Half Year 2026 Dolphin Drilling AS Earnings Call

August 19, 2026

Operator: Good day, and thank you for standing by. Welcome to the Dolphin Drilling Q2 Report 2026 Webcast and Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Alternatively, you may submit your question via the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michael Boyd, CEO. Please go ahead.

Operator: Good day, and thank you for standing by. Welcome to the Dolphin Drilling Q2 Report 2026 Webcast and Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Alternatively, you may submit your question via the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michael Boyd, CEO. Please go ahead.

Speaker #2: Good day, and thank you for standing by. Welcome to the Dolphin Drilling Q2 Report 2026 webcast and conference call. At this time, all participants are in a listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone.

Speaker #2: You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1, then 1 again. Alternatively, you may submit your question via the webcast.

Speaker #2: Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michael Boyd, CEO.

Speaker #2: Please go ahead.

Speaker #3: Good morning, everyone. Welcome to our second quarter earnings call. My name is Michael Boyd, and I'm the CEO of Dolphin Drilling. I am joined today by Engulf Gillistal, our Chief Financial Officer.

Michael Boyd: Good morning, everyone, and welcome to our second quarter earnings call. My name is Michael Boyd, and I am the CEO of Dolphin Drilling. I am joined today by Ingolf Gillesdal, our Chief Financial Officer. For today's agenda, I will open with the quarter's highlights. Ingolf will take us through the financial results in detail before I return to cover the fleet, a market overview, and our outlook. Thereafter, at the end of the presentation, we will open up for Q&A. The headline for Q2 is that we have made significant progress in repositioning Dolphin Drilling as a platform for growth. Two multi-year contract awards signed in the quarter have taken this business from a series of short campaigns to visible contracted earnings extending into 2030 and 2031.

Michael Boyd: Good morning, everyone, and welcome to our Q2 earnings call. My name is Michael Boyd, and I am the CEO of Dolphin Drilling. I am joined today by Ingolf Gillesdal, our Chief Financial Officer. For today's agenda, I will open with the quarter's highlights. Ingolf will take us through the financial results in detail before I return to cover the fleet, a market overview, and our outlook. Thereafter, at the end of the presentation, we will open up for Q&A. The headline for Q2 is that we have made significant progress in repositioning Dolphin Drilling as a platform for growth. Two multi-year contract awards signed in the quarter have taken this business from a series of short campaigns to visible contracted earnings extending into 2030 and 2031.

Speaker #3: For today's agenda, I will open with the quarter's highlights. Engulf will take us through the financial results in detail, before I return to cover the fleet, a market overview, and our outlook.

Speaker #3: Thereafter, at the end of the presentation, we'll open up for Q&A. The headline for Q2 is that we have made significant progress in repositioning Dolphin Drilling as a platform for growth.

Speaker #3: Two multi-year contract awards signed in the quarter have taken this business from a series of short campaigns to visible, contracted earnings extending into 2030 and 2031.

Speaker #3: And that the equity raise that we completed in May has given us a balance sheet and a financial flexibility that can support it. Before we begin, though, a brief word on the disclaimer.

Michael Boyd: The equity raise that we completed in May has given us a balance sheet and the financial flexibility that can support it. Before we begin, a brief word on the disclaimer. This presentation contains forward-looking statements regarding contract awards, backlog conversion, reactivation timing, and market conditions. These reflect our current expectations and are subject to risk and uncertainty, and actual outcomes may differ materially. We would ask you to review the disclaimer in full and to read this presentation together with the quarterly report published this morning. Our agenda this morning has four parts. Firstly, we will begin with the key company highlights and the financial update for the second quarter. Secondly, we will walk through our rig fleet, including the contract status and an update on the Borgland Dolphin special periodic survey, which represents a significant organizational project for the company over the next few months.

Speaker #3: This presentation contains forward-looking statements regarding contract awards, backlog conversion, reactivation timing, and market conditions. These reflect our current expectations and are subject to risk and uncertainty, and actual outcomes may differ materially.

Speaker #3: We would ask you to review the disclaimer in full and to read this presentation together with the quarterly report published this morning. Our agenda this morning has four parts.

Speaker #3: Firstly, we'll begin with the key company highlights and the financial update for the second quarter. Secondly, we'll walk through our rig fleet, including the contract status, and provide an update on the Borgland Special Periodic Survey, which represents a significant organizational project for the company over the next few months.

Speaker #3: Next, we'll discuss the drilling market and how, in our view, Dolphin Drilling's over 60 years of operational experience, specializing in moored semi-submersible rigs worldwide, continues to position us well to capitalize on the considerable upside potential that can be generated using our platform for growth.

Michael Boyd: Next, we will discuss the drilling market and how, in our view, Dolphin Drilling's over 60 years of operational experience, specializing in moored semi-submersible rigs worldwide, continues to position us well to capitalize on the considerable upside potential that can be generated using our platform for growth. Finally, we will provide a short summary of our value proposition and deliverables to date. Let me first start with the highlights before handing over to Ingolf for the numbers behind them. This slide essentially represents the quarter in one page, and it is organized around the commitments we made to the market. Starting with safety, we continue to perform exceptionally well and recently passed 1,000 days lost time injury-free for Blackford Dolphin. This is testament to the safety culture at Dolphin Drilling, which is the foundation everything else is built on. Operationally, performance remains strong with high uptime and earning efficiency.

Speaker #3: And finally, we'll provide a short summary of our value proposition and deliverables to date. Let me first start with the highlights before handing over to Engulf for the numbers behind them.

Speaker #3: So, this slide essentially represents the quarter on one page, and it is organized around the commitments we made to the market. Starting with safety, we continue to perform exceptionally well and recently passed 1,000 days lost time injury-free for Blackford.

Speaker #3: This is testament to the safety culture at Dolphin Drilling, which is the foundation that everything else is built on. Operationally, performance remains strong, with high uptime and earnings efficiency, publicly, Jr.

Michael Boyd: Paul B. Loyd Jr. delivered 99.8% uptime in the quarter, and Blackford Dolphin just over 90%. This high uptime is essential to us in converting day rates into cash and is also a key metric for our clients in comparing performance and awarding or renewing contracts. On backlog, we end the quarter with USD 557 million of firm revenue, with substantial options in addition to this. This clearly improves our earnings visibility, with two of our rigs now contracted through 2030 and 2031 respectively. This is a structural change in the story. We have moved from campaign-to-campaign visibility to multiyear contracted revenue. On the balance sheet, cash stands at USD 55.1 million following the equity raise completed in May, and our remaining debt levels are manageable.

Speaker #3: delivered 99.8% uptime in the quarter, and Blackford Dolphin just over 90%. This high uptime is essential to us in converting day rates into cash and is also a key metric for our clients in comparing performance and awarding or renewing contracts.

Speaker #3: On backlog, we end the quarter with $557 million of firm revenue, with substantial options in addition to this. This clearly improves our earnings visibility, with two of our rigs now contracted through 2030 and 2031, respectively.

Speaker #3: This is a structural change in the story. We have moved from campaign-to-campaign visibility to multi-year contracted revenue. On the balance sheet, cash stands at $55.1 million following the equity raise completed in May, and our remaining debt levels are manageable.

