My name is James Crothers, and I'm Investor Relations Officer at the company. I'm joined today by our Chief Executive Officer, Kjetil Gjersdal, and our Chief Financial Officer, Ørjan Lunde.

Before we begin, your attention is brought to the important information slide of our presentation, which we would encourage participants to read in full. Note that this presentation is only a summary of the quarter, and the more comprehensive quarterly report should be read separately.

Both that report and today's presentations are available on our website, www.odfjelldrilling.com. Today's call will follow the traditional structure, with Kjetil taking us through the key highlights before moving on to our operational review.

Kjetil will then continue with an overview of the market as we see it today, before handing over to Ørjan, who will go through our financial review. Kjetil will then summarize the presentation before we open up our Q&A session for analysts and investors.

As always, the Q&A session will be conducted over both telephone lines and the webcast tools. We will try to get through as many the questions put to us as possible.

However, if we don't get a chance to get through your question, I will endeavor to follow up with you directly after the call. We make an effort to answer all of the questions asked, we do encourage you to use this feature.

With that, I'll pass over to our CEO, Kjetil Gjersdal. Kjetil.

Thanks, James. A very good afternoon, everybody.

As I was quoted in our report which was published earlier today, results emphasize the resilience and capability of our organization. Even though we have had one rig off-hire for much of the quarter, we still have been able to return solid financial results, deleverage our balance sheet, and we are continuing to return cash to our shareholders.

From revenue of $251 million, we have recorded EBITDA of $162 million and achieved a net profit of $57 million. These numbers are positively impacted by the insurance proceeds from the Atlantic incident.

After write-off of lost equipment and expenses incurred related to the insurance claim, there is a positive EBITDA effect of $32 million. Meanwhile, we have continued to deleverage, reducing our leverage ratio now to 1.x net debt to EBITDA and our net debt to $862 million.

At the same time, we have announced a dividend for the quarter of 25 cents per share. While we are still seeking to increase our dividend to a long-term sustainable level, we believe that given the incident, for this quarter it was prudent to maintain our distribution level at 25 cents per share.

We'll touch more upon this later in the presentation. In addition, we have also added more backlog, resulting in our own fleet now having firm contract backlog of $2.1 billion.

Of course, as many of we have successfully brought Deepsea Atlantic back on hire following the incident after total off-hire of 106 days, within the 3 to 4 months guidance which we gave during our Q1 results presentation. While the incident was a tough hit, I would say that the response our organizations, our vendors, insurers, our clients, peers, and the wider industry has just been exceptional.

We did this the Odfjell way, and it speaks volumes to all involved that we were able to bring the unit back into operations within 106 days. I would like to sincerely thank everybody who has been involved in making this happen.

On that topic, as we move on to the operational review, we wanted to make sure we provided a update on what's been going on with the Deepsea Atlantic. Since the incident, the company has been working hard to bring the rig back on hire.

This started by locating, cleaning out, and recovering the BOP, which had been dropped to 1,100 m of water depth. This was not easy, but working with various suppliers, we were able to recover the BOP by using specialist equipment and by using the Deepsea Atlantic itself.

Inspections of this dropped BOP suggest that it will be likely repaired and refurbished. Following this, the rig sailed to yard for repairs and to install a now upgraded BOP, which the company had in stock.

The rig subsequently returned to site for testing and final acceptance in mid-July before going back on rate on August 2nd. The company has so far recognized $82 million worth of insurance proceeds related to recovery and repair following the incidents.

As mentioned, the company's had a positive EBITDA effect of $32 million in Q2 related to the insurance proceeds, and has had a positive EBIT effect of $4 million following an impairment loss of $28 million relating to the damaged equipment. As regards to cash, the net impact from the incident, all effects taken into account, is negative approximately $35 million compared to what it would be if the incident had not happened.

I would like to add that over the past couple of months, we naturally have had a lot of people asking what the cause of the incident was. While there's still a formal investigation ongoing, I think we can with confidence say that the cause of the incident was equipment errors and not operating errors.

Then moving on to our backlog and general operations performance, and despite the incident on Atlantic, our units performed extremely well during the quarter. Notably, both the Deepsea Nordkapp and Deepsea Stavanger averaged a financial utilization of 99% during the period, above our 10-year average of 97%.

Meanwhile, we also added another year of backlog to the Deepsea Nordkapp after Aker BP elected to exercise options to extend backlog for the unit for another year ahead of schedule. The day rates for this contract will be defined by two independent rig brokers before the end of this year.

With this extension, Deepsea Nordkapp's firm contract backlog is now secure until at least 2028, and all of our units are now secure until at least late '27. The Deepsea Atlantic is the first unit with availability.

