Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q1 2024 Earnings Presentation
18 slides from Odfjell Drilling's earnings presentation, May 15, 2024
Slide 1: Q1 2024 Results Presentation
Q1 2024 Results Presentation 15 May 2024 14.05.2024
Slide 2: Important Information
INTRODUCTION Important Information By reading this company presentation dated 15 May 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, the
Slide 3: Agenda: 1. Q1 Highlights
AGENDA 1. Q1 Highlights 3
Slide 4: Busy Start to the Year
Q1 HIGHLIGHTS Busy Start to the Year GOOD REVENUE GENERATION, DESPITE TOUGH WEATHER • Q1 Revenue of USD 194 million Q1 DIVIDEND (USD) • Q1 EBITDA of USD 85 million USD 14.2 m FURTHER DELEVERAGING OF BALANCE SHEET • Leverage ratio of 1.8x • Equity Ratio of 62% Revenue (USDm) • Repayment of USD 53 mil
Slide 5: Agenda: 2. Operational Review
AGENDA 2. Operational Review 5
Slide 6: Sold Out Until 2026 – Rolling Over to Higher Day Rates
BACKLOG Sold Out Until 2026 – Rolling Over to Higher Day Rates Current Fleet Location OFFSHORE NORWAY Own Fleet Financial Utilisation Deepsea Aberdeen Deepsea Nordkapp Deepsea Yantai Svalin Field Alvheim Exploration 98% 98% 98% 97% Development 95% Deepsea Atlantic Johan Sverdrup Phase 2 Deepsea Stav
Slide 7: Sold Out Until 2026 – Rolling Over to Higher Day Rates (Backlog)
BACKLOG Sold Out Until 2026 – Rolling Over to Higher Day Rates Increasing Own Fleet Revenue Backlog, Excluding Bonuses and Add-ons (USD m) ASSET LOCATION/OPERATOR 2023 2024 2025 2026 2027 2028 2029 Deepsea Atlantic Norway SPS (6G, UDW, HE) Equinor Deepsea Aberdeen Norway SPS (6G, UDW, HE) Equinor De
Slide 8: Market Dynamics Persisting in the Medium to Long Term
MARKET OUTLOOK Market Dynamics Persisting in the Medium to Long Term Clear Preference for Tier 1 Unit Remains • Preference for Tier 1 HE semi submersibles among clients – Higher performance, operability and flexibility – Delivering lower total well costs • Utilisation rates for tier 1 units has rare
Slide 9: SPS and BOP update
OPERATIONAL REVIEW SPS and BOP update Summary • Deepsea Nordkapp successfully completed SPS without idle time at an estimated total cost of USD 40 million, with circa 65% of total capex paid by end Q1 2024 • Deepsea Atlantic yard stay now scheduled to begin early summer 2024 • Deepsea Atlantic yard
Slide 10: Agenda: 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) 85 87 83 85 24 184 186 192 194 73 21 171 5 6 6 7 38 39 44 42 5 36 14 11 83 83 79 81 145 147 147 151 70 134 2 Q1 2023 Q2 Q3 Q4 Q1 2024 Q1 2023 Q2 Q3 Q4 Q1 2024 Q1 2023 Q2 Q3* Q4 Q1 2024 756 340 70
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) 687 2.3 2.3 645 620 2.2 582 2.2 240 TOTAL 575 2.1 165 2.4 62% 153 60% 60% 132 UNDRAWN 2.2 2.1 145 RCF 2.0 57% 1.8 55% 138 129 117 121 95 CASH
Slide 13: Strong Cash Flow from Operations
FINANCIAL REVIEW Strong Cash Flow from Operations Q1 Cash Flow 294 165 145 240 75 -7 -5 192.1 -27 165.5 129 129 129 -55 95 110.6 -14 96.4 -2 94.3 94.8 Total Available RCF Q4 Cash Cash Net Interest Net Tax paid Cash flow Financing Q4 Dividend Exchange rate Q1 Total Cash Q1 Available Q1 Total Availabl
Slide 14: Q1 Dividend of USD 14.2 Million
DIVIDEND Q1 Dividend of USD 14.2 Million Key details of Q1 Dividend • USD 14.2 million • 0.06 USD / share • Last day including right: 23 May 2024 • Ex-Dividend date: 24 May 2024 • Record date: 27 May 2024 • Payment date: 13 June 2024 Dividends is declared in USD. Actual NOK payment per share will be
Slide 15: Dilution Effect from Issuance of New Shares under Warrants Agreement
WARRANTS Dilution Effect from Issuance of New Shares under Warrants Agreement Key details Share Price Example Dilution ODL SHARE PRICE SHARE ISSUANCE DILUTION (million shares) Warrants Agreement with Akastor – In May 2018, ODL agreed a funding arrangement with 47 2.05 0.86% Akastor to acquire the st
Slide 16: 4. Summary
Q1 Highlights Operationalie
Slide 17: Q1 2024 Summary
Q1 2024 Summary Good start to operations across the business with all units fully operational during the quarter Balance sheet going from strength to strength Market view maintained, with supply and demand balance continuing to facilitate strong day rate growth in the future Fleet continuing to move
Slide 18: For further information, please contact
For further information, please contact: James Crothers, Investor Relations Officer jchu@odfjelldrilling.com www.odfjelldrilling.com 18