Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:
'In the fourth quarter of 2023, Odfjell Drilling continued to build on the momentum generated during the rest of the year by delivering a strong financial performance, whilst also securing new contracts which will see all of our owned fleet busy with firm backlog until at least 2026.
'As we enter 2024, it is my belief that Odfjell Drilling is in an extremely enviable position. Increasing cash generation is secured, our performance capabilities have remained at the forefront of our industry and our balance sheet gives us additional flexibility to grow our business.
'All this has positioned our Company in the healthiest position it has ever been, with our Company well placed to enact its strategy for stakeholder value generation.'
Q4 Highlights:
Strong financial performance, despite unplanned downtime
- Q4 EBITDA of USD 83 million
- 2023 EBITDA of USD 328 million a 6.5% increase on 2022
- Q4 Revenue of USD 192 million
- 2023 Revenue of 732 million a 12.8% increase on 2022
USD 2bn of Firm Backlog Secured
- Order Backlog of USD 2.1 billion
- USD 2 billion from firm contracts
- USD 0.1 billion from priced options
- Additional unpriced optional periods agreed with Aker BP and Equinor
High Value Firm Contracts Secured
- New agreements and contract secured with market leading day rates
- Deepsea Aberdeen secured contracts with Equinor for 10 months for a total contract value of USD 138 million
- Deepsea Nordkapp contract with Aker BP amended and extended. Additional year agreed with a total contract value of USD 179 million
- All contracts exclude fuel-incentives, add-on sales, mobilisation fees and bonus
Successfully completed SPS
- Deepsea Nordkapp SPS Completed entirely at sea with no downtime
Shareholder Distributions
- Q4 Quarterly Dividend of USD 14.2 million declared
- Three dividends declared during 2023 post refinancing, resulting in USD 42.6 million cumulatively being returned to shareholders
Source: Odfjell Drilling