However, Equinor still has priced options for the unit, which extends into early '28. Our focus over the next couple of months will be in securing more backlog in a market that we believe will continue to strengthen going forward.

On that point, I think we can have a look at our view on the market. Starting with the supply side, the story really hasn't changed that much.

The average age of harsh environment units continues to increase while limited new supply is being added or is likely to materialize in the near future. Newbuilds remain unlikely, and the high-spec unit market is increasingly tight.

When you look at the availability of Tier 1 rigs in '27 and '28, it is notably low. We consider the utilization in our sector to currently be at around 90%.

If you consider historic trends, as utilization goes above 90%, day rates tend to often follow. We believe that this tightening of the supply market is largely due to the strength of the Norwegian market, which we have been vocal about for some time now.

Operators continue to reaffirm their strategy of drilling to arrest production decline, and they are looking to secure rig availability into the future. I think and this is emphasized by recent contract awards in our sector, such as for the Transocean's Cat Ds as well as the Deepsea Nordkapp.

In addition to this, we continue to see good interest from overseas, notably in Namibia, Suriname, Canada, and the UK. In addition to exploration work, many of these areas are looking at development opportunities, which could mean further increased utilization of rigs in our sector.

Ultimately, with these conditions, we believe that the market is likely to facilitate more strong day rates for future contracts. I think we do certainly echo comments made by our peers of a strengthening overall drilling market, and particularly for the harsh environment sector.

With that, that concludes my section, and I will pass it on to my CFO, Ørjan, to go through our financial review.

Thank you, Kjetil. I'll start with a summary of the income statement.

Our operating revenue continues to benefit from higher day rates, while it was negatively impacted by the off-hire time on Deepsea Atlantic in Q2. Operating revenue in Q2 2026 was $250 million $251 million, compared to $219 million in Q2 2025.

Operating revenue from our own fleet was $221 million, while the external fleet generated a revenue of $29 million. The reduction in revenue from the own fleet compared to Q1 is explained mainly by off-hire time related to the incident on Deepsea Atlantic.

Q2 EBITDA for the own fleet segment was $160 million, representing a margin of 72%. The EBITDA and margin has been impacted by recognition of insurance proceeds, write-off of lost equipment, and expenses incurred related to the insurance claim, resulting in a positive EBITDA effect of $32 million.

Following an impairment loss of $28 million relating to damaged equipment, the EBIT was positively impacted by recognition of the insurance proceeds by $4 million. The EBITDA for the external fleet segment was $5 million, which is a margin of 16%.

Less corporate overhead and other adjustments, the group EBITDA was $162 million. As was stated in the highlight section of our report, excluding insurance proceeds and other accounting impacts related to the insurance claim, the EBITDA for the quarter would have been $129 million.

The company delivered a net profit of $57 million in Q2. On to our balance sheet development and status, which remains solid.

Our net debt is decreasing. Following the increase in debt level in Q4 2025 related to the acquisition of Deepsea Bergen, we have during the first half of '26 reduced our net debt to $863 million, which corresponds to a leverage ratio of 1.5.

The equity ratio is largely flat at 55% out of total assets of approximately $2.6 billion. The available liquidity is $308 million, including undrawn RCF of $248 million.

Details of the cash flow for Q2 follows on the next slide. In Q2 2026, we generated $128 million in cash from operations.

The impact from insurance proceeds, as discussed in our P&L, is the main explanation of the negative change in working capital of $35 million for the quarter, as insurance proceeds remained fully unpaid to the company per quarter date. The interest paid was $6 million on facilities and leases, while tax paid was also $6 million.

Cash flow from investing activities was -$20 million, whereof $3 million was related to the Deepsea Atlantic incident, and $9 million was related to periodic maintenance. The remaining $8 million was client-specific upgrades that has or will be fully covered by our customers.

Net cash flow from financing activities was $44 million, including minor FX adjustments. We paid $14 million in scheduled installments on our bank facilities and leases.

In addition, we made net repayments of $30 million on the revolving credit facilities during the quarter, increasing the available amount under the RCFs to $248 million. Dividends paid in Q2 were $60 million and was related to Q1 results.

Then, finally, despite a strong operational performance from the rest of the fleet, we are conscious that off-hire time related Deepsea Atlantic has impacted our business. While we maintain our view that we want to continue to increase our dividend to a point that we believe is sustainable in the long term, we believe that it would be financially prudent to maintain our quarterly dividend at 25 cents per share for Q2.

