Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q2 2022 Earnings Presentation
13 slides from Borr Drilling's earnings presentation, Aug 9, 2022
Slide 1: Q2 2022 Presentation
Q2 2022 PRESENTATION August 9, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS/ This presentation and related discussions includes forward looking statements, which may be identified by words such as "continue", "estimate", "expect", "illustrative," "intends", "may", "project," "potential," "will" and similar expressions and include statements with r
Slide 3: Strong Operational Performance in the Quarter
STRONG OPERATIONAL PERFORMANCE IN THE QUARTER MODERN FLEET AND GLOBAL PRESENCE FINANCIAL RESULTS ($ MILLION) 20 3 5 28 Total Rig Fleet Q1-22 Q2-22 Under Contracted Available Construction Revenue 82.0 105.3 28% Opex 55.6 65.5 (9.9) 3 5 3 EBITDA 21.4 37.0 15.6 2 5 3 1 6 Free and 58.3 37.8 (20.5) restr
Slide 4: Key Financials Q2 2022
KEY FINANCIALS Q2 2022 INCOME STATEMENT COMMENTS Q2 2022 USDm Q2 2022 Q1 2022 • Revenues increased by $23.3 million primarily as a result of an increase in number of operational Operating revenues 105.3 82.0 days for rigs on charter in comparison to the prior quarter. Related party revenue (bareboat
Slide 5: Extending Secured Debt Maturities to 2025
EXTENDING SECURED DEBT MATURITIES TO 2025 • Improving financial position and significantly extending debt maturities, reducing debt and capital commitments by: 1) Bank facility of $311m to be replaced with two facilities with maturities in Jan 2025 and secured by eight rigs i) $150m facility secured
Slide 6: Dayrates Inflecting
DAYRATES INFLECTING JACK-UP DAYRATES IMPROVING SIGNIFICANTLY 1 Marketed utilisation Adj. utilisation Premium jack-up dayrate 100% 300 92% 90% Peak: $243k 3 250 80% 200 Avg. 2006-2014: $175k 2 Utilisation $k/day 70% 150 Recent fixture: $131k 1 60% 100 Dayrates went from 50% 50 Saudi $90k/day to $240k
Slide 7: Market Soon to Be Undersupplied
MARKET SOON TO BE UNDERSUPPLIED MODERN UTILISATION HEADING TO 95%… … AND MODERN RIGS TO BE SHORT SUPPLIED Marketed Available Marketed Util. Nearing 100% 90 Visible demand > supply awards1 35 95% Utilisation 100% 95% Current 80 30 92% 30 90% 70 85% 25 60 21 80% Modern rigs (#) 20 Utilisation 50 Rigs
Slide 8: Shallow Water Drilling Is a Growth Market
SHALLOW WATER DRILLING IS A GROWTH MARKET MIDDLE EAST – MAIN SOURCE OF GROWTH IN OIL PRODUCTION ALSO SIGNIFICANT POTENTIAL IN REST OF THE WORLD Region Peak Current vs. peak Peak year SE Asia 71 42 -29 2013 Iran 30 10 -20 2014 Mexico 51 32 -19 2014 West Africa 26 10 -16 2012 US rig count Saudi Arabia
Slide 9: Fleet Contract Overview
FLEET CONTRACT OVERVIEW 2022 2023 2024 2025 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Thor Malaysia-Thailand JDA Contract Prep CPOC Option Gunnlod Malaysia IPC PTTEP Idun Malaysia Petronas Carigali Mist Thailand PTTEP Prep LOA (Mubadala) Saga Malaysia/Brunei
Slide 10: Illustrative Annual Cash Flow Potential
ILLUSTRATIVE ANNUAL CASH FLOW POTENTIAL1 1 2 3 95% utilisation Recent fixture Average 2006-2014 Peak Opex of $50k/day per rig # of rigs $131k/day $175k/day $243k/day Contracted rigs 20 $543m $849m $1,320m Warm stacked2 2 $54m $85m $132m Under construction 2* $54m $85m $132m G&A (1H 2022 annualised)
Slide 11: Illustrative Upside Potential
ILLUSTRATIVE UPSIDE POTENTIAL1 $/SHARE BASED ON EV2/RIG EV/EBITDA ON DAYRATE ASSUMPTIONS3 Avg. build cost Borr Drilling (ready to drill)4 Current rates $25.9/share 4.4x Avg. 2006-2014 $17.5/share 2.8x Peak rate 1.8x $9.7/share Current implied $4.0/share $114m/rig $150m/rig $200m/rig $253m/rig $131k/
Slide 12: Attractive Investment Opportunity
ATTRACTIVE INVESTMENT OPPORTUNITY ✓ Multi-year structural under-investment in the oil and gas market ✓ High asset utilization – heading to 95% – in the sweet spot for rate expansion ✓ No new assets coming to the market – only 2.5% orderbook ✓ A company which is transforming to generating cash – curr
Slide 13: DIFFERENCE
BUILT TO MAKE A wot Bor «Drilling DIFFERENCE betngcon a veove