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IP - Shelf Drilling North Sea Reports Second Quarter 2025 Results - Attachment: Shelf Drilling Q2 2025 Results Highlights.pdf

Company: Shelf Drilling (North Sea) Ltd. Date: 2025-08-07 Language: English Register to download
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### **Shelf Drilling Q2 2025 Results Highlights**

August 07, 2025

#### Disclaimer

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This presentation (the "Presentation") has been prepared by Shelf Drilling, Ltd. ("Shelf Drilling", "SDL" or the "Company"), Shelf Drilling Holdings, Ltd. ("SDHL") and Shelf Drilling (North Sea), Ltd. ("Shelf Drilling North Sea" or "SDNS") exclusively for information purposes and may not be reproduced or redistributed, in whole or in part, to any other person. The numbers presented are consolidated unless otherwise stated. The Presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ('relevant persons'). Any person who is not a relevant person should not act or rely on the Presentation or any of its contents.

The Presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in the Company. The release, publication or distribution of the Presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this Presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

The Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in the Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its shareholders or subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in the Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to its actual results.

The Company uses certain financial information calculated on a basis other than in accordance with accounting principles generally accepted in the United States ("GAAP"), including Adjusted Revenues, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Capital expenditures and deferred costs and Net Debt, as supplemental financial measures in this Presentation. These non-GAAP financial measures are provided as additional insight into the Company's ongoing financial performance and to enhance the user's overall understanding of the Company's financial results and the potential impact of any corporate development activities.

"Adjusted Revenues" is defined as the Revenues less the amortization of intangible liability. Adjusted Revenues provide investors with a financial measure used in our industry to better evaluate our results without regard to non-cash amortization of intangible liability. ''EBITDA'' as used herein represents revenue less: operating & maintenance expenses, selling, general & administrative expenses, provision for / (reversal of provision for) credit losses, net, share-based compensation expense, net of forfeitures, and other, net, and excludes amortization of intangible liability, interest expense and financing charges, interest income, income tax expense, depreciation, amortization of deferred costs, impairment loss and loss / (gain) on disposal of assets. ''Adjusted EBITDA'' as used herein represents EBITDA as adjusted for the exclusion of one-time corporate transaction costs and gain on insurance recovery. These terms, as we define them, may not be comparable to similarly titled measures employed by other companies and are not a measure of performance calculated in accordance with U.S. GAAP. "Adjusted EBITDA margin" as used herein represents Adjusted EBITDA divided by the total revenues excluding the amortization of intangible liability. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or other income or cash flow statement data prepared in accordance with U.S. GAAP. We believe that Adjusted Revenues, EBITDA and Adjusted EBITDA are useful because they are widely used by investors in our industry to measure a company's operating performance without regard to items such as interest, income tax expense, depreciation and amortization and other non-recurring expenses (benefits), which can vary substantially from company to company. EBITDA and Adjusted EBITDA have significant limitations, such as not reflecting our cash requirements for capital expenditures and deferred costs, contractual commitments, working capital, taxes or debt service. Our management uses EBITDA and Adjusted EBITDA for the reasons stated above. In addition, our management uses Adjusted EBITDA in presentations to our Board of Directors to provide a consistent basis to measure operating performance of management; as a measure for planning and forecasting overall expectations; for evaluation of actual results against such expectations; and in communications with equity holders, lenders, note holders, rating agencies and others concerning our financial performance.

Due to the forward-looking nature of Adjusted EBITDA, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure. Accordingly, the company is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure without unreasonable effort.

"Capital expenditures and deferred costs" as used herein include rig acquisition and other fixed asset purchases, construction expenditures on newbuild rigs and certain expenditures associated with regulatory inspections, major equipment overhauls, contract preparation (including rig upgrades), mobilization and stacked rig reactivations. Capital expenditures are included in property and equipment. Deferred costs are included in other current assets and other long-term assets. This term, as we define it, may not be comparable to similarly titled measures employed by other companies and is not calculated in accordance with U.S. GAAP. Capital expenditures and deferred costs should not be considered in isolation or as a substitute for capital expenditures prepared in accordance with U.S. GAAP. We believe that Capital expenditures and deferred costs is a useful measure as it better represents the overall level of the Company's capital investments. Capital expenditures and deferred costs as used herein is a non-U.S. GAAP measure defined and periodically reported in the Company's financial statements on a consistent basis.

