Dolphin Drilling AS

Dolphin Drilling AS has a market capitalization of $437.9 million and a price-to-book ratio of 4.99, indicating that the market values the company at nearly five times its book value. The company's liquidity position is characterized by $27.7 million in cash and equivalents, but with $80 million in long-term debt, the net cash position is negative, signaling a medium liquidity risk. The current ratio of 1.94 suggests the company has sufficient current assets to cover its current liabilities, but the negative operating cash flow of $23.3 million indicates ongoing cash outflows from operations.

Profitability metrics show a challenging financial position for Dolphin Drilling AS. The company reported a net loss of $16.9 million and an operating loss of $20.2 million, with a return on equity of -19.27% and a return on assets of -8.2%. These figures are significantly below the industry median for profitability, reflecting the company's current unprofitable operations and the broader challenges in the offshore drilling sector.

Geographically, Dolphin Drilling AS operates in the global offshore drilling market, with no disclosed revenue concentration by region or segment. The company's operations are exposed to the cyclical nature of the oil and gas industry, with demand for offshore drilling services heavily influenced by global oil prices and exploration activity.

Looking ahead, Dolphin Drilling AS is expected to face continued financial pressure. The company's revenue outlook for the current fiscal year is negative, with a projected decline in revenue. Analysts have issued a single "Hold" recommendation, with no strong buy or buy ratings, indicating a cautious stance on the company's near-term prospects. The company's free cash flow is negative at $13.7 million, and with a debt-to-equity ratio of 0.91, the company has a moderate level of leverage.

The risk assessment for Dolphin Drilling AS highlights a medium liquidity risk and a low dilution risk. The company's negative net cash position is a key flag, and while the dilution risk is low, the company's financial performance and leverage suggest a need for close monitoring of capital structure decisions. No recent events or filings have been disclosed that would significantly alter the company's risk profile in the near term.

Recent investor sentiment is reflected in the analyst recommendations, with one "Hold" rating and no strong buy or sell ratings. The mean recommendation of 3.00 suggests a neutral outlook, with no strong conviction in either direction. The company's last actual revenue was $177.7 million, which is lower than the $101 million reported in the latest financial snapshot, indicating a decline in revenue.

Revenue surged to $177.7 million in FY2026, demonstrating significant top-line growth momentum for the drilling company.

Gross profit turned positive at $88.1 million in FY2026, indicating improved core operational efficiency and margin expansion.

Operating losses narrowed significantly to -$9.4 million in FY2026, suggesting the company is approaching operational breakeven.

Net income improved to -$54.3 million in FY2026, marking a substantial reduction in annual losses compared to prior years.

Cash conversion metrics rank above the median within the Oil & Gas Drilling cohort, highlighting relative efficiency.

The company remains unprofitable with a negative net margin of -1.67%, placing it in the bottom quartile of peers.

Free cash flow deteriorated to -$111.4 million in FY2025, reflecting severe cash burn and liquidity pressures.

Long-term debt increased sharply to $86.4 million in FY2026, raising concerns about leverage and financial flexibility.

A current ratio of 0.36 signals weak short-term liquidity, exposing the firm to medium liquidity risk.

Revenue $37.7M, +128,5% YoY; Operating income +61,5% YoY.

• ▍Revenue $37.7M, +128,5% YoY
• ▍Operating income +61,5% YoY
• ▍Net income +39,7% YoY
• ▍Free cash flow +50,9% YoY
• ▍Net margin -48.3%

Revenue $47.4M, +189,0% YoY; Operating income +96,0% YoY.

• ▍Revenue $47.4M, +189,0% YoY
• ▍Operating income +96,0% YoY
• ▍Net income −85,8% YoY
• ▍Free cash flow −95,2% YoY
• ▍Net margin -55.3%

Revenue $45.6M, +351,5% YoY; Operating income +96,5% YoY.

• ▍Revenue $45.6M, +351,5% YoY
• ▍Operating income +96,5% YoY
• ▍Net income +51,5% YoY
• ▍Free cash flow +81,0% YoY
• ▍Net margin -18.0%

Revenue $53.9M; Operating income -$33.7M.

• ▍Revenue $53.9M
• ▍Operating income -$33.7M
• ▍Net margin -72.9%

Revenue $16.5M; Operating income -$25.7M.

• ▍Revenue $16.5M
• ▍Operating income -$25.7M
• ▍Net margin -183.0%

Revenue $16.4M; Operating income -$10.0M.

• ▍Revenue $16.4M
• ▍Operating income -$10.0M
• ▍Net margin -86.0%

Revenue $10.1M; Operating income -$20.2M.

• ▍Revenue $10.1M
• ▍Operating income -$20.2M
• ▍Net margin -167.3%

Revenue $177.7M, +83,5% YoY; Operating income +89,5% YoY.

• ▍Revenue $177.7M, +83,5% YoY
• ▍Operating income +89,5% YoY
• ▍Net income +45,9% YoY
• ▍Net margin -30.6%

Revenue $96.9M, +31,8% YoY; Operating income −119,4% YoY.

• ▍Revenue $96.9M, +31,8% YoY
• ▍Operating income −119,4% YoY
• ▍Net income −128,3% YoY
• ▍Free cash flow −126,2% YoY
• ▍Net margin -103.6%

Revenue $73.5M, +249,9% YoY; Operating income +36,4% YoY.

• ▍Revenue $73.5M, +249,9% YoY
• ▍Operating income +36,4% YoY
• ▍Net income +35,7% YoY
• ▍Free cash flow +33,0% YoY
• ▍Net margin -59.8%

Revenue $21.0M; Operating income -$64.2M.

• ▍Revenue $21.0M
• ▍Operating income -$64.2M
• ▍Net margin -325.6%