Interim report
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Second quarter 2026
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This is Northern Ocean 3 CEO Letter 4 Second Quarter Results 5 Company Update 6 Forward Looking Statements 7 Financial Statements Consolidated Financial Statements 8 Notes to the Consolidated Financial Statements 14 Unless otherwise indicated, the terms "Northern Ocean", "NOL" and the "Company" refer to Northern Ocean Ltd. and its consolidated subsidiaries. All numbers are in USD. Table of Contents
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Northern Ocean Ltd. (the "Company", "NOL", "Northern Ocean") owns and operates one of the world’s newest and most capable harsh-environment semi-submersible drilling rig – Deepsea Mira – ideally suited for operations across all major offshore basins. With a modern rig, completed capex programs, and strong commercial and operational execution, NOL is well-positioned to benefit from a tightening supply of high-end rigs and an expected increase in long- term demand. Northern Ocean maintain flexibility to pursue high-value opportunities. Near-term priorities include securing new contracts for Deepsea Mira, continued focus on operational efficiency and cost control, and preparing for refinancing – all aimed at enhancing earnings and unlocking long-term value for shareholders. Deepsea Mira is one of the world’s most advanced drilling rigs. It is based on the Moss Maritime CS60 design, capacity of drilling in water depth of up to 10,000 feet. The rig is capable of drilling in all harsh environment areas globally. The Company is listed on Oslo Stock Exchange under the ticker symbol "NOL". This is Northern Ocean Third quarter 2025 | 3
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Dear Shareholders, The second quarter of 2026 was operationally strong. Deepsea Mira delivered an outstanding campaign for Shell, achieving 98.6% economic utilization and generating approximately $31 million of second-quarter revenue. Operations and Performance Deepsea Mira commenced operations for Shell on 4 April and completed the campaign on 2 July 2026. The campaign was executed safely and efficiently, with operating costs in line with expectations. This result once again demonstrates Deepsea Mira's ability to deliver stellar performance for its clients. The option for a second well was not exercised. Following the Shell campaign, Deepsea Mira used a dedicated 30-day window in Walvis Bay to complete the upgrade of its drilling control system. The related hardware investment was made in 2025. The upgraded platform brings Deepsea Mira's drilling control capability to the same level as Deepsea Bollsta. This capability is now a clear requirement in long-term tenders from major operators and provides the foundation for further automation layers and future efficiency improvements. Market and Outlook Several 2026 opportunities did not materialize, and several programs have been delayed. Deepsea Mira is currently in Walvis Bay. NOL has established strategic decision gates and will position the rig in line with the most attractive risk- adjusted opportunities as they develop. The Company continues to market Deepsea Mira actively and sees several opportunities with potential commencement during 2027. Liquidity and Financing NOL established a $25 million revolving credit facility to finance approved customer invoices. Quarter-end debt was $132.8 million, including $7.8 million of capitalized PIK interest. Following customer payments, total borrowings have fallen to $112.8 million. NOL has reduced operating expenses to preserve liquidity while pursuing new contracts. Management has developed a strategic plan around the principal prospects and their expected commencement dates, enabling the Company to manage costs, liquidity and rig readiness until the next contract commences. Refinancing of our current debt has also been initiated. Our priorities are clear: preserve liquidity, secure Mira's next contract and position the rig for the next phase of the market. We thank our shareholders, employees and partners for their continued support. Sincerely Arne Jacobsen Chief Executive Officer CEO letter Second quarter 2026 | 4
