Company Disclosures

Odfjell Drilling Ltd. Reports for the First Quarter of 2024

Published 15.05.2024

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:

“Q1 has been a positive start to the year for our Company, with all units
operating well throughout the period despite the challenging winter weather
conditions offshore Norway and the unpredictable weather offshore Namibia.
Thanks to this steady operational performance, this quarter we have also further
solidified our balance sheet, moving to a leverage ratio of 1.8x, and will
return our fourth quarterly dividend to shareholders. As a result, we continue
to have one of the most robust balance sheets amongst our peers and with firm
backlog secured on all of our owned units until 2026, we expect to continue to
build on this trend.

“2024 is going to be a very important year for our Company. In addition to our
units moving countries, fields and operators, we must also co-ordinate three SPS
programs on our owned fleet as well as three on our external fleet within the
next 12 months. We are making good progress on all of these, however have
noticed increased costs on our own fleet due to scope increase and delayed
commencement of the yard stay for the Deepsea Atlantic. As we complete these
processes and reduce associated capex risk, we look forward to this positively
impacting our capability to distribute cash via dividend to our shareholders.”

Q1 Highlights:
Record revenue generation, despite tough weather
o Q1 Revenue of USD 194 million
o Q1 EBITDA of USD 85 million

Further deleveraging of balance sheet
o Leverage ratio of 1.8x
o Equity Ratio of 62%
o Repayment of USD 53 million Samsung Yard Credit

Fully booked until 2026
o Order Backlog of USD 2 billion
o USD 1.9 billion from firm contracts
o USD 0.1 billion from priced options
o Priced options exercised by Equinor for work on Deepsea Stavanger

SPS programs ongoing
o Average capex allocation for the three remaining SPS programs now anticipated
to be around USD 50 million per unit, with 2-4 weeks of off hire time
o New Deepsea Atlantic ultra-deepwater BOP cost increased to USD 50 million

Shareholder Distributions
o Q1 Quarterly Dividend of USD 14.2 million declared
o Fourth dividend declared since 2023 refinancing, resulting in USD 56.8 million
cumulatively being returned to shareholders

Odfjell Drilling AS Chief Executive Officer Kjetil Gjersdal, Chief Financial
Officer Frode Syslak and Investor Relations Officer James Crothers will be
hosting a webcast and Q&A session at 2pm CEST to discuss the results.
Stakeholders can either use the following link for the webcast or listen via
telephone using the details below.

Webcast details:

Conference call:
USA Local: +1 786 697 3501
Norway Local Oslo: +47 2 156 3318
UK-Wide: +44 (0) 33 0551 0200
Password (if prompted) Quote Odfjell Drilling Q1 Results when prompted by the

For further queries, please contact:
James Crothers, Investor Relations Officer
+44 (0) 7495 067 684
London, United Kingdom
15 May 2024
Odfjell Drilling Ltd

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