Today's dividend translates to a total dividend payment of $60 million for the quarter, and corresponds to an annualized yield of 10% based on yesterday's close. The shares will trade ex-dividends on the 3rd of September, and payment will be made on or around the 17th of September 2026.

I'll pass back to you, Kjetil, who will summarize our presentation.

Thank you, Ørjan. In summary, second quarter showed, for sure, the capability of our organization.

I believe that our company had a solid response and recovery from the Deepsea Atlantic incident, while the rest of the fleet continued to perform very well. Putting this incident behind us, we are very excited about what's ahead of us.

We continue to deleverage while strengthening our balance sheet with increased liquidity. Our market is strong now, and I think it's likely to become even stronger in the months ahead.

Finally, putting the Atlantic incident behind us, we are excited about our strong backlog and the cash generation that we have ahead of us. Thank you very much for listening, and James, please take over.

Thank you very much, Kjetil and Ørjan. As a reminder, if you'd like to ask a question, you can do so either via the telephone line controls for which our operator, Sergey, is in control of that.

Sergey, if you could open the telephone lines, we'd be very thankful.

Hi, Kjetil, Ørjan, James. Hope you are well, and congratulations on handling the Atlantic incident faster than what I had in my model, I had to revise that.

That's good. That's not my question.

I wanted to talk a bit about the market first. You're clearly painting a picture here about the stronger harsh environment market going forward, and I would also argue that one can read into the Nordkapp extension, for example.

I think the last one before this extension was agreed in November last year, and now they're adding that in July, even call before they know what the rate will be, even though that is the same for you. It clearly shows, to me at least, that operators are also willing to contract new capacity further out in time than before.

With that backdrop, how should we think about potential new contract announcements on the Atlantic and even on the Bergen? They still have one year plus left on their current contracts, but if the market is tight and E&Ps want high-spec rigs, can we see contract announcements already this year, you think, or do we have to wait until 2027?

Hi, Fredrik. I think we can definitely see something happening this year.

We do have good dialogues. We do have very exciting conversations and talks.

As you pointed out, the Atlantic still has priced options in there which are valid. Probably see something happening around that.

On the Deepsea Bergen, yeah, it's a great opportunity. The rig is free of options now, and we have good interest in that rig.

I think the likelihood of us being able to do something around that rig beyond the year of option that Equinor choose not to exercise, I think that's a fairly good chance for that. All

right. Thank you.

Next one maybe for Ørjan. There's a cash impact of $35 million from the incident.

Apologies if I didn't catch it, but can you confirm if that includes loss of hire during the downtime, or is that an additional cash impact, just for clarity?

Thank you, Fredrik. Obviously, not surprised by that question on this webcast, but I can confirm that that's also taken into account loss of hire.

That's really the main effect is the loss of hire during the period. In addition to that, insurance also covers cost incurred during recovery period and incremental rig and equipment repair cost in addition to lost and damaged equipment.

That's how we calculated the net effect is really to compare what could have been if the incident hadn't happened. That leaves us to an estimate of $35 million, and the distribution then, $7 million to Q2 and the remainder in the following quarters.

All right. No, that's very helpful.

Then just a final one, if I may. You kept your dividends flat this quarter to be prudent about your balance sheet, but clearly you can see potential for that to grow further in the future.

Now that the five rigs are on contract again, is it fair to assume that you'll kind of resume the growth pace already from the next quarter, or should we expect this being steady a bit before you potentially add to the payment? Thanks.

Eventually, it's up to the board to decide the level of dividend going forward. I think we were vocal about it in both our presentation and report that we have a long-term vision of continuing to increase dividends, to find that right long-term sustainable level.

We certainly see that there's capacity in the company to do that. You won't get any promises from me here and now, Fredrik.

All right. Thank you all for answering my questions.

That is for me.

No worries. Thank you, Fredrik, as always.

Sure. Thank you very much.

Thank you so much for the questions submitted so far. Again, we'll try to get through as many as these as we can.

We may run out of time before we can answer them all, however. One question: can you talk about the dynamics around newbuilds, given the global supply and demand situation and the aging global fleet?

When does the time come for the industry to make a newbuild order?

Yeah. Oh, it's a very good question, and I think yeah, I'll try to answer it.

As for now, we just cannot see it happening. There is no contract or market out there that supports a newbuild close to billion-dollar or the price of a newbuild would be so high, you would need a long-term contract with day rates way beyond what we're seeing today.

There's just no basic support for that happening. Even if you sort of come to a point where somebody could find a yard that's willing to take that on, you're looking at totally different payment terms.

You are looking at at least, I would think, a 4-year lead time. Newbuilds for us is just totally out of the question for short to medium term to discuss it.