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The numbers in this report reflect that NOL sold its harsh-environment drilling rig Deepsea Bollsta on 15 December last year. As a result, the figures compared with previous quarters in this report are approximately 50% lower. In the second quarter, operating revenue was $33.9 million, up from $12.6 million in the previous quarter. Deepsea Mira worked for 35 days in total the first quarter, compared to 91 days in the second quarter. Total operating expenses amounted $31.1 million, compared with $35.7 million in the previous quarter. The first quarter included Fuel consumption incurred when the rig was idle. Projected daily operating costs continue to align with expectations. Administrative expenses amounted to $2.7 million, compared to $1.9 million in the previous quarter. The increase is due to a one time fee connected to the sale of Deepsea Bollsta late last year. Interest expense was $3.8 million compared to $2.7 million in the previous quarter. This reflects that the Company had a six months interest period on its loan with Sterna, and and declared the Payment-In-Kind (“PIK”) interest option at the end of the period, on 30 June 2026. This added approximately $7.8 million to the term loan facility, increasing the outstanding amount to $107.8 million. Foreign exchange loss amounted to $1.3 million, compared to a foreign exchange gain of $1.9 million in the previous quarter. The movement reflects changes in the NOK/USD exchange rate during the quarter. The net loss from continuing operations after taxes amounted to $2.5 million, compared to a net loss of $23.1 million in the previous quarter. The basic and diluted loss per share for the quarter was $ 0.01, compared to a loss of $0.08 in the previous quarter. Results Second quarter 2026 | 5
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Market Deepsea Mira commenced operations for Shell on 4 April 2026 and completed the contract on 2 July 2026, earning day rate through the completion date. The customer did not exercise its option for a second well. The extended duration of the Shell contract resulted in contract revenue of approximately $31 million, recognized in the second quarter of 2026, with operating costs continuing to align with expectations. Following completion of the Shell contract, Deepsea Mira demobilized to Walvis Bay for planned upgrades and modifications in preparation for future operations. As of 28 August 2026, the rig remained idle in Walvis Bay and the Company currently expects the idle period to extend into the first quarter of 2027. The Company continues to actively market the rig and bid for relevant opportunities. Management sees ample opportunities with potential commencement dates in 2027 and remains encouraged by the demand for harsh- environment drilling capacity. Economic utilization for the quarter was 98.6%. Liquidity During the second quarter, NOL entered into a $25 million revolving credit facility (the "RCF") with Sterna Finance Ltd. on market terms. The RCF operated as a receivables financing arrangement, allowing the Company to draw against approved invoices from the customer and repay the drawings upon receipt of the corresponding payments. At the end of the second quarter, the RCF was fully drawn and total outstanding debt amounted to $132.8 million. This included $7.8 million of PIK interest, which was capitalized and added to the term loan. As of today, total outstanding borrowings are $112.8 million, comprising $107.8 million under the term loan and $5.0 million under the RCF. As of 28 August 2026, the rig had been idle for close to two months and is expected to remain idle into 2027. The extended idle period will affect the Company's liquidity negatively because the rig does not generate contract revenue while the Company continues to incur costs. Accordingly, the Company has initiated the refinancing of its current debt. Mandatory offer On 9 July 2026, Hemen Holding Limited ("Hemen") announced that it upon completion of an acquisition of shares in NOL would cross the 50% threshold under section 6-6 of the Norwegian Securities Trading Act, thereby triggering an obligation to make a mandatory offer for the remaining shares in NOL not already owned by Hemen (the "Offer"). The Norwegian Financial Supervisory Authority (Finanstilsynet), acting as takeover supervisory authority, approved the offer document on 11 August 2026. The offer price is NOK 7.50 per share, and the acceptance period runs from 09:00 CEST on 12 August 2026 to 16:30 CEST on 9 September 2026. The terms and acceptance procedures are set out in the offer document. The Offer may be accepted only on the basis of that document and is not being made in any jurisdiction where it would be unlawful. Finanstilsynet appointed SB1 Markets AS to provide an independent expert statement pursuant to section 6-16(4) of the Norwegian Securities Trading Act. The independent expert statement is expected to be issued no later than one week before the acceptance period expires at 16:30 CEST on 9 September 2026. Company Update Second quarter 2026 | 6
