Dolphin Drilling (DDRIL) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 adjusted EBITDA of USD 8.6 million, up from USD 8.2 million in Q4 2025, reflecting improved operational efficiency and cost discipline.

• All three rigs secured contract extensions or LOIs, significantly increasing firm backlog and revenue visibility.

• USD 62.5 million equity raise post-quarter strengthened liquidity, reduced current liabilities, and improved financial flexibility.

• Major contract awards: Paul B. Loyd, Jr. extended through September 2030, Blackford Dolphin extended in India, Borgland Dolphin awarded LOI for 4.2–4.5 years plus options.

• Net loss for Q1 2026 was USD 6.2 million, reduced year-over-year despite higher financing and non-cash items.

Financial highlights

• Q1 2026 total revenue was USD 44.7 million, slightly down quarter-over-quarter due to fewer operating days.

• Total rig operating expenses reduced to USD 21.3 million, driven by lower repair and maintenance costs.

• Adjusted G&A was USD 3.9 million, reflecting ongoing cost discipline.

• Cash and cash equivalents at quarter-end were USD 22.4 million, further bolstered by the equity raise.

• Free cash flow before financing activities was negative USD 16.4 million, with net change in cash of negative USD 8.1 million for the quarter.

Outlook and guidance

• Expect higher CapEx in Q3 and Q4 2026, mainly due to Borgland Dolphin's USD 12 million special periodic survey.

• Management focuses on contract coverage, backlog visibility, and operational reliability for 2026.

• Anticipate firming up Borgland Dolphin LOI in Q2 2026, enhancing medium-term backlog.

• Market outlook is positive, with improved rig utilisation, higher tendering activity, and a supply-constrained environment supporting pricing.

• Growth opportunities expected in Africa, Asia, and continued strength in the North Sea.