Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q1 2023 Earnings Presentation
18 slides from Odfjell Drilling's earnings presentation, May 5, 2023
Slide 1: Q1 2023 Results Presentation
Q1 2023 Results Presentation 5 May 2023 1
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation dated 5th May 2023 (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 pr
Slide 3: Agenda
Agenda 1 Q1 Summary 2 Operational Review 3 Financial Review 4 Summary 3
Slide 4: Operational Highlights
Q1 SUMMARY Operational Highlights Financial Utilisation Order Backlog (USDbn) 99.5% 2.3 97.6% 97.9% 97.9% 98 97.1% 2.0 1.9 1.9 0.6 Options 96 0.6 94 0.5 0.5 92 90 1.1 88 0.3 1.7 Firm 86 1.4 1.4 1.4 84 0.8 82 80 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Strong op
Slide 5: Key Financial Results
Q1 SUMMARY Key Financial Results Revenue (USDm) EBITDA (USDm) Cash (USDm) 171 81 80 144 155 157 79 154 138 167 165 73 163 68 155 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Equity ratio (%) Leverage ratio (x) Net Debt (USDm)
Slide 6: Agenda
Agenda 1 Q1 Summary 2 Operational Review 3 Financial Review 4 Summary 6
Slide 7: Strong Visibility for Cash Generation Across the Fleet
OPERATIONAL REVIEW Strong Visibility for Cash Generation Across the Fleet USD ~2.3bn revenue backlog Contract Option Frame agreement / Alliance agreement Own fleet USD Revenue firm contracts 1.7bn Revenue priced options 0.6bn Total revenue backlog ~2.3bn Own fleet Year built Current Location/Operato
Slide 8: Deepsea Atlantic Letters of Intent
OPERATIONAL REVIEW Deepsea Atlantic Letters of Intent Key terms Replacement of Deepsea Atlantic BOP • Total contract value of USD 290 million over 23 months • Given the length, requirements and value of the contract, the – Total contract value excludes integrated services, Company has agreed with th
Slide 9: Market outlook
OPERATIONAL REVIEW Market outlook Supply and demand dynamic remains strong, creating opportunities Comments Contract dayrates for harsh and benign1 environment rigs • The Company continues to see increased demand for our services both now and in the USDk/day long term 700 • Dayrates continuing to in
Slide 10: Agenda
Agenda 1 Q1 Summary 2 Operational Review 3 Financial Review 4 Summary 10
Slide 11: Condensed consolidated income statement
FINANCIAL REVIEW Condensed consolidated income statement USD million Q1 23 Q1 22 FY 22 Continuing operations Operating revenue 171 155 650 Other gains and losses - - 0 Personnel expenses (64) (54) (207) Other operating expenses (34) (33) (135) EBITDA 73 68 308 Depreciation and amortisation (45) (41)
Slide 12: Robust balance sheet and sound cash position
FINANCIAL REVIEW Robust balance sheet and sound cash position USD million 31.03.2023 31.03.2022 31.12.2022 • Net interest-bearing debt USD 687 million Assets Property, plant and equipment 1,908 1,996 1,938 • Leverage ratio 2.4x Intangible assets 3 4 3 • Equity-ratio 55% Deferred tax asset 1 - 0 Non-
Slide 13: Strong cash flow from operations
FINANCIAL REVIEW Strong cash flow from operations USD million Q1 23 Q1 22 FY 22 • Q1 Capex: Cash flows from operating activities: Profit/(loss) before tax from continuing operations 4 22 88 – Approx. USD 4 million is related to new Profit before tax from discontinued operations - 10 10 BOP on Deepse
Slide 14: Focused on Refinancing in 2023
FINANCIAL REVIEW Focused on Refinancing in 2023 Current Instalment profile (USDm) Comments • Target to complete a full refinancing in 2H 2023 • Material progress made during the quarter, with continually improving market conditions • Considering diversifying capital sources • Solid track records, un
Slide 15: Agenda
Agenda 1 Q1 Summary 2 Operational Review 3 Financial Review 4 Summary 15
Slide 16: Q1 2023 Summary
SUMMARY Q1 2023 Summary • Strong operational performance across the business, with continually high utilisation Highlights • EBITDA of USD 73 million, with increasing revenue from external fleet • Backlog increased with new key contracts won • Continually strengthening market with increasing dayrate
Slide 17: ww odfiell
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Slide 18: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 18