Dolphin Drilling (DDRIL) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw significant operational and financial improvements, with EBITDA reaching $8.2 million and revenues rising to $47 million, supported by two rigs on contract for the full period and strong rig uptime.

• Secured $100 million in new contract backlog in Q4, bringing total firm backlog to $216 million and options to $353 million, with all three rigs under contract.

• Leadership transition occurred at the end of the quarter, with a new CEO appointed.

• Equity raises of approximately $15 million and NOK 151 million were completed in late 2025, strengthening the cash position.

• Full-year 2025 revenues were $177.7 million, a significant increase from $96.5 million in 2024.

Financial highlights

• Q4 2025 EBITDA reached $8.2 million, reversing a Q3 loss of $4.7 million.

• Revenues increased to $47 million in Q4, up from $37.7 million in Q3.

• Net income for Q4 2025 was $2.3 million, compared to a loss of $1.4 million in Q3; full-year net loss was $54.2 million, impacted by a legacy tax claim.

• Rig operating costs and G&A expenses were reduced quarter-on-quarter, including a $1 million one-off reduction from legacy cost and tax estimate revisions.

• Cash and cash equivalents at year-end were $30.5 million, with accounts receivable at $23.4 million and inventory at $25 million.

Outlook and guidance

• Focus on increasing contract backlog, maintaining a reduced cost base, and delivering safe, efficient operations to create a stable platform for growth through 2026 and beyond.

• Borgland Dolphin scheduled to return to work later in 2026, expected to further improve financial position.

• Market expected to tighten from H2 2026 into 2027, especially in deepwater, with day rates for moored units expected to remain flat short-term.

• Growth opportunities identified in Africa, Asia, and potentially the North Sea.

• Plans for selective financing to support the 2026 investment program.