Dolphin Drilling As

Good day and thank you for standing by. Welcome to the Dolphin Drilling Q3 Report 2025 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. If you wish to ask a question via the webcast during the conference, please type it into the box and click submit. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, John Oliver Bryce, CEO. Please go ahead.

Thank you and good afternoon. My name is John Oliver Bryce and I am the CEO of Dolphin Drilling. Today we're going to run through our Q3 earnings call and helping me do that on this call is Dolphins CFO Ingolf Gillestad. So let's move on to slide two and you can see our company disclaimer. I ask you to pay attention and read that. On to slide three and here's the agenda for today's earnings call. Firstly, we'll kick off with some key financials and some company updates. Then we'll talk about our rig fleet. Then we'll talk about the rig market that we operate in. And then we'll have a summary, a roundup. And as part of that roundup, we'll also have a Q&A session. So slide four then into the key financials. Slide five. Right. Overall, it was a good quarter with good operational performance and also some positive company development. All of these contributing to Dolphin's continued turnaround. Okay, financially, despite good operational performance and good respective financial efficiency, the group results were detrimentally affected by the fact that the PBLJ rig was out of action on a planned shipyard rig survey for a large part of the quarter. As such, the company made an EBITDA loss of $4.7 million last whereas the company made an EBITDA profit of circa $10 million the previous quarter when the PBLJ and the Blackbird worked continuously for that quarter. Expenditure-wise, the company focused on cost control, and I'm very pleased to say that we achieved material reductions in both overhead and rig operating expenses. In terms of contract backlog, we had success during the quarter there too, booking $100 million of new firm work. That now gives the company an overall backlog of $264 million in firm and $353 million of optional work. Linked to the new contract backlog is work for the Borglund Dolphin, which has been warm stacked since it last worked in Norway. This new work will see the Borglund reactivated and return to operations, adding a new revenue stream to the company. And finally, the PBLJ successfully completed its rig survey project in Norway and returned to the UKCS. And this is very positive. as the rig's long-term commitment with Harbor combined with low and stable OPEX and minimal CAPEX will help to generate a strong cash flow for the company going forward. Okay. On to slide six, and looking at the financial highlights in more detail, I'm going to hand over to our CFO Ingolf. Ingolf, can you comment on this slide?

Many thanks, John. Today, we published our financial report for the third quarter of 2025. The following is a brief overview of our preliminary financial performance, rig uptime, principal developments throughout the period, as well as significant events subsequent to the quarter end. For a comprehensive review, please refer to the full report issued earlier this morning. Our financial highlights for the quarter reveal total revenues of $37.7 million, as earlier guided, with the PBLJ rig being out for a scheduled survey for part of the quarter. However, we are pleased to report of higher earning efficiencies of 95% and 93% for the two rigs. Another key event for us was the announced contract award for Borglund, and this contract adds $60 million to our backlog. Finally, we achieved cost reductions mainly to our overhead and continued to push for efficiencies throughout the organization. Post-quarter end, we have had several important updates. Firstly, we negotiated and agreed a payment plan related to a larger HMRC tax claim in the UK. And thereafter, we announced an equity offering, providing for a gross $15 million in new funding to the company. And finally, last week, we informed of a contract extension for the Blackford with Oil India. These developments support us delivering on our promises, turning around the company with focus on reducing uncertainties and to provide stability to our drilling operations. Next page. Looking at the P&L for Q3, the company achieved total revenues of $37.7 million, with the substantial amount linked to Blackford. We have said a couple of times PBLJ underwent a scheduled rig survey for much of the period. So the rig only had 32 days on the charter. While our third rig, Borglund, remained idle throughout the quarter. On the positive side, earning efficiencies improved quarter over quarter. Rig operating expenses reflect higher costs during the rig survey as expected. And Blackford cost on par with previous quarter and Borglund inlay up at a lower cost. General and administrative expenses were sharply reduced through tight cost control. This period then results in an EBITDA shortfall of $4.7 million. Nevertheless, we report of making progress in operational efficiency and cost discipline. Blackford delivered improved operational performance, evidencing 99% uptime for September and 93% over the quarter, as we had some disruptions in July due to repair. PBLJ, with its shortened period of contracted days, this quarter had strong uptime. Net financial costs include interest expenses and refinancing costs. The income statement comparisons shows a decline in net income loss from Q2 to Q3, reflecting some financial improvement, but a loss was expected as we had only black for generating earnings for most of the quarter. On to the next page on the balance sheet. The overview highlights a cash position of $28.9 million. supported by refinancing activities, including new debts and equity. Accounts receivable increased due to the timing of revenues from Blackford and the $10 million contribution from Harbor related to the PBIJ rig survey. Other current assets include debt service coverage, prepayments, and mobilization costs. On the non-current asset side, they rose due to the rig survey investments increasing PBLJ book value with $25 in the quarter. Accounts payable and liabilities remain elevated, reflecting pending payments for the survey completion. Debt amortization scheduled or detailed with less strain on the company in the coming months. Turning then to the next page and over to John.