NorAm Drilling Achieves Strong Financial Performance Amid Market Uncertainty
Oslo, Norway – John Fredriksen’s drilling company, NorAm Drilling, has reported a revenue of $26.6 million for the fourth quarter of 2024, marking a 6% increase compared to the same period last year. Despite economic and geopolitical uncertainty, the company has maintained strong operations, solidifying its position in the U.S. shale oil market.
Steady Growth and Rising Earnings
The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at $6.6 million, reflecting a 22% rise from the previous year. According to CEO Marty L. Jimmerson, this growth was driven by improved rig utilization rates, ensuring continued operational stability in a cautious market environment.
“During the fourth quarter, the company delivered solid results and achieved a moderate improvement in financial performance, driven by increased utilization,” Jimmerson stated.
Market Conditions and Strategic Positioning
Despite uncertainty in the oil and gas sector, NorAm Drilling has successfully maintained a strong presence in the U.S. and Permian Basin, where the number of operational rigs remained steady throughout the quarter.
Jimmerson noted that market sentiment remains cautious due to fluctuating oil prices and macroeconomic conditions. However, he emphasized that NorAm’s cost-efficient structure and debt-free balance sheet have provided a competitive advantage.
“Our rigs are among the very best in the U.S. shale oil market, measured by feet drilled per day, and NorAm is well-positioned for a market upturn.”
Commitment to Shareholders
A key highlight of NorAm Drilling’s financial strategy is its consistent return of capital to shareholders. The company distributed 1.32 Norwegian kroner per share in monthly dividends during the quarter, with two additional dividends declared after the reporting period.
Jimmerson reaffirmed the company’s focus on long-term value creation, ensuring that its shareholders benefit from the company’s operational success.
Looking Ahead
NorAm Drilling’s strong financial results demonstrate its ability to navigate challenging market conditions while maintaining operational efficiency and profitability. With a robust asset portfolio and strategic market positioning, the company is set to capitalize on future growth opportunities within the U.S. energy sector.
For investors and industry analysts, NorAm Drilling’s performance signals stability and resilience, reinforcing its status as a key player in the competitive oil drilling market.
