Odfjell Drilling published their Q3 update and here are the highlights
Key Financials Q3 2021
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Revenue: $227 million
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Cash: $135 million
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EBITDA: $88 million
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Backlog: $2.3 billion
Market Outlook
General
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Increased appetite for field development and production across the segment, with the exception of some regional differences
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Need for continued exploration and production of oil and gas to bridge the increasing energy demand as new energy sources take time to implement
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Market has developed positively in recent years due to a strong focus on cost discipline and more efficient operations, together with oil price recovery
MODU
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Improved activity in the global rig market – several chapter 11 processes completed/ongoing – expect additional market consolidation
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Harsh environment markets are closer to supply/demand balance
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Present dayrate and market activity level do not support any newbuild activity based on expected capital return for the short to medium term
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Norwegian tax incentive scheme has increased activity on the NCS
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Preference by E&P companies for high-spec and efficient 6G units
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Continued strong demand for ODL fleet
Well Services
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Improved markets are expected in the short to medium term to face an overall increase in activity level for OWS
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The COVID-19 pandemic development may impact any market improvement
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Improved markets are expected
Energy
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More tendering within the platform drilling market and additional activities within maintenance and upgrades are expected
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Focus on new service areas with ambition to expand the Energy service portfolio
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Positive market outlook
Source: Odfjell
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