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 total backlog to $2.5 billion including options.

• Achieved record financial and operational results for Q4 and full year 2025, with high fleet utilization and strong performance.

• Increased quarterly dividend to $0.23 per share, totaling $55 million for Q4 and $159 million distributed in 2025, 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.

• Q4 EBITDA was $124 million (51% margin), with Deepsea Bollsta contributing $4 million; 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.

• Generated $140 million in cash from operations in Q4; available liquidity at year-end was $283 million, including $103 million undrawn RCF.

• Net interest-bearing debt at year-end was $908 million; equity ratio at year-end was 54%.

Outlook and guidance

• Backlog fully books the fleet until at least 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 rising.

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