Aberdeen-headquartered Dolphin Drilling (OSE:DDRIL) has announced its fourth quarter (Q4) results as the company’s order backlog rises above $1.1 billion (£870m).
The Oslo-listed offshore drilling firm said its revenue backlog included $480m (£) in firm orders and $674m in letters of intent (LOI) and options periods.
The company announced total revenues in the fourth quarter of $23.6 million and an earnings before interest, taxes, depreciation and amortisation (EBITDA) result of $2.8m.
Dolphin also completed the acquisition of the Paul B. Loyd Jr and Transocean Leader rigs it announced in June last year, as well as entering a five and a half year master service agreement with Harbour Energy.
Dolphin said it purchased the rigs for $49m, and subsequent contract negotiations revealed an estimated EBITDA backlog to $150m for the Paul B. Loyd, Jr.
In other deals closed in the fourth quarter, Dolphin said it signed one contract and one (LOI) for the Borgland Dolphin rig for operations in the UK representing a minimum 637 days, with a total revenue backlog in excess of $150m.
© Supplied by Fredrik Helliesen/DoDolphin said the contracts include options which can extend the total backlog to three and a half years.
Dolphin also signed a Letter of Award with Oil India Ltd for a minimum 14-month drilling campaign in India equivalent to revenue backlog of $156m including
other services.
Dolphin continues to build backlog
Commenting on the fourth quarter results, Dolphin Drilling chief executive officer Bjørnar Iversen,: “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.”
Mr Iverson said the offshore drilling rig supply has been “in free-fall since 2014”, with 185 retired or scrapped drillships and semisubmersible rigs countered with only a limited number of new rigs entering the global fleet.
“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,” Mr Iversen said.
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