Shelf Drilling Ltd (OSL:SHLF)
kr 9.37 +0.23 (+2.52%) Market Cap: 2.40 Bil Enterprise Value: 14.02 Bil PE Ratio: 2.35 PB Ratio: 0.50 GF Score: 65/100
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Q1 2025 Shelf Drilling Ltd Earnings Call Transcript

May 12, 2025 / 01:00 PM GMT
Release Date Price: kr5.3 (+1.15%)

Key Points

Positve
  • Shelf Drilling Ltd (SHLLF) reported a strong operating execution with a fleetwide uptime of 99.4% for Q1 2025.
  • The company successfully completed two additional rig relocations to West Africa, positioning them for near-term programs.
  • Adjusted revenue for Q1 2025 was $243 million, with an adjusted EBITDA of $96 million, resulting in a margin of 40%.
  • Shelf Drilling Ltd (SHLLF) has a backlog of $1.6 billion, with 29 out of 33 rigs contracted at a weighted average rate of approximately $100,000 a day.
  • The company has a strong cash position, with a quarter-end cash balance of $207 million, up $55 million from the end of 2024.
Negative
  • The total recordable incident rate was 0.24 with three recordable incidents, leading to the implementation of a structured HSC turnaround action plan.
  • There was a marginal reduction in effective utilization to 79% in Q1 2025, down from 80% in Q4 2024.
  • The company revised its financial guidance for full-year 2025, lowering the adjusted EBITDA estimate due to the early contract termination for the Shelf Drilling Winner in Denmark.
  • Tendering activity in India slowed in 2024, leading to a temporary reduction in the number of working rigs.
  • The company faces day rate pressures due to the influx of rigs from the Middle East, impacting rig demand in regions like Southeast Asia.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SHLF.OL - Shelf Drilling Ltd
Q1 2025 Shelf Drilling Ltd Earnings Call
May 12, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Welcome everyone to shelf drillling's first quarter 2025 earnings call. Joining me on the call today is Douglas Stewart.

This morning, we published our Q1 financial results and our latest fleet status report. In addition to our press release and the Q1 2025 financial statements, we published a presentation with highlights from the quarter.

A recording of this call will be made available on our website within the next few days.

Before we begin, let me remind everyone that our call will contain forward-looking statements, except for statements of historical facts, all statements that address our outlook for 2025 and beyond activities, events, or developments that we expect, estimate, project, believe, or
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