Odfjell Drilling (ODL) Q4 2025 earnings summary

Executive summary

• Completed acquisition of Deepsea Bollsta for $480 million, significantly below newbuild cost, and executed major refinancing, both strengthening the business and extending debt maturities to 2031.

• Secured nearly $1 billion in new contract backlog, extending coverage into 2028–2029 and bringing the total firm order backlog to $2.5 billion including options.

• Achieved record financial and operational results for Q4 and full year 2025, with financial utilization at 98%.

• Increased quarterly dividend to $0.23 per share, totaling $55 million for Q4 and $159 million for the year, reflecting confidence in future cash flow.

Financial highlights

• Q4 2025 revenue reached $245 million, up from $203 million in Q4 2024; full-year revenue was $901 million, up from $775 million.

• Q4 EBITDA was $124 million (51% margin), including a $4 million contribution from Deepsea Bollsta; full-year EBITDA was $451 million.

• Net profit for Q4 was $45 million, impacted by $18 million in refinancing costs; full-year net profit was $173 million, up from $65 million.

• Net debt at year-end was $908 million, with a net debt/EBITDA ratio of 1.7x; equity ratio at year-end was 54%.

• Available liquidity at year-end was $283 million, including undrawn revolving credit facilities.

Outlook and guidance

• Backlog fully books the fleet until at least mid-2027, with contract coverage extending into 2029 and beyond.

• Market outlook remains strong, especially in Norway, with tight supply and high demand for Tier 1 rigs; international demand is also rising.

• Confident in continued free cash flow generation and further dividend increases, though no formal guidance on 2026 free cash flow or dividends.