Oslo, Norway, February 22, 2024
NorAm Drilling AS (the “Company” or “NorAm”), today reported unaudited results for the three and twelve months ended December 31, 2023:
HIGHLIGHTS
- Reported Revenues of MUSD 24.0, down 10% from the previous quarter
- Adjusted EBITDA of MUSD 5.4 down 22% from the previous quarter
- Fleet utilization was 82.3% compared to 77.3% in the previous quarter
- Average base dayrate of $26,900, down 11% from the previous quarter
- Current revenue backlog of MUSD 27.6 as of February 22, 2024
Marty L. Jimmerson, Chief Executive Officer of NorAm Drilling AS commented:
“During the fourth quarter, the drilling industry experienced declines in WTI, Natural Gas and active rig counts in both the US and Permian. Despite these headwinds we reactivated two rigs during the quarter and finished with only one stacked rig. The market continues to be impacted by reduced drilling demand after substantial consolidation activity among private and public operators in addition to disciplined production plans demonstrated by most E&Ps.
With our industry low-cost base and zero debt, we continue to return capital to shareholders despite market headwinds and this demonstrates the strength of our unique model. We paid MUSD 5.3 or NOK 1.32 per share in monthly dividends in the quarter and have declared two additional dividends after quarter end. Our rigs are among the very top performers measured in feet drilled per day in the US shale market, and NorAm should be well positioned for getting the idle rigs back to work 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 Friday, February 23, 2024, at 09:00 AM (EST) / 3:00 PM (CET).
Follow the link to attend the presentation: bit.ly/NorAm-Q42023Live
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.
www.noramdrilling.com