Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented: 'Odfjell Drilling continued to prove the value of its strategy during Q1 2026, with strong financial results mainly driven by operational performance. Revenue and EBITDA have increased and we have also elected to increase our quarterly dividend, whilst continuing to deleverage.
'These are fantastic results but, as we look ahead, our focus remains on operations and more recently, to bringing Deepsea Atlantic back on hire safely and in compliance with regulatory requirements. Investigations as to the cause of the incident are ongoing but, together with our equipment manufacturers, we will be sure to implement measures and learnings that are developed as a result.'
Q1 Highlights:
INCREASED REVENUE AND EBITDA, DRIVEN BY OPERATIONAL PERFORMANCE
- Revenue of USD 284 million and EBITDA of USD 154 million
- Net Profit of USD 73 million
- Financial utilisation of 96%
FURTHER INCREASE IN DIVIDEND, WHILST DELEVERAGING
- Dividend increased to 25 cents per share from 23 cents per share
- Leverage ratio reduced to 1.6x and Equity ratio increased to 55%
USD 2.3 BILLION OF TOTAL CONTRACT COVERAGE IN TIGHT MARKET
- USD 2 billion of firm backlog coverage with USD 0.3 billion of priced options
- Market remains tight for high-spec harsh environment semi-submersibles in Norway and increasingly internationally
Post period
EQUIPMENT HANDLING INCIDENT ON DEEPSEA ATLANTIC
- No injury to personnel or impact on environment
- The rig has been off hire since 18 April
- Current estimates suggest around a total of 3-4 months before the rig will be ready for operations
- Insurance expected to cover recovery, replacement and/or repair of the damaged equipment
Source: Odfjell Drilling
