Borr Drilling Limited · NYSE:BORR
Borr Drilling — Investor Presentation (January 2021)
16 slides from Borr Drilling's investor presentation, Jan 21, 2021
Slide 1: Borr Drilling Limited – Presentation
Borr Drilling Limited – Presentation 21 January 2021 |
Slide 2: Important information
Important information The information contained herein does not constitute an offer to sell or the solicitation of an offer to subscribe or buy any securities. It is solely for use as an investor presentation and is provided for information purposes only. This presentation does not contain all of th
Slide 3: 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 4: Extending runway by debt and capex deferral
Extending runway by debt and capex deferral Pre May 2020 – Debt profile Post amendments – Debt profile 1,400 3,500 1,400 3,500 No scheduled debt amortisation before 2023 1,200 3,000 1,200 3,000 1,000 2,500 1,000 2,500 800 2,000 800 2,000 600 1,500 600 1,500 400 1,000 400 1,000 200 500 200 500 - 0 -
Slide 5: The capital structure providing opportunities
The capital structure providing opportunities Size # rigs Depreciated value1 Loan vs depreciated Liability Sept 2020/Jan 2021 deal USDm Security USDm Value % • Extended maturity to 2023 Banks 400 8x 1155 35% • Q3/Q4 2020 interest deferred for 12 months • Extended maturity to 2023 Hayfin 195 3x 536 3
Slide 6: 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 8 13 17 23 Mist, Idun, Saga, Gunnlod, P1, P5, + Galar, Gersemi, Grid, Odin, Njord + Groa, Gerd, Ran, Frigg +Gyme, Skald, Thor, Hermod, Heimdal Nor
Slide 7: Geographic activity distribution – since Q3, growth outside of Mexico
Geographic activity distribution – since Q3, growth outside of Mexico Low activity Aug, Sept, Oct have meant lower cash collections in Q4 Contracted days ex Mexico up 45% from lows in Sept 500 Cash collection normally T+45-60 days after earned days First dayrate collection P5 450 Gunnlod First dayra
Slide 8: Mexico working capital situation
Mexico working capital situation Mexico structure Significant outstanding balance1 Why Borr is important to Pemex USDm Estimated outstanding 140 Incremental production 9M 2020 (kbpd) from JVs to Borr Drilling per Q3 2020 120 100 Borr is involved in 2/3 of JV – Opex/Akal Provides IWS services increme
Slide 9: Early Signs of Recovery
Early Signs of Recovery # Borr rigs working and committed # invitations to tenders and direct negotiations 18 20 19 16 18 14 16 12 14 10 12 8 10 9 8 6 7 Recovery from 6 “COVID lows” 4 5 5 5 Since Q2 2020, Borr Drilling has put 4 4 4 4 4 warm stacked units back to work – 4 3 2 Mist, P1, Norve and Idu
Slide 10: Rig supply - newer, better, more efficient rigs make a difference
Rig supply - newer, better, more efficient rigs…..make a difference Supply matrix Supply - demand # rigs Not Idle from Scrapping # rigs contracted mid-21 candidates Total supply 512 88% utilisation Pre-2000 160 59 88 88 at current demand 2000-2010 93 28 47 38 2010-now 220 49 Newbuilds 39 37 Consolid
Slide 11: Modern Jack-Ups Gaining Market share
Modern Jack-Ups Gaining Market share Modern vs Standard jack-ups contracted Modern Jack Ups with NoX system1 – efficiency winner 300 Modern jack-up rig count Standard jack-up rig count Prospector 1 – fitted with Selective Catalytic Reduction System SCR and Particle matter filters; 250 237 • NOx down
Slide 12: 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 13: Key Attributes Borr Drilling
Key Attributes Borr Drilling • Equity raises being the catalyst for >$1 billion liquidity improvements until 2023 • Management focused on shareholder value – including opportunistic views on consolidation • Low cash-breakeven – competitive with companies emerging from Chapter 11 • If Pemex returns t
Slide 14: Disclosures
Disclosures Risk Factors A brief summary of the key risks that are specific to the issuer is listed below 1. The jack-up drilling market historically has been highly cyclical, with periods of low demand and/or over-supply that could result in adverse effects on our business. 2. We may not realize ou
Slide 15: Disclosures (cont’d)
Disclosures (cont’d) Debt maturity and other amendments We have reached agreement in principle with (i) the syndicate of lenders who provide our USD100m and USD450m facilities, (ii) Hayfin, (iii) PPL and (iv) Keppel on the following key terms and conditions: Syndicate of Lenders (bank loan facilitie
Slide 16: Disclosures (cont’d)
Disclosures (cont’d) Working Capital Statement Set forth below is the working capital statement in the form expected to be included in our prospectus for the equity raise. Cash forecasts below assume and take account of a $40m equity raise in January 2021. The Group is of the opinion that the workin