High Arctic Announces 2026 First Quarter Results

• High Arctic Overseas Holdings Corp. released Q1 2026 financial results showing a revenue decline of 33% year-over-year to $1,683 thousand USD.
• Net loss widened to $(1,687) thousand USD compared to $(1,225) thousand USD in Q1 2025.
• Earnings Per Share (Basic & Diluted) dropped to ($0.14) from ($0.10).
• Operating margin compressed significantly from 28.4% in Q1 2025 to 10.5% in Q1 2026.
• Cash and cash equivalents stand at $11.011 million USD with a strong working capital position of $16.9 million USD as at March 31, 2026.
• Management announced the remobilization of Drilling Rig 103 is expected July 1, 2026, following a two-year drilling services contract renewal effective May 1, 2026.
• The company secured an agreement to become the authorized distributor of Atlas Copco Power Technique products in Papua New Guinea (PNG).
• A Final Investment Decision (FID) for the Papua-LNG project is targeted for the second half of 2026 following a Development Forum with landowners.

• The Q1 financial results reflect expected deterioration due to suspended drilling activity, consistent with trends seen in FY 2025 and Q3 2025 where revenue fell 63% year-over-year.
• The widening net loss is negative but not unexpected given the suspension of Rig 103 since H2 2024; however, it confirms cash burn continues prior to the July restart.
• The operational catalyst (Rig 103 restart) was announced on May 26, 2026, causing a price spike from $1.48 to $1.93 within two days.
• This earnings release acts as confirmation of liquidity ($11M cash) required to fund the upcoming operational restart rather than introducing new upside surprises.
• The Atlas Copco distributorship agreement is incremental diversification but does not constitute a material equity investment or takeover event.
• Given the price already reacted to the operations update, this financial release validates the balance sheet strength without altering the immediate thesis established by previous news.

• Company: High Arctic Overseas Holdings Corp., focused on oilfield services in Papua New Guinea (PNG).
• Flagship Project: Drilling Rig 103 reactivation for the PNG drilling campaign, supported by a two-year contract renewal effective May 2026.
• Diversification Strategy: Expansion into equipment rental and fire services to reduce reliance on single-client drilling contracts; includes Atlas Copco distributorship in PNG.
• Development Forum: Scheduled for June/July 2026 with landowners to facilitate the Papua-LNG project FID.
• Operational Scope: Four approved wells planned for Q4 2026, with potential for additional unapproved wells if FID is achieved.