Slide 1: Company presentation Q3 2018 Results
Borr Drilling Limited Company presentation Q3 2018 Results 21 November 2018 |
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 US$49.7 million, EBITDA* of negative US$10.3 million and net loss of US$39.1 million ▪ Secured six new contracts since last reporting date, including three newbuilds, adding total backlog of approximately 88 months ▪ Commenced contracts for the premium jack-up rig
Slide 4: Key Financials Q3 2018
Key Financials Q3 2018 Income Statement Comments Q3 2018 USDm YTD 2018 Q3 2018 Q3 2017 ▪ On average 8.6 operating rigs in the Operating revenues 111.4 49.7 - third quarter Gain on disposals 17.5 - - Rig operating and maintenance expenses (120.6) (45.7) (9.4) ▪ Rig operating and maintenance Depreciat
Slide 5: Key Financials Q3 2018
Key Financials Q3 2018 Balance Sheet Key Numbers Comments ▪ Increase in total assets due to delivery of the two newbuildings USDm Q3 2018 Q2 2018 Q4 2017 “Groa” and “Gyme” Total assets 2,790.5 2,652.2 1,672.3 ▪ Long term debt increased mainly Total liabilities 1,138.5 953.9 179.4 due to US$174.0 in
Slide 6: Fleet Status Report November 2018
Fleet Status Report November 2018 Fleet summary Fleet main movements and operations ▪ Strong technical utilisation on the operating rigs of 99.2% Operating/ Available Cold Stack Under in Q3 2018 Committed Construction ▪ Converted previously announced LOI/LOAs into firm Premium Jack-Ups 29 9 9 2 9 co
Slide 7: Fleet Update
Fleet Update Contracted and Future Contracted Rigs (14) 2018 2019 2020 2021 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Mist Thailand Kris Energy Frigg 1 Nigeria Total Operating with option to extend Prospector 5 1 United Kingdom Available - Warm Stacked Nexen
Slide 8: Fleet Update continued
Fleet Update continued Available (9), Under Construction (9) and Cold Stacked (4) 2018 2019 2020 2021 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Galar Singapore Available - Warm Stacked Gersemi Singapore Available - Warm Stacked Grid Singapore Available - Warm
Slide 9: Market Update
Market Update Marketed Utilization continues to trend upwards… Modern JUs approaching critical levels 1 80% Modern Standard Total Modern 79% Standard 76% 75% Marketed Utilization 79% 72% 72% Q-o-Q +2 +1 p.p. p.p. 70% Y-o-Y +7 +4 p.p. p.p. From +10 +5 trough p.p. p.p. 65% Nov-17 Feb-18 May-18 Aug-18
Slide 10: Regional Marketed Utilization and Fleet Size in key jack-up markets
Regional Marketed Utilization and Fleet Size in key jack-up markets Modern rigs built after 2000 NW Europe (97%) 30 Middle East (87%) Mexico (57%) Asia Pacific (68%) 30 82 India (92%) W Africa (100%) Global Jack up (79%) 82 8 12 Mkt Utilization % Mkt Rig count 268 Source: IHS Petrodata, Independent
Slide 11: Oil Co free cash-flow is strong – capex levels to improve
Oil Co free cash-flow is strong – capex levels to improve Global oil co free cash flows reaching record levels Oil Co underestimated capex growth in last cycle $800 Billions 30 % E&P co own estimate (% y/y) Actual spending growth (% y/y) $700 25 593 $600 20 $500 $400 15 $300 10 $200 5 $100 $0 0 2000
Slide 12: You need to drill to get oil
You need to drill to get oil Saudi rig count up – Mexico rig count down Saudi production up – Mexico production down1 # jack-up k brl/day 60 5000 4500 50 4000 40 3500 30 3000 2500 20 2000 10 1500 0 1000 Saudi-Arabia Mexico Saudi-Arabia Mexico 2010 2014 Current 2010 2014 Current 1) Shallow water prod
Slide 13: Tender activity improving – confidence in contracting activity
Tender activity improving – confidence in contracting activity 130 0 - 12 Months (# tenders) 120 12 - 24 Months (# tenders) 24 - 36 Months (# tenders) Tenders +106% 1 ▪ Increase largely driven by NOCs making 110 Rig years on offer demand less oil price sensitive 100 ▪ Several tenders initiated in a
Slide 14: Q&A
Q&A |