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The Company’s activities are subject to significant risks and uncertainties that can have an adverse effect on the Company’s business, financial condition, results of operations and cash flow. See Notes to the unaudited condensed consolidated financial statements. This report contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates, sometimes identified by the words “believes”, “expects”, “intends”, “plans”, “estimates” and similar expressions. The forward-looking statements contained in this report, including assumptions, opinions and views of the Company or cited from third-party sources, are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. The Company does not provide any assurance that the assumptions underlying such forward-looking statements are free from errors, nor does the Company accept any responsibility for the future accuracy of the opinions expressed in the presentation or the actual occurrence of the forecasted developments. No obligations are assumed to update any forward-looking statements or to confirm these forward-looking statements to actual results. The Board of Directors and the Chief Executive Officer Northern Ocean Ltd. Hamilton, Bermuda 28 August, 2026 Forward Looking Statements Second quarter 2026 | 7
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Quarters Half Year Full Year (in thousands of $) Note Q2 2026 Q1 2026 Q2 2025 Jan 1 to Jun 30, 2026 Jan 1 to Jun 30, 2025 2025 Contract revenue 3 33,915 12,655 48,980 46,570 104,593 271,916 Reimbursable revenue 133 618 3,661 751 6,034 7,380 Other income 28 27 (74) 55 8 122 Total operating revenues 34,076 13,300 52,567 47,376 110,635 279,418 Rig operating expenses 4 20,546 25,593 35,022 46,139 71,020 241,227 Reimbursable expenses 96 606 3,544 702 5,890 7,906 Depreciation 7,783 7,573 14,233 15,356 27,647 55,134 Impairment 5 — — — — — 13,130 Administrative expenses 2,705 1,901 1,512 4,606 4,118 7,880 Total operating expenses 31,130 35,673 54,311 66,803 108,675 325,277 Net operating gain (loss) 2,946 (22,373) (1,744) (19,427) 1,960 (45,859) Interest income 162 279 548 441 957 1,613 Interest expense (3,792) (2,714) (15,211) (6,506) (30,287) (56,303) Foreign exchange loss (1,334) 1,882 1,957 548 2,620 44 Other financial expenses (5) (7) (12) (12) (14) (33) Net loss from continuing operations before taxes (2,023) (22,933) (14,462) (24,956) (24,764) (100,538) Tax charge (454) (205) (599) (659) (1,539) (2,127) Net loss from continuing operations (2,477) (23,138) (15,061) (25,615) (26,303) (102,665) Basic and diluted loss from continuing operations per share ($) 7 (0.01) (0.08) (0.05) (0.08) (0.09) (0.34) Consolidated Statements of Operations Second quarter 2026 | 8
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Quarters Half Year Full Year (in thousands of $) Q2 2026 Q1 2026 Q2 2025 Jan 1 to Jun 30, 2026 Jan 1 to Jun 30, 2025 2025 Net loss (2,477) (23,138) (15,061) (25,615) (26,303) (102,665) Foreign currency translation (loss) gain 927 (2,048) (310) (1,121) (413) 780 Other comprehensive (loss) income 927 (2,048) (310) (1,121) (413) 780 Comprehensive loss (1,550) (25,186) (15,371) (26,736) (26,716) (101,885) See accompanying notes that are an integral part of these unaudited condensed consolidated financial statements. Consolidated Statements of Comprehensive Income Second quarter 2026 | 9
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(in thousands of $) Note Jun 2026 Dec 2025 ASSETS Short-term assets Cash and cash equivalents 19,652 37,510 Restricted cash 8 124 169 Related party receivables — — Accounts receivable, net 29,150 23,505 Unbilled receivables 11,558 1,513 Short-term portion of deferred costs — — Material and supplies, net 1,2 — — Other current assets 10 4,805 4,449 Right-of-use assets under operating leases 7 19 Total short-term assets 65,296 67,165 Long-term assets Drilling units 9 431,550 439,841 Fixtures and fittings 9 14 LT Deferred Assets — — Total long-term assets 431,559 439,855 Total assets 496,855 507,020 (in thousands of $) Note Jun 2026 Dec 2025 LIABILITIES AND EQUITY Short-term liabilities Short-term portion of long-term debt — — Other current liabilities 11 42,878 59,306 Short-term portion of deferred revenue 110 110 Related party payables — 33 Lease dilapidations — — Related party debt 13 132,765 100,000 Obligations under operating leases 12 25 Total short-term liabilities 175,765 159,474 Long-term liabilities Long-term debt 12 — — Long-term deferred revenue 2,440 2,495 Long-term related party debt — — Total long-term liabilities 2,440 2,495 Commitments and contingencies Total equity 318,650 345,051 Total liabilities and equity 496,855 507,020 See accompanying notes that are an integral part of these unaudited condensed consolidated financial statements. Consolidated Balance Sheets Second quarter 2026 | 10 1 2
