Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q4 2020 Earnings Presentation
21 slides from Odfjell Drilling's earnings presentation, Feb 25, 2021
Slide 1: Q4 2020 Presentation
- Q4 2020 Presentation PPL ODFJELL DRILLING
Slide 2: Important information
Important information By reading this company presentation dated 25 February 2021 (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: Contents
Contents • Introduction to ODL • Q4 2020 - key summary • Segment reporting • Financial information • Summary Page 3
Slide 4: Key Financials Q4 2020
Key Financials Q4 2020 $ 355 Mill $ 207 Mill Revenue Cash $ 171 Mill 2.5x Odfjell Drilling is a listed international drilling, EBITDA Leverage ratio (adj) well service and engineering company with more than 2,500 employees and operations in $ 2.3 Bill 45 % approx. 20 countries Backlog Equity ratio O
Slide 5: Q4 2020 - key summary
Q4 20 - key summary - COVID-19 outbreak limited impact on operations and financial result FY 2020 - Successful completion of South Africa operations - More backlog awarded from Lundin and Equinor to MODU - Wintershall exercised a 4 year platfrom drilling services option on Brage - Strong performance
Slide 6: MODU - Continued strong operations
Mobile Offshore drilling Units (MODU) - Continued strong operations Q4 2020 Financial Utilization 1 Financial Utilization Q4 20 Q4 19 FY 20 FY 19 Deepsea Stavanger 100,0 % 99,2 % 99,2 % 98,7 % Deepsea Atlantic 98,3 % 97,1 % 98,9 % 97,8 % Deepsea Bergen n/a 91,3 % 92,7 % 97,3 % Deepsea Aberdeen 100,0
Slide 7: MODU - Contract status
Mobile Offshore drilling Units (MODU) - Contract status Day rate Drilling unit Year built Location /operator (KUSD/day)* Deepsea Atlantic Norway 2009 292 (6G, UDW, HE) Equinor Deepsea Stavanger Norway 2010 295/275 LOI (6G, UDW, HE) AkerBP/Lundin Norway Deepsea Aberdeen 2014 BP/Wintershall/Equino 455
Slide 8: Energy – Platform Drilling
Energy – Platform Drilling - Portfolio secured by medium to long-term contracts Customers Platforms Location Heidrun Norway Johan Sverdrup Norway Mariner UK Brage Norway Greater Ekofisk Field (1) Norway 3 UK Platforms (2) UK 4 UK Platforms (3) UK Bruce UK 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 9: Well Services - global presence and diversified services
Well Services - global presence and diversified services Product lines Tubular Running Services Casing While Drilling Well Intervention Services Drill Tool Rental Services • Conventional and remote-operated • Casing While Drilling • Wellbore clean-up tools and • Drilling tools rentals including casi
Slide 10: Earnings visibility through USD 2.3 billion order backlog
Earnings visibility through USD 2.3 billion order backlog Total revenue backlog per year1 Firm Options Firm contracts USD 1.3 billion Priced options USD 1.0 billion 1 000 Total backlog USD 2.3 billion 800 635 545 591 600 35 185 400 345 625 130 511 222 200 406 95 214 127 - 10 2021 2022 2023 2024 Afte
Slide 11: Market outlook
Market outlook General • COVID 19 outbreak and volatility in oil price create large uncertainties • E&P companies will monitor the market closely and adjust their activities accordingly => Decreasing E&P activity due to overall uncertainty MODU • Significant oversupply in the global rig market • Har
Slide 12: Financial information
Financial information
Slide 13: Group summary financials
Group summary financials Condensed consolidated income statement P&L - (USD million) Q4 20 Q4 19 FY 20 FY 19 Operating revenue 355 221 930 823 Other gains/losses 2 1 3 1 Personnel expenses -112 -90 -340 -328 Other operating expenses -75 -38 -172 -164 EBITDA 171 93 420 332 Depreciation -44 -51 -204 -
Slide 14: Segment reporting - MODU financials
Segment reporting - MODU financials MODU Key Financials (USD million) Condensed P&L - (USD million) Q4 20 Q4 19 FY 20 FY 19 Revenues 704 Operating revenue 292 160 704 599 599 EBITDA 161 80 375 291 Depreciation and impairments -35 -43 -169 -154 EBIT 126 37 206 138 292 Book value rigs 2 089 2 157 2 08
Slide 15: Segment reporting - Energy financials
Segment reporting - Energy financials Energy Key Financials (USD million) Condensed P&L - (USD million) Q4 20 Q4 19 FY 20 FY 19 Revenues 156 147 Operating revenue 45 38 156 147 EBITDA 3 6 15 17 Depreciation and impairments -0 -0 -0 -0 EBIT 3 6 15 17 45 38 EBITDA-margin 7,7 % 14,6 % 9,8 % 11,9 % EBIT
Slide 16: Segment reporting - Well Services financials
Segment reporting - Well Services financials Well Services Key Financials (USD million) Condensed P&L - (USD million) Q4 20 Q4 19 FY 20 FY 19 Revenues 111 104 Operating revenue 28 31 104 111 EBITDA 9 11 32 32 Depreciation and impairments -7 -6 -25 -23 EBIT 2 5 7 9 31 28 Book value of equipment 69 74
Slide 17: Group - eliminations, corporate overhead & net financial items
Group - eliminations, corporate overhead & net financial items Group – eliminations, corporate overhead & net financial items (USD million) Q4 20 Q4 19 FY 20 FY 19 EBIT - MODU 126 37 206 138 EBIT - Energy 3 6 15 17 EBIT - Well Services 2 5 7 9 EBIT for reportable segments 132 48 228 164 Eliminations
Slide 18: Summary statement of financial position
Summary statement of financial position Group statement of financial position Assets (USDm) 31.12.20 31.12.19 Equity and liabilities (USDm) 31.12.20 31.12.19 Deferred tax asset 1 1 Total paid-in capital 565 565 Intangible assets 29 30 Other equity 633 497 Property, plant and equipment 2 203 2 281 Eq
Slide 19: Summary statement of cash flow
Summary statement of cash flow Group statement of cash flow Cash Flow - (USDm) Q4 20 Q4 19 FY 20 FY 19 Profit before income tax 107 11 146 44 Adjustment for provisions and other non-cash elements 67 76 267 282 Change in working capital -0 11 3 -47 Cash from operations 173 98 416 279 Interest paid -1
Slide 20: Summary Q4 2020
Summary Q4 2020 MODU: - Continue to build backlog and be a preferred partner in the Harsh Environment - Attractive harsh environment assets and healthy outlook Energy: - Rebranded to Energy - Solid operations combined with healthy financial results - Awarded 4 additional years on the Brage platform
Slide 21: Contacts and next event
CEO Odfjell Drilling AS Simen Lieungh CFO Odfjell Drilling AS Atle Sæbø Vice President Corporate Finance & Investor Relations Eirik Knudsen, eikn@odfjelldrilling.com +47 934 59 173 Next event: Q1 2021 results tentatively scheduled to be published 27 May 2021 For more information see: www.odfjelldril