Speaker #3: Additionally, through good cost discipline and operational efficiency, our earnings in the first half of 2026 delivered EBITDA of $15.3 million, against $10.4 million in the first half of last year—a comparable improvement of roughly 47% versus the same two rigs' earnings this time last year.

Michael Boyd: Additionally, through good cost discipline and operational efficiency, our earnings in H1 2026 delivered EBITDA of USD 15.3 million against USD 10.4 million in H1 of last year, a comparable improvement of roughly 47% versus the same two rigs earnings this time last year. These deliverables come directly from the goals we set for the year, and with three rigs contracted and a repaired balance sheet, they position us for growth rather than survival. I will now hand over to Ingolf to walk us through the financials.

Speaker #3: These deliverables come directly from the goals we set for the year, and with three rigs contracted and a repaired balance sheet, they position us for growth rather than survival.

Speaker #3: I'll now hand over to Engulf to walk us through the financials.

Speaker #4: Thank you, Michael. Let me take you through the key financials, starting with the income statements. Total revenue for the quarter was $44.9 million, on par with last quarter's revenue and marginally reduced from $47.4 million in the second quarter of last year.

Ingolf Gillesdal: Thank you, Michael. Let me take you through the key financials, starting with the income statements. Total revenue for the quarter was USD 44.9 million, on par with last quarter's revenues and marginally reduced from USD 47.4 million in Q2 of last year. All of the charter revenues relate to the two rig contracts for Blackford Dolphin and Paul B. Loyd Jr., with the additional USD 10.5 million in other revenues related to services managed towards the Oil India contract. The modest year-on-year decline reflects recording of less mobilization revenues and the fact that we commenced a new multi-year contract for Paul B. Loyd Jr. in May, which provides important earning visibility for the company, but at the same time, at a lower day rate. Borgland Dolphin was in layup and preparing for the reactivation through the period with no revenue contribution.

Speaker #4: All of the charter revenues relate to the two rig contracts for Blackford Dolphin and Pulbiloy Jr., with the additional $10.5 million in other revenues related to services managed towards the Oil India contract.

Speaker #4: The modest year-on-year decline reflects the recording of less mobilization revenues and the fact that we commenced a new multi-year contract for Pulbiloy Jr. in May, which provides important earnings visibility for the company, but at the same time, at a lower day rate.

Speaker #4: Borgland Dolphin was in layup and preparing for reactivation during the period, with no revenue contribution. Underpinning that revenue, Pulbiloy Jr. achieved 99.8% uptime and 96% earning efficiency, and Blackford Dolphin had 90.2% uptime and 89.8% earning efficiency.

Ingolf Gillesdal: Underpinning that revenue, Paul B. Loyd Jr. achieved 99.8% uptime and 96% earning efficiency, and Blackford Dolphin 90.2% uptime and 89.8% earning efficiency. The gap between the uptime and earning efficiency on Paul B. Loyd Jr. is due to adjusting for periods of waiting on weather, although this was at a much lower number of days versus last quarter. On operating expenses, we have made a significant improvement as total operating expense was USD 32.7 million against USD 36.2 million a year ago, a 9% improvement. On a daily basis, Paul B. Loyd Jr. ran at a cost of USD 90,000 and Blackford Dolphin at USD 143,000, both marginally improved on the previous quarter and within guidance. Borgland Dolphin's stacking cost was USD 26,000 per day, marginally up as we have started on the actual preparation work for the reactivation and class renewal.

Speaker #4: The gap between the uptime and earning efficiency on Pulbiloy is due to adjusting for periods awaiting on weather, although this was at a much lower number of days versus last quarter.

Speaker #4: On operating expenses, we have made a significant improvement, as total operating expense was $32.7 million against $36.2 million a year ago, a 9% improvement.

Speaker #4: On a daily basis, Pulbiloy Jr. ran at a cost of $90,000 and Blackford Dolphin at $143,000. Both marginally improved on the previous quarter, and were within guidance.

Speaker #4: Borgland Dolphin's stacking cost was $26,000 per day, marginally up as we have started on the actual preparation work for the reactivation and class renewal.

Speaker #4: The daily cost should increase to an average of $80,000 for the period ahead of contract startup, and thereafter, the operating costs when in Spain should run at $110,000 per day.

Ingolf Gillesdal: The daily cost should increase to an average of $80,000 for the period ahead of contract start-up. Thereafter, the operating cost when in Spain should run at $110,000 per day. G&A totaled $5.2 million, marginally reduced from last year's cost base. Adjusting for the refinancing expenses and fees, underlying G&A cost was at $4.3 million. That is the number to carry forward in your models as the approximate run rate. This delivers an EBITDA of $7 million for the quarter against $5.5 million last year. For H1, this is an improvement of close to 50%. Below EBITDA, depreciation and amortization was $3.5 million, which includes a reversal worth $3.5 million in the quarter, so the underlying charge should be higher than the reported line. Net financial items totaled $4.5 million, materially better than the $10.8 million a year ago.

Speaker #4: G&A totaled $5.2 million, marginally reduced from last year's cost base. Adjusting for the refinancing expenses and fees, underlying G&A cost was $4.3 million, and that is the number to carry forward in your models as the approximate run rate.

Speaker #4: This delivers an EBITDA of $7 million for the quarter, compared to $5.5 million last year. For the first half, this is an improvement of close to 50%.

Speaker #4: Below EBITDA, depreciation and amortization was 3.5 million dollars, which includes a reversal worth 3.5 million dollars in the quarter, so the underlying charge should be higher than the reported line, net financial items totaled 4.5 million dollars, materially better than the 10.8 million dollars a year ago, the total comprises interest expense of 3.5 million dollars plus non-recurring fees representing 3.5 million dollars.

Ingolf Gillesdal: The total comprises interest expense of $3.5 million, plus non-recurring fees representing $3.5 million, offset by a positive foreign exchange movement of $2.5 million. That leaves a net loss of $2.3 million, compared with a net loss of $26.2 million in the same quarter last year. In brief, high revenue generation from the two rigs on the contract, real cost improvement, EBITDA up year-on-year, and the remaining loss driven largely by one-off financing costs rather than operations. On to the balance sheet. We had cash worth $55.1 million at the end of June against $30.5 million at year-end, and significantly higher cash position versus same time last year, as we completed an equity raise in May and continued to deliver on operational efficiencies. The book values of our rigs are as follows: $36.8 million for Paul B.

Speaker #4: Offset by a positive foreign exchange movement of $2.5 million. That leaves a net loss of $2.3 million, compared with a net loss of $26.2 million in the same quarter last year.

Speaker #4: So, in brief: high revenue generation from the two rigs on the contract, real cost improvement, EBITDA up year-on-year, and the remaining loss driven largely by one-off financing costs rather than operations.

Speaker #4: Then, onto the balance sheet: we had cash of $55.1 million at the end of June, compared to $30.5 million at year-end, and a significantly higher cash position versus the same time last year.

Speaker #4: As we completed an equity raise in May and continued to deliver on operational efficiencies, the book values of our rigs are as follows: $36.8 million for Pulbiloy, $31.5 million for Borgland, and $80 million for Blackford.

