Northern Ocean (NOL) Q3 2024 earnings summary

Executive summary

• Deepsea Mira operated under contract with TotalEnergies, relocating from Congo to Namibia and securing a contract extension for additional wells.

• Deepsea Bollsta completed its 5-year survey in Namibia and began preparations for a Ghana contract with Springfield, starting October 2024.

• Post-quarter, a major contract was signed with Equinor for Deepsea Bollsta in Norway, adding $335 million firm backlog and $80 million for upgrades and mobilization.

• Total revenue backlog stands at $465 million, with ongoing efforts to secure new contracts for Deepsea Mira.

Financial highlights

• Q3 2024 operating revenue was $39.9 million, down from $73.3 million in Q2, mainly due to Deepsea Bollsta being off contract.

• Total operating expenses decreased to $60.0 million from $66.2 million sequentially, mainly from lower amortization of deferred costs.

• Interest expense increased to $15.9 million from $12.5 million, reflecting higher rates post-refinancing.

• Net loss from continuing operations was $35.9 million, compared to a $6.3 million loss in the previous quarter; basic and diluted loss per share was $0.19 versus $0.03.

• Cash and cash equivalents at quarter-end were $71.3 million.

Outlook and guidance

• Focus is on securing new opportunities for Deepsea Mira after the TotalEnergies contract ends.

• Optimism remains for market improvements, especially with anticipated exploration and appraisal programs in Namibia starting Q3 2025.