Calgary, Alberta – May 29, 2025 — High Arctic Overseas Holdings Corp. (TSXV: HOH) has released its first quarter financial and operating results for the period ended March 31, 2025. The company highlighted stable liquidity and disciplined cash management despite the suspension of drilling operations in Papua New Guinea (PNG).

Financial Performance
Revenue for Q1 2025 was USD $2.51 million, down from $11.13 million in Q1 2024, reflecting the suspension of Rig 103, which was operational during the prior year. The company recorded a net loss of $1.23 million, compared to net income of $2.50 million in Q1 2024. Adjusted EBITDA was a loss of $0.20 million, versus a gain of $3.53 million in the same period last year.

Operating margins declined to $0.71 million (28.4% of revenue), compared with $4.32 million (38.8%) in Q1 2024. Cash used in operating activities was $0.83 million, versus cash generated of $5.35 million a year earlier. The company ended the quarter with strong liquidity, reporting $20.2 million in working capital and $13.9 million in cash.

Operational Highlights

• Drilling Rig 103 remained suspended, with Rigs 115 and 116 cold-stacked but preserved for future deployment.
• Revenue was largely driven by manpower and equipment rental services, which maintained activity levels similar to Q4 2024.
• Rental activity expanded slightly into non-oil and gas sectors, marking progress in diversification.
• Disciplined cost management and reduced capital spending supported financial stability.
  
  

Strategic Outlook
High Arctic reaffirmed its business strategy centred on PNG, with objectives to:

• Maintain safety excellence and quality service delivery.
• Reduce general and administrative expenditures.
• Grow manpower services in PNG.
• Maximise participation in future major resource projects, including Papua LNG and P’nyang, both expected to drive drilling demand later this decade.
  
  

CEO Mike Maguire noted: “Our experience, combined with ideal drilling equipment for PNG’s environment, positions us well to play a strategic role in major projects anticipated in the second half of the decade.”

The company acknowledged near-term activity will remain subdued, but reported an increase in enquiries and tenders that could lead to future growth. With preserved rigs, a strong rental fleet, and proven manpower solutions, High Arctic is prepared to capitalise on the next phase of large-scale LNG and infrastructure development in Papua New Guinea.