Ingolf Gillesdal: Loyd, $31.5 million for Borgland, and $80 million for Blackford. Goodwill relating to the historic Paul B. Loyd Jr. acquisition has been reduced to $9.2 million. Capital expenditure was $0.9 million in the quarter, and $2.1 million for H1 2026. I would draw your attention to that. These are low CapEx numbers, and they reflect the fact that Paul B. Loyd special periodic survey was completed in September 2025, and this rig is not anticipated to require any major investments for the next four years. On the liability side, current portion have returned to normalized levels. We had previously been carrying over costs related to the Paul B. Loyd rig survey, and those have now worked through. Accounts payable are $14 million against $31.6 million at year-end, which is the clearest evidence of that normalization.

Speaker #4: Goodwill relating to the historic Pulbiloy Jr. acquisition has been reduced to $9.2 million. Capital expenditure was $0.9 million in the quarter, and $2.1 million for the first half of 2026.

Speaker #4: I would draw your attention to that. These are low capex numbers, and they reflect the fact that Pulbiloy's special periodic survey was completed in September 2025, and this rig is not anticipated to require any major investments for the next four years.

Speaker #4: On the liability side, current portions have returned to normalized levels. We had previously been carrying over costs related to the Pulbiloy rig survey, and those have now worked through. Accounts payable are $14 million, against $31.6 million at year-end, which is the clearest evidence of that normalization.

Speaker #4: On interest-bearing debt, no debt repayments are due this year, as we have agreed to and stretched out debt repayments, which will start up again from January 2027.

Ingolf Gillesdal: On interest-bearing debt, no debt repayments are due this year, as we have agreed and stretched out debt repayments, starting up again from January 2027. The long-term portion of debt totals $67.3 million, which represents the loan facility and the bond, with both having final expiry dates in March 2028. The rigs are pledged as security to the group's long-term facilities. As we now have a much improved financial position and a multi-year contract backlog, we do receive proposals indicating much improved terms and conditions versus what we have today. Total shareholders' equity is $76.9 million against $22 million at year-end. As we have shown by our achievement year to date, we have moved from a balance sheet that constrained the business to one that can support contract execution, the Borgland Dolphin reactivation, and over time, fleet growth.

Speaker #4: The long-term portion of debt totaled $67.3 million, which represents the loan facility and the bond, with both having final expiry dates in March 2028.

Speaker #4: The rigs are pledged as security to the group's long-term facilities. As we now have a much improved financial position and a multi-year contract backlog, we do receive proposals indicating much improved terms and conditions versus what we have today.

Speaker #4: Total shareholders' equity is $76.9 million against $22 million at year-end. As we have shown by our achievements year to date, we have moved from a balance sheet that constrained the business to one that can support contract execution, the Borgland Dolphin reactivation, and, over time, fleet growth.

Speaker #4: I would refer you to the quarterly report for the detailed movements between periods. With that, I will hand back to Michael.

Ingolf Gillesdal: I would refer you to the quarterly report for the detailed movements between periods. With that, I will hand back to Michael.

Speaker #1: Thank you, Ingolf. So, I'm on slide eight. The quarter is a step change rather than an incremental improvement. The existing fleet is now contracted through to 2030 and 2031, respectively.

Michael Boyd: Thank you, Ingolf. I am on slide 8 now. This chart is the reason we believe this quarter is a step change rather than an incremental improvement. The existing fleet is now contracted through to 2030 and 2031 respectively, and that translates into a firm revenue and EBITDA backlog profile that is stable across the next 5 years rather than front-loaded.

Speaker #1: And that translates into a firm revenue and EBITDA backlog profile that is stable across the next five years, rather than front-loaded. On the left chart, you see revenue backlog by year, split between firm backlog and options.

Michael Boyd: On the left chart, you see revenue backlog by year, split between firm backlog and options. Firm revenue sits in a band of roughly USD 100 to USD 120 million per year across 2027 through to 2029. Before the mix shifts towards option years in 2030 and 2031, where you can see an uplift as exercising options will come with a rate increase to justify another set of class renewals. The right chart shows the same structure for rig EBITDA backlog, running around USD 50 million in the firm years.

Speaker #1: Firm revenue sits in a band of roughly $100 to $120 million per year across 2027 through to 2029, before the mix shifts towards option years in 2030 and 2031. There, you can see an uplift, as exercising options will come with a rate increase to justify another set of class renewals.

Speaker #1: The right chart shows the same structure for rig EBITDA backlog, running around $50 million in the firm years. Two key points. First, Pulbiloy Jr.

Michael Boyd: Two key points. First, Paul B. Loyd Jr. and Borgland Dolphin both signed multi-year awards in Q2, and those are what create the flat firm profile as targeted. Second, the value related to the option shown is based on higher rates as the client pays for the class renewal at the time through either higher day rate or direct contribution. Reviewing our fleet now, rig by rig begins to resemble a diversified portfolio as each unit offers a unique combination of cash flow visibility, revenue potential, and risk versus reward. Paul B. Loyd Jr. is our contracted cash generator. Borgland Dolphin, currently being reactivated, is the largest single source of incremental earnings. Blackford Dolphin is the near-term recontracting opportunity. Taking Paul B. Loyd Jr. first, the rig is contracted to September 2030 with a firm revenue backlog of USD 247 million.

Speaker #1: And Borgland Dolphin both signed multi-year awards in the second quarter, and those are what create the flat firm profile as targeted. And second, the value related to the option shown is based on higher rates, as the client pays for the class renewal at the time through either higher dayrate or direct contribution.

Speaker #1: Reviewing our fleet now, rig by rig, begins to resemble a diversified portfolio, as each unit offers a unique combination of cash flow visibility, revenue potential, and risk versus reward.

Speaker #1: Pulbiloy is our contracted cash generator. Borgland Dolphin, currently being reactivated, is the largest single source of incremental earnings. And Blackford Dolphin is the near-term recontracting opportunity.

Speaker #1: So, taking Pulbiloy Jr. first, the rig is contracted to September 2030, with a firm revenue backlog of $247 million. Beyond that, there are options for either two years or five years, subject to a special periodic survey contribution, which would be added to the day rate.

Michael Boyd: Beyond that, there are options for either 2 years or 5 years, subject to a special periodic survey contribution, which would be added to the day rate. That structure matters. The option years are not dilutive to margin because of the client contribution to survey costs through the rate. The last special periodic survey was completed in September 2025, and we have limited investment planned over the next 4 years. In cash flow terms, this is close to 4 years of contracted revenue against a low-level capital requirement. The rig operates offshore UK with Harbour Energy and is currently on assignment to Ithaca Energy. Operational performance has been strong with above 98% uptime since we purchased the rig in January 2024, and 99.8% in this quarter.

Speaker #1: That structure matters. The option years are not dilutive to margin because of the client contribution to survey costs through the rate. The last special periodic survey was completed in September 2025, and we have limited investment planned over the next four years. In cash flow terms, this is close to four years of contracted revenue against a low-level capital requirement.

Speaker #1: The rig operates offshore UK with Harbour Energy and is currently on assignment to Ithaca Energy. Operational performance has been strong, with above 98% uptime since we purchased the rig in January 2024, and 99.8% in this quarter.