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Quarters Half Year Full Year (in thousands of $) Q2 2026 Q1 2026 Q2 2025 Jan 1 to Jun 30, 2026 Jan 1 to Jun 30, 2025 2025 NET LOSS (2,477) (23,138) (15,061) (25,615) (26,303) (102,665) Adjustment to reconcile net (loss) income to net cash used in operating activities; Amortization of deferred charges — — 179 — 356 1,045 Amortization of deferred costs — — — — 2,200 63,900 Amortization of deferred revenue (28) (27) (1,071) (55) (4,959) (43,718) Depreciation 7,783 7,573 14,234 15,356 27,648 55,134 Impairment — — — — — 13,130 Compensation cost 167 168 205 335 410 770 Unrealized foreign exchange loss (gain) 927 (2,048) (310) (1,121) (413) 780 Accrued demobilization income — — — — (752) (752) Accrued demobilization costs — — — — 878 878 Change in operating assets and liabilities; Receivables (27,342) 21,697 3,831 (5,645) 16,482 23,904 Unbilled receivables (9,636) (409) (15,198) (10,045) (8,865) 6,795 Other current assets 259 (615) (714) (356) (1,823) (2,132) Right-of-use assets under operating leases 6 6 20 12 68 109 Additions to deferred costs — — (34,526) — (50,138) (61,699) Additions to deferred revenue — — 1,044 — 24,039 39,748 Other current liabilities 1,417 (10,079) 26,604 (8,662) 25,562 4,278 Related party balances — (33) 154 (33) 39 (20) Obligations under operating leases (7) (6) (30) (13) (78) (87) Net cash provided by (used in) operating activities (28,931) (6,911) (20,639) (35,842) 4,351 (602) Consolidated Statements of Cash Flows Second quarter 2026 | 11
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Quarters Half Year Full Year (in thousands of $) Q2 2026 Q1 2026 Q2 2025 Jan 1 to Jun 30, 2026 Jan 1 to Jun 30, 2025 2025 INVESTING ACTIVITIES Additions to drilling units (4,529) (2,520) (17,704) (7,049) (35,823) (52,740) Additions to Fixtures and fittings (6) (6) (15) (12) (15) (26) Gross proceeds from sale of Drilling unit — — — 480,000 Net cash provided by investing activities (4,535) (2,526) (17,719) (7,061) (35,838) 427,234 FINANCING ACTIVITIES Net proceeds from share issuances — — — — — — Related party debt: proceeds 25,000 — 8,501 25,000 16,893 16,893 Related party debt: repayments — — — — (148,733) Long-term debt: repayments — — — — — (300,000) Debt fees paid — — — — — — Net cash provided by financing activities 25,000 — 8,501 25,000 16,893 (431,840) Net change (8,466) (9,437) (29,857) (17,903) (14,594) (5,208) Cash, cash equivalents and restricted cash at start of the period 28,242 37,679 58,152 37,679 42,889 42,889 Cash, cash equivalents and restricted cash at end of the period 19,776 28,242 28,293 19,776 28,293 37,681 See accompanying notes that are an integral part of these unaudited condensed consolidated financial statements. Consolidated Statements of Cash Flows Second quarter 2026 | 12
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(in thousands of $ except number of shares) Jan 1 to June 30, 2026 2025 Number of shares outstanding Balance at beginning of period 303,215,392 303,215,392 Shares issued — — Balance at end of period 303,215,392 303,215,392 Share capital Balance at beginning of period 151,608 151,608 Shares issued — — Balance at end of period 151,608 151,608 Additional paid in capital Balance at beginning of period 580,985 580,214 Shares issued — — Stock options 335 771 Balance at end of period 581,320 580,985 Accumulated other comprehensive income (loss) Balance at beginning of period 727 (53) Other comprehensive income (1,121) 780 Balance at end of period (394) 727 Retained deficit Balance at beginning of period (388,269) (285,604) Net loss (25,615) (102,665) Balance at end of period (413,884) (388,269) Total equity 318,650 345,051 See accompanying notes that are an integral part of these unaudited condensed consolidated financial statements. Consolidated Statements of Changes in Equity Second quarter 2026 | 13
