Northern Ocean (NOL) Q3 2025 earnings summary

Executive summary

• Achieved a 9% increase in operating revenue to $57.4 million in Q3 2025, driven by higher operational days for both rigs, though utilization was 64% due to ramp-up costs and new contracts.

• Deepsea Bollsta transitioned to a long-term Equinor contract, adding $335 million in firm backlog, later extended by 5 months post-quarter.

• Deepsea Mira began a multi-well campaign in Namibia, with contract value extended post-quarter, contributing to a total firm backlog of $382 million.

• Announced sale of Deepsea Bollsta for $480 million, expected to close mid-December 2025, enabling refinancing and future capital return to shareholders.

Financial highlights

• Operating revenue rose to $57.4 million from $52.6 million sequentially, reflecting increased rig activity.

• Total operating expenses increased to $65.9 million from $54.3 million, mainly due to deferred cost amortization.

• Net loss widened to $25.9 million from $15.1 million in the previous quarter; basic and diluted loss per share was $0.09.

• Cash and cash equivalents stood at $43.8 million at quarter-end.

Outlook and guidance

• Near-term focus on closing the Deepsea Bollsta sale, refinancing, and securing new contracts for Deepsea Mira.

• 2026 expected as a transition year with tightening supply of modern rigs and increased long-term contract visibility.

• Anticipates return of major oil companies to the Orange Basin, supporting Deepsea Mira's future activity.