Speaker #1: Pulbiloy Jr. is also considered one of the larger semi-submersible rigs in the UK—a competitive advantage given how few units of this capability remain in the basin.

Michael Boyd: Paul B. Loyd Jr. is also considered one of the larger semi-submersible rigs in the UK, a competitive advantage given how few units of this capability remain in the basin. Borgland Dolphin is where the growth comes from. The rig is contracted through to November 2031, with a firm revenue backlog of USD 291 million and options thereafter for five years, estimated at a further USD 287 million.

Speaker #1: Borgland Dolphin is where the growth comes from. The rig is contracted through to November 2031, with a firm revenue backlog of $291 million, and options thereafter for five years estimated at a further $287 million.

Speaker #1: On that option figure, please note that this is an estimate using the starting day rate, so it is a conservative reference rather than an escalated projection.

Michael Boyd: On that option figure, please note that this is an estimate using the starting day rate, so is a conservative reference rather than an escalated projection. The rig is expected to complete its class renewal by November 2026, and the remaining CapEx on that survey is estimated at USD 12 million. This is the principal cash outflow in front of us this year, and it is a defined, budgeted number against USD 291 million of firm revenue. One further point on risk allocation.

Speaker #1: The rig is expected to complete its class renewal by November 26, and the remaining capital expenditure on that survey is estimated at $12 million.

Speaker #1: This is the principal cash outflow in front of us this year, and it is a defined, budgeted number against $291 million firm revenue. One further point on risk allocation: should the client exercise the option period, the company is compensated for the expected class renewal cost.

Michael Boyd: Should the client exercise the option period, the company is compensated for the expected class renewal cost. On deployment, the rig is scheduled to operate offshore Spain and thereafter offshore UK. Given the importance of Borgland to the earnings profile, we want to provide visibility on project execution. The left-hand side here shows a high-level project plan, whilst the right side shows actual project progress against planned. As you can see, we are running slightly ahead of plan at roughly 70% complete, and we remain on track against both time and budget for a contract commencement in November 2026. Blackford Dolphin. The rig remains on contract in India, and Blackford is on the final well of a three-well exploration campaign for Oil India in the Andaman Sea, and it is the only moored semi-submersible operating in India.

Speaker #1: On deployment, the rig is scheduled to operate offshore Spain, and thereafter offshore the UK. Given the importance of Borgland to the earnings profile, we want to provide visibility on project execution.

Speaker #1: The left-hand side here shows a high-level project plan, while the right side shows actual project progress against plan. As you can see, we are running slightly ahead of plan at roughly 70% complete, and we remain on track against both time and budget for a contract commencement in November '26.

Speaker #1: And now, Blackford Dolphin. The rig remains on contract in India, and Blackford is on the final well of a three-well exploration campaign for Oil India in the Andaman Sea.

Speaker #1: And it is the only moored semi-submersible operating in India. Regarding follow-on work, we continue to market Blackford and identify opportunities that would justify a further class renewal survey.

Michael Boyd: Regarding follow-on work, we continue to market Blackford and identify opportunities that would justify a further class renewal survey. As we continue to see a tight supply of moored semi-submersibles worldwide, several active discussions have been held regarding potential contract opportunities for Blackford. However, as the next required class renewal survey is due in April 2027, any contract needs to be evaluated against next year's survey cost and funding scenarios available to us. The following slide summarizes fleet contract status. Firm revenue contract backlog stands at USD 557 million, with a further USD 446 million in options counted from the end of the reporting period, 30 June 2026. Reading across the bars, Paul B. Loyd Jr. is contracted with Harbour Energy in the UK.

Speaker #1: And as we continue to see a tight supply of moored semi-submersibles worldwide, several active discussions have been held regarding potential contract opportunities for Blackford.

Speaker #1: However, as the next required class renewal survey is due on April 27, any contract needs to be evaluated against next year's survey cost and the funding scenarios available to us.

Speaker #1: The following slide summarizes fleet contract status. Firm revenue contract backlog stands at $557 million, with a further $446 million in options, counted from the end of the reporting period, 30th of June 2026.

Speaker #1: Moving across the bars, Pulbiloy Jr. is contracted with Harbor Energy in the UK. Borgland Dolphin is currently undergoing the special periodic survey and reactivation ahead of work with Repsol in Spain, before transiting to the UK. Blackford Dolphin is contracted with Oil India in India.

Michael Boyd: Borgland Dolphin is currently undergoing the special periodic survey and reactivation ahead of work with Repsol in Spain before transiting to the UK, and Blackford Dolphin is contracted with Oil India in India. As you can see, the fleet status slide is now much healthier compared to versions shown earlier in the year where our contract cover was measured in months, and it now extends across the back half of the decade, with option coverage layered on top. Turning now to the market. We see three main market drivers that support our positive outlook. The first is energy security. Two leading industry sources, IEA and Wood Mackenzie, put total energy investment at around USD 3.4 to USD 3.8 trillion in 2026, of which approximately one-third goes to oil, gas, and coal, with growth trends expected to continue now that production curves have been moved further out in time.

Speaker #1: As you can see, the fleet status slide is now much healthier compared to versions shown earlier in the year, when our contract cover was measured in months. It now extends across the back half of the decade, with option coverage layered on top.

Speaker #1: Turning now to the market. We see three main market drivers that support our positive outlook. The first is energy security. Two leading industry sources, IEA and Wood Mackenzie, put total energy investment at around $3.4 to $3.8 trillion in 2026, of which approximately one-third goes to oil, gas, and coal, with growth trends expected to continue now that production curves have been moved further out in time.

Speaker #1: The important point is not the absolute number, but the direction and the motivation. Energy security has become a primary driver of capital allocation across importing economies, and that supports long-cycle offshore commitments rather than short-cycle discretionary spend.

Michael Boyd: The important point is not the absolute number, but the direction and the motivation. Energy security has become a primary driver of capital allocation across importing economies, and that supports long-cycle offshore commitment rather than short-cycle discretionary spend. The second is the UK plug and abandonment wave. The NSTA estimates several hundred wells still require decommissioning. Well P&A is the single largest cost component at 40% to 50% of field decommissioning cost over the next decade. What makes this different from ordinary drilling demand is that it is non-discretionary and regulator driven. The NSTA has recently named 13 operators with 153 wells already past their decommissioning consent deadlines. For a moored semi operator in the UK, that is a demand floor that does not move with oil price. Thirdly is the marketed supply of moored semi-submersibles, which has fallen from around 140 units to as low as 15 today.

Speaker #1: The second is the UK plug-in abandonment wave. The NSTA estimates that several hundred wells still require decommissioning. Well P&A is the single largest cost component, at 40 to 50 percent of field decommissioning cost over the next decade.

Speaker #1: What makes this different from ordinary drilling demand is that it is non-discretionary and regulator-driven. The NSTA has recently named 13 operators, with 153 wells already past their decommissioning consent deadlines.

Speaker #1: For a moored semi-operator in the UK, that is a demand floor that does not move with oil price. And thirdly, it is the marketed supply of moored semi-submersibles, which has fallen from around 140 units to as low as 15 today.

