Odfjell Drilling (ODL) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 financial results with revenue of $219 million, EBITDA of $108 million, and net profit of $42 million, driven by strong operational performance and higher day rates.

• All major fleet upgrades and Special Periodic Surveys (SPS) completed on time and on budget, resulting in a fully upgraded fleet and reduced future CapEx.

• Dividend increased to $0.18 per share, totaling $43.2 million for Q2, supported by robust cash flow and strong financial position.

• Fleet financial utilization reached 92%, with most units above 97% despite some downtime from SPS.

• Moody's upgraded credit rating to B1, citing improved earnings visibility and declining leverage.

Financial highlights

• Q2 2025 revenue was $219 million, up from $191 million year-over-year and $203 million in Q1 2025.

• EBITDA reached $108 million, up from $85 million in Q2 2024 and $100 million in Q1 2025.

• Net profit for Q2 2025 was $42 million, up from $16 million in Q2 2024 and $31 million in Q1 2025.

• Available liquidity at quarter-end was $217 million, including $113 million undrawn RCF.

• Net interest-bearing debt decreased to $458 million; equity ratio stable at 64%.

Outlook and guidance

• Backlog stands at $1.7 billion, with all four units contracted until nearly end of 2026 and one unit booked until 2030.

• Year-on-year revenue growth expected based on secured contracts and rising day rates; own fleet fully booked until 2027.

• No major CapEx expected until next SPS cycle in December 2028; annual run-rate CapEx per rig outside SPS periods is about $5 million.

• Confident in announcing new contracts for rigs coming off contract in late 2026 before year-end.

• Market outlook in Norway remains positive for 2027 and beyond, with increased demand for rigs and strong day rates.