Northern Ocean (NOL) Q4 2024 earnings summary

Executive summary

• Secured two major contracts for Deepsea Bollsta in Norway, adding $335M (Equinor) and $23–$42M (OMV) to backlog, with operations starting in 2025.

• Deepsea Bollsta completed contracts in Ghana and Namibia, now mobilizing to Norway; Deepsea Mira extended for an additional well in Namibia.

• Total firm backlog estimated at $462–$481M as of report date.

Financial highlights

• Q4 2024 operating revenue rose to $65.4M from $39.9M in Q3, driven by Deepsea Bollsta operations.

• Q4 operating expenses increased to $65.2M from $60.0M sequentially, mainly due to rig mobilization.

• Net loss from continuing operations narrowed to $13.8M in Q4 from $35.9M in Q3; basic and diluted loss per share improved to $0.05 from $0.19.

• FY 2024 net loss was $65.7M, compared to $70.9M in 2023.

• Cash and cash equivalents at year-end were $42.8M, down from $54.4M at prior year-end.

Outlook and guidance

• Equinor contract for Deepsea Bollsta expected to commence in H2 2025; OMV contract to start in Q2 2025.

• Deepsea Mira continues operations in Namibia with an extended contract.