Dolphin Drilling AS — Earnings Release 2023

Aug 15, 2023

Dolphin Drilling present its second quarter 2023 financial results

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:

https://bit.ly/DDRIL_Q22023

(Alternatively: https://teams.microsoft.com/l/meetup

-join/19%3ameeting_M2I0NmMzNmQtYTI0Mi00MjMzLTk1MTQtNGQ0OWFjMDllODBm%40thread.v2/0

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ENDS

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.