NorAm Drilling (NORAM) Q4 2025 earnings summary

Executive summary

• Revenue increased to $26.5 million in Q4 2025 from $23.9 million in Q3, driven by improved utilization, rig reactivation, and increased reimbursables.

• Achieved operational excellence with 10 of 11 rigs under contract and working by Q4, expecting 100% fleet utilization by early March 2026 for the first time since 2023.

• Maintained a strong customer portfolio, with major and Supermajor E&Ps contracting two-thirds of the fleet.

• Backlog stood at $27.6 million as of the reporting date.

• Maintained industry-low cost base and zero debt, continuing regular dividend payments despite market headwinds.

Financial highlights

• Q4 2025 revenue was $26.5 million, up from $23.9 million in Q3.

• Adjusted EBITDA for Q4 2025 was $3.8 million, down from $4.3 million in Q3 due to higher costs related to rig reactivation and maintenance.

• Operating profit for Q4 2025 was $2.0 million, compared to $2.8 million in Q3.

• Net profit after tax for Q4 2025 was $2.0 million, down from $4.0 million in Q3.

• Ended Q4 with a cash balance of $10.4 million and a debt-free balance sheet.

Outlook and guidance

• All rigs expected to be contracted and working by early March 2026.

• Expecting a flat rig market in the first half of 2026, with potential for modest rig additions if WTI oil prices rise above $70.

• CapEx guidance for 2026 is $3–$4 million, subject to additional drill pipe purchases.

• Continued monthly dividend payments, with 39 consecutive distributions totaling $90 million or NOK 22 per share.

• Dividend yield stands at 8.9% annualized based on recent distribution.