Kjetil Gjersdal, Chief Executive Officer ofOdfjell 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 offshoreNorway and the unpredictable weather offshoreNamibia . 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 ofUSD 194 million o Q1 EBITDA ofUSD 85 million Further deleveraging of balance sheet o Leverage ratio of 1.8x o Equity Ratio of 62% o Repayment ofUSD 53 million Samsung Yard Credit Fully booked until 2026 o Order Backlog ofUSD 2 billion oUSD 1.9 billion from firm contracts oUSD 0.1 billion from priced options o Priced options exercised byEquinor for work on Deepsea Stavanger SPS programs ongoing o Average capex allocation for the three remaining SPS programs now anticipated to be aroundUSD 50 million per unit, with 2-4 weeks of off hire time o New Deepsea Atlantic ultra-deepwater BOP cost increased toUSD 50 million Shareholder Distributions o Q1 Quarterly Dividend ofUSD 14.2 million declared o Fourth dividend declared since 2023 refinancing, resulting inUSD 56.8 million cumulatively being returned to shareholdersOdfjell Drilling AS Chief Executive OfficerKjetil Gjersdal , Chief Financial OfficerFrode Syslak and Investor Relations OfficerJames Crothers will be hosting a webcast and Q&A session at2pm 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_Q124 Conference call:USA Local: +1 786 697 3501 Norway Local Oslo: +47 2 156 3318UK -Wide: +44 (0) 33 0551 0200 Password (if prompted) Quote Odfjell Drilling Q1 Results when prompted by the operator. For further queries, please contact:James Crothers , Investor Relations Officer +44 (0) 7495 067 684 jchu@odfjelldrilling.comLondon, United Kingdom 15 May 2024 Odfjell Drilling Ltd
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