(Limassol, 4 November 2021) S.D. Standard Drilling Plc (Standard Drilling,
OSE:SDSD) today announces an updated presentation on Weatherford International
plc (Weatherford) following the Weatherford third quarter 2021 financial
results. 

Reference is made to the press release 27 June 2021 regarding SDSD's acquisition
of 750,000 shares in Weatherford, and the portfolio update 2 November 2021
confirming the Weatherford holding. Following the announcement of the third
quarter 2021 financial results by Weatherford, the Standard Drilling investment
team has updated the initial company presentation. 

"Weatherford has made progress on many fronts since our initial company
presentation in June. Operationally, the EBITDA margins are set to improve with
nearly 300 basis point in the second half or 2021 vs. the first half of the year
to 16%. We expect the topline growth in 2022 to mirror the increases in E&P
budgets of approximately 20%. As pricing- and utilization improves, this will
result in margin incremental's of around 30%, leaving in our view an EBITDA
potential of USD 750 million in 2022 and USD 950 million in 2023. Financially,
Weatherford's bond refinancing has reduced interest cost with USD 70 million.
Current NIBD/ EBITDA now resembles that of the larger peers, creating room for
another USD 30 million in interest savings over the coming quarters", says Espen
Landmark Fjermestad, Head of Investments in Standard Drilling.
 
The full Standard Drilling Weatherford presentation is enclosed. 

"Weatherford's balance sheet and leverage optics has severely impeded the
perceived equity upside post chapter 11. A strong free cash flow generation over
the coming quarters will allow the company to achieve a leverage ratio of 1x by
2023 that could trigger a higher valuation multiple. On our estimates
Weatherford trades at 5x and 4x 2022 and 2023 EBITDA with FCF yields of 15% and
21% respectively. By most metrics this represents a 50% discount to the larger
peers. As a result, we continue to see 3-4x equity potential in Weatherford as
the transformational shift in the company after the Chapter 11 continues",
Landmark Fjermestad concludes.

ENDS 

For additional information, please contact: 

Head of Investments, Espen Landmark Fjermestad at +47 95 20 44 93
or
Chairman of the Board, Martin Nes at +47 92 01 48 14 

Standard Drilling|www.standard-drilling.com 
S.D. Standard Drilling is an investment company founded in 2010. The company
holds a focused investment portfolio and a fleet of Platform Supply Vessels
(PSVs). S.D. Standard Drilling is headquartered in Cyprus and is listed on Oslo
Stock Exchange with the ticker code SDSD.