Northern Ocean (NOL) Q1 2025 earnings summary

Executive summary

• Achieved strong operational milestones in Q1 2025, including Deepsea Bollsta's early completion for Chevron and mobilization to Norway, and Deepsea Mira's record KPIs in Namibia for TotalEnergies.

• Initiated significant organizational restructuring, including Dublin office closure and workforce reduction, to streamline operations and reduce costs.

• Maintained a solid contract backlog with blue-chip clients and continued focus on operational efficiency and cost control.

Financial highlights

• Operating revenue was $58.1M, down from $65.4M in Q4 2024, mainly due to fewer operational days for Deepsea Bollsta.

• Total operating expenses decreased to $54.4M from $65.2M sequentially, reflecting lower direct costs and deferred mobilization expenses.

• Net loss from continuing operations was $11.2M, improved from a $13.8M loss in the previous quarter; basic and diluted loss per share was $0.04.

• Cash and cash equivalents at quarter-end were $58.0M, up from $42.8M at the start of the period.

• Net cash provided by operating activities was $25.0M; net cash used in investing activities was $18.1M.

Outlook and guidance

• Focus remains on securing new contracts for Deepsea Mira, maintaining high operational standards, and realizing cost optimization benefits.

• Preparing for future refinancing to enhance capital efficiency; demand for high-specification harsh environment rigs remains strong.

• Total firm backlog estimated at $355M–$374M, with Deepsea Bollsta's Equinor contract expected to start in H2 2025.