Company Disclosures

Odfjell Drilling Ltd. reports for the third quarter of 2023

Published 02.11.2023

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

For the full results, please see the attached report and presentation.

Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling AS commented:
“During Q3, Odfjell Drilling has achieved multiple new records across the
business and set new standards operationally. For the first time in our fifty
year history, our Company had eight units operational during the quarter ;
drilling in both harsh environment and deepwater locations. Our rigs drilled on
some of the most technically challenging and exciting projects which our
industry is currently working on and we are pleased by the results.

“Our financial utilisation was the highest it has been since Q1 2022 and our
crews continued to achieve strong performance bonuses from our units ; resulting
in our highest quarterly revenue and EBITDA since the Odfjell Technology spin
off. The cash generation achieved is testament to the hard work of all of our
staff and crews and, as we continue to move onto contracts with higher dayrates,
we look forward to continuing to set new records.
“Our wider industry continues to perform well with significant demand, while
supply remains tight. Encouragingly, we believe that demand will remain solid
for the long term, allowing dayrates to continue to retain the positive momentum
seen in recent months. We continue to see no realistic situation where newbuilds
start entering the market.

“Ultimately, as a result of the strong performance of our business, the
continued strengthening of our industry and our focus on delivering shareholder
returns, we are pleased to once again declare a quarterly dividend for the
period of USD 14.2 million.”

Another quarter of record financial results
o EBITDA of USD 87 million, a 7.4% increase on Q3 2022
o Revenue of USD 186 million, a 12.7% increase on Q3 2022
o Good visibility for further cash generation with order backlog of USD 2.1

Entire fleet deployed, working on some of the most demanding projects globally
o Average financial utilisation across own fleet of 98.4%
o All own units drilling offshore Norway
o Managed fleet fully deployed
o Three units drilling throughout the period while Hercules completed one well
for Exxon Mobil
o Units were active in Norway, Canada and Namibia

Quarterly dividend of USD 14.2 million, in line with shareholder distribution
o Combined with Q2 dividend, total distribution for 2023 so far of USD 28.4

Increased liquidity
o Total liquidity of USD 274 million, increased by USD 25 million from prior

Reversal of Impairment
o Identified and recognised impairment reversal of USD 71 million for Deepsea
Atlantic and USD 92 million for Deepsea Stavanger

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 CET 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 Q3 Results when prompted by the

For further queries, please contact:
James Crothers, Investor Relations Officer
+44 (0) 7393 766 446 / +44 (0) 7495 067 684
London, United Kingdom
2 November 2023
Odfjell Drilling Ltd

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