Dolphin Drilling reports 47% EBITDA growth in H1 2026 and secures multi-year contracts extending fleet backlog through 2031

Dolphin Drilling posted EBITDA of USD 15.3 million for the first half of 2026, up approximately 47 percent from USD 10.4 million in the same period a year earlier. Total revenue reached USD 89.6 million, and the company’s firm contract backlog stood at USD 557 million as of June 30—with a further USD 446 million in options.

The results land alongside a string of contract and financing moves that the Oslo-listed driller says mark a structural shift in its position.

Q2 and H1 2026 financial results at a glance

Revenue dipped slightly year-on-year, but the profit picture improved in a meaningful way. Total H1 2026 revenue came in at USD 89.6 million, down from USD 93.0 million in the first half of 2025. The decline reflects lower mobilization revenues and the start of a new multi-year contract for the Paul B. Loyd Jr. rig in May—one that trades a higher short-term dayrate for long-term earnings visibility.

Cost discipline played a clear role, with total operating expenses falling to USD 32.7 million in Q2 2026, down from USD 36.2 million in Q2 2025.

EBITDA still climbed from USD 10.4 million to USD 15.3 million over the same stretch, that 47 percent jump. Cost discipline played a clear role, with total operating expenses falling to USD 32.7 million in Q2 2026, down from USD 36.2 million in Q2 2025.

The cash position also strengthened considerably. At June 30, 2026, Dolphin Drilling held USD 55.1 million in cash—up from USD 30.5 million at the end of 2025—with a completed refinancing and an equity raise in May both contributing to that improvement.

Multi-year contract awards and backlog position

The two contract awards secured during the quarter are the headline story for investors focused on revenue visibility. Paul B. Loyd Jr. is now contracted through September 2030 with Harbour Energy for operations offshore the UK, currently on sublet to Ithaca Energy. That single contract carries a firm revenue backlog of USD 247 million.

Borgland Dolphin goes further. The rig is contracted through November 2031 for operations offshore Spain and subsequently offshore the UK, with a firm backlog of USD 291 million and five years of options estimated at an additional USD 287 million.

Together, the two rigs push Dolphin Drilling’s total firm revenue backlog to USD 557 million as of June 30, 2026. Add in the options and the potential total reaches USD 1 billion—a meaningful shift for a company running a small fleet of semi-submersibles. The awards extend contracted coverage well into the latter half of the decade, giving Dolphin Drilling a clearer runway than most peers in the moored semi-submersible segment currently enjoy.

Refinancing, equity raise, and Borgland reactivation

Alongside the contract news, Dolphin Drilling wrapped up a refinancing during Q2 that extended its bond maturity to March 2028. Interest-bearing debt now stands at USD 87 million in total—split between a current portion of USD 19.7 million, with monthly repayments beginning January 2027, and a non-current portion of USD 67.3 million.

The financial cost of that refinancing showed up in the Q2 numbers. Net financial items represented a cost of USD 4.5 million in Q2 2026, compared with USD 10.8 million in Q2 2025—an improvement driven by lower interest expense and a positive foreign exchange movement, partially offset by USD 3.5 million in one-off refinancing fees.

The equity raise completed in May was specifically aimed at funding Borgland Dolphin’s reactivation. Currently undergoing class renewal, the rig is expected to be ready by November 2026. Remaining survey capital expenditure is budgeted at USD 12 million, and stacking costs ran at USD 26,000 per day during the quarter—slightly higher than before, as reactivation preparation got underway.

Operational performance across the fleet

Paul B. Loyd Jr. delivered near-perfect availability, recording 99.8 percent uptime in Q2 2026. Blackford Dolphin came in at 90.2 percent—lower, but the rig also hit a notable safety milestone during the quarter, surpassing 1,000 days without a lost-time injury.

Blackford Dolphin is currently running a three-well exploration campaign for Oil India Ltd in the Andaman Sea, with active discussions underway about follow-on work and other prospects across several regions. The rig’s next class renewal is due in April 2027. Daily operating costs averaged USD 90,000 for Paul B. Loyd Jr. and USD 143,000 for Blackford Dolphin—both marginally improved versus the prior quarter. Borgland Dolphin contributed no charter revenue during the period, as expected.

Market context and strategic outlook

The supply picture for moored semi-submersibles has tightened dramatically over the past 15 years. The marketed global fleet has shrunk from roughly 140 units in 2010 to fewer than 15 today—a contraction that gives operators with available, capable rigs real pricing and contracting leverage.

Demand signals look supportive as well. Rising global energy investment, a large and largely non-discretionary UK plug-and-abandonment program, and improving exploration economics all point toward sustained need for the type of rigs Dolphin Drilling operates.

CEO Michael Boyd described the quarter as marking a “structural change” in the company’s position, citing strong operational performance, cost discipline, and contract backlog. The company is also in preliminary, non-binding discussions on organic growth opportunities and potential business combinations, though no specifics have been disclosed.

Extends revenue visibility through 2031

Dolphin Drilling enters the second half of 2026 with a stronger balance sheet, a materially larger contracted backlog, and two rigs delivering solid operational performance. EBITDA grew 47 percent year-on-year in H1 despite a modest revenue decline, driven by lower operating costs. The firm backlog of USD 557 million—with USD 446 million more in options—extends revenue visibility through 2031. Borgland Dolphin’s reactivation, targeted for completion by November 2026, is the next major operational milestone, and the refinancing and equity raise have provided the liquidity to fund that work without immediate pressure on cash reserves.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.