Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q4 2022 Earnings Presentation
12 slides from Borr Drilling's earnings presentation, Feb 16, 2023
Slide 1: Q4 2022 Presentation
Q4 2022 PRESENTATION February 16, 2023
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 expectations regar
Slide 3: A Leading Pure Play Company
A LEADING PURE PLAY COMPANY MODERN JACK-UP FLEET AND GLOBAL PRESENCE Market cap2 People $1,500m 2,000 (offshore) 250 (onshore) 1 6 Modern and Young Revenue backlog 4 Fleet added 2022 $1.7bn ~6yr Average Age 4 6 1 2 21 Contracted Fleet Fleet utilization 1 Warm Stacked 24 95.4% Under Modern rigs1 Cont
Slide 4: Key Financials Q4 2022
KEY FINANCIALS Q4 2022 INCOME STATEMENT COMMENTS Q4 2022 USDm Q4 2022 Q3 2022 • Total operating revenues increased by $40.7 million quarter on quarter as a result of an increase of $26.7 million in dayrate revenues, primarily due to more operational days. Related party revenue Operating revenues 148
Slide 5: Financial Progression
FINANCIAL PROGRESSION REVENUE - QUARTERLY REVENUE 2021 vs 2022 AND 2023E GUIDANCE 160 148.6 1000 140 740 - 780 31.4 800 120 105.3 107.9 100 82 17.6 17.4 600 73 443.8 $M 69.1 $M 80 ~80% 54.8 18.7 400 85.1 60 48.4 15.4 17.7 245.3 117.2 1.0 5.4 40 87.7 90.5 39.5 63.3 200 358.7 47.4 49.4 57.6 51.4 20 20
Slide 6: Completed Refinancing With Next Maturity In 2025
COMPLETED REFINANCING WITH NEXT MATURITY IN 2025 Extended maturity profile ($m) Post-refinancing capital structure ($m) Convertible bond Keppel loans Hayfin Keppel newbuilds New Secured bond Bank facility PPL New CB New Secured bond Bank facility PPL Keppel loans Hayfin Keppel newbuilds 91 91 113 11
Slide 7: Fleet Overview And Coverage 2023 And 2024
FLEET OVERVIEW AND COVERAGE 2023 AND 2024 2023 2024 2025 2026 Contracted Days (incl priced options) 7179 4247 3,650 1,404 Total Days 7666 8052 8334 8760 Contract Coverage % 94% 53% 44% 16% Note: 1) HD/HE Capacity Firm Option Available Under Construction
Slide 8: Fundamentals In Place To Fuel Sharp Recovery
FUNDAMENTALS IN PLACE TO FUEL SHARP RECOVERY Demand upside for modern rigs Modern rig supply all but gone Order book “non-existent” 160 30 % Orderbook as % of fleet 74% # Units # Modern Rigs 500 # Contracted Rigs Orderbook 68% 70% 450 434 140 Orderbook as % of total fleet 25 % 387 390 400 60% 120 35
Slide 9: Robust NOC Demand Supports Longer Cycle
ROBUST NOC DEMAND SUPPORTS LONGER CYCLE NOCs dominating demand Increasing contract duration Average duration1 of new mutual contracts Rigs Under Contract (#) 450 ~75% of Borr Drilling’s backlog is with NOCs 90% 800 # of days 400 80% 700 350 70% 600 300 60% 500 250 50% 400 200 40% 300 150 30% 200 100
Slide 10: Day Rate Momentum Expected To Accelerate
DAY RATE MOMENTUM EXPECTED TO ACCELERATE Utilization at high levels …Creating supportive day rate environment Adjusted for 100% 300 owner-operated units Day Rate 1 (in ‘000) 95% Utilization 250 Range 90% 200 85% 150 80% 100 75% Marketed utilization Utilization 50 70% Range Marketed utilization 65% 0
Slide 11: In Conclusion
IN CONCLUSION ✓ Refinance of all 2023 debt maturities successfully completed – next maturity 2025 ✓ High asset utilization – driving day rates higher – contract length extending ✓ Adjusted EBITDA range for 2023 increased to $360M to $400M ✓ Target to accelerate refinance of 2025 debt maturities – to
Slide 12: Built To Make A Difference
BUILT TO MAKE A wot Bor «Drilling DIFFERENCE betngcon a veove