Dolphin Drilling AS — Earnings Release 2023

Feb 26, 2024

Dolphin Drilling - Fourth Quarter 2023 financial results

Dolphin Drilling - Fourth Quarter 2023 financial results

(Oslo, 26 February 2024) Dolphin Drilling AS (Dolphin Drilling, OSE: DDRIL)

today announced its unaudited results for the three months ended 31 December

Q4 2023 highlights and subsequent events

· Total revenue backlog at USD 1.1 billion at the time of reporting including

USD 480 million in firm contracts (including mob fees, SPS contributions and

other services) and USD 634 million in LOI's and option periods

· Successful closing of rig acquisition of Paul B. Loyd, Jr. and Transocean

Leader in February 2024. The rigs were purchased for USD 49 million and

subsequent contract negotiations reveal an estimated EBITDA backlog to USD 150

million for the Paul B. Loyd, Jr.

· Signed one contract and one Letter of Intent for Borgland Dolphin for

operations in the UK representing minimum 637 days with a total revenue backlog

in excess of USD 150 million including reactivation and mobilisation

contributions. The contracts include options which can extend the total backlog

to 3.5 years

· Signed Letter of Award with Oil India Ltd for a minimum 14-month drilling

campaign in India equivalent to revenue backlog of USD 156 million including

other services

· Total revenues in the fourth quarter of 2023 of USD 23.6 million and an

EBITDA of USD 2.8 million

Bjørnar Iversen, CEO of Dolphin Drilling commented: "We continue to build

backlog on our rigs, allowing us to reactivate and put our rigs back into

operational service which should bode well for attractive longer-term

shareholder returns. We are particularly pleased to report of a successful

closing of the earlier announced rig purchase of Paul B. Loyd, Jr. The

acquisition and later-on firming up a multi-year drilling campaign with the

leading UK oil and gas producer Harbour Energy shows the depth and experience of

Dolphin Drilling's in-house capabilities."

"The offshore drilling rig supply has been in free-fall since 2014, counting 185

retired or scrapped drillships and semisubmersible rigs, this countered with

only a limited of number of new rigs entering the global fleet during the same

period. Consequently, Dolphin Drilling is well-positioned to secure contracts at

attractive levels, benefitting from current market improvements and an

attractive positioning in the niche moored semisubmersible market", Iversen

concludes.

With the closing of the USD 65 million Loan Facility with Maritime Asset

Partners Ltd, in February 2024 the new loan provides extra cash liquidity in

addition to financing of Paul B. Loyd, Jr. rig acquisition. Moreover, The USD 15

million Shareholder Loan facility will be extended by twelve months. The two

existing shareholders have agreed to extend based on materially the same terms.

Further on, General Hydrocarbons Limited (GHL) has paid USD 5.5 million in 3

instalments since release of the Q3 2023 report (USD 0.5 million prior to the

end of 2023 and the remainder in 2024). GHL remains significantly overdue in its

payment obligations, and as of end of Q4 2023 outstanding amounts net USD 37.8

million (after netting, advances, withholding tax and VAT). As at reporting date

the position has increased to USD 46.0 million, this includes billings to end

January less payments received in January and February. Ongoing discussions with

the client continue in efforts to resolve the situation.

Dolphin Drilling will present its results for the fourth quarter of 2023 in an

audiocast today, 26 February 2024, at 15:00 CET.

The presentation will be held by CEO Bjørnar Iversen and CFO Stephen Cox.

Link to Q4 audiocast:

https://channel.royalcast.com/landingpage/hegnarmedia/20240226_4/

Participants may also visit the Investor Relations section of the company's

website at www.dolphindrilling.com and click on the link to "Webcast".

There will be a Q&A session following the presentation. Written questions can be

submitted through the audiocast solution during the presentation.

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 five high

technical standard 4th and 5th generation enhanced Aker H3 and H4 units,

Borgland Dolphin, Blackford Dolphin, Bideford Dolphin, Paul B. Loyd, Jr. and

Dolphin Leader operated by an experienced team with a strong operational track

record. The company has offshore and onshore offices and operations in Norway,

Scotland, Brazil, and Nigeria.