"Net Debt" as used herein represents Total Debt less Cash and Cash Equivalents. This term, as we define it, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with U.S. GAAP. Net Debt should not be considered in isolation or as a substitute for total debt prepared in accordance with U.S. GAAP. We believe that Net Debt is useful because it is widely used by investors in our industry to measure a company's financial position.

The quarterly financial information included in this Presentation has not been audited and may be subject to modifications.

The Presentation contains information obtained from third parties. You are advised that such third party information has not been prepared specifically for inclusion in the Presentation and the Company has not undertaken any independent investigation to confirm the accuracy or completeness of such information.

An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in the Presentation, including, among others, the risk factors described in the Company's Form 10-K equivalent for the year ended December 31, 2024. Should any risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the Presentation. An investment in the Company is only suitable for investors who understand the risk factors associated with this type of investment and who can afford to a loss of all or part of their investment.

No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, none of the Company or any of its shareholders or subsidiary undertakings or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of the Presentation.

By attending or receiving the Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business.

The Presentation speaks as of August 07, 2025. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.

#### Q2 2025 Key Performance Indicators

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*Note (1): Total Recordable Incident Rate: recordable incidents per 200,000 manhours as per IADC guidelines, as of 30 June 2025. Note (2):Includes \$172 MM of cash and equivalents and \$125 MM of undrawn revolving credit facility, as of 30 June 2025.*

#### Macro Overview

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![](_page_3_Picture_2.jpeg)

**Short-term oil price volatility persists amid evolving OPEC+ production strategy, geopolitical and tariff developments**

![](_page_3_Picture_4.jpeg)

**Global oil demand projected to continue to grow in 2025-26, although moderately, driven by non-OECD countries<sup>1</sup>**

![](_page_3_Picture_6.jpeg)

**Offshore sanctioning remains steady (~\$56B projected in 2025); expected to increase in 2026-2027 \$ <sup>2</sup>**

![](_page_3_Picture_8.jpeg)

**Energy security and affordability priorities continue to support investment in conventional oil and gas** 

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**With a strong track record of performance through price cycles, offshore drilling expected to continue playing a vital, cost-efficient role in the long-term global energy mix** 

*Note (1): Source: U.S. Energy Information Administration's (EIA) Short-Term Energy Outlook (STEO) July 2025, global oil demand is projected to grow by approximately 0.8 million barrels per day (b/d) in 2025 and 1.1 million b/d in 2026. Note (2): Rystad Energy ServiceCube – Oil and Gas; Rystad Energy research and analysis. Note (3): Current based on 28 July 2025*

#### Jack-up Market Overview

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![](_page_4_Figure_2.jpeg)

**Number of Contracted Jack-ups<sup>1</sup>**

![](_page_4_Figure_4.jpeg)

**Near-term uncertainty but strong long-term fundamentals in the jack-up market**

*Note (1): Independent legs and cantilever units only, excludes mat-supported rigs. Source: IHS Petrodata, as of 6 August 2025. Note (2): Adjusted for 16 rigs which are suspended but still under contract with Saudi Aramco.*

