Odfjell Drilling Ltd. is pleased to report its financial and operational results for the three months period ended 30th September 2023 (the “Period”).
For the full results, please see the attached report and presentation.
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Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:
“During Q3, Odfjell Drilling has achieved multiple new records across the business and set new standards operationally. For the first time in our fifty year history, our Company had eight units operational during the quarter; drilling in both harsh environment and deepwater locations. Our rigs drilled on some of the most technically challenging and exciting projects which our industry is currently working on and we are pleased by the results.
“Our financial utilisation was the highest it has been since Q1 2022 and our crews continued to achieve strong performance bonuses from our units; resulting in our highest quarterly revenue and EBITDA since the Odfjell Technology spin off. The cash generation achieved is testament to the hard work of all of our staff and crews and, as we continue to move onto contracts with higher dayrates, we look forward to continuing to set new records.
"Our wider industry continues to perform well with significant demand, while supply remains tight. Encouragingly, we believe that demand will remain solid for the long term, allowing dayrates to continue to retain the positive momentum seen in recent months. We continue to see no realistic situation where newbuilds start entering the market.
“Ultimately, as a result of the strong performance of our business, the continued strengthening of our industry and our focus on delivering shareholder returns, we are pleased to once again declare a quarterly dividend for the period of USD 14.2 million.”
Highlights:
Another quarter of record financial results
• EBITDA of USD 87 million, a 7.4% increase on Q3 2022
• Revenue of USD 186 million, a 12.7% increase on Q3 2022
• Good visibility for further cash generation with order backlog of USD 2.1 billion
Entire fleet deployed, working on some of the most demanding projects globally
• Average financial utilisation across own fleet of 98.4%
o All own units drilling offshore Norway
• Managed fleet fully deployed
o Three units drilling throughout the period while Hercules completed one well for Exxon Mobil
o Units were active in Norway, Canada and Namibia
Quarterly dividend of USD 14.2 million, in line with shareholder distribution strategy
• Combined with Q2 dividend, total distribution for 2023 so far of USD 28.4 million
Increased liquidity
• Total liquidity of USD 274 million, increased by USD 25 million from prior quarter
Reversal of Impairment
• Identified and recognised impairment reversal of USD 71 million for Deepsea Atlantic and USD 92 million for Deepsea Stavanger
Chief Executive Officer Kjetil Gjersdal, Chief Financial Officer Frode Syslak and Investor Relations Officer James Crothers will be hosting a webcast and Q&A session at 2pm CET to discuss the results.
Stakeholders can either use the following link for the webcast or listen via telephone using the details below.
Webcast details:
https://brrmedia.news/ODL_Q323
Conference call:
USA Local: +1 786 697 3501
Norway Local Oslo: +47 2 156 3318
UK-Wide: +44 (0) 33 0551 0200
Password (if prompted) Quote Odfjell Drilling Q3 Results when prompted by the
operator.
For further queries, please contact:
James Crothers, Investor Relations Officer
+44 (0) 7393 766 446 / +44 (0) 7495 067 684
jchu@odfjelldrilling.com
London, United Kingdom
2 November 2023
Odfjell Drilling Ltd
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