Maersk Drilling publishes its interim financial report for the first half of 2022:

Today, the Board of Directors of The Drilling Company of 1972 A/S (“Maersk Drilling”) adopted the interim financial report for the first half of 2022 (H1 2022):

Performance Highlights for Q2 2022 (Q1 2022 in brackets)

  • Revenue of $284 million ($248 million)
  • Contracted days were 1,414 (1,158) resulting in 87% (68%) utilization
  • Average daily rate of 201k USD (214k USD)
  • Financial availability of 98.7% (98.8%)
  • Contracts secured with a total value of 160 million USD (357 million USD)
  • Order book of $2.0 billion as of June 30, 2022 ($2.1 billion as of March 31, 2022). Futures coverage for the remainder of 2022 of 78% and 32% for 2023

H1 2022 financial performance (H1 2021 in brackets unless otherwise stated)

  • Revenue of $532 million ($614 million)
  • EBITDA before special items of $95 million ($163 million)
  • Cash flow from operating activities of US$41m (US$94m) equivalent to a cash conversion of 49% (62%)
  • Capex of USD 67 million (USD 36 million)
  • Negative free cash flow of $50 million (positive of $22 million)
  • Net debt of $555m (31 Dec 2021: $505m) and leverage of 2.0x (31 Dec 2021: 1.5x)
  • Cash reserves of $614 million (December 31, 2021: $957 million), including an undrawn revolving credit facility of $400 million (December 31, 2021: $400 million)

Orientation 2022
The 2022 annual guidance as published on February 11, 2022 is maintained:

  • Earnings before amortizations, impairments/reversals and special items (EBITDA before special items) should be between 210 and 250 million USD
  • Capital expenditure should be between 120 and 140 million USD

Profitability guidance for 2022 is partially warranted by the current order backlog and reflects ordinary operational uncertainties, including general platform performance and uncertainties regarding the exercise of options and contract extensions for execution in 2022.

Quote from CEO Jorn Madsen
“I am very pleased with our strong operational performance in the first half of 2022. A market recovery is now materializing, particularly in the floating segment, and our financial guidance for the full year is maintained. I am proud that our innovative approach to sustainability has resulted in tangible improvements in our sustainability performance, and I have nothing but praise for our employees across the organization and their diligent efforts to ensure that Maersk Drilling will enter the planned merger from a position of strength.”

Webcast
As part of the publication of the half-yearly financial report for the first half of 2022, a conference call for investors and analysts is scheduled today at 10:00 a.m. (10:00 a.m.) CEST. During the call, CEO Jorn Madsen and Chief Financial Officer Christine Morris will present the interim financial report for the first half of 2022. The presentation will be followed by a question and answer session.

The conference call can be followed live via webcast here.

The presentation slides of the conference call will be available beforehand here.

A replay of the conference call will then be available on the Investor Relations website.

For more information, please contact:
Michael Harboe-Jørgensen
Responsible for financial planning and analysis and investor relations
+45 2328 5733
[email protected]

Kristoffer Apollon
Media Relations Manager
+45 2790 3102
[email protected]

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