#### Shelf Drilling Operating Platform & Strong Global Presence

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**IOC**

**MENAM 30% WAF 30% SEA 19% North Sea 11% India 10% Concentrated Presence in High-Activity, Production-Led Regions Fleet Status Summary (As of 7 Aug 2025) Key Contract Awards Summary Deep Relationships with Blue-Chip Customers Anchor Long-Term Backlog Contracted Available Total % Contracted MENAM<sup>5</sup>** 9 0 9 100% **India** 7 1 8 88% **West Africa** 6 2 8 75% **SE Asia** 4 0 4 100% **North Sea** 3 0 3 100% **Total 29 3 32 91%** *\$1.3 Billion Illustrative Pro Forma Backlog<sup>4</sup>* **Customer Base Dominated by IOCs and NOCs with Longstanding Relationships Held Since Company Inception<sup>1</sup>** (Aa2/AA-/NR) (Baa1/A-/A-) (A1/NR/A+) (A1/A+/AA-) (Aa3/AA/AA-) 3 (Aa2/AA-/NR) (Baa3/BBB- /BBB-) *Selected Key Customers with Credit Ratings<sup>2</sup> and Length of Relationship* **NOC 43% 38% Others 19%**  • **High Island V: 5-year** contract extension with **Saudi Aramco** • **J.T. Angel: 3-year** contract with **ONGC India** • **Key Manhattan: 1-year** contract extension with **Eni, Italy** • **Rig 141: 1-year** contract extension with **Gempetco, Egypt** • **Shelf Drilling Enterprise:** contract for **1 firm** well in **Vietnam** • **Shelf Drilling Fortress:** contract for **1 firm well** in the **UK North Sea** • **Trident 16: 3-month** extension with **Petrobel Egypt**

*Source: Shelf Drilling public company filings, Moody's, S&P, Fitch. Note (1): Except Equinor and QatarEnergy which have been held since Q4 2022 under SDNS. Note (2): Including credit ratings from Moody's / S&P / Fitch. Data as of 31 August 2023. Note (3): Credit ratings for the State of Qatar, which owns 100% of Qatar Energy. Data as of 31 August 2023.*

*Note (4): Actual backlog as of 30 June 2025 of \$1.5 billion includes backlog associated with suspended rigs (i.e. Harvey H. Ward and High Island IV) still under contract. Note (5): 2 suspended rigs in Saudi Arabia are still under contract.*

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# **Financial Highlights**

Shelf Drilling Q2 2025 Results Highlights

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#### •**FY 2025 Adjusted EBITDA**

### **\$320 – \$360 million**

- \$10 million increase in low end of guidance range, reflecting strong financial performance delivered in H1 2025 mainly due to higher revenue efficiency and lower operating expenses
	- Recent contract awards support revenue visibility in H2 2025
- Revenues in Q3 2025 expected to be down 5% to 10% sequentially, primarily due to completion of three contractsin North Sea and Southeast Asia
- Revenues in Q4 2025 expected to be higher than earlier in 2025 primarily due to expected contribution from rigs commencing new contractsin North Sea and West Africa

**FY 2025 Capital Expenditures & Deferred Costs**

### **\$85 – \$115 million**

- Unchanged from prior guidance communicated in May 2025
	- Contract preparations anticipated in H2 2025 for one rig in North Sea and one rig in Southeast Asia
	- Lower planned out-of-service project spending in Saudi Arabia for one rig
	- Reflects targeted savings and reduction in spending across fleet

#### Q2 2025 Results Highlights

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|                   |        | SDL Consol. | SDNS   |        | SDL Excl. SDNS |        |  |  |
|-------------------|--------|-------------|--------|--------|----------------|--------|--|--|
|                   | Actual | Actual      | Actual | Actual | Actual         | Actual |  |  |
|                   | Q1 25  | Q2 25       | Q1 25  | Q2 25  | Q1 25          | Q2 25  |  |  |
| Adj. Revenue1     | \$243  | \$240       | \$63   | \$61   | \$180          | \$179  |  |  |
| Adj. EBITDA1      | \$96   | \$94        | \$28   | \$21   | \$68           | \$73   |  |  |
| Net Income/(Loss) | \$14   | \$11        | \$12   | \$4    | \$2            | \$7    |  |  |
| Capex/Deferred    | \$16   | \$18        | \$4    | \$4    | \$12           | \$14   |  |  |
| Cash              | \$207  | \$171       | \$35   | \$33   | \$172          | \$138  |  |  |

*All figures in USD millions. Note 1: Excludes amortization of drilling contract intangibles.*

#### Shelf Drilling North Sea: Q2 2025 Change in Cash

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#### Shelf Drilling (excl. SDNS): Q2 2025 Change in Cash

