Deep Value Driller AS

Investor Presentation • Feb 5, 2024

Deep Value Driller AS Q4 2023

Q4 2023

OVERVIEW CONTENT

• Comments from the Board of directors

• Key Figures

• Financial statement

• Notes

• Disclaimer

Comments from the Board of directors

Main events 2023

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 has since end of January 2023 been undergoing an intensive reactivation project, and the Drillship was delivered to the Charterer 8. September 2023. The drillship arrived West Africa mid-October 2023 where she commenced operation 1. November. Daily rates are invoiced and paid monthly. Also, the contractual mobilization fee 7.5 million USD has been paid by contractor.

The forecasted reactivation cost was 44 million USD. Findings during opening up, increased market activity globally leads to cost inflation, high price on fuel and shore power have caused increased costs. In addition, delay in delivery and an unforeseen and temporary relocation of the Drillship during reactivation also added costs. Today the total project cost is estimated to USD 64 million. To meet this delay and increased cost, the company established early November 2023 a credit line with major shareholders of 7.5 million USD.

The rig has been on full day rate since 1 Nov 2023. Start up has been challenging for a charterer that is new to this high-quality drillship. The drillship is in full operation and is now drilling on second location. BOP2 was originally to be finished 30 days after first spud/well – however – all focus has been on assisting charterer in starting operation – and in full cooperation with charterer it will be taken care of as soon as possible. The delayed project closing, and increased cost is mitigated by extended supplier support and a prolongation of shareholders 7,5 million USD creditline. On this basis the Board evaluates cash flow balance to be satisfactory, despite the fact that cash flow is delayed compared to original business plan/budget.

Main events going forward

Recertification project to be finalized and closed.

DVD plan to distribute excess cash to its shareholders and is currently evaluating the form of distribution, timing, and the size of a regular distribution. The company plan to announce its distribution plan latest in connection with the announcement of the 2024 1st quarter report.

K e y f i g u r e s
\$65,000,000	\$3,663,387
\$31,622/day	\$63,521,499

Financial statement Q4 2023

Consolidated Profit and (P&L) Interim Loss Statement
Unaudited Amounts in USD
Operating income and operating expenses	Note	Q4 -2023	Q4 - 2022	YTD 2023	YTD 2022
Daily rate		10 335 000	-	226 667 11	-
Other income		752 288	-	1 405 471	-
Total Income		11 087 288	-	12 632 138	-
Operational cost		(824 949)	(7 993) 714	(18 461) 841	(7 993) 714
Employee benefits expense		(209 115)	(826 962)	(1 496) 011	(826 962)
Amortisation	2	(3 312) 096	-	(3 312) 096	-
Depreciation	2	(720 448)	(2 891) 886	(2 126) 887	(2 891) 886
Other expenses		(147 967)	(1 705) 474	(1 418) 544	(1 705) 474
Total expenses		(4 790) 998	(12 552) 903	(27 812) 380	(12 552) 903
Operating profit (loss)		6 088 498	(12 903 552)	(14 748 674)	(12 903 552)
Operating profit (loss) before depreciation (EBITDA)		9 905 257	(10 661) 016	(8 236) 765	(10 661) 016
Financial and income expenses
Financial income		356 419	183 480	2 033 238	183 480
Financial expenses		(3 051 092)	(700 563)	(10 360 299)	(700 563)
financial Net items	3	(2 673) 694	(517 083)	(8 061) 327	(517 083)
(loss) Net profit before tax		3 393 825	(13 636) 420	(23 735) 075	(13 636) 420
for the period Income tax		(239 695)		(493 168)
(loss) Profit for the period		3 154 130	(13 636) 420	(23 903) 568	(13 636) 420
Allocation of result net
Transferred retained earnings to		3 154 130	(13 636) 420	(23 903) 568	(13 636) 420

Financial statement Q4 2023

Consolidated Interim statement	of Financial	Position
Unaudited Amounts in USD Assets	Note	31 December 2023	31 December 2022
Non-current assets
Intangible assets
Concessions, patents, licences	2	4 270	6 037
Total intangible assets		4 270	6 037
plant and equipment Property,
Ships	2	60 678 856	63 561 533
Reactivation project cost	2	60 425 188	-
Equipment and other movables	2	1 305	3 987
Total property, plant and equipment	2	121 105 349	63 565 520
financial Non-current assets
Total non-current financial assets		-	-
Total fixed assets		121 109 618	63 571 557
Current assets
Inventories		1 514 200	865 530
Debtors
Other short-term receivables		008 116 7	743 253
Total receivables		7 008 116	743 253
Cash and cash equivalents		11 931 255	108 138
Total current assets		20 453 570	716 921 1
Total assets		141 563 188	65 288 478

Interim Consolidated statement	of Financial	Position
Unaudited Amounts in USD
and liabilities Equity	Note	December 31 2023	December 31 2022
Equity
Paid-in capital
Share capital	4,5	1 019 177	1 019 177
stock Treasury	4	(3 519)	(3 519)
Share premium reserve	4	82 209 233	82 209 233
Other paid-up equity	4	383 146	323 830
Total paid-up equity		83 608 037	83 548 722
Retained earnings
Other equity		3 519	3 519
Uncovered loss	4	(50 027) 655	(27 124) 086
Total retained earnings		(50 508) 651	(27 605) 082
Total equity		32 956 530	56 466 117
Liabilities
Long-term liabilities
Deferred tax liabilities		2 035 692	1 542 524
Liabilities to financial institutions	3	75 000 000	6 000 000
Total liabilities Long-term		77 035 692	7 542 524
Current liabilities
Trade payables		16 409 420	834 507
Other current liabilities		15 161 547	445 329
Total current liabilities		31 570 967	1 279 836
Total liabilities		108 606 658	8 822 360
Total and liabilities equity		141 563 188	65 288 477

