Oslo, Norway, November 14, 2023
NorAm Drilling AS (the “Company” or “NorAm”), today reported unaudited results for the three and nine months ended September 30, 2023:
- Reported Revenues of MUSD 26.6, down 24% from the previous quarter
- Adjusted EBITDA of MUSD 6.9, down 52% from the previous quarter
- Fleet utilization was 77.3% compared to 98.9% in the previous quarter
- Average base dayrate of $30,300, down 4% from the previous quarter
- Current revenue backlog of MUSD 17.4 as of November 14, 2023
Marty L. Jimmerson, Chief Executive Officer of NorAm Drilling AS commented:
“As a result of the third quarter declines in Permian rig counts, we achieved utilization of 77% in the quarter and had 3 rigs hot stacked as of September 30, 2023. The market was impacted by reduced drilling after consolidation activity among private operators and disciplined production plans demonstrated by most of the E&Ps. Subsequently, we have reactivated one rig and currently have two rigs hot stacked as of today.
With our industry-low cost base and zero debt, the current market demonstrates the strength of our unique full-payout dividend model. Despite market headwinds, we paid MUSD 9.8 or NOK 2.37 per share in monthly dividends in the quarter, and have declared two additional dividends after quarter end. Our rigs are among the top performers measured in feet drilled per rig day in the U.S. market, and NorAm should be well positioned in a market recovery.”
In connection with the release, the Company invites potential and existing investors and analysts to a live presentation and Q&A on Wednesday, November 15, 2023, at 10:00 AM (EST) / 4:00 PM (CET).
Follow the link to attend the presentation: https://bit.ly/NorAmQ3Live
To add the event to your calendar: https://bit.ly/NorAm-Q3-2023CalendarInvite
Relevant presentation material will on the same day be made available on the Investor Relations section of the Company’s website at www.noramdrilling.com.
For further queries, please contact:
Marius Furuly, Director of IR and Strategy
Tel: +47 90626191
About NorAm Drilling
NorAm Drilling owns and operates a portfolio of eleven advanced drilling rigs upgraded to maximize drilling efficiency in the Permian Basin in Texas, which is the largest oil producing region in North America. NorAm Drilling is debt free and has industry leading operating margins. The Company has a full pay-out dividend strategy, targeting frequent cash distributions in a profitable market.