 30.2 % 25.4 % Ordinary Cyprus 3 VERDIPAPIRFONDET DNB SMB 2 993 909 2.9 % 2.4 % Ordinary Norw
Slide 29: Oslo – DDRIL.OL
Oslo – DDRIL.OL Investor Relations contact: ingolf.gillesdal@dolphindrilling.com, +4792045320