Noram Drilling AS
OSE:NORAM
Noram Drilling AS
NorAm Drilling AS engages in the ownership and operation of land-based oil and gas drilling rigs. The company is headquartered in Oslo, Oslo. The company went IPO on 2007-05-15. The firm owns and operates a portfolio of eleven advanced drilling rigs upgraded to maximize drilling efficiency in the Permian Basin in Texas, which is the biggest oil producing region in North America. These rigs are designed to combine the cost efficiency of a compact rig with the versatility of different rig classes, enabling the rigs to cover a broad range of wells for both liquids and gas. NorAm focuses solely on the US land drilling market and has established a solid foothold in the lower US, with operating experience in Louisiana, New Mexico, Oklahoma and Texas. All eleven rigs are operating in Texas in the Permian Basin.
NorAm Drilling AS engages in the ownership and operation of land-based oil and gas drilling rigs. The company is headquartered in Oslo, Oslo. The company went IPO on 2007-05-15. The firm owns and operates a portfolio of eleven advanced drilling rigs upgraded to maximize drilling efficiency in the Permian Basin in Texas, which is the biggest oil producing region in North America. These rigs are designed to combine the cost efficiency of a compact rig with the versatility of different rig classes, enabling the rigs to cover a broad range of wells for both liquids and gas. NorAm focuses solely on the US land drilling market and has established a solid foothold in the lower US, with operating experience in Louisiana, New Mexico, Oklahoma and Texas. All eleven rigs are operating in Texas in the Permian Basin.
Revenue: Q4 revenue was $26.5 million, up $2.6 million from Q3, driven by improved utilization and increased reimbursables.
Profitability: Net profit after tax fell to $2 million from $4 million in Q3, due to higher costs related to rig reactivation and maintenance.
Utilization: Rig utilization improved to 82.6% in Q4, up from 80.2% in Q3, with 10 out of 11 rigs under contract at quarter-end.
Dividends: The company paid $3.9 million in dividends during Q4 and announced two more payouts in early 2026, marking its 39th consecutive monthly dividend.
Backlog & Outlook: Backlog stands at $27.6 million, and management expects 100% rig utilization from March 2026 for the first time since 2023.
Market Commentary: Management sees the Permian rig count stabilizing, expects a flat market in early 2026, and notes that further increases in oil price (WTI) toward $70 could drive higher rig counts.
CapEx Guidance: 2026 CapEx is expected to be $3–4 million, subject to drill pipe purchases.
Balance Sheet: NorAm remains debt-free with a cash balance of $10.4 million at quarter-end.
