Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Investor Presentation (October 2022)
14 slides from Odfjell Drilling's investor presentation, October 2022
Slide 1: Investor Presentation October 2022
Investor Presentation October 2022 1
Slide 2: Important information
Important information By reading this company presentation (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 Odfjell Drilling Ltd.
Slide 3: Odfjell Drilling at a glance
INTRODUCTION Odfjell Drilling at a glance Fleet of 8 sixth generation drilling units ✓ Efficient, high specification, harsh environment units with deepwater or ultra Pure-play harsh environment offshore drilling company with deepwater deepwater capabilities capabilities and experience ✓ Own Fleet of
Slide 4: Harsh environment specialist with unmatched competence
HARSH SPECIALIST Harsh environment specialist with unmatched competence Key factors securing Odfjell Drilling’s success Superior performance achieved through significant experience Normalised well delivery time Actual drilling days relative to expected drilling days1 Assets +50% +45% Efficient, high
Slide 5: Odfjell Drilling's high-spec fleet with backlog of $2 billion
HIGH-SPECIFICATION FLEET Odfjell Drilling’s high-spec fleet with backlog of $ 2 billion Modern rigs have significantly higher utilisation ODL securing substantially more backlog than its peers Utilisation of semi-submersibles in Norway1 Rig years awarded in Norway last three years 2 100% Odfjell Dri
Slide 6: Building long-term order backlog
COMMERCIAL UPDATE Building long-term order backlog • Deepsea Stavanger awarded five-year firm contract under the alliance agreement with Aker BP for development drilling scheduled to commence early 2025 • Market based day rates within pre-agreed range • Day rate to be set by two brokers 9 months pri
Slide 7: Long visibility with further upside potential beyond 2024
COMMERCIAL UPDATE Long visibility with further upside potential beyond 2024 Definitions: 6G: Sixth generation, UDW: Ultra deepwater, HE: Harsh environment Contract Option Continued optionality under frame agreement
Slide 8: Positive outlook for deepwater and harsh environment areas
COMMERCIAL UPDATE Positive outlook for deepwater and harsh environment areas • High energy prices, energy supply challenges and unprecedented cash flow generation from E&P companies • To meet the oil and gas demand growth that is forecasted, substantial new investments are required to compensate for
Slide 9: Significant increase in activity expected
COMMERCIAL UPDATE Significant increase in activity expected Unprecedented cash flow generation from E&P companies Record high sanctioning activity in Norway Free cash flow from E&P companies Projects in Norway 1 600 40 1 400 35 Tax incentive regime Free cash flow in 2022 projected at 5.4 times highe
Slide 10: Norway-capable rigs overview
COMMERCIAL UPDATE Norway-capable rigs overview 10 Source: IHS (underlying data), DNB Markets (further calculations)
Slide 11: Limited supply facing expected ramp-up in activity
COMMERCIAL UPDATE Limited supply facing expected ramp-up in activity Current restricted supply creates favourable market dynamics Key highlights Current semi-submersible supply in Norway 27 ▪ Nearly all semi- submersibles in Norway are currently contracted +9 20 ‒ Deepsea Mira is the only 18 +2 high
Slide 12: ESG & Zero Emission Drilling – simply good business
ESG & Zero Emission Drilling – simply good business 7 2026 6 thousand tonne CO2 per well 5 40% 2035 4 3 70% 2 1 0 Baseline Optimise power Optimise power supply Green power supply Green power generation consumption
Slide 13: On our way towards cash dividend
DEBT DELEVERAGING On our way towards cash dividend Gross debt (MUSD) Credit metrics 1600 5 65% 1400 4,5 4,9 60% 4 4,4 55% 1200 4,1 4,1 56% 50% 3,5 3,8 3,8 3,8 3,8 1000 50% 45% 3 3,5 3,5 48% 800 44% 45% 45% 3 40% 2,5 40% 41% 2,7 35% 600 38% 2,5 2,5 2 36% 30% 34% 1,5 32% 32% 34% 400 25% 200 1 20% 0 Le
Slide 14: Key highlights
Key highlights 1 Harsh environment specialist with deepwater and ultra deepwater capabilities 2 Strong operational performance. On track to reduce emissions 3 Robust balance sheet and sound cash position 4 Improving markets and day rates in both deepwater and harsh environment markets 5 Long visibil
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