Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q1 2021 Earnings Presentation
12 slides from Borr Drilling's earnings presentation, May 31, 2021
Slide 1: Borr Drilling Limited Q1 2021 Presentation
Borr Drilling Limited Q1 2021 Presentation 31 May 2021 |
Slide 2: Forward looking statements
Forward looking statements This announcement 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 Q1 2021
Highlights Q1 2021 ▪ Total operating revenues of $48.4 million, net loss of $58.1 million and Adjusted EBITDA of $(10.6) million for the first quarter of 2021, while activity remained flat with previous quarter ▪ Total operating revenues includes a reduction of related party revenues of $9.2 million
Slide 4: Key Financials Q1 2021
Key Financials Q1 2021 Income Statement and Balance Sheet Comments Q1 2021 USDm Q1 2021 Q4 2020 ▪ Revenues for Q1 2021 impacted by one-off reduction of Operating revenues 48.4 60.2 related party revenues from Mexico of $9.2 million for periods prior to the first quarter of 2021. Adjusting for this,
Slide 5: Current oil price is supportive of rig rates approaching $100k/day
Current oil price is supportive of rig rates approaching $100k/day Current utilization levels last seen in May 2019 Avg. Brent Avg. Brent Scenario at $63.9/bbl $68.4/bbl similar 2019 growth rates 390 Modern Rig 91% 380 Rates ~$100k 89% 89% 370 87% 360 85% 350 83% 83% 83% 340 330 81% In 8 months: Uti
Slide 6: Activity recovering – Borr Drilling industry leading backlog win
Activity recovering – Borr Drilling industry leading backlog win YTD fixtures1 (in rig years) already surpassed 2020FY levels Borr active in contracting2 Rig Years # Fixtures Days pr rig (total fleet) Day pr rig (contracted fleet) Days fixed pr rig 140 450 401 120 fixtures 400 120 113 yrs 350 111 yr
Slide 7: Fleet update
Fleet update Strong contracting activities YTD … … Building backlog backlog Firm Term Options Rig Customer Country 2 Award Type (days) (days) 3 Grid OPEX JV (PEMEX) Mexico 671 Mexico Incremental ▪ 17 new fixtures1 YTD adding Gersermi OPEX JV (PEMEX) Mexico 671 Mexico Incremental 3 3 USD458m of poten
Slide 8: Fleet status May 2021
Fleet status May 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 Warm Stacked Prospector 1 1 North Sea Total Warm Stacked One-Dyas Neptune Tulip Neptune Option Norve Gabon BW Energy Warm Stacked BW
Slide 9: Collections Rate continue to improve in Mexico
Collections Rate continue to improve in Mexico Collections Rate continue to improve in Mexico Collections from PEMEX through IWS JV Key points ▪ Collections project to date Accumulated Revenue Accumulated Collections Colletions as % of accumulated revenue have been lagging due to Q2 21 to date Colle
Slide 10: Illustrative Cash Flow Potential: EV/EBITDA
Illustrative Cash Flow Potential EBITDA and EV/EBITDA implied per jack-up in Borr Drilling 12.0 15y average Peak 80 70 70 10.0 $m in EBITDA per jack-up 9.8x 60 EV/EBITDA 8.0 50 6.0 5.8x 40 31 30 4.0 17 20 10 1.4x 2.0 3.1x 10 - 0 80 100 140 250 Illustrative Available Fleet EBITDA Potential Number of
Slide 11: Key Attributes Borr Drilling
Key Attributes Borr Drilling • Improving macro fundamentals driven by oil price and world economic recovery • Lower OPEC spare capacity will drive further improvements in jackup utilization and day rate recovery • Substantial contracting activities YTD, resulting in robust backlog increase with $458
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