Dolphin Drilling (DDRIL) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating revenues reached $16.5 million, with EBITDA at $(22.1) million and net loss of $(30.2) million, or $(0.10) per share.

• Two rigs, Paul B. Loyd, Jr. and Blackford Dolphin, are now on long-term contracts, providing stable revenue streams and operational stability from November.

• Blackford Dolphin commenced its contract with Oil India in November 2024 after a challenging transit from Nigeria, with a $12 million mobilisation fee due.

• Borgland Dolphin's contract was terminated, resulting in a $20.75 million payment and the rig being marketed for new opportunities.

• Sale of Dolphin Leader in July generated $5.9 million in cash; firm revenue backlog stands at $371 million plus $400 million in options.

Financial highlights

• Q3 2024 revenues were $16.5 million, mainly from Paul B. Loyd, Jr., with other rigs not generating revenue.

• EBITDA loss of $22.1 million, mainly due to Blackford Dolphin transit and operating costs.

• Net loss for Q3 was $30.2 million; EPS of $(0.1).

• Cash balance at quarter-end was $37.6 million, including $5.6 million restricted cash.

• Total interest-bearing debt unchanged at $80 million; equity at $85.1 million.

Outlook and guidance

• Two rigs in operation are expected to generate positive cash flow, with G&A and legal costs projected to decline.

• Borgland Dolphin is being marketed for new contracts, with decisions expected in the coming months.

• Year-end cash flows are expected to stabilize after collecting the Borgland termination fee and Oil India mobilization fee, with possible deductions for late startup.

• Q4 cash balance will be impacted by maintenance capex and Blackford Dolphin mobilization.

• Medium-term outlook for international moored offshore floater rigs remains attractive, but timing of new commitments is uncertain.