Odfjell Drilling has reported its financial and operational results for the three months period ended 31st March 2023.
Highlights:
Fully deployed own fleet, achieving 97.9% financial utilisation with increasing external fleet activity
- The Deepsea Aberdeen, Deepsea Atlantic and Deepsea Stavanger remained on contract with Equinor during the period, drilling on Breidablikk, Johan Sverdrup Phase 2 and various exploration projects respectively
- The Deepsea Nordkapp was on contract with Aker BP, drilling on the Alvheim area development
- The Deepsea Bollsta was on contract throughout the period with Shell in Namibia
- The Deepsea Yantai was largely on contract with OMV in February and March, following a brief idle period in January
- The Deepsea Mira was quay side for much of the period, however was mobilised for operations with Total for its multi country contract in West Africa
- Renewed Semi Alliance agreement for further 5 years, ensuring a close relationship with members of the Alliance, Aker BP ASA and Haliburton AS
Expanded backlog to $2.3bn, following contract wins at strong rates; solidifying forward cash generation
- Signed two Letters of Intent for the Deepsea Atlantic, for operations in the North Sea at strong dayrates
- Combined, the two LOI’s cover a period of 23 months for a total contract value of $290m, excluding integrated services, upgrades / modifications or mobilisation fees
- The two LOI’s include provisions for performance bonuses and fuel incentives not included in the total contract value
- In addition to the firm period, there are four higher priced one well options and three additional optional periods of approximately one-year each with the rates for each period to be mutually agreed prior to exercising
- Added further activity for the Deepsea Yantai with PGNiG Upstream Norway AS; extending the firm backlog for the Deepsea Yantai to Q3 2024
- Added firm scope with Equinor for use of the Deepsea Aberdeen on the Svalin field as well as more firm wells for the Deepsea Stavanger under its existing option agreement
Continued financial discipline and cost control
- Strong revenue generation during the period of $171m as a result of increased activity of our external fleet and continued high utilisation
- Leverage ratio and equity ratio of 2.4x and 55% respectively, reflecting the Company’s continued focus on capital discipline
- Material progress on the Company’s planned refinancing
- Strong cash position of $138m, despite payment of $31m to Odfjell Technology in regards to the previously announced tax ruling from the Norwegian Tax Authority
New appointments to the board and executive management team
- Appointed Knut Hatleskog as a Non-Executive Director of the Company, expanding the Company’s board to four
- Appointed Jakob Korsgaard as Chief Operating Officer of Odfjell Drilling AS
Odfjell Drilling Q1 2023 Presentation.pdf
Source: Odfjell Drilling