Financial statement Q4 2023

Interim Consolidated Indirect cash flow
Unaudited in USD Amounts
NRS Indirect method	YTD 2023	YTD 2022
in Amount USD
Cash Flow from operating activities
Profit/Loss before tax	(23 735) 075	(7 711) 449
Ordinary depreciation	5 983 438	1 443 333
Profit/Loss sale of fixed assets	-	-
Changes in inventories	(648 670)	752 175
Changes other short receivable term	(6 863) 264	93 886
Changes payable in accounts	15 574 913	16 002
Change other accrual in items	14 716 218	61 792
cash flows from Net operating activities	6 285 301	(5 946) 658
flow from Cash investment activities
Acquisition of intangible assets	-	-
of tangible Acquisition assets	(63 499) 521	(1 643)
Share investment	-	-
cash flow from Net investment activities	(63 499) 521	(1 643)
Cash flow from financing activities
Proceeds from equity	59 316	-
Capital increase costs	-	-
Debt financing	75 000 000	4 000 000
Loan repayment	(6 000) 000	-
cash flow from financing Net activities	69 059 316	4 000 000
change in cash and cash equivalents Net	823 118 11	(1 589) 660
Cash and cash equivalents the end of period at	11 931 255	108 138

NOTES to the Financial statements Q4 2023Q3

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.

Fixed Note 2: assets	Intangible	Fixtures and	Rig	Reactivation	Total
	assets	fittings		project costs
December Acquisition 31 2022 at	8 835	8 031	68 663 387	-	68 680 253
Additions in 2023	-	-	-	63 521 499	63 521 499
Acquisition December 31 2023 cost at	8 835	8 031	68 663 387	63 521 499	132 201 752
book value Opening 2023	6 037	3 987	63 561 533	-	63 571 557
Depreciation & amortisation 2023	(1 767)	(2 682)	(2 677) 882	(3 312) 096	(5 438) 983
Accumulated depreciation & amortisation	(4 565)	(6 726)	(7 531) 984	(3 311) 096	(11 134) 092
Closing Book Value December 31 2023	4 270	1 305	60 678 856	60 425 188	121 109 618

NOTES to the Financial statements Q4 2023

Note 3: Long-term liabilities

In February 2023, the company secured a term loan facility amounting to 75 million USD with a duration of three years. For the first 18 months, no repayments are required. Starting from August 2024, the company will begin making monthly installments until the loan balance is reduced from 75 million USD to 50 million USD. At the end of the three-year term, the company will repay the remaining balance of 50 million USD.

Shareholders' equity Note 4:	Share capital	Stock Own	Share	Other paid-up	Other equity	Uncovered	Total
			premium	equity		loss
Opening balance 2023 1 January	019 1 177	(3 519)	82 209 233	323 830	3 519	(27 124) 086	56 466 117
Share based payment -				59 316			59 316
for the period Loss						(23 902) 568	(23 902) 568
Closing balance 31 December 2023	019 1 177	(3 519)	82 209 233	383 146	3 519	(50 026) 655	32 956 530

NOTES to the Financial statements Q4 2023

Shareholders above as of December Note 5: 1% 31 2023
Shareholders	Ordinary	Share of votes
UTHALDEN AS	7 868 365	9,08 %
SOLAN CAPITAL AS	6 000 000	6,92 %
Goldman Sachs & Co. LLC	5 904 781	6,81 %
HORTULAN AS	3 375 000	3,89 %
ALDEN AS	3 209 660	3,70 %
TVENGE	3 200 000	3,69 %
SCAN CHEMICALS AS	2 400 000	2,77 %
CAMACA AS	2 150 000	2,48 %
BNP Paribas Securities Corp.	1 902 861	2,19 %
HUSHOVD	1 707 311	1,97 %
NORDA ASA	677 692 1	1,94 %
Bank Spain CACEIS SA	1 605 000	% 1,85
CIPRIANO AS	1 500 000	% 1,73
Citibank plc Europe	1 438 224	1,66 %
HØGSET HOLDING AS	1 200 000	1,38 %
OLA RUSTAD AS	1 171 398	1,35 %
CLEARSTREAM BANKING S.A.	1 134 441	1,31 %
Euroclear Bank S.A./N .V.	1 111 501	1,28 %
MELESIO INVEST AS	1 030 591	1,19 %
SONGA CAPITAL AS	1 026 447	1,18 %
TTC INVEST AS	1 000 000	1,15 %
A HOLDINGS AS	1 000 000	1,15 %
PORTIA AS	1 000 000	1,15 %
THABO ENERGY AS	1 000 000	1,15 %
NORDNET LIVSFORSIKRING AS	998 330	% 1,15
SA/NV The Bank of York Mellon New	953 538	% 1,10
Bank CACEIS	906 429	% 1,05
Total	57 471 569	66,3 %
Others (interest %) < 1	29 225 098	33,7 %
Total	86 696 667	100 %

Deep Value Driller AS owns 300 000 Treasury stocks at par value 0,1 NOK which amounts to 0,35% of the company's total stocks.

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.