![](_page_10_Picture_1.jpeg)

![](_page_10_Figure_2.jpeg)

*All figures in USD millions Note (1): Total cash is rounded up to the nearest value*

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# **Supplemental Financial Information**

Shelf Drilling Q2 2025 Results Highlights

#### Results of Operations

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| (In millions USD)                                              | Q1 2025 |             | Q2 2025 |
|----------------------------------------------------------------|---------|-------------|---------|
| Adjusted revenues                                              | \$      | 242.7<br>\$ | 239.7   |
| Amortization of intangible liability                           |         | 3.0         | 1.5     |
| Revenues                                                       |         | 245.7       | 241.2   |
| Operating costs & expenses                                     |         |             |         |
| Operating and maintenance                                      |         | 129.4       | 129.6   |
| Depreciation                                                   |         | 21.2        | 21.4    |
| Amortization of deferred costs                                 |         | 20.2        | 19.4    |
| General and administrative                                     |         | 16.8        | 14.4    |
| Impairment loss                                                |         | —           | 3.0     |
| Gain on disposal of assets                                     |         | (3.1)       | (0.9)   |
| Operating income                                               |         | 61.2        | 54.3    |
| Other expense / (income), net                                  |         |             |         |
| Interest expense and financing charges, net of interest income |         | 35.7        | 35.0    |
| Other, net                                                     |         | 0.3         | 1.7     |
| Income before income taxes                                     |         | 25.2        | 17.6    |
| Income tax expense                                             |         | 11.5        | 6.4     |
| Net income                                                     | \$      | 13.7<br>\$  | 11.2    |

#### Revenue Summary

![](_page_13_Picture_2.jpeg)

- Average marketable rigs marginally decreased in Q2 2025 compared to Q1 2025 primarily due to one stacked rig in India (Trident XII)
- Average dayrate increased to \$96.7 thousand in Q2 2025 from \$94.2 thousand in Q1 2025 primarily due to a higher dayrate for one rig in Denmark (Shelf Drilling Winner)
- Effective utilization marginally decreased to 78% in Q2 2025 from 79% in Q1 2025, mainly due to:
	- Two rigs in India (Trident XII) and United Kingdom (Shelf Drilling Fortress) that completed contracts in late Q1 2025 and Q2 2025, respectively
	- Partially offset by full quarter of operations in Q2 2025 for one rig in Egypt (Trident 16)
- Sequential decrease in revenue mainly in United Kingdom and India partially offset by an increase in Denmark and Egypt

|                                      | Q1 2025           | Q2 2025 |
|--------------------------------------|-------------------|---------|
| Operating Data                       |                   |         |
| Average marketable rigs 1            | 33.0              | 32.3    |
| Average dayrate (in thousands USD) 2 | \$<br>94.2<br>\$  | 96.7    |
| Effective utilization 3              | 79<br>%           | 78<br>% |
| Revenues<br>(in millions USD)        |                   |         |
| Operating revenues -<br>dayrate      | \$<br>220.7<br>\$ | 221.4   |
| Operating revenues -<br>others       | 12.3              | 11.3    |
| Other revenues                       | 9.7               | 7.0     |
| Adjusted Revenues                    | 242.7             | 239.7   |
| Amortization of intangible liability | 3.0               | 1.5     |
| Total Revenues                       | \$<br>245.7<br>\$ | 241.2   |

- *Note (1): ''Marketable rigs'' are defined as the total number of rigs that are operating or are available to operate, excluding: rigs under third party bareboat charter agreements, stacked rigs and rigs under contract for activities other than drilling or plug and abandonment services, as applicable.*
- *Note (2): ''Average dayrate'' is defined as the average contract dayrate earned by marketable rigs over the reporting period excluding mobilization fees, contract preparation, capital expenditure reimbursements, demobilization, recharges, bonuses and other revenues.*

*Note (3): ''Effective utilization'' is defined as the number of calendar days during which marketable rigs generate dayrate revenues divided by the maximum number of calendar days during which those rigs could have generated dayrate revenues.*

