Odfjell Drilling Ltd. · OSL:ODL
Odfjell Drilling — Q2 2022 Earnings Presentation
15 slides from Odfjell Drilling's earnings presentation, Aug 30, 2022
Slide 1: Q2 2022 Presentation
Q2 2022 Presentation 30 August 2022 1
Slide 2: Important information
Important information By reading this company presentation dated 30 August 2022 (the “Presentation”), or attending any meeting or presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been prepared by O
Slide 3: Agenda
Agenda Introduction Highlights Operational update Commercial update Financial results Q2 2022 Summary
Slide 4: Odfjell Drilling at a glance
INTRODUCTION Odfjell Drilling at a glance Fleet of 8 sixth generation drilling units ✓ Efficient, high specification, harsh environment units with deepwater or ultra deepwater Pure-play harsh environment offshore capabilities ✓ Own Fleet of 4 units – operates units owned by Odfjell Drilling drilling
Slide 5: Highlights
HIGHLIGHTS Highlights Key factors securing Odfjell Drilling’s success Operating status and financial results • EBITDA of USD 79 million • Strong operational performance Best Rigs Efficient, high specification, harsh • Robust balance sheet and sound cash position environment units with deepwater or u
Slide 6: Very strong utilization in the quarter
OPERATIONAL UPDATE Very strong utilization in the quarter Financial utilization1 Own Fleet Q2 2022 Q2 2021 FY 2021 Deepsea Atlantic 98.6% 97.8% 95.5% Deepsea Stavanger 98.7% 99.6% 99.0% Deepsea Aberdeen 99.5% 98.7% 98.8% Deepsea Nordkapp 99.4% 98.7% 98.9% External Fleet Q2 2022 Q2 2021 FY 2021 Deeps
Slide 7: Building long-term order backlog
COMMERCIAL UPDATE Building long-term order backlog • Deepsea Stavanger awarded five-year firm contract under the alliance agreement with Aker BP for development drilling scheduled to commence early 2025 • Market based day rates within pre-agreed range • Day rate to be set by two brokers 9 months pri
Slide 8: Long visibility with further upside potential beyond 2024
COMMERCIAL UPDATE Long visibility with further upside potential beyond 2024 Own Fleet Year built Location/Operator Deepsea Atlantic Norway 2009 (6G, UDW, HE) Equinor Deepsea Stavanger Norway 2010 (6G, UDW, HE) Equinor/Aker BP Deepsea Aberdeen Norway 2014 Equnior (6G, UDW, HE) Deepsea Nordkapp Norway
Slide 9: Strong order backlog
COMMERCIAL UPDATE Strong order backlog Total revenue backlog per year1 – Own Fleet Firm contracts USD 1.4 billion USDm Firm Options Priced options USD 0.5 billion 500 Total backlog USD 1.9 billion 450 400 350 300 250 200 150 100 50 - 2022 2023 2024 2025 2026 After 9 1) Estimates as per 30 June 2022.
Slide 10: Positive outlook for deepwater and harsh environment areas
COMMERCIAL UPDATE Positive outlook for deepwater and harsh environment areas • High energy prices, energy supply challenges and unprecedented cash flow generation from E&P companies • To meet the oil and gas demand growth that is forecasted, substantial new investments are required to compensate for
Slide 11: Strong increase in demand in Norway expected beyond 2023
COMMERCIAL UPDATE Strong increase in demand in Norway expected beyond 2023 • Significant increase in PDOs prior to 2022 submission deadline Projects in Norway 40 wrt the temporary tax regime Tax incentive regime 35 • Foreseen to increase demand for drilling units beyond 2023 30 • Clear preference by
Slide 12: Condensed consolidated income statement
FINANCIAL RESULTS Q2 2022 Condensed consolidated income statement USDm Q2 22 Q2 21 YTD 22 YTD 21 FY 21 Continuing operations Operating revenue 163 161 318 275 572 Other gains and losses - -0 - -0 7 Personnel expenses -51 -55 -104 -101 -200 Other operating expenses -34 -30 -67 -63 -121 EBITDA 79 75 1
Slide 13: Robust balance sheet and sound cash position
FINANCIAL RESULTS Q2 2022 Robust balance sheet and sound cash position Assets (USDm) 30.06.2022 30.06.2021 31.12.2021 Equity and liabilities (USDm) 30.06.2022 30.06.2021 31.12.2021 Property, plant and equipment 1 987 2 163 2 109 Paid-in capital 445 565 565 Intangible assets 3 28 29 Other equity 815
Slide 14: Summary
SUMMARY Summary Q2 Highlights • EBITDA of USD 79 million • Strong operational performance • Robust balance sheet and sound cash position Outlook • Added significant order backlog with five-year contract for Deepsea Stavanger with Aker BP commencing in 2025 • Contract awarded for Deepsea Bollsta in N
Slide 15: Thank you for the attention!
Thank you for the attention! For further information, please contact: Gillian Basson, [email protected] Next event: Q3 2022 results scheduled to be published 24 November 2022 For more information see: www.odfjelldrilling.com