Calgary, Alberta – November 29, 2024 — High Arctic Overseas Holdings Corp. (TSXV: HOH) has released its third quarter financial and operating results, marking its first quarterly report since completing the spin-out of its Papua New Guinea (PNG) operations from High Arctic Energy Services Inc.

Strategic Reorganisation
On August 12, 2024, the company completed a Plan of Arrangement that separated the North American and PNG businesses. High Arctic Overseas now operates the PNG business and trades on the TSX Venture Exchange under the symbol HOH. The reorganisation provided shareholders with ownership in both entities and positioned High Arctic Overseas as a standalone energy services company focused on PNG.

CEO Mike Maguire said the spin-out delivered on a key 2024 objective: “The Corporation is now well placed, with access to adequate working capital, ideal equipment for the PNG environment, and a dominant market position.” He added that LNG development momentum in PNG provides confidence in future opportunities.

Financial Results

• Q3 2024 revenue was USD $2.89 million, down 77% from $12.52 million in Q3 2023 due to reduced drilling.
• Adjusted EBITDA was a loss of $0.34 million, compared to a $2.92 million gain in Q3 2023.
• Net loss was $1.42 million, compared to a $11.95 million loss in Q3 2023, which included significant impairments.
• For the first nine months of 2024, revenue was $21.65 million, down 30% year-on-year; net income was $1.05 million versus a $10.53 million loss in 2023.
• Operating margins improved to 36.8% in Q3 2024 from 29.5% the year prior, supported by higher-margin rentals and reduced material costs.

High Arctic closed the quarter with $18.5 million in working capital, including $14.9 million in cash and no debt.

Operational Highlights

• Rig 103 remained suspended, with Rigs 115 and 116 preserved and cold-stacked.
• Manpower and rental services continued, providing stable activity and improved operating margins.
• Non-essential expenditures were curtailed to align with reduced drilling.

Outlook
While near-term drilling demand remains low, the company sees opportunities in equipment rentals, manpower services, and PNG’s upcoming large-scale LNG developments. With preserved heli-portable rigs and strong liquidity, High Arctic is positioning itself for future projects including Papua LNG and P’nyang, as well as broader infrastructure initiatives.