Dolphin Drilling announced its financial results for the second quarter and first half of 2026, highlighting it as a significant step forward in Dolphin Drilling’s repositioning, with increased long-term contract coverage, continued strong safety and operational performance and a completed refinancing materially strengthening earnings visibility, liquidity and financial flexibility.
Total revenue was $44.9 million in the second quarter (Q2 2025: $47.4 million) and $89.6 million for the first half (1H 2025: $93.0 million).
EBITDA was $7.0 million in the quarter (Q2 2025: $5.5 million) and $15.3 million for the first half (1H 2025: $10.4 million), an increase of approximately 47 percent year on year.
Multi-year contract awards were secured for Paul B. Loyd Jr. and Borgland Dolphin, extending fleet contract coverage to 2030 and 2031 respectively. Paul B. Loyd Jr. achieved 99.8 percent uptime and Blackford Dolphin 90.2 percent uptime in the quarter.
"This quarter marks a structural change in Dolphin Drilling's position and further demonstrates our ability to deliver on our goals and objective with strong operational performance, good cost discipline and excellent contract backlog all evident," said Michael Boyd, Chief Executive Officer.
"The two multi-year awards secured for Paul B. Loyd Jr. and Borgland Dolphin transform our revenue outlook, extending contracted backlog across the latter half of the decade. Combined with the equity raise completed in May, we now have both the earnings visibility and the financial flexibility to execute the Borgland reactivation and capitalise on growth opportunities in an increasingly supply-constrained market, where fewer than 15 moored semi-submersibles are currently marketed worldwide.”
Financial review
Revenue for the quarter comprised charter revenue of $34.4 million and other revenue of $10.5 million. The year-on-year movement reflects lower mobilisation revenues and the commencement in May of the new multi-year contract for Paul B. Loyd Jr., which secures long-term earnings visibility at a reduced dayrate. Borgland Dolphin was in lay-up and undergoing reactivation preparation throughout the period and contributed no charter revenue.
Rig operating expenses were $21.1 million, project costs $9.2 million and lay-up expense $2.4 million. Daily operating costs averaged $90,000 for Paul B. Loyd Jr. and $143,000 for Blackford Dolphin, both marginally improved on the prior quarter. Borgland Dolphin stacking costs of $26,000 per day marginally increased as planned due to the commencement of reactivation and class renewal preparation.
Operational update
Paul B. Loyd Jr. is contracted to September 2030 with a firm revenue backlog of $247 million, operating offshore UK with Harbour Energy and currently on sublet to Ithaca Energy. Its special periodic survey was completed in September 2025, with limited investment planned over the coming four years. The client has an option at the end of the existing firm contract to either continue with a two-year contract, or a five-year contract, both at fixed dayrates.
Borgland Dolphin is contracted to November 2031 with a firm revenue backlog of $291 million and five years of options thereafter estimated at $287 million. The rig is expected to complete its class renewal by November 2026, with remaining survey capital expenditure budgeted at $12 million, ahead of operations offshore Spain and subsequently offshore UK.
Blackford Dolphin continues its three-well exploration campaign for Oil India Ltd in the Andaman Sea, India. The Company is in active dialogue regarding follow-on work and other prospects across several regions. The rig's next required class renewal falls due in April 2027.
Dolphin Drilling continues to evaluate strategic initiatives aimed at enhancing long‑term shareholder value. The company is currently engaged in preliminary, non‑binding discussions concerning certain organic growth opportunities as well as potential business combinations.
Market outlook
The company continues to see structural demand support for moored semi-submersibles in mature basins, underpinned by rising global energy investment, a substantial and non-discretionary UK plug and abandonment programme with a large number of wells still requiring decommissioning, and improving exploration economics. Set against this, the marketed global fleet of standard moored semi-submersibles has declined from approximately 140 units in 2010 to fewer than 15 units today.
Subscribe