Speaker #1: Moving to the next slide, we will consider this very important point in more detail. This slide shows the marketed supply of moored semi-submersibles by region.

Michael Boyd: Moving to the next slide, we will consider this very important point in more detail. This slide shows the marketed supply of moored semi-submersibles by region. Comparing 2010 with today, the global fleet has fallen from around 140 units to fewer than 15. That is a contraction of close to 90%. Looking at how broad-based that decline is, we can see that the UK has gone from 12 to five, whilst many other regions have no active moored units operating. Brazil and Norway have both moved away from moored units to dynamically positioned rigs wherever possible, or rigs equipped with both moored and DP systems. Among the small amount showing an increase is Spain from zero to one, where our own Borgland Dolphin will be on its way later this year. Two takeaways follow from this. Firstly, conventionally moored supply cannot return quickly.

Speaker #1: Comparing 2010 with today, the global fleet has fallen from around 140 units to fewer than 15. That is a contraction of close to 90%.

Speaker #1: And looking at how broad-based that decline is, we can see that the UK has gone from 12 to 5, while many other regions have no active moored units operating.

Speaker #1: Brazil and Norway have both moved away from moored units to dynamically positioned rigs wherever possible, or rigs equipped with both moored and DP systems.

Speaker #1: Among the small amount showing an increase is Spain, from zero to one, where our own Borgland Dolphin will be on its way later this year.

Speaker #1: Two takeaways follow from this. Firstly, conventionally moored supply cannot return quickly. There are no newbuild programs for standard moored semis, and the units that have left the fleet have been scrapped, converted, or allowed to lapse out of class. Reactivating a cold-stacked rig is expensive, slow, and increasingly difficult to finance.

Michael Boyd: There are no new build programs for standard moored semis, and the units that have left the fleet have been scrapped, converted, or allowed to lapse out of class, whilst reactivating a cold stacked rig is expensive, slow, and increasingly difficult to finance. Secondly, energy security and P&A liabilities are demand drivers in mature basins where the marketed fleet is fewer than 15 rigs worldwide. That is the pricing and duration environment in which we signed the Paul B. Loyd Jr. and Borgland awards this quarter, and it is why we believe contract fleet cover into 2030 and 2031 is defensible rather than opportunistic. To summarize the situation at Dolphin Drilling in three main points from an investment perspective. Firstly, we are a reputable offshore drilling platform. We have extensive international experience with demonstrated safety and uptime records, having operated across all key offshore basins.

Speaker #1: And secondly, energy security and P&A liabilities are demand drivers in mature basins where the marketed fleet is fewer than 15 rigs worldwide. That is the pricing and duration environment in which we signed the Pulbuloy and Borgland awards this quarter.

Speaker #1: And it is why we believe contract fleet cover into 2030 and 2031 is defensible rather than opportunistic. So, to summarize the situation at Dolphin Drilling in three main points from an investment perspective:

Speaker #1: Firstly, we are a reputable offshore drilling platform. We have extensive international experience, with demonstrated safety and uptime records, having operated across all key offshore basins.

Speaker #1: Secondly, we have firm revenue streams from the existing rigs, with all three units contracted with visibility extending into 2030 and 2031. And thirdly, with a limited supply of semi-submersible rigs globally, we operate in an extremely tight supply-and-demand market balance.

Michael Boyd: Secondly, we have firm revenue streams from the existing rigs, with all three units contracted with visibility extending into 2030 and 2031. Thirdly, with a limited supply of semi-submersible rigs globally, we operate an extremely tight supply and demand market balance. Essentially, we are an established platform with long-term contracted earnings operating in a structurally short market. We believe this quarter represents a structural change in Dolphin Drilling's position. We are delivering on our commitments with a strong safety record demonstrated by recently surpassing over 1,000 days lost time injury-free for Blackford and solid overall operational performance across the fleet. We have stabilized the company with long-term earnings visibility now secured through the multiyear awards signed in the quarter, and we have improved financial flexibility with cash of USD 55.1 million and a strengthened equity base, which allows us to pursue fleet growth opportunities.

Speaker #1: Essentially, we are an established platform with long-term contracted earnings, operating in a structurally short market. We believe this quarter represents a structural change in Dolphin Drilling's position.

Speaker #1: We are delivering on our commitments, with a strong safety record demonstrated by recently surpassing over 1,000 days lost time injury-free for Blackford and solid overall operational performance across the fleet.

Speaker #1: We have stabilized the company, with long-term earnings visibility now secured through the multi-year awards signed in the quarter. We have also improved financial flexibility, with cash of $55.1 million and a strengthened equity base, which allows us to pursue fleet growth opportunities.

Speaker #1: On the shareholder register, Svelin Capital, as our cornerstone shareholder, holds 39%, with the remaining 61% held across approximately 1,400 shareholders. We would note that the free float has broadened following the recent private placement, and we regard continued development of the register and of trading liquidity as an ongoing priority.

Michael Boyd: On the shareholder register, Svelland Capital, as our cornerstone shareholder, holds 39%, with the remaining 61% held across approximately 1,400 shareholders. We would note that the free float has broadened following the recent private placement, and we regard continued development of the register and of trading liquidity as an ongoing priority. That concludes the formal presentation. We are listed in Oslo under the ticker DDRIL. For follow-up, please contact Ingolf Gillesdal for any questions you may have about Dolphin Drilling. Thank you for your time. We will now open the line for questions.

Speaker #1: That concludes the formal presentation. We are listed in Oslo under the ticker DDRILL. For follow-up, please contact Ingolf Gillestad with any questions you may have about Dolphin Drilling.

Speaker #1: Thank you for your time. We will now open the line for questions.

Speaker #2: Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced.

Operator: Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. If you wish to ask a question via the webcast, please type it into the box and click submit. We will now go to our first phone question. One moment, please. Our first question comes from the line of James West from Melius Research. Please go ahead.

Speaker #2: To withdraw your question, please press star 1 and then 1 again. If you wish to ask a question via the webcast, please type it into the box and click Submit.

Speaker #2: We will now go to our first phone question. One moment, please. And our first question comes from the line of James West from Melius Research.

Speaker #2: Please go ahead.

Speaker #3: Hey, good afternoon, gentlemen. How are you?

James West: Hey, good afternoon, gentlemen. How are you?

Speaker #4: Good afternoon.

Michael Boyd: Good afternoon.

Speaker #5: Good afternoon.

Ingolf Gillesdal: Good afternoon.

Speaker #3: So, Michael and Ingolf, a quick question from me. There were some—and you highlighted this in your prepared remarks—but I wanted to dig into more detail.

James West: Mike, running off a quick question from me, and you highlighted this in your prepared remarks, but I wanted to dig into it in more detail. In the North Sea, the regulatory authority there has gone out and fined at least one firm for not doing P&A work, and I think you mentioned a large number of wells that were highlighted to them that were past their due date. What does this do for, as Paul B. Loyd Jr. reenters that market, what does that do for the market outlook, and does that extend the runway of really potential wells that have to be taken care of that are, as you highlighted, non-oil and gas price sensitive?