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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL Northern Ocean Ltd. owns and operates the modern harsh-environment semi- submersible drilling rig Deepsea Mira , with the primary purpose of providing offshore drilling services for the oil and gas industry in harsh environments worldwide. Deepsea Mira commenced operations for Shell on 4 April 2026 and completed the contract on 2 July 2026, earning day rate through the completion date. The customer did not exercise its option for a second well. The extended duration of the Shell contract resulted in contract revenue of approximately $31 million, recognized in the second quarter of 2026, with operating costs continuing to align with expectations. Following completion of the Shell contract, Deepsea Mira demobilized to Walvis Bay for planned upgrades and modifications in preparation for future operations. As of 28 August 2026, the rig remained idle in Walvis Bay and the Company currently expects the idle period to extend into the first quarter of 2027. Economic utilization for the quarter was 98.6%. 2. BASIS OF ACCOUNTING The unaudited condensed consolidated financial statements are stated in accordance with generally accepted accounting principles in the United States of America. The unaudited condensed consolidated financial statements do not include all of the disclosures required in annual and interim consolidated financial statements and should be read in conjunction with the Company’s audited financial statements for the year ended 31 December 2025. Going concern assumption These consolidated financial statements are prepared under the going concern assumption. As the Deepsea Mira currently has no long term backlog, the Group's financial position is reliant on securing additional drilling contracts for the rig. This situation potentially gives rise to substantial doubt regarding the Group’s ability to continue as a going concern. In the absence of new contract awards, the Group will need to rely on loan amendments, new financing arrangements, and/or equity issuances to meet its loan obligations and working capital requirements over the next twelve months. However, the Board remains confident that a solution will be reached. 3. REVENUE FROM CONTRACTS WITH CUSTOMERS The following table provides information about composition of contract revenue: (in thousands of $) Q2 2026 Jan 1 to Jun 30, 2026 Dayrate revenue 32,307 44,194 Amortization of deferred revenue — — Demobilization revenue — — Other 1,608 2,376 Contract revenue 33,915 46,570 Dayrate revenue Dayrate revenue earned from Deepsea Mira drilling contract. Amortization of deferred revenue The Company may receive fees from its customers for the mobilization of rigs. These activities are not considered to be distinct within the context of the contract and therefore, where these fees are known and probable the associated Notes Second quarter 2026 | 14
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revenue is allocated to the overall performance obligation and recognized ratably over the initial firm term of the related drilling contract. The following table provides information about the composition of amortization of deferred revenue related to contract revenue: (in thousands of $) Balance at 31 December 2024 3,860 Additions to deferred revenue 39,748 Amortization of deferred revenue (43,608) Balance at 31 December 2025 — Balance at 30 June 2026 — Note the deferred revenue assets in the balance sheet also contain funds received from the Norwegian government as a grant, due to the Deepsea Mira being equipped with systems which reduce NOx emissions. The grant is being amortized over the estimated useful life of the Deepsea Mira, resulting in annual amortization of $0.1 million. At the date of this report $2.4 million is held as deferred revenue in relation to the NOx grant, split between short-term and long- term. 4. RIG OPERATING EXPENSES The following table provides information about the composition of rig operating expenses: (in thousands of $) Q2 2026 Jan 1 to Jun 30, 2026 Daily operating expenses 15,509 38,232 Maintenance projects 4,015 6,509 Amortization of deferred costs — — Accrued demobilization costs — — Other 1,022 1,398 Rig operating expenses 20,546 46,139 Daily operating expenses This category includes the costs associated with the daily operations of the rigs. The notable constituents of the daily operating expenses are the expenses for offshore