Slide 1: Borr Drilling Limited Q4 2019 results presentation
Borr Drilling Limited Q4 2019 results presentation 28 February 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 Q4 and full year 2019
Highlights Q4 and full year 2019 ▪ Total operating revenues of $92.9 million, net loss of $69.3 million and Adjusted EBITDA of $1.8 million for the fourth quarter of 2019 ▪ Total operating revenues of $334.1 million, net loss of $308.1 million and Adjusted EBITDA of $(2.6) million for the full year
Slide 4: Key Financials Q4 2019
Key Financials Q4 2019 Income Statement Comments Q4 2019 ▪ Revenues decreased quarter on quarter mainly due to less operating days USDm FY 2019 Q4 2019 Q3 2019 ▪ Rig operating and maintenance expenses decreased due to: Operating revenues 334.1 92.9 102.7 - Lower amortisation of mobilisation costs of
Slide 5: Key Financials Q4 2019 - Balance Sheet
Key Financials Q4 2019 Balance Sheet Key Numbers Comments Q4 2019 ▪ Total assets increased by US$80.5 million due to delivery of one USDm Q4 2019 Q3 2019 Q4 2018 newbuild, “Hermod”, offset by depreciation Total assets 3,280.0 3,199.5 2,913.7 ▪ Total liabilities increased by US$146.3 million, mainly
Slide 6: Fleet Status Report February 2020
Fleet Status Report February 2020 Contractual Developments Operating / Under Available Cold Stack Committed Construction Premium Jack-Ups 30 16 6 2 6 Standard Jack-Ups 4 2 1 1* 2 Total Jack-Ups 34 Semi - Submersible 1 1 Total Fleet 35 19 7 3 6 Other Fleet Updates Time Rig Client Contract Status Oct-
Slide 7: From 0 to 19 rigs in operations – achieved critical mass in all regions
From 0 to 19 rigs in operations – achieved critical mass in all regions Growth from 1 to 19 rigs after 26 months in operations 20 19 operating rigs Mar-20 18 16 14 12 10 8 6 1 operating rig Dec -17 4 99.0% technical utilization in 2019 2 0 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-
Slide 8: Jack-up demand growing – shallow water has lowest break even cost
600 700 800 900 1000 1100 1200 Jan 2018 Mar 2018 May 2018 Jul 2018 Sep 2018 Nov 2018 Source: Bloomberg and IHS, Rystad Jan 2019 Mar 2019 May 2019 Jul 2019 US onshore rig count Break-even USD55/bbl Sep 2019 Nov 2019 Jan 2020 130 135 140 145 150 155 165 170 175 180 160 Jan 2018 Mar 2018 May 2018 Jul 2
Slide 9: Jack-up demand growing – shallow water has faster payback
Jack-up demand growing – shallow water has faster payback Jack-up demand is mainly brownfield Core countries are drilling significantly more today 3% 2% # Jack-ups P&A Outstanding and 8% 160 expected tenders 3 months 6 months Workover 27% 1 year 13% Infill drilling 140 120 Brownfield 100 39% 6 month
Slide 10: Modern replacing standard rigs – Borr very well positioned
Modern replacing standard rigs – Borr very well positioned Marketed Utilization continues to trend upwards… Modern JU availability is tight Marketed Utilization (%) 95 Modern (>=2000) 90 Standard (<2000) 91 Supply and Demand matrix # of rigs Average Modern rigs 85 80 75 Total fleet 305 70 Not market
Slide 11: Available modern rig capacity largely depleted – Borr very well positioned
Available modern rig capacity largely depleted – Borr very well positioned Visible incremental demand Borr controls > 1/3 of available capacity Only 12 rigs with same standard as the Borr rigs left 120 7 Middle East 19 100 6 Mexico 10 5 80 South-east Asia 7 4 60 West Africa 3 3 40 India 2 2 20 1 Res
Slide 12: Industry backlog and contract length increasing – dayrate increases to continue
Industry backlog and contract length increasing – dayrate increases to continue Trailing 12 months contracted days back at 2013 peak Average contract length past 2013 peak 180 550 500 160 450 140 400 # days (‘000) 120 #days 350 100 300 80 250 60 200 40 150 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 13: Percentage of fleet contracted
Forward utilisation now at 2012 levels Forward utilisation all jack-ups 80% 70% 60% 61% 59% 55% Percentage of fleet contracted 50% 51% 43% 40% 39% 30% 20% Average 6 month forward utilisation 59% Average 1 year forward utilisation 51% Average 2 year forward utilisation 39% 10% 2012: Premium JU day-ra
Slide 14: Summary
Summary ▪ Jack-up market approaching inflection point of utilisation and dayrates ▪ Borr very well positioned in all key operating regions ▪ 2020 focus on strengthening balance sheet and cashflow building on: - Activity having reached critical mass - Stringent rig activation criteria - Tight control
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