Odfjell Drilling Ltd - Ruling from Hordaland District Court

24 Jan 2025 08:40 CET

Reference is made to Note 11 of Odfjell Drilling Ltd’s report for the third
quarter of 2024 and further to Note 28 in its 2023 Annual Report, which detail
an adverse administrative tax ruling by Norwegian Tax Authorities dated 21
December 2022.

Following the administrative tax ruling from the Norwegian Tax Authorities,
Odfjell Offshore Ltd (OFO) in February 2023 made an upfront payment of NOK 307
million in taxes and interest for the financial years 2017 through 2021. The
payment was funded by Odfjell Drilling Ltd as per an indemnification letter
dated 1 March 2022, as the ultimate responsible entity.

OFO appealed the administrative tax ruling to Hordaland District Court, which
was litigated at the beginning of December 2024. The court issued a judgment on
23 January in favour of the Norwegian Tax Authorities.
The judgment will be further appealed to Gulating Court of Appeal.

Based on legal advice, OFO and Odfjell Drilling Ltd’s best judgement is still
that the tax case will ultimately be won by OFO. Consequently, Odfjell Drilling
Ltd still recognises the upfront payment made in 2023 as a refundable payment.
In the event of a final ruling in favour of the tax authorities, this will not
have any liquidity effect; only an equivalent booking as a loss in Odfjell
Drilling Ltd.

For further queries, please contact:
James Crothers, Investor Relations Officer
+44 (0) 7495 067 684 / +44 (0) 7393 766 446
jchu@odfjelldrilling.com
London, United Kingdom
24 January 2025
Odfjell Drilling Ltd

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