Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:
'The third quarter of 2024 marked a significant milestone for Odfjell Drilling. Our team successfully completed the most challenging Special Periodic Survey ('SPS') and upgrade project in the Company’s history on the Deepsea Atlantic, bringing the rig back into operation on time and within budget. With the Deepsea
Atlantic now back in operations at a higher day rate, we expect this to positively impact our future results.
'Achieving a stable EBITDA of USD 83 million during a quarter that included a complex upgrade project demonstrates the strong performance across our fleet. This also points to the higher earnings we anticipate as additional rigs transition to higher day rates late 2024 and in 2025.
'With firm cont'racts in place for our owned rigs through at least mid-2026, we are well-positioned to continue delivering robust returns to our stakeholders. Supported by our solid contract backlog and reliable operations, we remain confident in the long-term prospects of our business. Reflecting this optimism, we have declared a dividend for the third quarter and have the intention to increase the quarterly dividend in connection with the Q4 2024 results.'
Q3 Highlights:
Strong Results Despite SPS Downtime
- Q3 EBITDA of USD 83 million
- Q3 Revenue of USD 186 million
- 97% Financial Utilisation
Deepsea Atlantic SPS Completed, Moving onto Higher Rates
- Deepsea Atlantic SPS completed in early Q3, ahead of schedule and on budget
- Unit now moves onto higher day rate contract
Future Revenue Strong Secured with Backlog until mid-2026
- Order Backlog of USD 2 billion
- USD 1.9 billion from firm contracts
- USD 0.1 billion from priced options
Q3 Dividend of USD 14.4 million, Intention Remains to Increase dividend from Q4 Results
- Q3 Quarterly Dividend of USD 0.06 per share declared
- Intention to increase quarterly dividend from Q4 2024 results
Despite SPS capex, Balance Sheet and Liquidity Remains Strong
- Leverage ratio of 1.78x
- Equity Ratio of 63%
- Available Liquidity of USD 227 million
Source: Odfjell Drilling
