Northern Ocean (NOL) Q1 2026 earnings summary

Executive summary

• Focused on preparing Deepsea Mira for new operations, with maintenance and upgrades during a low-utilization interim period.

• Deepsea Mira commenced a new contract with Shell in April 2026 after completing work for Rhino Resources.

• Sale of Deepsea Bollsta in December 2025 significantly reduced revenue and expenses compared to previous quarters.

• Order backlog as of May 2026 stands at approximately $10 million.

Financial highlights

• Q1 2026 operating revenue was $12.7 million, down from $111.4 million in Q4 2025 due to the sale of Deepsea Bollsta.

• Net loss from continuing operations was $23.1 million, compared to a $50.5 million loss in the previous quarter.

• Basic and diluted loss per share was $0.08, improved from $0.17 in Q4 2025.

• Operating expenses were $35.7 million, down from $150.7 million in Q4 2025, which included one-off effects from the rig sale.

• Interest expense dropped to $2.7 million from $10.1 million sequentially, reflecting debt reduction.

Outlook and guidance

• Market conditions remain competitive, especially for short-term contracts in West Africa, but are expected to improve in the second half of 2027.

• Deepsea Mira is actively marketed for new contracts, with management optimistic about securing further work in Q3–Q4 2026.

• Near-term focus remains on operational efficiency, cost control, and refinancing.