Slide 1: Q3 2019 results presentation
Borr Drilling Limited Q3 2019 results presentation 26 November 2019
Slide 2: Important information and disclaimer
Important information and disclaimer This presentation (the “Presentation”) has been prepared by Borr Drilling Limited (the “Company”) and sets forth general background information about the Company's activities current as at the date hereof. Information in this Presentation, including forecast fina
Slide 3: Highlights
Highlights ▪ Operating revenues of $102.7 million, net loss of $79.2 million and Adjusted EBITDA of $13.8 million for the third quarter of 2019 vs $1.5 million in second quarter for 2019 ▪ Technical utilisation for the operating rigs was 99.1% in the third quarter and 99.0% for the first nine months
Slide 4: Key Financials Q3 2019
Key Financials Q3 2019 Income Statement Comments Q3 2019 ▪ Revenues increased quarter on quarter mainly due USDm YTD 2019 Q3 2019 Q2 2019 to a full quarter of operations for four additional rigs Operating revenues 241.2 102.7 86.6 ▪ Rig operating and maintenance expenses Gain on disposals 3.9 - 3.9
Slide 5: Key Financials Q3 2019
Key Financials Q3 2019 Balance Sheet Key Numbers Movements in Q3 2019 ▪ Total assets flat quarter on quarter USDm Q3 2019 Q2 2019 Q4 2018 Total assets 3,199.5 3,196.0 2,913.7 ▪ Total liabilities increased by US$25.5 million, mainly attributable to Total liabilities 1,848.6 1,823.1 1,380.2 - US$10.0
Slide 6: Fleet Status Report November 2019
FLEET SUMMARY Fleet Status Report November 2019 Contractual Developments Operating / Under Available Cold Stack Committed Construction Premium Jack-Ups 30 16 5 2 7 Standard Jack-Ups 4 2 1 1* 2 Total Jack-Ups 34 Semi - Submersible 1 1 Total Fleet 35 19 6 3 7 Other Fleet Updates Time Rig Client Contra
Slide 7: Jack-up demand growing – shallow water is low cost
750 800 850 900 950 1000 1050 1100 Jan 2018 Mar 2018 May 2018 Jul 2018 Sep 2018 Source: Bloomberg and IHS, Rystad Nov 2018 Jan 2019 Mar 2019 May 2019 US onshore rig count Break-even USD55/bbl Jul 2019 Sep 2019 Nov 2019 120 130 140 150 160 170 180 190 Jan 2018 Mar 2018 May 2018 Jul 2018 Sep 2018 Nov
Slide 8: The jack-up market is growing
The jack-up market is growing Core countries are drilling significantly more today Rig intensity going up # Jack-ups # Jack-ups pr mmboe production – Saudi-Arabia 160 14 Outstanding and 2000: 2 Jack-ups needed for 1m/day production expected tenders 2019: 12 Jack-ups needed for 1m/day production 140
Slide 9: Jack-up demand is mainly brownfield
Jack-up demand is mainly brownfield 3% 2% P&A 6 months 8% Workover 3 months 27% 1 year 13% Infill drilling Brownfield 39% 3-4 years Greenfield 6 months development 43% 17% 2 years 38% Exploration 7 years Greenfield 10% 3 years Jack-up Time to first oil Floater Source: Borr Drilling 9|
Slide 10: Yard overhang quickly diminishing
Yard overhang quickly diminishing Only 17 rigs with same standard as the Borr rigs left Contracted jack-ups 120 270 420 Built after 2000 (RHS) Total (LHS) 100 250 400 80 380 230 360 60 210 340 40 190 320 20 170 300 0 Jan-17 Current 280 150 China Singapore RoW Jan 2017 Jul 2017 Jan 2018 Jul 2018 Jan
Slide 11: Market trends confirms Borr's modern rig strategy
Market trends confirms Borr’s modern rig strategy Marketed Utilization continues to trend upwards… Modern JU availability is tight Marketed Utilization (%) 100 Modern (>=2000) Supply and Demand matrix Standard (<2000) # of rigs 95 90 Modern rigs Average 90 Total fleet 299 85 Not marketed 17 80 75 Ma
Slide 12: From 0 to 19 rigs in operations – 99.1% technical utilization YTD
From 0 to 19 rigs in operations – 99.1% technical utilization YTD Growth from 0 to 19 rigs since end 2017 20 19 operating rigs Feb-19 18 16 14 12 10 8 6 1 operating rig 4 Dec -17 2 0 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Feb-20 12 |
Slide 13: Limited number of available rigs
Limited number of available rigs Only 14 warm stacked units left – Borr controls > 1/3 6 Visible incremental demand 5 Middle East 19 4 Mexico 12 South-east Asia 9 3 West Africa 8 2 India 3 Rest of the world ? 1 Total >50 0 Borr COSL SeaDrill Maresk Northern Shelf Valaris Aban Noble Drilling Drilling
Slide 14: Significant cash-flow potential
Significant cash-flow potential Run-rate illustrative EBITDA and cash-flow Day rate scenario Current market Average 10y Last 10y peak Day-rate USD/day 100,000 145,000 250,000 Utilisation Pct 98% 98% 98% Opex and G&A USD/day 50,000 50,000 50,000 # rigs working 28 28 28 Revenue USDm 1002 1452 2504 Cos
Slide 15: Summary
Summary ▪ Market has reached 90% utilization for modern assets – first time in this cycle ▪ Only 14 modern warm stacked units – 17 stranded units in the ship yard Visible demand for more than 50 units – rig count expected to surpass 400 within next 12 months ▪ Borr has 19 contracted rigs – with anot
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