Dolphin Drilling Announces Q4 of 2023 Financial Results

Source: www.gulfoilandgas.com 2/26/2024, Location: Europe

Dolphin Drilling AS (Dolphin Drilling, OSE: DDRIL) announced its unaudited results for the three months ended 31 December 2023.

Q4 2023 highlights and subsequent events
- Total revenue backlog at USD 1.1 billion at the time of reporting including USD 480 million in firm contracts (including mob fees, SPS contributions and other services) and USD 634 million in LOI’s and option periods
- Successful closing of rig acquisition of Paul B. Loyd, Jr. and Transocean Leader in February 2024. The rigs were purchased for USD 49 million and subsequent contract negotiations reveal an estimated EBITDA backlog to USD 150 million for the Paul B. Loyd, Jr.
- Signed one contract and one Letter of Intent for Borgland Dolphin for operations in the UK representing minimum 637 days with a total revenue backlog in excess of USD 150 million including reactivation and mobilisation contributions. The contracts include options which can extend the total backlog to 3.5 years - Signed Letter of Award with Oil India Ltd for a minimum 14-month drilling campaign in India equivalent to revenue backlog of USD 156 million including other services
- Total revenues in the fourth quarter of 2023 of USD 23.6 million and an EBITDA of USD 2.8 million

Bjørnar Iversen, CEO of Dolphin Drilling commented: “We continue to build backlog on our rigs, allowing us to reactivate and put our rigs back into operational service which should bode well for attractive longer-term shareholder returns. We are particularly pleased to report of a successful closing of the earlier announced rig purchase of Paul B. Loyd, Jr. The acquisition and later-on firming up a multi-year drilling campaign with the leading UK oil and gas producer Harbour Energy shows the depth and experience of Dolphin Drilling’s in-house capabilities.”

“The offshore drilling rig supply has been in free-fall since 2014, counting 185 retired or scrapped drillships and semisubmersible rigs, this countered with only a limited of number of new rigs entering the global fleet during the same period. Consequently, Dolphin Drilling is well-positioned to secure contracts at attractive levels, benefitting from current market improvements and an attractive positioning in the niche moored semisubmersible market”, Iversen concludes.

With the closing of the USD 65 million Loan Facility with Maritime Asset Partners Ltd, in February 2024 the new loan provides extra cash liquidity in addition to financing of Paul B. Loyd, Jr. rig acquisition. Moreover, The USD 15 million Shareholder Loan facility will be extended by twelve months. The two existing shareholders have agreed to extend based on materially the same terms.

Further on, General Hydrocarbons Limited (GHL) has paid USD 5.5 million in 3 instalments since release of the Q3 2023 report (USD 0.5 million prior to the end of 2023 and the remainder in 2024). GHL remains significantly overdue in its payment obligations, and as of end of Q4 2023 outstanding amounts net USD 37.8 million (after netting, advances, withholding tax and VAT). As at reporting date the position has increased to USD 46.0 million, this includes billings to end January less payments received in January and February. Ongoing discussions with the client continue in efforts to resolve the situation.

Dolphin Drilling will present its results for the fourth quarter of 2023 in an audiocast today, 26 February 2024, at 15:00 CET.

The presentation will be held by CEO Bjørnar Iversen and CFO Stephen Cox.


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