Dolphin Drilling AS: Dolphin Drilling present its second quarter 2023 financial results
(Oslo, 15 August 2023) Dolphin Drilling AS (Dolphin Drilling, OSE: DDRIL) reported revenue of USD 21.8 million in the second quarter of 2023, up from USD 1.8 million in the previous quarter. During the quarter, Dolphin Drilling also announced its acquisition of two semi-submersible rigs and a further three-year extension for Paul B. Loyd Jr.
Dolphin Drilling reported total revenues of USD 21.8 million in the second quarter of 2023, compared to USD 1.8 million in the previous quarter. The increased revenues reflect earnings achieved on the Blackford Dolphin at an average earnings efficiency of 97.2% when excluding downtime for days waiting for licenses. Total rig operating expenses for the quarter were USD 16.5 million, USD 1.1 million higher compared to the previous quarter. The operating expenses reflect a full quarter of operations in Nigeria on the Blackford Dolphin for its contract with General Hydrocarbons Limited (GHL), including USD 3 million of amortised project cost related to the mobilisation of the rig.
"As expected, revenues generated by Blackford Dolphin are sufficient for the company to cover all of Dolphin Drilling's operating cost, demonstrated by the quarterly EBITDA of USD 1.6 million. The rig is well positioned to generate strong cash flow in the coming years with back-to-back contracts and associated step-up in dayrate. Furthermore, our two stacked harsh environment moored semi-submersible rigs have been extensively marketed in the period. We recognise an increased demand in the rigs, underlying the strengthened global rig demand and disciplined bidding strategy among drilling contractors," says Bjørnar Iversen, CEO of Dolphin Drilling.
In the quarter, Dolphin Drilling announced the acquisition of two semi-submersible rigs, Paul B. Loyd Jr and Transocean Leader for a total of USD 64.5 million. Dolphin Drilling contemplated a private placement of approximately USD 60 million to finance the transaction, which was successfully completed. In addition, Dolphin Drilling received a commitment subject to certain conditions from Harbour Energy to extend the firm contract period for Paul B. Loyd Jr for an additional three years until September 2027.
"The transaction signifies an important stride for Dolphin Drilling as we showcase our operational platform's capacity to incorporate additional assets and generate immediate, robust cash flows for our shareholders. The addition of these efficient rigs allows us to further consolidate the midwater rig segment in a tightening market, characterised by historically low supply and surging dayrates across offshore basins," Iversen says.
Dolphin Drilling will present its results for the second quarter of 2023 in a webcast today, 15 August 2023, at 10:00 CEST. The presentation material is enclosed with this announcement. The webcast can be accessed from this link:
For further information, please contact:
Ingolf Gillesdal, Corporate Finance and Investor Relations, tel: +47 920 45 320
Dolphin Drilling | www.dolphindrilling.com
Dolphin Drilling is a leading harsh environment drilling contractor for the offshore oil and gas industry. Dolphin Drilling owns a fleet of three high-technical standard 4[th] and 5[th] generation enhanced Aker H3 units, Borgland Dolphin, Blackford Dolphin, and Bideford Dolphin, operated by an experienced team with a strong operational track record. The company has offshore and onshore employees, and onshore locations in Norway, Scotland, Brazil, Nigeria, and Mexico.