Good day and welcome to the Odfjell Drilling Q4 2021 investor call. At this time, I would like to turn the conference over to Eirik Knudsen. Please go ahead, sir.
Thank you so much. Welcome to this investor conference call for Odfjell Drilling, where we will present the fourth quarter of 2021. My name is Eirik Knudsen, and with me today I have Chief Executive Officer Simen Lieungh and Chief Financial Officer Jone Torstensen . As usual, Simen will go through the first part of the presentation, and then Jone will cover the financials in part two. Thereafter, we will conclude with a Q&A session. For the sake of good order, we make reference to our disclaimer on page two of the presentation, and I will then leave the word to Simen.
Thank you, Eirik. Simen Lieungh here. Welcome to the Q4 conference call. I will go through, we have the same agenda as we have earlier. I go through the key summaries, segment reporting, and Jone will take care of the financials, as we have said. I'm gonna refer to the pages when we go through the presentation. I guess that many of you have that presentation in front of you, so please follow that while I announce the pages. On page number four, that's the summary of the quarter. We had a revenue of $222 million. We have a cash position of $175 million. We have an EBITDA of $85 million and a gearing above three.
We have an equity ratio just above 50%. With the company, the businesses, we have seen a small change there. We have also earlier announced that we have now taken in management on West Mira and West Bollsta, and that brings the number of assets we control up to seven. I'll come more into the details somewhat later in the presentation. I also like to, on the page five, to address the process we are in the middle of regarding the splitting of the company. We have worked with that concept for quite some time now, and our intention is to list the spin-off of Odfjell Technology at Oslo Stock Exchange in March.
The basis for the split is mainly adapt to the market dynamics and to better respond to what we see business opportunities. This is something we have discussed quite some time. Those two areas, Odfjell Drilling and Odfjell Technology are has over time different drivers that module side is very strong on CapEx. It's a very CapEx intense, asset heavy, whilst the technology part is clearly a totally different setup. We have also earlier, as we have announced, we have successfully issued a bond of NOK 1.1 billion , and we also have raised a super senior revolving credit facility of $25 million to replace the bank debt on technology side, what we earlier referred to as services side.
The intention here is clearly that we believe we will by that have a clearer financial structure. We will hopefully, and we believe we will unlock valuation where we have not seen the valuation in the company or the technology side. We believe that will be better unlocked now, and we also see that we have a much, much clearer capital structure of the company. Upon the listing, we have decided to split the company and dividend out shares in ratio six to one, meaning that six shares dividend out to technology, getting to one share in technology.
That is to meet the requirement for listing of the company and other other elements. I think that is enough to be said about the split. As I said, we believe the execution of the process are well on schedule, and we have a target to be listed at Oslo Stock Exchange in March, 29th of March, and launch the new company 1st of April. On page number six, just a little more sum up of the two businesses. As I said, we have identified the split between asset and asset heavy, asset light, whilst regarding the business model is also very different, which is also giving more focus to develop the businesses on technology side.
With the business model of the modules on the Odfjell Drilling part, there are more medium to long-term contracts, whilst the technology side is more, I would say, mixed with long-term contracts and more short-term contracts, add-on sales, and also to address new opportunities, especially within potentially green ventures which where we have addressed potentially new activities.
We also, as you know, are working with the Odfjell Oceanwind and Odfjell Technology currently has, together with the Odfjell Group controlling part of the Odfjell Drilling Odfjell Oceanwind company, which where we see a quite interesting development in that market also. Key summaries, at page number seven, we have, as we said, issued a bond of NOK 1.1 billion that was successfully executed. Quite short, actually, in a, in a, in a, I would say demanding market, but we did that, okay. The Deepsea Stavanger has drilled one more well with the Lundin and is now engaged with Equinor on the master frame agreements we have there and we'll come back to the prospects going forward there.
We have also announced that we have taken the marketing and management services with Northern Ocean Ltd. for West Mira and West Bollsta. Deepsea Yantai has secured additional work in 2022, so we have covered that part of the year. Deepsea Nordkapp has also secured firm options into Q1 2024 for Aker BP. Equinor has also exercised Johan Sverdrup and Heidrun platform drilling operations for our engagement within platform drilling. We have also announced that we have made an agreement with SFL to take management services of the jackup West Linus, which today operating for ConocoPhillips at Ekofisk.
A lot of things have happened over the last period, which is, which gives both companies of drilling, of technology a good start regarding backlog and predictability. On page number eight, with just to sum up, there has been a good operational uptime on all the assets. There has been some issues on Yantai regarding some trouble with the BOP, but that is over now, and all the assets are operating on the level of 98%-99% uptime. Which is, which is absolute acceptable.
With the on the page nine, I can share with you that the Deepsea Atlantic has now started the campaign on Johan Sverdrup phase II, which is expected to last for a while. It's a well campaign and it's gonna continue for Equinor afterwards. The Deepsea Stavanger, the same, has now engaged with the Equinor, and we are in the same type of discussions there. We believe that with not too far into the future, more activity will be announced for Deepsea Stavanger under the same master frame agreement.
