Standard ETC acquires 25% of Dolphin Drilling in a $10mn deal
LIMASSOL, NORWAY: S.D. Standard ETC Plc. (Standard ETC) announced the acquisition of 25% of Dolphin Drilling Holdings Limited, a harsh environment drilling operator for the offshore oil and gas industry, for USD 10 million through an equity issue.
Standard ETC has today acquired 25% of Dolphin Drilling through an equity issue for a cash consideration of USD 10 million with warrants to invest an additional USD 5 million, bringing the total ownership up to 32.5 %. Dolphin Drilling has no interest bearing debt.
“We´re pleased to announce our investment in Dolphin Drilling, a company with deep industrial roots dating back to 1965 as one of the first drilling companies to operate in the North Sea,” says Martin Nes, Chairman of the Board of Directors of Standard ETC.
“Today, the company owns and operates three energy efficient moored semi-submersible rigs and employs approximately 350 people. The current market provides opportunities for debt-free drilling contractors with ready to drill assets, and we look forward to work with the Dolphin team to realize the potential of the current fleet and future rig management operations.”
Formerly known as Fred Olsen Energy, Dolphin Drilling owns and operates a fleet of 5th and 6th generation enhanced Aker H3 units with high technical standard and broad operational track record. The company has approximately 350 employees at operational bases in Aberdeen, Scotland, Stavanger, Norway, in addition to offshore personnel.
Øystein Stray Spetalen and Martin Nes will join the Board of Directors of Dolphin Drilling, with Mr. Nes proposed as Chairman.
Per end of March 2022, Standard ETC held cash and marketable securities of approximately USD 80 million. In addition, the company owns a fleet of seven platform supply vessels (PSV) of which two fully owned large-sized PSVs with 1050 M2 clear deck area. Standard Viking operates on a day rate of GBP 11,000 until January 2023, while the Standard Supplier currently operates on day rate of Euro 15,000. The company holds 28% of five mid-sized PSVs. Presently, spot rates are between GBP 15-20,000 for PSVs.
S.D. Standard ETC is an investment company founded in 2010. The company holds a focused investment portfolio and a fleet of Platform Supply Vessels (PSVs). S.D. Standard ETC is headquartered in Cyprus and is listed on Oslo Stock Exchange with the ticker code SDSD.
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