Northern Ocean (NOL) Q4 2025 earnings summary

Executive summary

• Completed sale of Deepsea Bollsta for $480 million, simplifying structure and reducing debt.

• Focused on operational efficiency, cost control, and securing new contracts for Deepsea Mira.

• Maintained uninterrupted operations and high utilization on Deepsea Mira, drilling a highly efficient well in Namibia.

Financial highlights

• Q4 2025 operating revenue was $111.3 million, up from $57.4 million in Q3 2025, driven by more operational days and deferred revenue from the Bollsta sale.

• Operating expenses rose to $150.7 million from $65.9 million, mainly due to deferred costs and a management agreement termination.

• Net loss from continuing operations was $50.4 million, compared to a $25.9 million loss in the previous quarter.

• Basic and diluted loss per share was $0.17, versus $0.09 in Q3 2025.

• Interest expense dropped to $10.1 million from $15.9 million due to debt reduction.

Outlook and guidance

• Market remains challenging through 2026, but longer-term opportunities are emerging for 2027 and beyond.

• Contracting strategy prioritizes value optimization and capital preservation until visibility improves.

• Preparing to return capital to shareholders once sufficient backlog is secured.