The Deepsea Aberdeen is currently working for Wintershall, before we start at Breidablikk for Equinor, we expect the startup will be in late April in or May-ish area. So the... Beyond that, there's also the continuous optionality and more to come, I guess. At the same with Deepsea Nordkapp for Aker BP, there we have recently announced another extension of the contract until Q1 2024, there are also potentially for further extensions with Aker BP. The same with Yantai. More activity has been announced. So we find that we have a good coverage of all our own assets. Regarding, Mira Deepsea.
Sorry, West Mira and West Bollsta, we have just taken over the management services for West Mira, and we will take over the management services for Bollsta when Bollsta finally concludes the campaign with Lundin in Norway. We are now, for the time being, mapping all the opportunities that is potentially available for those two contracts, rigs to be employed. We come back to that when we talk about the market. The market looks much, much better in 2023, 2024 and onwards. We are quite optimistic that we will have capabilities to bring those two rigs into the market, I would say, as soon as possible.
When we move over to page number 10, we have recently, I said, announced that Equinor has extended the options on Johan Sverdrup. These are contracts which is long-term contracts. There are a lot of options, but there are different mechanisms behind these options. Very much these options are very often executed. I think that the coverage with the platform form drilling is quite good. On that slide, we have not yet put in West Linus, but Linus, as you know, are working with the on Ekofisk for ConocoPhillips. We will take over the operations there after we have done the so-called AoC.
The jackup will continue to work for Conoco and Ekofisk until, I guess, end of 2028 or something. It's a long-term contract. We look really forward to start that engagement. It's a great rig, and we already operate drilling operations and well services at Ekofisk. This is just very in line with the same type of services. We see a lot of potentially for more efficiency and of course, also a lot of synergies as long as we are already engaged on the portfolio of Ekofisk platforms. With on the page 11, well services, it's the same setup. We operate globally. Of course, the market is getting better within the oil services sector.
I guess that many of you have questions about what's happening with Ukraine and Russia and the conflict there. We can come back to that to answer questions about that. Currently, we have no operations either in Russia or Ukraine, but of course, you know, it will affect the global market and of course, the energy market will be affected by the fact of these kind of conflicts. Good or bad, one can say, but it's a fact that it will be affected. We believe that the market or the energy need is there. We operate in more than 20 countries.
We see the activity level is increasing, and we kind of foresee an increased level of rigs in operation and by that, more Well Services activity. That's the short version of that part. We have a great earnings visibility with more than $2.1 billion order backlog. Of that, the $1.3 billion are firm contract, and the rest is options. This is the backlog for the module side and platform drilling. As usual, we are not reporting the backlog Well Services or engineering/technology in that picture. If we go to the slide number 13, in general, I have to say that we say that the market, the oil and gas market, where we primarily work, the energy market is stronger.
There are more visibility. We see the lead time from our clients when they ask for capacity until they need the capacity is longer. That's the first good indicator. There are much more balance in the market. We see now balance, more balance within ultra deepwater market. We see a much better market within jackups. The harsh environment market has been quite okay for many years already, but not that okay, but absolutely acceptable. The balance in the harsh environment is also getting there between supply and demand, and we hope that that will reflect the level of earnings and rates down the road. We have our fleet now with the managed fleet, we have a great fleet. We have the most advanced drilling rigs in the world.
They are highly- specced, they are highly asked for, and we have very good dialogue with the clients. All the clients has applauded that we are getting more capacity to serve with the same efficiency and quality as we have done already with our own assets. We certainly look forward to bring these management assets into operations and finally discuss potentially an end game for that. Well services, I see the activity, as I mentioned, are much, much better and more, you know. Very important KPI for Well services is a number of rigs in all type of segments, onshore, shallow water, deepwater, harsh environment. The more rigs in operations, the more activity, more Well services activity also.
We serve a great number of clients in that picture, from the very big majors to many others. There are actually quite many clients we are working with globally. We also see a much better market in Southeast Asia and the Middle East as, and areas like has been slow for years is now coming much better back. With energy, we see the same, more activity, more engineering activities. We see more SPSs coming up, and we are more willing and able to serve that kind of activity. We also see that the energy market with the technology, engineering and so forth, is coming much stronger back into play.
I guess that one of the challenges we all will see down the road, we see do we have enough capacity and resources and capabilities to serve what we are asked for to serve. With that more optimistic picture than for a long, long time isolated to the energy market, I can leave the word to Jone to take care of the financial information. Jone, go ahead.
