Odfjell Drilling (ODL) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 EBITDA of USD 100 million on revenue of USD 204 million, driven by higher day rates and strong operational performance since the Odfjell Technology spinoff.

• Dividend increased to USD 0.16 per share, totaling USD 38.4 million, reflecting robust earnings, free cash flow, and confidence in future distributions.

• Financial utilisation remained high at 96%, with a fully sold-out fleet and strong counterparties.

• Major SPS and upgrade projects, including Deepsea Stavanger and Deepsea Nordkapp, were completed ahead of schedule with minimal off-hire; only Deepsea Aberdeen SPS remains for 2025.

• Contract backlog stands at USD 1.8 billion, with the fleet fully booked until at least 2027 and some units secured through 2030.

Financial highlights

• Q1 2025 operating revenue was USD 204 million, up from USD 194 million in Q1 2024.

• Group EBITDA reached USD 100 million (49% margin), up from USD 85 million (44% margin) year-over-year.

• Net profit for Q1 2025 was USD 31 million, more than doubling year-over-year.

• Net debt reduced to USD 475 million; leverage ratio at 1.4x; equity ratio at 64%.

• Available liquidity at USD 241 million, including USD 139 million undrawn RCF; total assets at USD 2.2 billion.

Outlook and guidance

• Own fleet is fully booked until at least 2027, with Deepsea Stavanger contracted through early Q2 2030.

• All rigs moving to higher day rates in 2025, supporting future earnings and cash flow.

• No significant capex expected after Q2 2025 as SPS projects conclude, supporting further dividend growth.

• Norwegian market outlook remains positive, with increased demand expected from 2026 and beyond; international demand is mixed but growing in regions like West Africa, Canada, and the UK.

• Supply expected to tighten as some stacked units retire and no newbuilds are planned.