personnel, repairs and maintenance (excluding maintenance projects referred to below), onshore support services, catering costs and management fees payable to Odfjell Drilling. When the rig is in-between contracts, the Company carries the fuel cost, rig was on contract throughout the second quarter. Included in daily operating expenses are incremental costs associated with providing customers with add-on services for which the commercial terms differ from those services provided on a reimbursable basis. The costs and the associated revenue for these services are reported on a gross basis under rig operating expenses and contract revenue respectively. Maintenance projects Maintenance projects which are considered non-recurring and with an individual cost in excess of $100,000 are not considered to be indicative of the ordinary daily running costs of our operations and have been disaggregated from daily operating expenses. These projects are either preventive or corrective in nature. Amortization of deferred costs Certain direct and incremental costs incurred for upfront preparation, initial mobilization and modifications of the contracted rigs represent costs of fulfilling a contract as they relate directly to a contract and enhance resources that will be Second quarter 2026 | 15
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used in satisfying performance obligations. Such costs are deferred and amortized ratably to rig operating expenses as services are rendered over the initial term of the related drilling contract. The following table provides information about the deferred costs to fulfill a contract with customers; (in thousands of $) Balance at 31 December 2024 2,200 Cost additions 61,700 Amortization (63,900) Balance at 31 December 2025 — Balance at 30 June 2026 — 5. IMPAIRMENT On 17 November 2025 the Group entered into an agreement to sell Deepsea Bollsta to a subsidiary of Odfjell Drilling for cash settlement of $480 million, with effective date 15 December 2025. The rig was classified as assets held for sale from 17 November 2025 until completion of the sale on 15 December 2025. Depreciation of the rig has been calculated up until 17 November 2025. From 17 November 2025 the rig has been measured at the lower of carrying amount and fair value less costs to sell, resulting in an impairment loss of $13.1 million. In addition to the impairment loss of $13.1 million, Deferred cost and Deferred revenue relating to the Equinor contract for Deepsea Bollsta , $59.3 million and $38.2 million respectively, has been charged to the income statement in Q4 2025. 6. INCOME TAXES Under current Bermuda law, the Company is not required to pay taxes in Bermuda on either income or capital gains. The Company has received written assurance from the Minister of Finance in Bermuda that, in the event of any such taxes being imposed, the Company will be exempted from taxation until 31 March, 2035. Other jurisdictions The Company has subsidiaries, which are incorporated in the Marshall Islands and are not subject to income tax. Certain of the Company’s subsidiaries and branches in Norway, Ireland, Namibia, Cyprus and the U.S. are subject to income tax in their respective jurisdictions. Deferred tax Deferred tax assets and liabilities are based on temporary differences that arise between carrying values of assets and liabilities used for financial reporting purposes and amounts used for taxation purposes and the future tax benefits of tax loss carry forwards. The Company does not have any unrecognized tax benefits, material accrued interest or penalties relating to income taxes. Second quarter 2026 | 16
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7. EARNINGS PER SHARE The computation of basic earnings per share is calculated by dividing the net loss attributable to the Company by the weighted average number of shares outstanding during the period. Diluted earnings per share amounts are calculated by dividing the net income attributable to the Company by the weighted average number of shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. If in the period there is a loss then any dilutive potential ordinary shares have been excluded from the calculation of diluted loss per share, as their effect would be anti-dilutive. The components of the numerator and the denominator in the calculation are as follows: Q2 2026 Net loss (in thousands of $) (2,477) Weighted average number of ordinary shares (in thousands) 303,215 Loss per share (0.01) Second quarter 2026 | 17
