Shelf Drilling Reports Second Quarter 2025 Results Shelf Drilling Reports Second Quarter 2025 Results

PRESS RELEASE

SHELF DRILLING REPORTS SECOND QUARTER 2025 RESULTS

Dubai, UAE, August 7, 2025 - Shelf Drilling, Ltd. ("Shelf Drilling", "SDL"and,together with its subsidiaries, the "Company", OSE: SHLF) announces resultsforthe second quarter of 2025 ended June 30. The results highlights will bepresented by audio conference call on August 7, 2025 at 6:00 pm Dubai time /4:00 pm Oslo time. Dial-in details for the call are included in the pressrelease posted on August 5, 2025 and on page 3 of this release.

Greg O'Brien, Chief Executive Officer, commented: "Shelf Drilling continued todeliver strong operating and financial performance in the second quarter of2025generating EBITDA of $94 million, corresponding to a 39% margin, and we haverevised upwards our financial guidance range slightly for the full year 2025.Wealso increased our cash position by $19 million and repaid $48 million of debtduring the first half of 2025.

Over the last two months, we have secured a series of new contracts andextensions in the Middle East, India, Mediterranean, North Sea and SoutheastAsia improving visibility for 2025 and 2026, and we remain actively engagedwithcustomers on additional contracting opportunities in our core markets."

O'Brien added: "While the uncertain macroeconomic environment has resulted innear-term market volatility and we see near-term dayrate pressure, we remainconfident in the long-term fundamentals for the jack-up market. Shallow wateractivity will continue to play a crucial role in meeting the world's expandingenergy needs. We remain focused on delivering safe and best-in-class servicestoour customers and value for our shareholders." Second Quarter Highlights and Subsequent Eventso Q2 2025 adjusted revenues of $239.7 million.o Q2 2025 adjusted EBITDA of $94.0 million, representing an adjustedEBITDAmargin of 39%, including $21.0 million adjusted EBITDA from Shelf Drilling(North Sea), Ltd. ("SDNS") and $73.0 million from the rest of the business.o Q2 2025 net income of $11.2 million.o Q2 2025 capital expenditures and deferred costs totaled $18.0 million. o The Company's cash and cash equivalents balance at June 30, 2025 was$171.5million.o Key rig updates include:- Five-year contract extension for the High Island V in Saudi Arabiauntil July2030.- Three-year new contract for the J.T. Angel expected to commence inOctober2025.- One-year contract extension for the Key Manhattan in Italy untilNovember2026.- One-year contract extension for the Rig 141 in Egypt until February2027.- One well contract for the Shelf Drilling Fortress in the UnitedKingdom,expected to commence in September 2025.- One well contract for the Shelf Drilling Enterprise in Vietnam,expected tocommence in September 2025.- Trident XII is intended to be divested for non-drilling purposes. o Financial guidance for the full year 2025 has been revised and isincluded inthe "2025 Financial Guidance" section of the Q2 2025 results highlightspresentation on our website. Second Quarter Results Adjusted revenues marginally decreased to $239.7 million in Q2 2025 comparedtothe prior quarter, primarily due to contract completions for two rigs in Indiaand the United Kingdom. This was partially offset by a higher average dayratefor one rig in Denmark and a full quarter of operations for one rig in Egyptfollowing its contract commencement in February 2025.

Effective utilization marginally decreased to 78% in Q2 2025 from 79% in Q12025mainly due to two rigs in India and the United Kingdom that completedcontractsin late Q1 2025 and Q2 2025, respectively. This was partially offset by onerigin Egypt following contract start-up in February 2025. Average dayrateincreasedto $96.7 thousand in Q2 2025 from $94.2 thousand in Q1 2025, primarily due toahigher dayrate for one rig in Denmark.

Total operating and maintenance expenses were relatively unchanged at $129.6million in Q2 2025 compared to prior quarter. The marginal increase wasprimarily due to higher operating costs for one rig in Norway that commenceddrilling operations in May 2025 and higher expenses for fleet spares, mostlyoffset by lower costs for two rigs that were redeployed to West Africa in Q12025 and two rigs in India that completed their contracts in Q1 2025.

General and administrative expenses decreased by $2.4 million in Q2 2025 to$14.4 million as compared to $16.8 million in Q1 2025. The sequential decreasewas primarily due to a decrease in provision for credit losses and lowercompensation and benefits expenses.

Adjusted EBITDA for Q2 2025 was $94.0 million compared to $96.2 million for Q12025. The adjusted EBITDA margin of 39% for Q2 2025 marginally decreased ascompared to 40% in Q1 2025. The adjusted EBITDA for SDNS sequentiallydecreasedto $21.0 million from $28.0 million, primarily due to one rig in the UnitedKingdom that completed its contract in late Q2 2025.

Capital expenditures and deferred costs increased to $18.0 million from $15.5million in Q1 2025. The sequential increase was primarily due to higherspendingon fleet spares. This was partially offset by lower regulatory and capitalmaintenance expenditures for three rigs in West Africa, Denmark and Qatar aswell as two rigs redeployed to West Africa in Q1 2025.

Q2 2025 ending cash and cash equivalents balance was $171.5 million. Thedecrease of $35.1 million from $206.6 million at the end of Q1 2025 wasprimarily due to debt service payments in Q2 2025 ($47.5 million of principalpayments and $67.0 million of interest payments). This was partially offset byadecrease in working capital in Q2 2025.

The Form 10-Q Equivalent, which includes the condensed consolidated financialstatements, and a corresponding slide presentation to address the resultshighlights for Q2 2025 are available on the Company's website.

For further queries, please contact:Douglas Stewart, Executive Vice President and Chief Financial OfficerShelf Drilling, Ltd.Tel.: +971 4567 3400Email : douglas.stewart@shelfdrilling.com

Dial in Details for the Audio Conference callParticipants will receive conference access information only when theyregisterfor the conference via the link below:

Online Registration:https://register-conf.media-server.com/register/BI29efa59aa26c4cfda673b4af6a9c33d2

Participants must register for the call using online registration. Uponregistering, each participant will be provided with call details.

About Shelf Drilling Shelf Drilling is a leading international shallow water offshore drillingcontractor with rig operations across Middle East, Southeast Asia, India, WestAfrica, Mediterranean and North Sea. Shelf Drilling was founded in 2012 andhasestablished itself as a leader within its industry through its fit-for-purposestrategy and close working relationship with industry leading clients. TheCompany is incorporated under the laws of the Cayman Islands with corporateheadquarters in Dubai, United Arab Emirates. The Company is listed on the OsloStock Exchange under the ticker "SHLF".

Special Note Regarding Forward-Looking StatementsMatters discussed in this announcement may constitute forward-lookingstatements. Forward-looking statements are statements that are not historicalfacts and may be identified by words such as "believe", "expect","anticipate","strategy", "intends", "estimate", "will", "may", "continue", "should" andsimilar expressions. The forward-looking statements in this release are basedupon various assumptions, many of which are based, in turn, upon furtherassumptions. Although the Company believes that these assumptions werereasonable when made, these assumptions are inherently subject to significantknown and unknown risks, uncertainties, contingencies and other importantfactors which are difficult or impossible to predict and may be beyond itscontrol. Such risks, uncertainties, contingencies and other important factorscould cause actual events to differ materially from the expectations expressedor implied in this release by such forward-looking statements. Given thesefactors, users of this information should not place undue reliance on theforward-looking statements.

Additional information about Shelf Drilling can be found atwww.shelfdrilling.com.

This information is subject to the disclosure requirements pursuant to section5-12 of the Norwegian Securities Trading Act.

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