#### Operating Expenses Summary

- Operating & maintenance expenses were relatively unchanged at \$129.6 million in Q2 2025:
	- Higher operating costs for one rig in Norway (Shelf Drilling Barsk) that commenced drilling operations in May 2025
	- Higher expenses for fleet spares
	- Partially offset by lower costs for two rigs that were redeployed to West Africa (High Island II and Shelf Drilling Victory) in Q1 2025
	- Lower operating costs for two rigs in India (Parameswara and Trident XII) that completed their contracts in Q1 2025
- General and administrative expenses of \$14.4 million in Q2 2025 decreased by \$2.4 million from Q1 2025 primarily due to a decrease in provision for credit losses and lower compensation and benefit expenses in Q2 2025

| (in millions USD)                                                 | Q1 2025           | Q2 2025 |
|-------------------------------------------------------------------|-------------------|---------|
| Rig operating expenses                                            | \$<br>116.4<br>\$ | 117.5   |
| Shore-based expenses                                              | 13.0              | 12.1    |
| Operating and maintenance                                         | \$<br>129.4<br>\$ | 129.6   |
|                                                                   |                   |         |
| Corporate G&A                                                     | \$<br>14.9<br>\$  | 13.7    |
| Provision for / (reversal of provision for) credit<br>losses, net | 0.6               | (0.5)   |
| Share-based compensation                                          | 1.3               | 1.2     |
| General and administrative                                        | \$<br>16.8<br>\$  | 14.4    |

![](_page_14_Picture_9.jpeg)

### Adjusted EBITDA Reconciliation

![](_page_15_Picture_2.jpeg)

| (In millions USD)                                                | Q1 2025 |            | Q2 2025 |
|------------------------------------------------------------------|---------|------------|---------|
| Net income                                                       | \$      | 13.7<br>\$ | 11.2    |
| Add back                                                         |         |            |         |
| Interest expense and financing charges, net of interest income 1 |         | 35.7       | 35.0    |
| Income tax expense                                               |         | 11.5       | 6.4     |
| Depreciation                                                     |         | 21.2       | 21.4    |
| Amortization of deferred costs                                   |         | 20.2       | 19.4    |
| Impairment loss                                                  |         | —          | 3.0     |
| Gain on disposal of assets                                       |         | (3.1)      | (0.9)   |
| Amortization of intangible liability                             |         | (3.0)      | (1.5)   |
| EBITDA and Adjusted EBITDA                                       |         | 96.2       | 94.0    |
| Allocated as:                                                    |         |            |         |
| Shelf Drilling excluding SDNS                                    |         | 68.2       | 73.0    |
| Shelf Drilling North Sea                                         |         | 28.0       | 21.0    |
|                                                                  | \$      | 96.2<br>\$ | 94.0    |
| Adjusted EBITDA margin                                           |         | 40%        | 39%     |

*Note (1): "Interest expense and financing charges, net of interest income" is defined as interest expense and amortization of debt issuance costs, partially offset by interest income.*

#### Capital Expenditures and Deferred Costs Summary

![](_page_16_Picture_2.jpeg)

- Capital Expenditures and Deferred Costs of \$18.0 million in Q2 2025 increased by \$2.5 million from Q1 2025 primarily as a result of:
	- Higher spending on fleet spares
	- Partially offset by lower regulatory and capital maintenance expenditures for three rigs in West Africa (Main Pass IV), Denmark (Shelf Drilling Winner) and Qatar (Shelf Drilling Odyssey), and for two rigs that were redeployed to West Africa (High Island II and Shelf Drilling Victory) in Q1 2025

