Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:
'Drilling in harsh environments during the winter months always presents challenges for businesses such as ours, however we are pleased to report that we have met those challenges, and are once again announcing a quarter of strong operations and progress across our business.
'During the quarter, we maintained our focus on strong operations as well as on the upcoming SPS, upgrades and maintenance programmes across our fleet. Operationally, we performed well, achieving a financial utilisation of 96% whilst also completing both the planned maintenance on Deepsea Nordkapp and the
SPS on Deepsea Stavanger in Q2, the latter of which resulted in just 9 days of
net off-hire time.
'Strong operations lead to positive results, and this quarter is no different. For the first time since the Odfjell Technology spin off in March 2022, the Group achieved an EBITDA of above USD 100 million. With even higher day rate contracts secured ahead of us, we are pleased to increase our dividend again for Q1 2025, and we remain confident in our capability to continue to increase distributions.'
Q1 Highlights:
Higher Day Rates Resulting in Record EBITDA
- Q1 Revenue of USD 204 million
- Q1 EBITDA of USD 100 million
- Q1 Net Profit of USD 31 million
- 96% Financial Utilisation
Dividend Increased Again
- Dividend increased to 16 cents per share from 12.5 cents per share
- Total Q1 dividend of USD 38.4 million
- Well placed to continue to increase shareholder distributions with fleet moving to continually higher day rates
Excellent Progress on SPS Programs ; Three Down, One to Go
- Post period, Deepsea Stavanger SPS and upgrade project completed on budget and ahead of schedule, resulting in 9 days of net off hire time
- Deepsea Nordkapp planned maintenance completed in 6 days of off hire time
- Deepsea Aberdeen SPS scheduled to begin in late May / early June
New Contract Award Agreed During Period
- Extension of existing contract on Deepsea Atlantic by nearly twelve months
- Total order backlog of USD 1.8 billion of firm contracts
- USD 0.1 billion from priced options
Balance Sheet and Liquidity Remains Strong
- Leverage ratio of 1.4x
- Equity Ratio of 64%
- Available Liquidity of USD 241 million
Source: Odfjell Drilling
