Foresea Released its 2Q24 Results

2Q24 Financial Highlights

• Fleet 100% contracted and operating
• Backlog of $1.4 billion as of June 30, 2024
• Revenue efficiency: 94.9% in 2Q24
• Low leverage, with Net Debt/ LTM Adjusted EBITDA ratio of 1.0x
• First payment to shareholders: $33 million

Foresea and the UDW Drilling Market

On August 6, Foresea released its 2024 second-quarter results. The fleet was fully contracted and operational, averaging 2.4 years of contract duration, with a $1.4 billion firm backlog as of June 30^th, 2024. During the Earnings call, Mr. Rogerio Ibrahim, Foresea’s CEO, highlighted the company’s main achievements since its formation one year ago, including the transformation in corporate governance, technological innovation, operational excellence and a strong commitment to safety. Mr. Ibrahim emphasized that Foresea is “resolute on re-contracting the fleet, maintaining the leadership position in Brazil, upholding financial discipline, and prioritizing financial return in any decision-making.”

Brazil continues to be a key player in the ultradeep-water market, accounting for more than 30% of global contracted demand, making South America a leading region for offshore drilling. Foresea is strategically positioned in the region to seize these opportunities.

Improving Results

The second quarter of 2024 marks the third consecutive quarter of revenue and EBITDA growth for Foresea. Contract drilling revenues reached $127 million this quarter, a 6.4% increase from the previous quarter and 50% higher than the same period last year. This growth was driven by the renewal of contracts, replacing older contracts with legacy dayrates for new ones with market dayrates. Foresea’s operational excellence, achieving 98% this quarter, also contributed to revenue growth.

As a combination of revenue growth and cost control, Foresea’s EBITDA reached $48 million in the first quarter of 2024, a 30% increase from the previous quarter, with an EBITDA margin of 38%. The company maintains a competitive capital structure and low debt, with a Net Debt to EBITDA ratio of only 1.0x at the end of the second quarter of 2024.

Due to the positive cash flow generated by the business and low debt position, Foresea made an interim payment of $33 million to its shareholders on July 10^th, demonstrating its commitment to returning capital to investors. Foresea’s Dividends Policy, approved in March 2024, is available on the investor relations website.

Operational Excellence

Returning to its regular excellent operational performance, Foresea’s fleet achieved 98% of operational uptime in the 2Q24. The fleet utilization was 100%, as in the previous quarter, indicating that all our rigs were contracted and operating during this period.

Additionally, Norbe VIII is approaching its anticipated 15-year SPS and contract preparations, scheduled to begin still in August. Following this stoppage, the rig will start a 3-year contract with Petrobras at the beginning of the 4^th quarter, awarded in September last year, enhancing Foresea’s fleet performance with newer and higher dayrates.

Foresea also recently extended the operation and management contracts for Hunter Queen, PRIO’s semi-submersible, for an additional two years, extending Foresea’s operational excellence to third-party assets.

Explore Further:

For a detailed breakdown of Foresea’s results, check our Earnings Release, MD&A, and Fleet Report, on our investor relations website www.investors.foresea.com.

For any inquiries, please e-mail investor.relations@foresea.com.