Norway's Dolphin Drilling Q2 revenue falls on lower mobilisation income
Norway's Dolphin Drilling Q2 revenue falls on lower mobilisation income
Overview
Norway offshore rig operator's Q2 revenue declined yr/yr due to lower mobilisation revenues
Q2 EBITDA rose yr/yr, supported by reduced operating expenses and improved cost discipline
Company secured multi-year contracts, extending fleet backlog to 2030 and 2031
Outlook
Company says multi-year contract awards extend revenue backlog into 2030 and 2031
Company expects to capitalise on growth opportunities in a supply-constrained market
Company sees structural demand support for moored semi-submersibles amid rising global energy investment
Result Drivers
CONTRACT COVERAGE - Multi-year contract awards for Paul B. Loyd Jr. and Borgland Dolphin extended revenue backlog and earnings visibility
LOWER MOBILISATION REVENUES - Revenue decline yr/yr reflected lower mobilisation revenues and commencement of new contract for Paul B. Loyd Jr. at reduced dayrate
COST DISCIPLINE - Reduced operating expenses and marginally improved daily operating costs for active rigs supported EBITDA growth
Company press release: ID:nMFN29Bz7w
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Capex |
| $900,000 |
|
Q2 EBITDA |
| $7 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas drilling peer group is "buy"
Wall Street's median 12-month price target for Dolphin Drilling AS is NOK3.35, about 34.5% above its August 18 closing price of NOK2.49
Reuters Recommended Reads
Aug 18 - Norway's Odfjell Drilling Q2 profit aided by insurance proceeds
Aug 18 - Norway's Reach Subsea Q2 revenue jumps on higher project activity
Aug 18 - Norway's Awilco LNG Q2 net loss unchanged as LNG spot-rate volatility weighs on earnings
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)