Deep Value Driller AS — Interim / Quarterly Report 2024

Aug 9, 2024

Deep Value Driller AS H1 2024

OVERVIEW CONTENT

• Comments from the Board of directors

• Financial statement

• Notes

• Disclaimer

Comments from the Board of directors

Main events

Early 2023, the company signed a bareboat charter for the Drillship "Deep Value Driller" with Saipem as Charterer. The Charterer will utilize the Drillship for operations on the Ivory Coast under a drilling contract with Eni Côte d'Ivoire Ltd. The bareboat charter term is for 11 wells firm with 6 wells options. Estimated firm revenue is USD 160 million to the Group (excluding the rate payable for any optional extensions of the Contract).

The Drillship was delivered to the Charterer September 8 th 2023 after an intensive reactivation project and commenced operation on full day rate November 1 st 2023. The remaining reactivation project activities, including BOP 2, have been finalized and closed.

The rig is now working on her fifth location and performs satisfactorily with limited downtime and high utilization. Currently technical utilization is 98%.

Main events going forward

The company will continue to distribute all excess cash to shareholders.

Financial statement H1 2024

Interim Consolidated Profit and Loss (P&L) Statement
Unaudited Amounts in USD
Operating income and operating expenses	Note	Q2 - 2024	Q1 - 2024	YTD 2024	YTD 2023
Daily rate		13 650 000	13 650 000	27 300 000
Other income		510 656	751 463	1 262 119
Total Income		14 160 656	14 401 463	28 562 119
Operational cost		(1 081 045)	(1 858 726)	(2 939 771)	(5 916 672)
Employee benefits expense		(83 266)	(60 457)	(143 723)	(635 685)
Depreciation and amortisation expenses	2	(4 027 095)	(3 943 838)	(7 970 933)	(1 443 561)
Other expenses		(114 114)	(40 763)	(154 876)	(1 218 964)
Total expenses		(5 305 220)	(5 903 783)	(11 209 303)	(9 214 882)
Operating profit (loss)		8 852 136	8 497 680	17 352 816	(9 214 882)
Operating profit (loss) before depreciation (EBITDA)		12 882 231	12 441 518	25 323 749	(7 771 321)
Financial income and expenses
Financial income		717 474	228 288	945 762	1 281 463
Financial expenses		(4 149 535)	(2 451 003)	(6 600 538)	(4 767 558)
Net financial items	3	(3 432 060)	(2 222 716)	(5 654 776)	(3 486 094)
Net profit (loss) before tax		5 423 076	6 274 964	11 698 040	(12 700 976)
Income tax for the period		(221 104)	(209 241)	(430 344)	(51 753)
Profit (loss) for the period		5 201 972	6 065 724	11 267 696	(12 752 729)
Transferred to retained earnings		5 201 972	6 065 724	11 267 696	(12 752 729)

Financial statement H1 2024

Interim Consolidated statement of Financial Position
Unaudited Amounts in USD
Assets	Note	30 June 2024	31 March 2024
Non-current assets
Intangible assets
Concessions, patents, licences	2	3 382	3 826
Total intangible assets		3 382	3 826
Property, plant and equipment
Ships	2	59 237 517	59 958 186
Reactivation project cost	2	56 341 935	57 973 902
Equipment and other movables	2	ਕਰੇਰੇ	636
Total property, plant and equipment	2	115 579 951	117 932 724
Non-current financial assets
Total non-current financial assets
Total fixed assets		115 583 332	117 936 550
Current assets
Inventories		1 189 839	1 514 200
Debtors
Other short-term receivables		12 312 473	11 846 614
Total receivables		12 312 473	11 846 614
Cash and cash equivalents		25 336 875	8 132 291
Total current assets		38 839 188	21 493 104
Total assets		154 422 520	139 429 654

