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Highlights Third Quarter of 2023
· Total operating revenues of $191.5 million, an increase of $4.0 million or
2% compared to the second quarter of 2023.
· Net income of $0.3 million, a decrease of $0.5 million compared to the
second quarter of 2023.
· Adjusted EBITDA of $88.2 million, an increase of $4.2 million or 5% compared
to the second quarter of 2023.
· Total contract revenue backlog as at September 30, 2023 of $1.86 billion.
Subsequent events
· Issued $1,540 million of aggregate principal amount of senior secured notes,
raising total gross proceeds of $1,501.5 million and replacing all of the
Company’s existing secured debt
· Entered into the Super Senior Revolving Credit Facility Agreement of
aggregate principal amount of $180 million, including $30 million relating to a
guarantee facility
· Conducted a private placement of new shares in Norway for gross proceeds of
$50.0 million, by issuing 7,522,838 shares at a price of NOK 74 per share
· 2023 year to date, we have been awarded twelve new contracts and ten
extensions to existing contracts, representing 4,510 days and $728 million of
potential revenue
· The Board intends to implement a regular quarterly dividend with an initial
dividend of $0.05 per share subject to required approvals in a Special General
Meeting (“SGM”) to be held 22 December 2023 described below.
CEO, Patrick Schorn commented:
"The strong operational performance of the Company continued in the third
quarter, with technical utilization for the quarter above 99% and our Adjusted
EBITDA increasing by 5% over the second quarter. Our backlog quality continues
to improve. Year to date, we have secured twelve new commitments, adding $728
million to our revenue backlog at an implied average dayrate of $161,500. The
average forward coverage stands at 1.7 years for our delivered fleet, which
provides both strong near-term revenue visibility and valuable long term
operating leverage amidst the current rising dayrate environment.
We continue to experience positive developments in utilization in the global
jackup market. Particularly for modern rigs, marketed utilization stands at
approximately 94% and the number of competitive available rigs is approaching
single digits. Dayrates have continued to appreciate, as demonstrated by our
latest previously announced leading edge fixtures for “Prospector 5”, “Natt” and
“Idun”. We are also pleased to announce a 15-month extension for “Skald” at a
daily rate of $165,000. These fixtures confirm our views of a sustained strong
rate environment for modern rigs. We see positive signs of incremental demand
across most operating regions, supporting our expectation of an under supplied
market in 2024.
“Ran” and “Hild” have recently commenced their new contracts bringing the
operating fleet to 21 rigs. We expect “Gerd” to commence its new contract in
early December 2023, at which point all of our 22 delivered rigs will be
operating. The combination of higher activity and day rates creates a pathway to
improved earnings and dividend payments.
I am also very pleased with the conclusion of our refinancing with the issuance
of $1.54 billion of secured notes with maturities in 2028 and 2030. This
completes the refinancing of all our secured debt, and provides the company with
a solid long-term foundation, enabling us to focus on our goal of operational
outperformance and returns to stakeholders.
Following our recent contract awards, our fleet’s contract coverage for 2024
stands at 84%, including firm contracts and priced options, with an average
equivalent dayrate of approximately $132,000, including mobilization related
revenues. Considering this firm contract coverage and projected dayrates for the
uncontracted days, we maintain our estimated range of Adjusted EBITDA for full
year 2024 to be between $500 to $550 million."
Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208
Kilde
