Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q4 2020 Earnings Presentation
12 slides from Borr Drilling's earnings presentation, Feb 26, 2021
Slide 1: Borr Drilling Limited Q4 2020 Presentation
Borr Drilling Limited Q4 2020 Presentation 26 February 2021 |
Slide 2: Forward looking statements
Forward looking statements This presentation includes forward looking statements. Forward looking statements are, typically, statements that do not reflect historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "
Slide 3: Highlights Q4 2020
Highlights Q4 2020 ▪ Total operating revenues of $60.2 million, net loss of $46.7 million and Adjusted EBITDA of $6.6 million for the fourth quarter of 2020 ▪ On October 5, 2020, equity offering raising total proceeds of $27.5 million. A subsequent offering closing on November 30, 2020, raised an ad
Slide 4: Key Financials Q4 2020
Key Financials Q4 2020 Income Statement and Balance Sheet Comments Q4 2020 ▪ Revenues for Q4 in line with Q3 2020. Full year numbers USDm Q4 2020 Q3 2020 FY 2020 FY 2019 impacted by decreasing number of rigs compared to 2019, Operating revenues 60.2 59.2 307.5 334.1 mainly in second half of each yea
Slide 5: Achieved significant liquidity improvements
Achieved significant liquidity improvements Achievements in 2020 and 2021 1: June 2020 2(a): Sept 2020 2(b): Jan 2021 • Bank amortisation to zero in • Extend bank and Hayfin • Deferral of additional yard 2021 maturity from June 2022 to Jan interest payments of more than • Conversion of cash interest
Slide 6: Fleet status May 2020
Fleet status May 2020 2020 2021 2022 2023 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Mist Malaysia Vestigo Warm Stacked Prospector 1 1 Netherlands Total Warm Stacked Norve Cameroon BW Energy Warm Stacked Idun Vietnam Hoang Long JVPC Option Gunnlod Singapore /
Slide 7: Fleet status February 2021
Fleet status February 2021 2020 2021 2022 2023 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Mist Malaysia Vestigo Warm Stacked ROC Oil Prospector 1 1 North Sea Total Warm Stacked One-Dyas LOI Option Norve Gabon BW Energy Warm Stacked BWE Option Idun Malaysia Hoa
Slide 8: Why modern rigs?
Why modern rigs? Modern rigs gaining market share Unemployed old rigs will get scrapped 300 240 88% utilisation 250 228 at current demand 200 165 # rigs contracted 180 # rigs 150 131 100 100 50 0 Modern jack-ups Standard jack-ups Source: IHS Petrodata (1) Units idle 1/7/2021 8|
Slide 9: Attractive cost structure
Attractive cost structure Illustrative scenarios of cash break-even1 in 2021 at different activity levels ($m in 2021) # rigs working Day-rate equivalent 9 14 18 23 Mist, Idun, Saga, Gunnlod, P1, P5, + Galar, Gersemi, Grid, Odin, Njord + Groa, Gerd, Ran, Frigg + Gyme, Thor, Hermod, Heimdal; Hild Nor
Slide 10: The Cash Flow Potential
The Cash Flow Potential EBITDA and EV/EBITDA implied per jack-up in Borr Drilling 12.0 80 15y average Peak 70 70 10.0 9.8x 60 8.0 $m in EBITDA per jack-up 50 EV/EBITDA 6.0 5.8x 40 31 30 4.0 17 20 1.4x 2.0 3.1x 10 10 - 0 80 100 140 250 Implied value $100 million EV pr rig, based on $2.6bn fully inves
Slide 11: Key Attributes Borr Drilling
Key Attributes Borr Drilling • Equity raises in 2020 and January 2021 being the catalyst for >$1 billion liquidity improvements until 2023 • Oil price of in excess of $60/bbl driving activity – and increased utilisation will be impacting day rates • Market preference for modern jack-ups – stacking a
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