Northern Ocean (NOL) Q2 2026 earnings summary

Executive summary

• Deepsea Mira achieved 98.6% economic utilization in Q2 2026, generating $31 million in revenue from a successful Shell campaign completed safely and efficiently.

• Following the Shell contract, Deepsea Mira underwent a drilling control system upgrade and is now idle in Walvis Bay, expected to remain so into Q1 2027.

• The company is actively marketing Deepsea Mira for new contracts, with several opportunities anticipated to commence in 2027.

Financial highlights

• Q2 2026 operating revenue was $33.9 million, up from $12.6 million in Q1 2026, reflecting increased rig activity.

• Operating expenses were $31.1 million, down from $35.7 million in the previous quarter.

• Net loss from continuing operations after taxes was $2.5 million, a significant improvement from a $23.1 million loss in Q1 2026.

• Basic and diluted loss per share was $0.01, compared to $0.08 in the previous quarter.

• Cash and cash equivalents at quarter-end were $19.7 million.

Outlook and guidance

• Several 2026 opportunities did not materialize, and some programs have been delayed; the rig is expected to remain idle into 2027.

• Management is focused on preserving liquidity, securing new contracts, and preparing for refinancing.