Speaker #3: In the North Sea, the regulatory authority there has gone out and fined at least one firm for not doing P&A work. And I think you mentioned a large number of wells that were highlighted by them that were past their due date.

Speaker #3: What does this do for us as Pulbiloy re-enters that market? What does that do for the market outlook? And does that extend the runway of potential wells that have to be taken care of, that are, as you highlighted, non-oil and gas price sensitive?

Speaker #5: Yeah, and good question. I mean, I think we would hopefully see this as a positive—not necessarily that an operator has been fined, but that it should encourage the operators to take care of these liabilities.

Michael Boyd: Yeah, good question. I think we would hopefully see this as a positive, not necessarily that an operator has been fined, but that it should encourage the operators to take care of these liabilities. With our asset classes, we believe being particularly suited to that type of work, we would hope that that would create further opportunity. We talk about this P&A demand in the UK as the regulator tightens requirements on operators to do this work, that does translate into firm work for the supply chain.

Speaker #5: And with our asset classes, we believe we are particularly suited to that type of work. We would hope that this would create further opportunity, and that's what we talk about with this P&A demand in the UK.

Speaker #5: As the regulator tightens requirements and operators do this work, that does translate into firm work for the supply chain.

Speaker #3: Gotcha. And then with the Blackford Dolphin—sorry, yes, the Blackford Dolphin—it's been extended multiple times with Oil India and others in India.

James West: Got you. Then with the Blackford Dolphin, sorry, yeah, the Blackford Dolphin. It has been extended multiple times with Oil India and others in India, but it is the only rig you do not have on, I guess, or that I am aware of, a longer-term contract. Is there potential to lock that rig up for longer term, or would you rather, because the market is structurally short, stay short the market and kind of go from well to well programs as you move pricing higher, day rates higher?

Speaker #3: But it's the only rig you don't have on, I guess, or that I'm aware of, a longer-term contract. Is there potential to lock that rig up for a longer term, or would you rather, because the market is structurally short, stay short in the market and kind of go from well-to-well programs as you move pricing higher?

Speaker #3: Theories are.

Michael Boyd: I think with Blackford, we continue to evaluate the opportunities that are in the market. The rig has a class renewal survey coming up into next year, so any decision that we make there has to be relative to the CapEx that is required, and therefore will be a factor of the terms of any new contract, the duration and anticipated day rate and the financing that we can get at the time. We do continue to evaluate things. We do see demand for the unit, but they can be shorter in duration. So it would require potentially having to put a series of smaller opportunities together, which is not impossible, but can be challenging. But there are some longer-term ones there. So we just continue to evaluate. At the moment, as you have correctly mentioned, we continue on with Oil India.

Speaker #5: I think with Blackford, we continue to evaluate the opportunities that are in the market. The rig has a renewal survey coming up next year, so any decision that we make there has to be relative to the capital expenditure that's required.

Speaker #5: And therefore, it will be a factor of the terms of any new contract—the duration, the anticipated day rate, and the financing that we can get at the time.

Speaker #5: So we do continue to evaluate things. We do see demand for the unit, but they can be shorter in duration. So it would require potentially having to put a series of smaller opportunities together, which isn't impossible but can be challenging.

Speaker #5: But there are some longer-term ones there. So we just continue to evaluate at the moment. As you've correctly mentioned, we continue on with Oil India.

Speaker #5: So, we still have some time as that contract continues, but we are actively monitoring the available opportunities to assess what is the best fit for Blackford moving forward.

Michael Boyd: We still have some time as that contract continues, but we are actively monitoring the available opportunities to assess what is the best fit for Blackford moving forward.

Speaker #3: And with the Blackford, maybe just a last question from me, sorry. With Blackford, with the survey coming up, is this something you could negotiate into a contract to get either paid for or paid back for, in order to relieve some of the financial burden of having that survey coming up?

James West: With the Blackford, maybe just a last question from me, sorry. With Blackford, with the survey coming up, is this something you can negotiate into a contract to get either paid for or paid back for that, in order to relieve some of the financial burden of having that survey coming up?

Speaker #5: Yeah, potentially. We would certainly be more favorable towards that type of contract, and they do exist. But yeah, it would be of significant benefit to us if we could get financing from the contribution from the client, rather than to finance the renewal survey.

Michael Boyd: Yeah, potentially. We would certainly be more favorable towards that type of contract. And they do exist. But yeah, it would be of significant benefit to us if we could get financing from the, contribution from the client rather, to finance the class renewal survey.

Speaker #3: Got it. Great. Thanks, guys.

James West: Got it. Great. Thanks, guys.

Speaker #5: Thanks.

Michael Boyd: Thanks.

Speaker #2: Thank you. Thank you. We will now go to our next question, and the question comes from the line of Frederick Sterner from Clarkson Securities.

Operator: Thank you. We will now go to our next question. The question comes from the line of Fredrik Stene from Clarksons Securities. Please go ahead.

Speaker #2: Please go ahead.

Speaker #4: Hey there, Michael and Ingolf, and thank you for taking my question. I think my question around Blackford was already answered, but the sector team I wanted to touch on a bit was, or is, growth initiatives.

Fredrik Stene: Hey there, Michael and Ingolf, thank you for taking my question. I think my questions around the Blackford were already answered. The second theme I wanted to touch a bit on was, or is, growth initiatives. I think I recall from the Q1 report, you were writing and talking about exploring growth initiatives. As I saw it in today's report, you seem to maybe have taken that a step further, saying that you are engaged in what you call preliminary non-binding discussions concerning certain organic growth opportunities and potential business combinations. Just on a high-level basis, I totally understand that you cannot comment on specifics here, but can you say something about the development of these discussions over the quarter? If new discussions have come to fruition, the scale of potential growth and business combination opportunities and how those opportunities would fit with your current profile.

Speaker #4: I think I recall from the first quarter report, you were writing and talking about exploring growth initiatives. And, as I saw it in today's report, you seem to maybe have taken that a step further.

Speaker #4: You're saying that you're engaged in what you call preliminary, non-binding discussions concerning certain organic growth opportunities and potential business combinations. So, just on a high-level basis—I totally understand that you can't comment on specifics here—but can you say something about the development of these discussions over the quarter? Have new discussions come to fruition? Can you speak to the scale, potential growth, and business combination opportunities, and how those opportunities would fit with your current profile?

Speaker #4: Would it be drilling, management, or the type of verticals—any core information that you could provide would be very helpful. Thank you.

Fredrik Stene: Would it be drilling or management, other type of verticals? Any color that you could provide would be very helpful. Thank you.

Speaker #5: Yeah, I mean, as you mentioned, I can't get into specifics of what we're looking at there, but we've been clear from the start of the year that this year has been about preparing the Dolphin Drilling platform for growth.

Michael Boyd: Yeah, as you mentioned, we cannot get into specifics of what we are looking at there. But we have been clear from the start of the year that this year has been about preparing the Dolphin Drilling platform for growth, and we believe we are well on the way to doing that with the contract backlog, the refinancing that has been done. That is allowing us now to evaluate opportunities in the market. Some of which we have been monitoring for a while and some are newer. So there are a handful of different things. We just have to be careful, selective with what we believe are the best fits to take the company forward. Of course, we have growth in mind, but what that growth comes from, which exact opportunity, has to be relative to where we believe we will generate the best shareholder value.