| (In millions USD)                                                     | Q1 2025          | Q2 2025       |
|-----------------------------------------------------------------------|------------------|---------------|
| Regulatory and capital maintenance 1                                  | \$<br>16.2<br>\$ | 10.4          |
| Contract preparation 2                                                | 2.1              | 2.9           |
| Fleet spares and others 3                                             | (2.8)            | 4.7           |
| Total Capital Expenditures and Deferred Costs                         | \$<br>15.5<br>\$ | 18.0          |
| Allocated as:                                                         |                  |               |
| Shelf Drilling excluding SDNS                                         | \$<br>11.3<br>\$ | 14.2          |
| Shelf Drilling North Sea                                              | 4.2              | 3.8           |
| Total Capital Expenditures and Deferred Costs                         | \$<br>15.5<br>\$ | 18.0          |
| Reconciliation to Statements of Cash Flow                             |                  |               |
| Cash payments for additions to PP&E                                   | \$<br>9.6<br>\$  | 6.9           |
| Net change in advances and accrued but unpaid additions to<br>PP&E    | (1.8)            | (0.4)         |
| Total capital expenditures                                            | 7.8              | 6.5           |
| Changes in deferred costs, net<br>Add: Amortization of deferred costs | (12.5)<br>20.2   | (7.9)<br>19.4 |
| Total deferred costs                                                  | 7.7              | 11.5          |
| Total Capital Expenditures and Deferred Costs                         | \$<br>15.5<br>\$ | 18.0          |

*Note: (1): "Regulatory and capital maintenance" includes major overhauls, regulatory costs, general upgrades and sustaining capital expenditures.*

*Note: (2): "Contract preparation" includes specific upgrade, mobilization and preparation costs associated with a customer contract.*

*Note: (3): "Fleet spares and others" includes: (i) acquisition and certification costs for the rig fleet spares pool which is allocated to specific rig expenditures as and when required by that rig, which will result in an expenditure charge to that rig and a credit to fleet spares and (ii) office and infrastructure expenditures.*

#### Balance Sheet Summary

![](_page_17_Picture_2.jpeg)

| (In millions USD)                   | SDL |               |  |         | SDNS |             |  |         | SDHL Credit Group(1) |               |         |  |
|-------------------------------------|-----|---------------|--|---------|------|-------------|--|---------|----------------------|---------------|---------|--|
|                                     |     | Q1 2025       |  | Q2 2025 |      | Q1 2025     |  | Q2 2025 |                      | Q1 2025       | Q2 2025 |  |
| Cash and cash equivalents           | \$  | 206.6<br>\$   |  | 171.5   | \$   | 34.8<br>\$  |  | 33.2    | \$                   | 171.7<br>\$   | 138.2   |  |
| Restricted cash                     |     | 8.6           |  | 9.2     |      | 4.6         |  | 4.6     |                      | 4.0           | 4.6     |  |
| Accounts and other receivables, net |     | 218.0         |  | 199.7   |      | 47.8        |  | 45.2    |                      | 170.2         | 154.5   |  |
| Property and equipment, net         |     | 1,410.6       |  | 1,395.2 |      | 400.0       |  | 396.5   |                      | 1,010.6       | 998.7   |  |
| Deferred costs                      |     | 174.3         |  | 163.3   |      | 24.1        |  | 21.5    |                      | 150.2         | 141.8   |  |
| Other assets                        |     | 71.9          |  | 72.4    |      | 13.3        |  | 16.8    |                      | 277.9         | 280.0   |  |
| Total assets                        | \$  | 2,090.0<br>\$ |  | 2,011.3 | \$   | 524.6<br>\$ |  | 517.8   | \$                   | 1,784.6<br>\$ | 1,717.8 |  |
| Accounts payable                    | \$  | 90.5<br>\$    |  | 88.3    | \$   | 17.1<br>\$  |  | 22.0    | \$                   | 72.9<br>\$    | 66.1    |  |
| Interest payable                    |     | 58.1          |  | 24.0    |      | 11.5        |  | 4.0     |                      | 46.6          | 20.0    |  |
| Deferred revenue                    |     | 40.3          |  | 31.5    |      | 12.3        |  | 13.0    |                      | 28.0          | 18.5    |  |
| Total debt                          |     | 1,359.0       |  | 1,313.9 |      | 316.4       |  | 307.0   |                      | 1,052.6       | 1,016.9 |  |
| Other liabilities                   |     | 98.8          |  | 97.9    |      | 23.1        |  | 23.7    |                      | 89.0          | 91.9    |  |
| Total liabilities                   |     | 1,646.7       |  | 1,555.6 |      | 380.4       |  | 369.7   |                      | 1,289.1       | 1,213.4 |  |
|                                     |     |               |  |         |      |             |  |         |                      |               |         |  |
| Total equity                        |     | 443.3         |  | 455.7   |      | 144.2       |  | 148.1   |                      | 495.5         | 504.4   |  |
|                                     |     |               |  |         |      |             |  |         |                      |               |         |  |
| Total equity and liabilities        | \$  | 2,090.0<br>\$ |  | 2,011.3 | \$   | 524.6<br>\$ |  | 517.8   | \$                   | 1,784.6<br>\$ | 1,717.8 |  |

