Company Disclosures

Odfjell Drilling Ltd. Reports for the Second Quarter and First Half of 2023

Published 23.08.2023

Odfjell Drilling Ltd. is pleased to report its financial and operational results
for the three months period ended 30 June 2023 (the “Period”).

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:
“Through significant effort, we have facilitated many of our long term
objectives during the first half of 2023. The successful completion of our
planned refinancing has positioned the Company strongly for the future and has
allowed us flexibility in how we can grow our company. Our operational
performance during the period was strong, achieving a financial utilisation of
98.2% for our owned fleet, which increased our revenue and EBITDA significantly
from prior quarters.
“With the work we have completed earlier this year and with the prevailing
strong market sentiment, we are delighted to announce today our new quarterly
dividend programme. Under this new programme, our ambition is to pay consistent
quarterly dividends that will grow in the medium term ; in line with increasing
earnings and reducing capex commitments. Our first distribution will be made in
September 2023 and will see the Company distributing USD 14.2 million to
shareholders.
“There is further work ahead for our Company, but we are very pleased by the
results of the year so far.”

For the full results, please view the report and presentation on the Company’s
website or via the Company’s filings on Euronext.

Highlights:
Quarterly dividend programme implemented with first distribution of USD 14.2
million for Q2 2023, with cash distribution in September 2023
o Following successful completion of the Company’s planned refinancing, the
Board has updated its dividend policy to implement a new quarterly dividend
programme and has elected to declare a dividend for the Period of US 14.2
million, corresponding to USD 0.06 per share
o The details of the Company’s new dividend policy can be found on the Company’s
website or in our accompanying materials for the Period’s results

Successfully completed refinancing, positioning the Company for the future and
increasing available liquidity
o Diversified capital sources and removed any significant maturities until 2028:
o Raised USD 390 million via significantly oversubscribed rated bond
o Amended and extended USD 197 million Deepsea Nordkapp facility
o Secured USD 175 million Revolving Credit Facility whereof USD 43 million has
been utilised
o Together with undrawn facilities and cash, the Company now has USD 249 million
in available cash

Increased revenue and EBITDA generation during the quarter, reaching highest
levels since Odfjell Technology spin-off ; resulting in a 12% revenue increase
and 7% EBITDA increase on H1 2022
o Revenue of USD 184 million during Q2 resulting in H1 2023 revenue of USD 355
million
o 12% increase on H1 2022 (USD 318 million)
o EBITDA of USD 85 million during Q2, resulting in H1 2023 EBITDA of USD 158
million
o 7% increase on H1 2022 (USD147 million)

98.2% Own fleet utilisation during the period, with increased activity from
managed fleet
o Continued high uptime across own fleet, with all own fleet units operating in
Norway at increasing dayrates
o All managed units now on contract, with the Deepsea Bollsta and Deepsea Yantai
drilling throughout the period, and the Deepsea Mira beginning drilling towards
the end of the period
o Hercules was mobilised to Canada, with drilling beginning post-period

Key figures for the Group
All figures in USD million Q2 23 Q2 22 YTD 23 YTD 22 FY 22
Operating revenue 184 163 355 318 650
EBITDA 85 79 158 147 308
EBIT 40 36 67 64 137
Net profit 11 22 13 42 83
EBITDA margin 46% 48% 45% 46% 47%
Total assets 2,140 2,267 2,219
Net interest bearing debt 645 677 685
Equity 1,210 1,260 1,208
Equity ratio 57% 56% 54%

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:
https://brrmedia.news/ODL_Q223

Conference call:
USA Local: +1 786 697 3501
Norway Local Oslo: +47 2 156 3318
UK-Wide: +44 (0) 33 0551 0200
Password Quote Odfjell Drilling Q2 Results if prompted by the
operator.

For further queries, please contact:
James Crothers, Investor Relations Officer
+44 (0) 7393 766 446
jchu@odfjelldrilling.com
London, United Kingdom
23 August 2023
Odfjell Drilling Ltd

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