Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q2 2024 Earnings Presentation
18 slides from Odfjell Drilling's earnings presentation, Aug 21, 2024
Slide 1: Q2 2024 Results Presentation
Q2 2024 Results Presentation 21 August 2024 21.08.2024
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation dated 21 August 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, t
Slide 3: Agenda: 1. Q2 Highlights
AGENDA 1. Q2 Highlights 3
Slide 4: Another Successful Quarter
Q2 HIGHLIGHTS Another Successful Quarter GOOD DELIVERY ACROSS BUSINESS Q2 DIVIDEND (USD) • Q2 EBITDA of USD 85 million • Q2 Revenue of USD 191 million USD 14.4 m • 98% Financial Utilisation INDUSTRY LEADING CONTRACTS SECURED, FURTHER INCREASING BACKLOG UNTIL MID- Revenue (USDm) 2026 • Contract agree
Slide 5: Agenda: 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% 98% 97% 98% 95% Deepsea Aberdeen Deepsea Atlantic Deepsea Deepsea Nordkapp Breidablikk Field Johan Sverdrup Stavanger Alvheim Offshore Norway Phase 2 Various Project
Slide 7: Revenue Generation Significantly Increasing from 2025 Onwards
BACKLOG Revenue Generation Significantly Increasing from 2025 Onwards Increasing Own Fleet Revenue Backlog, Excluding Bonuses and Add-ons (USD m) ASSET LOCATION/OPERATOR 2024 2025 2026 2027 2028 2029 2030 Deepsea Atlantic Norway (6G, UDW, HE) Equinor Deepsea Aberdeen Norway (6G, UDW, HE) Equinor Dee
Slide 8: Deepsea Atlantic SPS and Upgrades Complete
OPERATIONAL REVIEW Deepsea Atlantic SPS and Upgrades Complete The most technically challenging yard stay in our history • Deepsea Atlantic successfully completed 15-year Special Periodic Survey in August, having entered the yard in July • The yard stay was completed within budgeted time and without
Slide 9: SPS Update
OPERATIONAL REVIEW SPS Update Two down, two to go • Deepsea Nordkapp and Deepsea Atlantic both now successfully completed Special Periodic Surveys • Deepsea Nordkapp completed without idle time • Deepsea Atlantic on budgeted time, with costs expected to be in line with expectations • Average capex a
Slide 10: Positive Outlook Unchanged
MARKET OUTLOOK Positive Outlook Unchanged Norway outlook positive • Demand for services expected to increase in the coming years, particularly from 2026 • All Odfjell Drilling owned units are contracted until at least mid-2026 • Possible need for more rigs in Norway • Multiple developers in Norway a
Slide 11: Agenda: 3. Financial Review
AGENDA 3. Financial Review 11
Slide 12: Positive Income Growth Through the Year
FINANCIAL REVIEW Positive Income Growth Through the Year Revenue (USDm) EBITDA (USDm) Net Profit (USDm) 85 87 83 85 85 24 184 186 192 194 191 21 5 6 7 6 7 38 39 44 42 45 16 14 11 83 83 79 81 80 145 147 147 151 145 Q2 Q3 Q4 Q1 2024 Q2 Q2 Q3 Q4 Q1 2024 Q2 Q2 Q3* Q4 Q1 2024 Q2 763 340 340 70 75 756 63
Slide 13: 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 2.3 645 620 2.2 2.2 582 226 TOTAL 575 544 2.1 165 63% 153 62% 2.2 132 UNDRAWN 2.1 60% 60% 145 115 RCF 2.0 1.8 1.8 57% 117 121 129 111 CAS
Slide 14: Strong Cash Flow from Operations
FINANCIAL REVIEW Strong Cash Flow from Operations Q2 Cash Flow 240 145 115 226 98.7 -23.9 -3.3 166.3 -29.9 136.4 -11 125.4 111 94.8 -14 111.2 111.1 94.8 94.8 Total Available Available RCF Q1 Cash Cash Net Interest Net Tax paid Cash flow from Financing Q1 Dividend Q2 Cash Q2 Available Q2 Total Cash Q
Slide 15: Dividend
DIVIDEND Dividend Key details of Q2 Dividend • USD 14.4 million • 0.06 USD / share • Last day including right: 29 August 2024 • Ex-Dividend date: 30 August 2024 • Record date: 2 September 2024 • Payment date: 19 September 2024 Dividends is declared in USD. Actual NOK payment per share will be determ
Slide 16: 4. Summary
Q2 Highlights Operationalie
Slide 17: Q2 2024 Summary
Q2 2024 Summary Strong operational performance from own fleet, resulting in solid cash generation Deepsea Atlantic SPS and upgrades successfully complete Further backlog additions at high contract values Day rates for harsh environment semi-submersibles are expected to continue to increase In line w
Slide 18: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 18