The Drilling Company of 1972 A/S
The Drilling Company of 1972 A/S is a Danish offshore drilling contractor with roots in the North Sea oil-and-gas market. Through its drilling fleet and associated marine services, the company provides rig-based drilling capacity to energy operators and project owners.
Fiscal year 2021 · change from previous year
Development 2020–2021
Business
Share of revenueContracted rig services for offshore exploration, appraisal, and development wells.
Operation of drilling units, crews, maintenance, and day-to-day rig management.
Customers
The company serves oil and gas operators that need offshore drilling capacity for exploration, appraisal, and development programs. Its customers are typically large energy companies, national oil companies, and project operators that contract rigs for specific campaigns. Demand is tied to offshore drilling budgets, basin activity, and the availability of suitable rigs.
Large exploration and production companies contracting rigs for offshore wells.
State-backed energy companies procuring drilling capacity for domestic offshore assets.
Operators that hire rigs for defined drilling campaigns and development projects.
Strategy
The business model depends on keeping rigs technically ready, safe, and competitive for offshore tenders. Strategic focus is typically on securing long-duration contracts, maintaining fleet utilization, and matching rig capability to customer requirements in offshore basins.
Modern, compliant rigs are more likely to win contracts and command stronger utilization.
Contract backlog reduces earnings volatility in a cyclical offshore market.
Geography
The company is Danish in origin and historically linked to offshore drilling activity in the North Sea. Its business is inherently international because rigs are deployed where offshore oil and gas projects are located, often across Europe, the Middle East, Africa, and other offshore basins. Geography matters because mobilization, regulation, and customer concentration can change with rig deployment locations.
Risks
The company is exposed to the cyclical offshore drilling market, where customer spending depends on oil and gas prices and capital allocation decisions. Operational and financial performance also depend on rig utilization, contract renewals, safety performance, and the ability to manage maintenance, insurance, and regulatory requirements.
- Offshore drilling cycleImpact: HighLikelihood: High
Customer demand depends on upstream spending, which is sensitive to oil and gas prices.
Exposure: Rig demand and contract pricing
- Rig utilization volatilityImpact: HighLikelihood: High
Drilling revenue depends on keeping rigs contracted and operational.
Exposure: Fleet deployment and backlog
- Safety and operating incidentsImpact: HighLikelihood: Medium
Offshore drilling has elevated process-safety and environmental risks.
Exposure - Asset impairmentImpact: HighLikelihood: Medium
Drilling rigs are capital-intensive and may need write-downs if market demand weakens.
Exposure: Fleet carrying values
Accounting
Judgemental itemsLarge offshore assets are depreciated over long periods, so assumptions affect operating profit.
Impact: Earnings and asset values
Market weakness or lower utilization can reduce recoverable value of rigs.
Impact: Non-cash write-down risk
The report references reserve of cash flow hedges and interest-rate exposure.
Impact: Equity and OCI volatility
Cash held in restricted jurisdictions and international operations can create FX effects.
Impact: Reported earnings and cash translation
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Last updated: 24/10/2026