*Note: (1): This represents SDHL excluding unrestricted subsidiaries (including SDNS) in relation to the 9.625% Senior Secured Notes, Term Loan and the Credit Facility.*

#### Capital Structure Summary

| (In millions USD)                                    | YE 2023       | YE 2024<br>• |         |    | Q1 2025 |    | Q2 2025 |  |
|------------------------------------------------------|---------------|--------------|---------|----|---------|----|---------|--|
| Cash and cash equivalents                            | \$<br>98.2    | \$           | 152.3   | \$ | 206.6   | \$ | 171.5   |  |
| Restricted cash                                      | 8.8           |              | 9.4     |    | 8.6     |    | 9.2     |  |
| Total long-lived assets 1                            | 1,698.0       |              | 1,623.8 |    | 1,596.6 |    | 1,570.3 |  |
| Total assets                                         | \$<br>2,098.7 | \$           | 2,077.2 | \$ | 2,090.0 | \$ | 2,011.3 |  |
| 9.625% senior secured notes,<br>due April 2029 2     | \$<br>1,056.4 | \$           | 1,025.9 | \$ | 1,027.9 | \$ | 992.1   |  |
| Term loan, due March 2027 3                          | 32.7          |              | 24.9    |    | 24.7    |    | 24.8    |  |
|                                                      | 1,089.1       |              | 1,050.8 |    | 1,052.6 |    | 1,016.9 |  |
| 9.875% senior secured bonds,<br>due November 2028 4  | —             |              | 305.9   |    | 306.4   |    | 297.0   |  |
| 10.25% senior secured notes<br>due 2025              | 236.3         |              | —       |    | —       |    | —       |  |
| Total debt                                           | 1,325.4       |              | 1,356.7 |    | 1,359.0 |    | 1,313.9 |  |
| Net debt                                             | \$<br>1,227.2 | \$           | 1,204.4 | \$ | 1,152.4 | \$ | 1,142.4 |  |
| Total equity attributable to<br>controlling interest | \$<br>332.0   | \$           | 428.3   | \$ | 443.3   | \$ | 455.7   |  |
| Non-controlling interest                             | 70.3          |              | —       |    | —       |    | —       |  |
| Total equity                                         | \$<br>402.3   | \$           | 428.3   | \$ | 443.3   | \$ | 455.7   |  |

- LTM Adjusted EBITDA of \$389.4 million and Net Leverage ratio of 2.9x for SDL (\$328.6 million and 2.7x for Shelf Drilling excluding SDNS)
- Cash and cash equivalents balance at SDL excluding SDNS of \$138.3 million and \$33.2 million at SDNS, as of June 30, 2025
	- \$150.0 million revolving credit facility; \$19.4 million utilized for surety bonds and guarantees as of June 30, 2025
- Total shares outstanding of 256.4 million as of June 30, 2025
	- Primary insiders: 67.1 million (26.2%), consisting primarily of China Merchants: 26.9 million (10.5%), Castle Harlan: 20.0 million (7.8%) and Perestroika AS: 16.0 million (6.2%)

*Note (1): "Total long lived assets" are defined as property plant and equipment, right-of-use assets and short term and long term deferred costs. This excludes assets held for sale.*

