Maersk Drilling releases Annual Report for 2020

Safeguarding performance in a challenging environment - Seite 2

Despite challenging market conditions, Maersk Drilling managed to secure 19 new contracts and contract extensions during 2020, adding USD 469m (USD 828m) to the contract backlog.

At the end of 2020, the contract backlog amounted to USD 1.3bn (USD 2.1bn), of which USD 665m is for execution in 2021. In addition, Maersk Drilling has since the beginning of 2021 secured additional contracts and conditional letters of award with a total value of more that USD 500m.

During 2020, Maersk Drilling upgraded two of its modern harsh environment jack-up rigs to perform hybrid, low-emission drilling in Norway. Initial data points indicate a reduction of fuel consumption and CO2 emissions by approximately 25%. This plays into Maersk Drilling’s ambitious target of lowering the intensity of CO2-emissions from its drilling operations by 50 percent by 2030.

Guidance 2021
In 2021, profit before depreciation and amortisation, impairment losses/reversals and special items (EBITDA before special items) is expected to be in the range of USD 225-275m compared with USD 289m in 2020. The profitability guidance for 2021 is partly secured through the current contract backlog. Achieving the higher end of the 2021 guidance range requires that additional contracts are secured within both the North Sea and International divisions.

In 2021, capital expenditures are expected to be in the range of USD 120-140m compared to USD 162m in 2019. The capital expenditures guidance is linked to the assumed commercial activity providing certain flexibility in total spend and timing.

Webcast
In connection with the release of the Annual Report for 2020, a conference call for investors and analysts is scheduled today at 10:00 (10:00 a.m.) CET. On the call, CEO Jorn Madsen and CFO Christine Morris will present the Annual Report. The presentation will be followed by a Q&A session.

The conference call can be followed live via webcast here.

The presentation slides for the conference call will be available beforehand here.

A replay of the conference call will be available afterwards on the Investor Relations site.

Other annual publications
In addition to the Annual Report, the following documents are today released and made available at the Maersk Drilling website:

• Fleet status report
• Historical financials
• Sustainability Report
• Annual Remuneration Report
• Corporate Governance Statement

For further information, please contact: