Foresea Reports its 2023 First Semester Results, the first one as a Pure Drilling Company.

LUXEMBOURG:

Launch of Foresea, on June 7, 2023. A leading company in the drilling market in Brazil, a pure-play drilling company, created from the restructuring of Ocyan's drilling unit

Firm backlog of USD 1.3 billion at the end of June 2023

Addition of USD 450 million from Norbe VIII's new contract awarded this month

Total contract drilling revenues of USD 176 million in the first half of 2023

EBITDA of USD 45 million with an EBITDA margin of 25.5%

Total debt reduction of USD 2.5 billion

Revenue efficiency: 96.5% in the first semester of 2023

Solid financial position, with Net Debt/ EBITDA1 ratio of 1.1x

Financial Highlights

thousands of U.S. dollars

H1 2023

H1 2022

Revenue

176,317

203,713

Costs

(131,335)

(109,350)

EBITDA

44,982

94.363

EBITDA Margin (%)

25.50 %

46.3 %

Operating Income (loss)

(123,927)

(127,289)

Net Debt

98,824

2,528,284

"I'm proud to be part of the birth of Foresea, a leading offshore drilling company operating in Brazil, that benefits from excellence in operations and the highest safety standards and enjoys a very healthy balance sheet position," said Rogerio Ibrahim, President and Chief Executive Officer. He added, "In the first months of operations we delivered a strong operational performance, achieving operational efficiency of 98.7%. We also just finished ODN I's special periodic survey and it is now ready to start a new 3-years contract with Petrobras from October this year."

I'm also glad to announce that Norbe VIII was awarded a new 3-year contract with Petrobras at better prevailing rates. This new contract will add approximately $450 million to our current firm backlog. We now have our fleet fully contract until the end of 2024.

"We see strong demand both locally and internationally, with longer contracts being sought by customers, especially here in Brazil, also in an environment with much more healthy rates."

Ibrahim concluded, "Foresea is in a very good position, both operationally and financially, to enjoy the positive moment for the offshore drilling market. The company is ready to continue delivering the exceptional operational results and to take full advantage of the longer upcycle we are foreseeing."

First Semester Results

Contract drilling revenues for the first semester of 2023 totaled USD 176 million.

Revenues efficiency was 96.5% in the first semester of 2023 and marketed fleet utilization rate was 100%, and total utilization rate was 92.3%, mainly impacted by the 10-years SPS taken by ODN I from...