I think it's much more likely that you will see life enhancement projects around existing fleet before we see any newbuilds coming in. Certainly, with the way we operate our unit, as I say to my organization, we need to take good care of them because we're going to have them for a long time.

We also take that into account in our maintenance philosophy and so on. Yeah.

Don't see newbuilds happening. Cannot see it happening at all.

Great. Thank you.

Similarly then, a bit of a follow-on question. What about your own fleet?

A couple of them are 15 years old plus. What sort of lifespan do you forecast for your own fleet units?

The last rig that we scrapped, believe it was Deepsea Bergen in '21, was 37 years. It was operating all the way to the end.

I can easily see our rigs at least operating till 35 years. I think if you dive into sort of life extension program and so on, you can probably see it work even longer.

We're going to drill for many, many years with the rigs that we have in our fleet today.

Thank you. Again, we've had a few questions on M&A, as we always do.

I suppose the question is: what's our thoughts on M&A? Are we still considering it or are we too busy with the BOP incident, as one person has asked?

No, no, no. We can handle more than one thing.

I think we did the Deepsea Bergen deal here before Christmas, and I think that sort of represents a deal that we are interested in looking into. Should we do something more?

It needs to be a good quality asset. It needs to come with a good contract with reputable client.

It needs something to sort of fit both the fleet structure that we have and the company profile. We are always keeping an eye out.

We have a very good overview of what's out there, and yeah, there are rigs in our management fleet that we know very well, and they are good rigs, and we continue to follow their situation and opportunities out there, and I won't rule out anything. We are definitely open to expand our own fleet even more, given the right circumstances.

Yeah. Thank you.

With net debt continuing to decrease and the balance sheet strengthening, how do you currently prioritize capital allocation between higher dividends, buybacks, and investments in additional rig capacity over the next couple of years? Ørjan, do you want to talk about how you see that?

Yeah. I think we already covered a few of the aspects that's in that question.

As Kjetil mentioned, the level of dividend is up to the board, and we are sort of in a capacity development that we could still increase to find a sustainable level for our business, but also considering potential M&A opportunities. I feel that the Deepsea Bergen acquisition was a good proof of what we can do as our balance sheet is continuing to strengthen through deleveraging.

We were able to do that acquisition based on our own balance sheet, and that could be a potential for the future as well.

Yeah. Okay.

Thank you very much. We've had a follow-on question about the newbuilds.

If there are no newbuilds orders happening in the next 2 to 3 years, what is your expectation of day rates and how high could they get for the next period?

As I said, we are I believe around 90% utilization now for the rigs in our sector now, especially the Tier 1 rigs in our sector. All history shows as market tightens up, day rates have a tendency to follow.

To speculate on a day rate level, I won't do that. I think we are confident.

I think we have an average day rate for our fleet now of around 275 280 sorry, 4 475 480 for '27 and '28, and I think that sort of gives a level that we believe at least that we will stay on for a period. It might be that as market tightens up further, that they will continue to increase.

Great. We've had a question here.

Once the Deepsea Nordkapp day rates are disclosed, should investors expect earnings per rig from '28 onwards to increase, decrease, or remain broadly in line with current levels? We struggle to give guidance.

We don't really give guidances as a standard. Maybe you want to talk just generally about how the Deepsea Nordkapp contract is structured such that we have to agree to day rates, the two independent brokers have to agree day rates?

Yeah. The two independent brokers, they they set the the rate based on, and that this is important, it's not only about sort of the the recent day rates that fixtures that's made in the market, but it's also about asset quality and capability of of the certain assets.

I think, Deepsea Nordkapp is is one of the absolute best ones out there. They will take all of these measures into account and then eventually come up with a with a day rate.

I think it should indicate when when that rate is set, I think it'll be around probably around November. It sort of gives an indication of of what the market there now are then and and how we can think about things going forward.

Great. We'll take one more question here.

Which geographies are tenders coming from for development work? Is Odfjell participating in any current development tenders?

Again, we don't comment specifically on any tenders that we're operating in, but maybe you'd want to give a more general view of where we see opportunities coming from, which geographies we're looking at.

Absolutely. We do have development work coming up in Canada, quite substantial, actually, with various operators.

There's work in Namibia. I think that's very well known that things are progressing down there.

There's also things happening in the UK, believe it or not. All of those sectors are currently in the market for development work.

Yeah. I think, given the time, we'll close the call there.

Thank you all for joining the conference call. Our next capital markets event will be on the 3rd of November, and we look forward to speaking to you then.

Thank you all so much.