Speaker #5: And we believe we are well on the way to doing that with the contract backlog and the refinancing that's been done. That is allowing us now to evaluate opportunities in the market, some of which we have been monitoring for a while.

Speaker #5: And some are newer. So, there are a handful of different things—we just have to be careful and selective with what we believe are the best fits to take the company forward.

Speaker #5: Of course, we have growth in mind, but where that growth comes from—which exact opportunity—we want to focus on where we believe we'll generate the best shareholder value.

Speaker #5: So we're continuing to evaluate a few different opportunities in the market, but at the same time continuing to ready the platform for the growth that we would hope for.

Michael Boyd: We are continuing to evaluate a few different opportunities in the market. But at the same time, continuing to ready the platform for growth that we would hope for.

Speaker #4: And thank you. And then just one quick one on the body line and the work that's being done there. At the moment, you're just north of 70% completed, aiming for $12 million of remaining capex.

Fredrik Stene: Thank you. Just one quick one on the Borgland Dolphin and the work that is being done there at the moment. You are just north of 70% completed, aiming for USD 12 million of remaining CapEx.

Speaker #4: Are there any specific hurdles for that remaining 30%, or things that could go wrong timing-wise? Are there any low-lead or long- or short-lead items that you're still waiting for, or is the path to getting that rig employed in November relatively clear at this point?

Fredrik Stene: Are there any specific hurdles for those remaining 30% or things that can go wrong timing-wise or long or short paid items that you are still waiting for? Or is the path to getting that rig employed in November relatively de-risked at this point?

Speaker #5: Yeah, I mean, with a renewal survey, you’re always managing risks associated with scope creep, suppliers, delivery dates, etc. But we have a very robust plan and a very experienced team, and at the moment, we are comfortable that we are on track to meet the commencement window in November.

Michael Boyd: Yeah, with a renewal survey, you are always managing risks associated with scope creep, suppliers, delivery dates, et cetera. But we have a very robust plan and a very experienced team, and at the moment, we are comfortable that we are on track to meet the commencement window in November.

Speaker #4: All right. Thank you so much. That's all from me. Have a good day.

Fredrik Stene: All right. Thank you so much. That is all from me. Have a good day.

Speaker #5: Thank you.

Michael Boyd: Thank you.

Speaker #2: Thank you. As a reminder, if you would like to ask a question, please press star one. And to withdraw your question, please press star one again on your telephone.

Operator: Thank you. As a reminder, if you would like to ask a question, please press star 1 and 1 on your telephone. To withdraw your question, please press star 1 and 1 again. If you wish to ask a question via the webcast, please type it into the box and click submit. I will now hand over to Ingolf for webcast questions.

Speaker #2: Please press star one, and then one again, if you wish to ask a question via the webcast. Alternatively, you may type your question into the box and click submit.

Speaker #2: I will now hand over to Ingolf for webcast questions.

Speaker #5: Thank you. Yeah, we have a few questions from the web. This one is about Blackford. The question is related to the downtime in April. Could you please elaborate on the downtime?

Ingolf Gillesdal: Thank you. We have a few questions on the web. This one on Blackford. Question is related to the downtime in April. Please can you elaborate on the downtime? Will this be a problem going forward, Michael?

Speaker #5: And will this be a problem going forward? Michael?

Speaker #3: Okay. So yeah, we had.

Michael Boyd: Okay. So yeah, we had periods of downtime associated with the BOP and the top drive. There was a crane cylinder we had to change out, which was actually planned. We just couldn't do it in the transit, so we did it at the same time as the downtime on the BOP control pod. All of which were closed out in a timely manner, and we don't anticipate any further issues associated with those events.

Speaker #5: There was a period of downtime there associated with the BOP and the top drive, and there was a crane cylinder we had to change out, which was actually planned.

Speaker #5: We just couldn't do it in the transit, so we did it at the same time as the downtime on the BOP control pod. All of which were closed out in a timely manner.

Speaker #5: And we don't anticipate any further issues associated with those events.

Speaker #4: Thank you. A couple of other questions—I bundled them together regarding Blackford. Blackford has, we announced, we have announced Blackford to end its contract at least through or beyond August.

Ingolf Gillesdal: Thank you. A couple of other questions I bundle it together regarding Blackford. We have announced Blackford to end its contract at least or beyond August. How do you assess the contracting opportunities for Blackford following the expiry of the current contract? Is there an opportunity to find follow-up contracts directly after the Oil India contract?

Speaker #4: How do you assess the contracting opportunities for Blackford following the expiry of the current contract? And is there an opportunity to find follow-up contracts directly after the Oil India contract?

Speaker #5: Okay. Yes, I've covered a little bit of this with one of the other questions, but we continue to look at all opportunities that might suit Blackford.

Michael Boyd: Okay. Yeah, kind of covered a little bit of this with one of the other questions, but we continue to look at all opportunities that might suit Blackford. There is demand for the rig, as I mentioned previously. Some of them are shorter in duration. Asia, India is clearly a market that we are focused on given the location of the rig, and there is some demand there. Again, it's just whether those projects in isolation are enough to justify the reactivation or whether we can put some back-to-back there. But it's good to see there is demand, and that demand isn't just in that region. There is demand globally, but they tend to be shorter term at the moment.

Speaker #5: There is demand for the rig, as I mentioned previously. Some of them are shorter in duration. Asia, India is clearly a market that we are focused on, given the location of the rig.

Speaker #5: And there is some demand there. Again, it's just whether those projects in isolation are enough to justify the reactivation, or whether we can put some back-to-back there.

Speaker #5: But it's good to see there is demand, and that demand isn't just in that region—there is demand globally. But they tend to be shorter term at the moment.

Speaker #4: Thank you. There are a few questions on the Nigeria claim, and information for all of you. We haven't mentioned it in the report. We have an arbitration award from last year of more than $100 million.

Ingolf Gillesdal: Thank you. There are a few questions on Nigeria claim, and information for all of you. We have not mentioned it in the report. We have an arbitration award from last year about more than $100 million, and they are basically asking questions on the realism for collecting anything on that claim. I would start out saying that we are following these opportunities. We are doing what we can to get any reward from the claim, but we are not indicating any probability at this stage. This is not something that we will fight hard on for the long term, but we have time to pursue it. Anything more, Michael?

Speaker #4: And they're basically asking questions about the realism of collecting anything on that claim. I will start out by saying that we are following these opportunities.

Speaker #4: We are doing what we can to get any reward from the claim, but we are not indicating any, let's say, probability at this stage.

Speaker #4: At least, this is not something that we will fight hard on for the long term. But we have time to pursue it.

Speaker #4: Anything more, Michael?

Speaker #5: No, I think that's fair, Ingolf. It's been monitored continually by our legal team, and they are continuing to progress our claim through the appropriate channels.

Michael Boyd: No, I think that is fairing of it. It is being monitored continually by our legal team, and they are continuing to progress our claim through the appropriate channels.

Ingolf Gillesdal: Another question on growth. What type of rigs are you looking to acquire, and will it reduce fleet age? Michael?

