Shelf Drilling North Sea Reports Fourth Quarter 2022 Results

20 Mar 2023 05:49 CET

PRESS RELEASE

SHELF DRILLING NORTH SEA REPORTS FOURTH QUARTER 2022 RESULTS

Dubai, UAE, March 20, 2023 – Shelf Drilling (North Sea), Ltd. (“Shelf Drilling
North Sea” and, together with its subsidiaries, the “Company”, Euronext Growth
Oslo Exchange: SDNS) announces results for the fourth quarter and full year of
2022 ending December 31. The results highlights will be presented by audio
conference call on March 20, 2023 at 6:00 pm Dubai time / 3:00 pm Oslo time.
Dial-in details for the call are included in the press release posted on March
13, 2023 and on page 2 of this release.

David Mullen, Chief Executive Officer, commented: “Following the successful
completion in October 2022 of the acquisition of the five high specification
harsh environment jack-up rigs, Shelf Drilling North Sea delivered outstanding
operating and financial results in our first quarter of operations with
operational uptime of 98.0% and adjusted EBITDA of $17.0 million. I would like
to thank all our shore-based and offshore employees for their dedication and
support during this complex transaction.”

Mullen added: “Our backlog was $233.4 million and our cash position was $52.5
million as of December 31, 2022. Our presence and experience in key markets,
combined with our financial strength and demonstrated operational excellence
will position us extremely well as the industry is in the early stages of a
multi-year upcycle.”


Fourth quarter Highlights
• Q4 2022 adjusted revenues of $41.2 million.
• Q4 2022 adjusted EBITDA of $17.0 million, representing an adjusted EBITDA
margin of 41%.
• Q4 2022 net income of $11.3 million.
• Capital expenditures and deferred costs for 2022 were $420.8 million, which
mainly consisted of the acquisition cost of five premium, harsh environment
jack-up rigs in October 2022 (recorded cost of $417.7 million).
• The Company’s cash and cash equivalents balance at December 31, 2022 was $52.5
million.
• The Company’s total debt at December 31, 2022 was $238.8 million.
• Contract backlog was $233.4 million at December 31, 2022 across five
contracted rigs.
• In January 2023, SD Fortress completed contract with TotalEnergies; rig is now
available and being marketed for multiple contract opportunities.

For further queries, please contact:
Greg O'Brien, Executive Vice President and Chief Financial Officer
Shelf Drilling (North Sea), Ltd.
Tel.: +971 4567 3616
Email : greg.obrien@shelfdrilling.com

Dial in Details for the Audio Conference call:

Participants will receive conference access information only when they register
for the conference via the link below:

Online Registration:
https://register.vevent.com/register/BI5df08307e8384c8490919022747e7af2

Participants must register for the call using online registration. Upon
registering, each participant will be provided with call details.

About Shelf Drilling North Sea
Shelf Drilling North Sea is a shallow water offshore drilling contractor
primarily operating in the North Sea. The company's fit-for-purpose strategy and
fleet of modern high-specification harsh environment jack-up rigs enable it to
offer a broad range of services in the shallow water drilling markets. The
company is incorporated under the laws of Bermuda. Since October 12, 2022,
Company shares are listed on the Euronext Growth Oslo Exchange under the ticker
symbol SDNS.

Special Note Regarding Forward-Looking Statements
Matters discussed in this announcement may constitute forward-looking
statements. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "believe", "expect", "anticipate",
“strategy”, "intends", "estimate", "will", "may", "continue", "should" and
similar expressions. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant
known and unknown risks, uncertainties, contingencies and other important
factors which are difficult or impossible to predict and may be beyond its
control. Such risks, uncertainties, contingencies and other important factors
could cause actual events to differ materially from the expectations expressed
or implied in this release by such forward-looking statements. Given these
factors, users of this information should not place undue reliance on the
forward-looking statements.

Additional information about Shelf Drilling (North Sea), Ltd. can be found at
www.shelfdrillingnorthsea.com.

This information is subject to the disclosure requirements pursuant to Euronext
Growth Rule Book part II.

More information:
Access the news on Oslo Bors NewsWeb site

585620_Shelf Drilling North Sea Reports Fourth Quarter 2022 Results.pdf
585620_Shelf Drilling (North Sea), Ltd. 2022 Financial Statements.pdf