Odfjell Drilling (ODL) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered solid operational and financial performance, with revenue of $251M, EBITDA of $162M, and net profit of $57M, despite Deepsea Atlantic's 106-day off-hire due to an equipment incident, offset by $82M insurance proceeds and a $32M positive EBITDA effect.

• The fleet is fully operational and contracted until at least late 2027, with Deepsea Nordkapp extended to 2028 and all units sold out.

• Continued deleveraging reduced net debt to $862M–$863M and leverage ratio to 1.0x–1.5x net debt/EBITDA, with strong cash generation and available liquidity of $308M.

• Quarterly dividend of $0.25/share declared, totaling $60M for Q2, with YTD dividends at $115M and a long-term goal to increase distributions.

• Secured contract backlog of $2.1B, with all units contracted until at least late 2027.

Financial highlights

• Q2 2026 revenue was $251M, up from $219M in Q2 2025; own fleet contributed $221M, external fleet $29M, and EBITDA margin reached 65%.

• Group EBITDA was $162M, with a $32M positive impact from insurance proceeds; adjusted EBITDA would have been $129M.

• Net profit for Q2 was $57M, up from $42M in Q2 2025.

• Q2 cash from operations was $128M; available liquidity stood at $308M, including $248M undrawn RCF.

• Dividends paid in Q2 totaled $60M, representing a 10% annualized yield.

Outlook and guidance

• All units are fully operational and contracted until at least late 2027, with Deepsea Nordkapp extended to 2028 and strong backlog visibility.

• Market for harsh environment rigs remains strong, with high utilization (~90%), tightening supply, and no newbuilds expected in the short to medium term.

• Operators are contracting capacity further in advance, and additional contract announcements are likely within the year.

• Day rates expected to remain strong or increase as market tightens.

• International expansion opportunities in Namibia, Suriname, Canada, and the UK.