Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q3 2024 Earnings Presentation
17 slides from Odfjell Drilling's earnings presentation, Nov 6, 2024
Slide 1: Q3 2024 Results Presentation
Q3 2024 Results Presentation 6 November 2024 05.11.2024
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation dated 06 November 2024 (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. Q3 Highlights
AGENDA 1. Q3 Highlights 3
Slide 4: A Working Quarter
Q3 HIGHLIGHTS A Working Quarter STRONG RESULTS DESPITE SPS DOWNTIME • Q3 EBITDA of USD 83 million Q3 DIVIDEND (USD) • • Q3 Revenue of USD 186 million 97% Financial Utilisation USD 14.4 m DEEPSEA ATLANTIC SPS COMPLETED, MOVING ONTO HIGHER RATES Revenue (USDm) • Deepsea Atlantic SPS completed in early
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 98% 97% 98% 97% 95% Deepsea Aberdeen Deepsea Atlantic Deepsea Deepsea Nordkapp Breidablikk Field Various Projects Stavanger Various Projects Offshore Norway Offshore Nor
Slide 7: Only Just Beginning to Move off Legacy Day Rates
ODFJELL DRILLING Only Just Beginning to Move off Legacy Day Rates Priced Option Unpriced Options Contract ASSET 2023 2024 2025 2026 2027 2028 2029 2030 460k 496k Deepsea Atlantic 400k (6G, UDW, HE) 325k 508k 460k Deepsea Aberdeen 447k (6G, UDW, HE) 385k 345k 325k 433k 440k Deepsea Stavanger 419k 426
Slide 8: SPS Update
OPERATIONAL REVIEW SPS Update A slight change to plans • Deepsea Aberdeen now expected to begin its SPS in H1 2025 • Deepsea Stavanger expected to be completed in Q2 2025 • Average capex allocation for the remaining two SPS programs remains around USD 50 million per unit with 2-4 weeks of off-hire t
Slide 9: Market Outlook
MARKET OUTLOOK Market Outlook Norway remains consistent • Forecast for Norway unchanged • Demand for rigs expected to increase in the coming years, particularly from 2026 • All Odfjell Drilling owned units are contracted until at least mid-2026 • LIkely need for more rigs in Norway • Multiple develo
Slide 10: 3. Financial Review
AGENDA 3. Financial Review 10
Slide 11: Positive Income Growth Through the Year
FINANCIAL REVIEW Positive Income Growth Through the Year Revenue (USDm) EBITDA (USDm) Net Profit (USDm) 87 85 24 192 192 194 83 85 83 21 186 186 6 6 7 19 7 7 39 44 42 42 42 16 14 83 79 81 80 77 147 147 151 145 144 Q3 Q4 Q1 2024 Q2 Q3 Q2 Q3 Q4 Q1 2024 Q3 Q3* Q4 Q1 2024 Q2 Q3 763 763 70 75 73 756 340
Slide 12: Robust Balance Sheet and Strong Liquidity
FINANCIAL REVIEW Robust Balance Sheet and Strong Liquidity Net debt (USDm) and Leverage Ratio Total Assets (USDbn) and Equity Ratio Available Liquidity (USDm) 2.3 2.3 620 2.2 2.2 2.2 582 227 TOTAL 575 544 532 165 62% 63% 153 62% UNDRAWN 2.1 145 115 109 RCF 2.0 1.8 1.8 1.7 60% 60% 121 129 118 111 CAS
Slide 13: Strong Cash Flow from Operations
FINANCIAL REVIEW Strong Cash Flow from Operations Q3 Cash Flow 226 109 227 115 75 -7 0 178.8 --31 147.8 -17 131.1 -14 116.7 118 118 111 111 111 Total Available Available RCF Q2 Cash Cash Net Interest Net Tax paid Cash flow from Financing Q2 Dividend Q3 Cash Q3 Available Q3 Total Cash Q2 Q2 Position
Slide 14: Dividend
DIVIDEND Dividend Key details of Q3 Dividend • USD 14.4 million • 0.06 USD / share • Last day including right: 14 November 2024 • Ex-Dividend date: 15 November 2024 • Record date: 18 November 2024 • Payment date: 27 November 2024 Dividends is declared in USD. Actual NOK payment per share will be det
Slide 15: 4. Summary
AGENDA Q2 Highlights Operational ReVvienia Financial Review Summary
Slide 16: Q3 2024 Summary
Q3 2024 Summary Good performance despite downtime due to SPS on Deepsea Atlantic Deepsea Atlantic SPS and upgrade completed ahead of time and on budget, with the unit now moved over to a higher rate Future Revenue Secured, with Backlog until at least mid-2026 Company remains confident about the abil
Slide 17: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 17