Odfjell Drilling (ODL) Q3 2025 earnings summary

Executive summary

• Achieved record financial and operational results in Q3 2025, with revenue of $234 million, EBITDA of $119 million, and net profit of $55 million, driven by high day rates and 99% fleet utilization.

• Maintained market leadership in harsh environment drilling, with the fleet fully sold out or contracted through the end of 2026 and a robust $1.5 billion backlog.

• Dividend increased to $0.20 per share, totaling $48 million for shareholders, reflecting strong cash flow and balance sheet strength.

• Continued capital discipline, reducing leverage ratio and supporting further dividend increases.

Financial highlights

• Q3 2025 revenue was $234 million, up from $186 million in Q3 2024 and $219 million in Q2 2025.

• EBITDA reached $119 million (Q3 2024: $83 million), with a margin of 51%.

• Net profit for Q3 2025 was $55 million, up from $19 million in Q3 2024.

• Own fleet generated $189 million in revenue; external fleet $44 million.

• Available liquidity at quarter-end was $209 million.

Outlook and guidance

• Fleet is fully contracted or booked through at least the end of 2026, with a $1.5 billion order backlog and advanced discussions to further increase backlog.

• Market outlook remains positive, with strong day rates and anticipated increases in rig demand.

• Focus on securing contracts for 2027 and beyond, with international opportunities in Namibia, Mozambique, Canada, South Africa, Australia, and the UK.

• CapEx related to SPS projects will decrease after 2025.

• Dividend increases expected to continue, contingent on adding valuable backlog.