Speaker #4: Another question on growth: What type of rigs are you looking to acquire, and will it reduce fleet age? Michael?

Michael Boyd: As I mentioned, we are looking at different opportunities for growth here, and ideally, we may look to bring in rigs that are complementary to what we currently have, but not necessarily. Logically, we have extensive experience in the harsh environment mid-water sphere. But it is relative to the opportunities that are available in the market. As for whether it would reduce the fleet age, well, we do own some of the older rigs, so the likelihood of that is yes. But again, it depends on what we are able to identify that is value accretive for our shareholders.

Speaker #5: I mean, we would be looking to as I mentioned, we're looking at different opportunities for growth here. And ideally, we may look to bring in rigs that are complementary to what we currently have, but not necessarily.

Speaker #5: But logically, we have extensive experience in the harsh environment, midwater, sphere. So, but it is relative to the opportunities that are available in the market.

Speaker #5: And as for whether it would reduce the fleet age, well, we do own some of the older rigs, so the likelihood of that is yes.

Speaker #5: But again, it depends on what we are able to identify that is value-creative for our shareholders.

Ingolf Gillesdal: I would just add that we have, for the last years, let's say, been focusing on one segment of the offshore drilling space where we see limited competition. Most of our larger listed peers focus on the high-end deepwater segment, basically leaving this segment for us to grow in. We see clearly opportunities within this space, and if we can capitalize on consolidating within this space and use our structural economic power, this should be good for our shareholders.

Speaker #4: I would just add that we have, for the last few years, let's say, been focusing on one segment of the offshore drilling space where we see limited competition.

Speaker #4: Most of our larger listed peers focus on the high-end deepwater segment, basically leaving this segment for us to grow in. We clearly see opportunities within this space.

Speaker #4: And if we can capitalize on consolidating within this space and use our structural, let's say, economic power, this should be good for our shareholders.

Speaker #5: Yeah.

Michael Boyd: Yeah.

Speaker #4: I think we have been through most of the questions. Clearly, we will address Blackford in the near term, as it has a contract coming up soon.

Ingolf Gillesdal: I think we have been through most of the questions. Clearly we will address Blackford in the near term as it has a contract coming off soon. Except for that, we are pursuing opportunities to see how we can grow the company. Back to the operator.

Speaker #4: Except for that, we are pursuing, let's say, opportunities to see how we can grow the company. Back to the operator.

Speaker #2: Thank you. We have one further phone question. One moment, please. And your phone question comes from the line of Truls Olsen from Fernleigh Securities.

Operator: Thank you. We have one further phone question. One moment, please. Your phone question comes from the line of Truls Olsen from Fearnley Securities. Please go ahead.

Speaker #2: Please go ahead.

Speaker #6: Thank you. Hi guys. Just a follow-up on Blackford, really. As you think about the SBS now in April and the required, or likely, or needed lead times, what kind of window does this leave you in terms of securing a contract? Is there a certain date or month where you need to have something set in stone, if you will?

Truls Olsen: Thank you. Hi, guys. Just a follow-up on Blackford, really. As you think about the SPS now in April and the required or likely or needed lead times, what kind of window does this leave you in terms of securing a contract within, let's say, is there a certain date or month where you need to have something set in stone, if you will, to be able to execute on the SPS? Secondly, or as a follow-up, what alternatives do you have if you are unable to find the suitable work within that time window, if you will? Thank you.

Speaker #6: To be able to execute on the SBS, and secondly, or as a follow-up, what alternatives do you have if you're unable to find the suitable work within that time window, if you will?

Speaker #6: Thank you.

Speaker #5: Okay. So regarding the SPS, I mean, we have a pretty good handle on all the equipment that's necessary for the renewal and the associated lead times, so nothing that would particularly scare us there.

Michael Boyd: Okay. Regarding the SPS, we have a pretty good handle on all the equipment that is necessary for the renewal and the associated lead times. Nothing that would particularly scare us there, but obviously, clearly, we would not commit any capital to those lead times until we had sight of an opportunity and decided to progress with the renewal survey. There is a time there, in advance that we would need, but relative to the opportunities that we have got there, the renewal survey would all be factored into the commencement window there. We think that we could absorb any lead time challenges within the renewal survey and commencement window with any future contracts. The second question was, what would we do in the event that we did not find continuation for the work? Was that the question, Truls?

Speaker #5: But obviously, clearly, we wouldn’t commit any capital to those lead times until we had sight of an opportunity and decided to progress with the renewal survey.

Speaker #5: So, there is a time there in advance that we would need. But relative to the opportunities that we've got there, the renewal survey would all be factored into the commencement window there.

Speaker #5: So, we think that we could absorb any lead time challenges within the renewal survey and commencement window. The second question was: what would we do in the event that we didn't find continuation for the work?

Speaker #5: Was that the question? Truls?

Speaker #6: Yes. I mean, if you end up in the position where you haven't secured, call it, a work, are you able to—will you push the SBS?

Truls Olsen: Yes. If you end up in a position where you have not secured, call it, work, are you able to, will you push the SPS? Is that a sort of pause and start or, yeah, how do you think about that? Or how should we think about that?

Speaker #6: Is there a sort of pause and start, or—yeah, how do you think about that? Or how should we think about that?

Speaker #5: Yeah, I mean, again, we're really looking at all available opportunities in front of us, or scenarios, rather—it's probably a better word—for Blackford.

Michael Boyd: Yeah. Again, we are really looking at all available opportunities in front of us, or scenarios rather, is probably a better word for Blackford. That may include holding the rig for a period if we believe that the strength in the market is there and opportunities may come. We also do not have a clear end date with Oil India. Whilst we believe we are on the final well for them, the end date is currently unknown. We are just using the time to continue to assess the market. As I said, it really is a case of what do we believe is the best use of funds for the company relative to the strength of the market? If there is opportunities there, we may have confidence to hold Blackford, but we would generally only commit if we have opportunities that would justify the further capital expenditure.

Speaker #5: And that may include holding the rig for a period if we believe that the strength in the market is there, and that opportunities may come.

Speaker #5: We also don't have a clear end date with Oil India. Of course, we believe we're on the final well for them. The end date is currently unknown.

Speaker #5: So, we're just using the time to continue to assess the market. And as I said, it really is a case of what we believe is the best use of funds for the company relative to the strength of the market.

Speaker #5: And if there are opportunities there, we may have confidence to hold Blackford. But we would generally only commit if we have opportunities that would justify the further capital expenditure.

Speaker #6: Thank you, guys.

Truls Olsen: Thank you, guys.

Speaker #2: Thank you, everyone. No further questions. I will now hand back to Michael for closing remarks.

Operator: Thank you. There are no further questions. I will now hand back to Michael for closing remarks.

Speaker #5: Okay, that, I think, brings the Q&A to an end. I would just like to thank you all for your participation and for listening. Thank you.

Michael Boyd: Okay. That, I think, brings the Q&A to an end. I would just thank you all for your participation and for listening. Thank you.

Operator: Thank you. This concludes today's conference call. Thank you to participating. You may now disconnect.

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Half Year 2026 Dolphin Drilling AS Earnings Call

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Dolphin Drilling

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