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8. RESTRICTED CASH As of 30 June 2026, restricted cash of $0.1 million consists of funds held for an NIS guarantee and payroll taxes. 9. DRILLING UNITS Movements in the carrying value of drilling units in the three months ended 30 June 2026, are summarized as follows: (in thousands of $) Cost Accumulated depreciation Net carrying value Balance at 31 December 2025 564,681 (124,839) 439,842 Additions 7,049 — 7,049 Retirement of assets — — — Depreciation — (15,341) (15,341) Balance at 30 June 2026 571,730 (140,180) 431,550 10. OTHER CURRENT ASSETS Other current assets as of 30 June 2026, are summarized as follows: (in thousands of $) Deposit held — VAT receivable 2,858 Other 1,947 Other current assets 4,805 Other This category principally consist of prepayments for insurance and operational costs. 11. OTHER CURRENT LIABILITIES Other current liabilities as of 30 June 2026, are summarized as follows: (in thousands of $) Accounts payable 5,637 Accrued administrative expense 1,111 Accrued operating expense 22,171 Other payables 13,959 Accrued interest expense — Contract demobilization liability — VAT liability — Other current liabilities 42,878 Other payables Other payables primarily consist of withholding and corporate taxes due to the Namibian tax authorities. Second quarter 2026 | 18
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12. DEBT In connection with the sale of Deepsea Bollsta on 15 December 2025, NOL prepaid the outstanding loan amount of $285 million under this facility, reducing the principal balance to zero. The facility was subsequently cancelled. 13. RELATED PARTY DEBT As of 30 June 2026, debt due to related parties is summarized as follows: (in thousands of $) $ denominated floating rate debt: $215.0 million credit loan facility 132,765 Total debt 132,765 Short-term debt 132,765 Long-term debt — Total debt 132,765 At the start of the year, the Company held a singl e $100.0 million fa cility. The facility requires no amortization and has a final maturity date in December 2026. The Company also has the option to convert cash interest payments into Payment-In-Kind (“PIK”) interest at a pre-agreed premium. In connection with the sale of Deepsea Bollsta NOL prepaid part of the outstanding amount on this facility, reducing the principal balance from $248.4 million to $100 million. On 30 June 2026, the Company exercised its Payment-in-Kind (“PIK”) interest option for the preceding six-month period. As a result, approximately $7.8 million of interest was capitalized and added to the term loan facility, increasing the outstanding principal to $107.8 million. During the second quarter, NOL entered into a $25 million revolving credit facility (the "RCF") with Sterna Finance Ltd. on market terms. The RCF operated as a receivables financing arrangement, allowing the Company to draw against approved invoices from the customer and repay the drawings upon receipt of the corresponding payments. The RCF was fully drawn at the end of the second quarter, as of 28 August 2026, total outstanding borrowings are $112.8 million, comprising $107.8 million under the term loan and $5.0 million under the RCF. Assets pledged (in thousands of $) Drilling units 431,550 The outstanding debt as of 30 June 2026, is repayable as follows: (in thousands of $) Year 1 132,765 Year 2 — Year 3 — Year 4 — Year 5 — Thereafter — 132,765 The Company is in compliance with the covenants set out in the agreement with Sterna Finance Ltd. ("Sterna"). Second quarter 2026 | 19
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14. SHARE CAPITAL There were no changes to the Company’s share capital during the second quarter of 2026. As o f 30 June 2026, the Company continues to have 303,215,392 fully paid common shares ou tstanding and authorized share capital of $968,098,811, divided into 1,936,197,622 common shares of a par value of $0.50 each. 15. FAIR VALUES The carrying value and estimated fair value of the Company's financial instruments as of 30 June 2026, are as follows: (in thousands of $) Carrying value Fair value Assets: Cash and cash equivalents 28,114 28,114 Restricted cash 127 127 Liabilities: Short-term related party debt 132,765 129,046 The estimated fair values of financial assets and liabilities are as follows: (in thousands of $) Fair value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 28,114 28,114 — — Restricted cash 127 127 — — Liabilities: Short-term related party debt 132,765 — — 