Thank you, Simen. Starting with the group summary financials on page 15. Group operating re-revenue was $222 million, compared to $355 million in Q4 2020, a decrease of $133 million. The decrease is mainly due to drilling operations South Africa in Q4 2020. Revenue recognition requirements meant the revenue for the whole contract was recognized in 2020, whereas the cost of transit and demobilization was recognized in Q1 2021, hence much higher revenue and margin in Q4 2020. Group EBITDA was $85 million, compared to $171 million in Q4 2020, a decrease of $86 million, mainly in the MODU segment, in relation to the drilling operations South Africa Q4 2020. After depreciations, net financial items and income taxes, the group delivered a net profit of $28 million compared to $108 million in Q4 2020.
Going to MODU segment on page 16, operating revenue for MODU segment was $143 million compared to $292 million in Q4 2020. This is explained by the Deepsea Stavanger's highly successful drilling campaign for TotalEnergies in South Africa Q4 2020, resulting in a revenue difference of $166 million. The negative difference is partly offset by Deepsea Aberdeen being on full operating rate this quarter compared to key sub activities in Q4 2020. EBITDA was $74 million compared to $161 million in Q4 for the same reason I just mentioned. The EBITDA margin was 52% in Q4 2021 compared to 55% in Q4 2020. Going to page 17, the energy segment. Operating revenue was $62 million compared to $45 million in Q4 2020. EBITDA was $6 million compared to $3 million in Q4 2020.
The increase is mainly explained by more operating units in operation and high incentive bonus in Q4 2021. The well services segment on page 18. Operating revenue was $31 million compared to $28 million in Q4 20. The increase is driven by high activity in the Middle East, Africa, and Asia. EBITDA was $9 million compared to $9 million in Q4 20. EBITDA margin for OWS segment in Q4 was $29 million compared to $32 million. On slide 19, we have shown the bridge from the sum EBITDA of segments to the group consolidated profit before tax by adjusting for elimination, corporate overhead, and net financial items. Moving to page 20, the balance sheet for the group. Group gross interest bearing debt was $1.056 billion end of December 2021.
We had $173 million in cash in December, and the equity ratio of 50.4 in December 2021. If we turn to page 21, the summary of the group cash flow statements, some highlights in the quarter. Net cash from operation was $109 million compared to $157 million in Q4 2020, with a positive change in working capital of $33 million, mainly explained by reduced trade receivables and increase of pay, payable social security and other taxes. Investment activities of $19 million Q4 2021, mainly due to purchases of fixed assets. We paid $48 million installment on credit facility and leases. As I said, the cash position in December 2021 was $173 million compared to $207 million in Q4 2020.
If we summarize the quote on page 22, spin-off announced strategic move to split Odfjell Drilling Group into two separate entities by end Q1 2022. Added two new management units to the fleet on MODU, continuing MODU. Continue to build backlog to be a preferred partner in the harsh environment and attractive harsh environment assets and healthy outlook. Energy, Equinor exercise platform drilling contracts on Johan Sverdrup and Heidrun, management service on West Linus, and focus to develop the service portfolio into new areas. For well services, increased activity in Norway and Middle East. For the key financial, earning visibility through $2.1 billion order backlog, continue to deleverage and a sound cash position. This concludes our presentation. We will now open up for Q&A session.
Thank you. Ladies and gentlemen, if you would like to ask a question at this time, please press star one followed by the digit one on your telephone keypad. Please ensure that the mute function on your telephone is switched off to allow your signal to reach our equipment. Once again, please press star one on your telephone. That is star one on your telephone keypad, please. All right, we take the first question from Carl Petterson with ABG. Please go ahead, your line is open.
Thank you. Regarding rigs on management contract, is there a strategic rationale for expanding your footprint here, or what's the ambitions going forward? Would you look to pick up more contracts in this manner?
Well, it's clearly a strategic ambition behind taking management. We are, these assets we are talking about are some of the most advanced drilling machines in the market. New, and very well-equipped. Clearly, we are happy to have now engaged the management side. Our ambition is to work out more contracts, win more contracts, and by that, also maybe discuss some sort of an end game there. That's no secret. We're not doing this management forever as an ambition. We are looking for a way to involve those two on a permanent basis into the company. Must be in the right sequence.
The first thing that must happen, we need to have, we always do things based on contracts. We never do speculation. That's the one of the reasons we are not ending into any other financial trouble. When we get contracts we can actually find ways to move in that direction. First of all, we need to get the control of them and to. Well, we do have control, but we need to find the right way of getting them engaged. That's the first step.
Okay. How long contracts will we then require in order to, I guess what you're actually saying is that you are eager to buy them if there's a contract. How, what would such a contract look like?
Longer the better with good rates.
Thank you.
That was a short version. Yes, thank you. Must be bankable at least. Very well bankable.
I agree. Yeah.
That's the answer.
Thank you.
Yeah.
Thank you. As a reminder, ladies and gentlemen, please press star one to ask a question. It seems we have no further questions at this time, gentlemen, I will turn the call back over to you for any additional or closing remarks.
Thank you so much everybody for calling in, and, if you do have any further questions, please contact us. We wish you all a nice afternoon. Thank you.
Absolutely. Thank you.
Thank you.
Thank you. That will conclude today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.