Interim Consolidated statement of Financial Position
Unaudited Amounts in USD
Equity and liabilities	Note	30 June 2024	31 March 2024
Equity
Paid-in capital
Share capital	4,5	1 019 177	1 019 177
Treasury stock	4	(3 519)	(3 519)
Share premium reserve	4	45 627 964	82 209 233
Other paid-up equity	4	383 146	383 146
Total paid-up equity		47 026 768	83 608 037
Retained earnings
Other equity		3 519	3 519
Uncovered loss	4	(40 121 095)	(45 323 067)
Total retained earnings		(40 117 576)	(45 319 548)
Total equity		6 909 192	38 288 489
Liabilities
Long-term liabilities
Deferred tax liabilities		2 365 486	2 365 486
Liabilities to financial institutions	3	125 000 000	75 000 000
Total Long-term liabilities		127 365 486	77 365 486
Current liabilities
Payable tax		834 314	613 210
Trade payables		659 486	8 305 587
Other current liabilities		18 654 042	14 856 882
Total current liabilities		20 147 842	23 775 679
Total liabilities		147 513 328	101 141 164
Total equity and liabilities		154 422 520	139 429 654

Financial statement H1 2024

Interim Consolidated Indirect cash flow
Unaudited Amounts in USD
NRS Indirect method	YTD 2024	YTD 2023
Amount in USD
Cash Flow from operating activities
Profit/Loss before tax	11 698 040	(12 700 976)
Ordinary depreciation	7 970 933	1 443 561
Profit/Loss sale of fixed assets
Changes in inventories	324 361	456 345
Changes other short term receivable	(5 304 358)	(2 060 473)
Changes in accounts payable	(15 749 935)	16 094 312
Change in other accrual items	(8 798 440)	633 549
Net cash flows from operating activities	(ਰੇ 829 399)	3 866 318
Cash flow from investment activities
Acquisition of intangible assets
Acquisition of tangible assets	(2 444 647)	(41 582 008)
Share investment
Net cash flow from investment activities	(2 444 647)	(41 582 008)
Cash flow from financing activities
Proceeds from equity
Capital increase costs
Dividends	(24 290 333)
Debt financing	50 000 000	75 000 000
Loan repayment		(6 000 000)
Net cash flow from financing activities	25 709 667	69 000 000
Net change in cash and cash equivalents	13 405 621	31 284 310
Cash and cash equivalents at the end of period	25 336 876	31 392 448

NOTES to the Financial statements H1 2024

Notes to the Financial statements

Note 1: Summary of Significant Accounting Policies

Company overview

Deep Value Driller AS is a company which purpose is contracting, managing and owning drilling rigs.

Basis for preparation

The interim report, which has not been audited by the Company's independent auditor, has been prepared in compliance with the provisions laid down in the Norwegian Accounting Act NRS 11 and generally accepted accounting principles in Norway.

Note 2: Fixed assets	Intangible assets	Fixtures and	Rig	Reactivation project	Total
		fittings		costs
Acquisition at 31 December 2023	8 835	8 031	68 663 387	63 521 499	132 201 752
Additions in 2024				2 444 647	2 444 647
Acquisition cost at 30 June 2024	8 832	8 031	68 663 387	65 966 146	134 646 399
Opening book value 2024	4 270	1 305	60 678 856	60 425 188	121 109 618
Depreciation & amortisation 2024	888)	(806)	(1 441 339)	(4 083 253)	(5 526 286)
Accumulated depreciation & amortisation	(5 453)	(7532)	(9 425 870)	(9 624 211)	(19 063 067
Closing Book Value 30 June 2024	3 382	499	59 237 517	56 341 935	115 583 332

NOTES to the Financial statements H1 2024

Note 4: Shareholders' equity	Share capital	Own Stock	Share premium Other paid-up		Other equity	Uncovered loss	Total
				equity
Opening balance 1 January 2024	1 019 177	(3 519)	82 209 233	383 146	3 519	(51 388 791)	32 222 765
Dividends			(36 581 269)				(36 581 269)
Share-based payment
Profit for the period						11 267 696	11 267 696
Closing balance 31 December 2023	1 019 177	(3 בנק)	45 627 964	383 146	3 ਵੈਡਰ	(40 121 095)	6 909 192

