Odfjell Drilling (ODL) investor relations material

Executive summary

• Q2 2025 set new records for revenue ($219M), EBITDA ($108M), net profit ($42M), and dividends ($0.18/share), driven by strong operational execution and completion of all major fleet upgrades and SPS programs on time and on budget.

• Dividend increased to $0.18 per share, totaling $43.2M for Q2, supported by higher earnings, robust cash flow, and management's confidence in further increases.

• Fleet financial utilization reached 92% despite some SPS-related downtime, with most units above 97% and the fleet fully sold out with strong counterparties.

• Moody's upgraded the company's credit rating to B1, citing improved earnings visibility and declining leverage.

• Financial position further strengthened, providing a solid platform for continued shareholder distributions and no major downtime planned in the near term.

Financial highlights

• Q2 2025 revenue reached $219M, up from $119M in Q2 last year and $203M in Q1 2025; EBITDA was $108M, up from $100M in Q1 and $85M in Q2 2024.

• Net profit for Q2 2025 was $42M, up from $16M in Q2 2024 and $31M in Q1 2025; YTD net profit $72M.

• Available liquidity at quarter-end was $217M, including undrawn RCF and cash of $104M.

• Net debt reduced to $458M, leverage ratio at 1.3x, and equity ratio at 64%.

• Dividend payout for Q2 2025 totaled $43.2M.

Outlook and guidance

• Backlog stands at $1.7B, with all four units fully booked until nearly 2027 and one unit secured until 2030.

• Year-on-year revenue growth is expected to continue, supported by increasing day rates, lower capex post-SPS, and a positive market outlook in Norway for 2027 and beyond.

• Management is confident in securing new contracts for rigs coming off contract in late 2026, with announcements expected before year-end.

• No major capex expected until the next SPS cycle in December 2028.

• International demand is mixed, but longer-term contracts are expected to rise as exploration matures.