129,046 The following methods and assumptions were used to estimate the fair value of each class of financial instrument: – Cash and cash equivalents – the carrying values in the balance sheet approximate fair value. – Restricted cash – the carrying value in the balance sheet approximates fair value. – Floating rate debt (being total debt less the carrying value of deferred charges) – the fair value has been determined using level 3 inputs being the discounted expected cash flows of the outstanding debt. – Short-term related party debt – the fair value has been determined using level 3 inputs being the discounted expected cash flows of the outstanding debt. Second quarter 2026 | 20
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16. RELATED PARTY TRANSACTIONS Hemen Holdings Ltd. ("Hemen"), a Cyprus holding company, was the Company's largest shareholder as at 30 June 2026. The Company currently transacts, or has previously transacted, with the following related parties, being companies in which Hemen, or companies affiliated with Hemen, have a significant interest: – Sterna; – Front Ocean Management Ltd. and Front Ocean Management AS (together “Front Ocean”); – Frontline Management (Bermuda) Ltd. (“Frontline”); – Seatankers Management Co. Ltd. (“Seatankers”). Sterna transactions See related party debt (Note 13). Frontline, Front Ocean and Seatankers transactions The Company and its subsidiaries have received treasury, accounting, corporate secretarial and advisory services from these entities and were charged $0.2 million in the quarter ending 30 June 2026 (2025: $0.1 million). 17. COMMITMENTS AND CONTINGENCIES As of 30 June 2026, the Company had outstanding capital commitments of $5.1 million for projects to be completed during the year. 18. SHARE BASED COMPENSATION In the third quarter of 2024, the Company granted a total of 9,500,000 share options to members of management. As of 30 June 2026, 6,333,333 of these options were outstanding and remained unvested. The options have a weighted average exercise price of NOK 12.00 and a weighted average remaining contractual term of 0.70 years. 19. SUBSEQUENT EVENTS Deepsea Mira commenced operations for Shell on 4 April 2026 and completed the contract on 2 July 2026, earning day rate through the completion date. The customer did not exercise its option for a second well. On 9 July 2026, Hemen Holding Limited ("Hemen") announced that it upon completion of an acquisition of shares in NOL would cross the 50% threshold under section 6-6 of the Norwegian Securities Trading Act, thereby triggering an obligation to make a mandatory offer for the remaining shares in NOL not already owned by Hemen (the "Offer"). The Norwegian Financial Supervisory Authority (Finanstilsynet), acting as takeover supervisory authority, approved the offer document on 11 August 2026. The offer price is NOK 7.50 per share, and the acceptance period runs from 09:00 CEST on 12 August 2026 to 16:30 CEST on 9 September 2026. The terms and acceptance procedures are set out in the offer document. The Offer may be accepted only on the basis of that document and is not being made in any jurisdiction where it would be unlawful. Finanstilsynet appointed SB1 Markets AS to provide an independent expert statement pursuant to section 6-16(4) of the Norwegian Securities Trading Act. Second quarter 2026 | 21
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We confirm, to the best of our knowledge, that the condensed consolidated financial statements for the period 1 January to 30 June 2026, have been prepared in accordance with U.S. generally accepted accounting principles and give a true and fair view of the Company’s assets, liabilities, financial position and profit or loss as a whole. We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the financial year and their impact on the condensed consolidated financial statements, a description of the principal risks and uncertainties for the period, and major related party transactions. The Board of Directors and the Chief Executive Officer Northern Ocean Ltd. Hamilton, Bermuda, 28 August, 2026 Gary W. Casswell, Chairman (S) James Ayers, Director (S) Sven Børre Larsen, Director (S) Mikhael Botbol, Director (S) Adrian Geelmuyden, Director (S) Arne Jacobsen, Chief Executive Officer (S) Second quarter 2026 | 22
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Investor contact: Arne Jacobsen, Chief Executive Officer + 971 55 639 0860 Jonas Ytreland, Chief Financial Officer +47 994 65 550