Shelf Drilling (North Sea) (SDNS) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 adjusted revenue of $243 million and adjusted EBITDA of $96 million (40% margin), reflecting strong operational execution and improved sequential results from new contract commencements.

• Net income for Q1 2025 was $14 million, with liquidity increasing to $332 million and capital expenditures dropping to $16 million, supporting cash build.

• Fleet-wide uptime reached 99.4%, and safety performance improved after implementing a structured HSE turnaround plan; no recordable safety incidents in March and April, TRIR of 0.24.

• Backlog stood at $1.6 billion as of March 31, with 29 of 33 rigs contracted at an average rate of $100,000 per day.

• Ongoing fleet optimization included the sale of Mainpass 1 and Trident 8, with plans to divest up to three more units in 2025.

Financial highlights

• Adjusted revenue for Q1 2025 was $243 million, up 8% sequentially from Q4 2024, driven by new contracts in Nigeria, Norway, and Egypt.

• Adjusted EBITDA reached $96 million (40% margin), up from $85 million (38% margin) in Q4 2024.

• Net income for Q1 2025 was $14 million, down from $24 million in Q4 2024, mainly due to higher income tax expense.

• Cash balance at quarter-end was $207 million, up $55 million from year-end 2024, with total liquidity of $332 million including an undrawn revolving credit facility.

• CapEx and deferred costs were $16 million in Q1, down $15 million sequentially.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance revised to $310–$360 million due to early contract termination in Denmark.

• CapEx guidance for 2025 lowered to $85–$115 million, with expected higher free cash flow.

• Anticipates improved revenues and utilization in H2 2025 as redeployed rigs return to service.

• No expectation to draw on the revolving credit facility in 2025 or 2026; $100M+ cash expected at year-end 2025 at low end of EBITDA guidance.