NOTES to the Financial statements H1 2024

Note 5: Shareholders above 1% as of 30 June 2024
Shareholders	Ordinary	Share of votes
UTHALDEN AS	8 148 365	9,40 %
SOLAN CAPITAL AS	7 000 000	8,07 %
Goldman Sachs & Co. LLC	6 264 842	7,23 %
HORTULAN AS	3 798 194	4,38 %
TORSTEIN INGVALD TVENGE	3 700 000	4,27 %
ALDEN AS	3 081 617	3,55 %
SCAN CHEMICALS AS	2 500 000	2,88 %
CAMACA AS	2 100 000	2,42 %
BNP Paribas Securities Corp.	1 902 861	2,19 %
THOR HUSHOVD	1 707 311	1,97 %
CACEIS Bank Spain SA	1 605 000	1,85 %
CIPRIANO AS	1 500 000	1,73 %
Citibank Europe plc	1 438 224	1,66 %
A HOLDINGS AS	1 283 260	1,48 %
NORDNET LIVSFORSIKRING AS	1 256 739	1,45 %
HØGSET HOLDING AS	1 200 000	1,38 %
SONGA CAPITAL AS	1 069 131	1,23 %
MELESIO INVEST AS	1 030 591	1,19 %
ARVO INVEST AS	1 000 398	1,15 %
TTC INVEST AS	1 000 000	1,15 %
PORTIA AS	1 000 000	1,15 %
THABO ENERGY AS	1 000 000	1,15 %
CACEIS Bank	906 429	1,05 %
MARKET-MAKING SPAREBANK 1 MARKETS AS	898 466	1,04 %
The Bank of New York Mellon SA/NV	876 595	1,01 %
Total	57 268 023	66,1 %
Others (interest < 1 %)	29 428 644	33,9 %
Total	86 696 667	100 %

Disclaimer

DISCLAIMER AND IMPORTANT INFORMATION

This Presentation and its appendices (the "Presentation") has been produced by Deep Value Driller AS, a Norwegian private limited company with its shares admitted to trading on Euronext Growth (Oslo) under the ticker code "DVD" (the "Company"). References to the "Company", "Group", "we", "our", "us" or similar terms refer to Deep Value Driller AS and its consolidated subsidiaries, except where context otherwise requires.

This Presentation, and the information contained herein, has been prepared solely for information purposes and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or a recommendation regarding, any Shares and nothing contained herein shall form the basis of any contract or commitment whatsoever. This Presentation do not purport to contain a complete description of the Company or its prospects. Any analysis contained in this Presentation is not, and does not purport to be, appraisals of the assets, Shares or business of the Company or any other person. The Presentation is intended to present background information on the Company, its business and the industry in which it operates and is not intended to provide complete disclosure upon which an investment decision could be made.

No representation, warranty or undertaking, express or implied, is made by the Company or any of its affiliates or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein, for any purpose whatsoever. The Company or any of its affiliates or representatives shall not have any responsibility or liability whatsoever (for negligence or otherwise) for any loss whatsoever and howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation. Unless otherwise stated, the Company is the source for information included in this Presentation. Information provided on the market environment, developments, trends and on the competitive situation is based on data and reports prepared by third parties and/or the Company based on its own information and information derived from such third party sources. Third party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. This Presentation speaks as of the date hereof. 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. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect developments that may occur after the date of this Presentation.

This Presentation contains forward-looking information and statements relating to the business, financial performance and results of the Company and/or industry and markets in which it intends to operate. Such forward-looking statements are based on current expectations, estimates and projections, reflect current views with respect to future events, and are subject to risks, uncertainties and assumptions. Forward-looking statements are not guarantees of future performance and risks, uncertainties and other important factors could cause the actual results of operations, financial condition and liquidity of the Company or the industry to differ materially from the results expressed or implied in this Presentation by such forward-looking statements. Neither this Presentation nor the information contained herein is being issued, nor may this Presentation nor the information contained herein be distributed, directly or indirectly, to or into any jurisdiction in which such issuance and/or distribution would be unlawful.