*Note (2): Reflects carrying value. Principal value is \$1,020 million.*

*Note (3): Reflects carrying value. Principal value is \$25.0 million.*

*Note (4): Reflects carrying value. Principal value is \$305.0 million.*

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#### Free Cash Flow Summary

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- Q2 2025 Adjusted EBITDA marginally decreased to \$94.0 million (adjusted EBITDA margin of 39%)
- Cash and cash equivalents decreased by \$35.1 million to \$171.5 million during Q2 2025, mainly due to:
	- Higher debt service payments in Q2 2025 (\$47.5 million of principal payments and \$67.0 million of interest payments)
	- Partially offset by a decrease in working capital in Q2 2025
- Cash and cash equivalents increased by \$19.2 million during the first six months of 2025

| Quarterly Cash Flow Summary (\$MM)       | Q1 2025           | Q2 2025 |
|------------------------------------------|-------------------|---------|
| Adjusted EBITDA                          | \$<br>96.2<br>\$  | 94.0    |
| Interest expense, net of interest income | (35.7)            | (35.0)  |
| Income tax expense                       | (11.5)            | (6.4)   |
| Capital expenditures and deferred costs  | (15.5)            | (18.0)  |
| Sub-total                                | 33.5              | 34.6    |
| Rig sale net proceeds                    | 8.3               | 0.5     |
| Insurance gross proceeds                 | 4.5               | 1.2     |
| Working Capital Impact                   |                   |         |
| Interest 1                               | 35.0              | (32.0)  |
| Other                                    | (26.6)            | 8.5     |
| Sub-total                                | 8.4               | (23.5)  |
| Payment of debt issuance costs           | (0.3)             | (0.2)   |
| Payment of long-term debt                | —                 | (47.5)  |
| Payment for equity issuance costs        | (0.1)             | (0.2)   |
| Sub-total                                | (0.4)             | (47.9)  |
| Net change in cash and cash equivalents  | 54.3              | (35.1)  |
| Beginning Cash                           | 152.3             | 206.6   |
| Ending cash and cash equivalents         | \$<br>206.6<br>\$ | 171.5   |

#### Free Cash Flow Summary

![](_page_20_Picture_2.jpeg)

| Quarterly Cash Flow Summary (\$MM) -<br>Q2 2025 | Shelf Drilling<br>excluding SDNS | Shelf Drilling<br>North Sea | Total  |
|-------------------------------------------------|----------------------------------|-----------------------------|--------|
| Adjusted EBITDA                                 | \$<br>73.0<br>\$                 | 21.0<br>\$                  | 94.0   |
| Interest expense, net of interest income        | (26.6)                           | (8.4)                       | (35.0) |
| Income tax expense                              | (6.1)                            | (0.3)                       | (6.4)  |
| Capital expenditures and deferred costs         | (14.2)                           | (3.8)                       | (18.0) |
| Sub-total                                       | 26.1                             | 8.5                         | 34.6   |
| Rig sale net proceeds                           | 0.5                              | —                           | 0.5    |
| Insurance gross proceeds                        | 1.2                              | —                           | 1.2    |
| Working Capital Impact                          |                                  |                             |        |
| Interest 1                                      | (24.8)                           | (7.2)                       | (32.0) |
| Other                                           | 1.3                              | 7.2                         | 8.5    |
| Sub-total                                       | (23.5)                           | —                           | (23.5) |
| Payment of debt issuance costs                  | (0.1)                            | (0.1)                       | (0.2)  |
| Payment of long-term debt                       | (37.5)                           | (10.0)                      | (47.5) |
| Payment of equity issuance costs                | (0.2)                            | —                           | (0.2)  |
| Sub-total                                       | (37.8)                           | (10.1)                      | (47.9) |
| Net change in cash and cash equivalents         | (33.5)                           | (1.6)                       | (35.1) |
| Beginning cash                                  | 171.8                            | 34.8                        | 206.6  |
| Ending cash and cash equivalents                | \$<br>138.3<br>\$                | 33.2<br>\$                  | 171.5  |

*Note (1): Represents the difference between interest expense, net of interest income and cash interest payments during the period.*

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