Deep Value Driller (DVD) Q3 2024 earnings summary

Executive summary

• Drillship "Deep Value Driller" began full day rate operations in November 2023 under a bareboat charter with Saipem for Ivory Coast drilling, with firm revenue estimated at USD 160 million for 11 wells, plus options.

• Operational performance has been exceptional, with technical utilization above 98% and work progressing as planned into drilling and completion phases.

• The company plans to distribute all excess cash to shareholders, initiating monthly distributions from November 2024 at 0.25 NOK per share.

Financial highlights

• Q3 2024 total income was USD 14.4 million, up from USD 1.5 million in Q3 2023; YTD 2024 income reached USD 43.0 million, compared to USD 1.5 million YTD 2023.

• Q3 2024 operating profit was USD 8.7 million, reversing a loss of USD 11.6 million in Q3 2023; YTD 2024 operating profit was USD 26.1 million, versus a loss of USD 20.8 million YTD 2023.

• Net profit for Q3 2024 was USD 5.5 million, compared to a loss of USD 14.0 million in Q3 2023; YTD 2024 net profit was USD 16.8 million, versus a loss of USD 26.8 million YTD 2023.

• Cash and cash equivalents at September 30, 2024, were USD 19.5 million, up from USD 12.0 million a year earlier.

• Net cash flow from operating activities YTD 2024 was USD 22.9 million, compared to USD 13.3 million YTD 2023.

Outlook and guidance

• Monthly shareholder distributions are planned from November 2024, with the first at 0.25 NOK per share.