Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q4 2019 Earnings Presentation
15 slides from Borr Drilling's earnings presentation, Mar 2, 2020
Slide 1: Borr Drilling Limited Q4 2019 results presentation
Borr Drilling Limited Q4 2019 results presentation28 February 2019
Slide 2: Important information and disclaimer
Important information and disclaimer 2 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 fi
Slide 3: Highlights Q4 and full year 2019
Highlights Q4 and full year 2019 3 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 2019Total operating revenues of $334.1 million, net loss of $308.1 million and Adjusted EBITDA of $(2.6) million for the full year 201
Slide 4: Key Financials Q4 2019 Income Statement
Key Financials Q4 2019 4 Income Statement USDm FY 2019 Q4 2019 Q3 2019 Operating revenues 334.1 92.9 102.7 Gain on disposals 6.4 2.6 - Rig operating and maintenance expenses (307.9) (81.6) (87.9) Depreciation (101.4) (27.1) (25.8) Impairment (11.4) - - Amortisation of contract backlog (20.2) (1.6) (
Slide 5: Key Financials Q4 2019 Balance Sheet
Key Financials Q4 2019 5 Balance Sheet Key Numbers USDm Q4 2019 Q3 2019 Q4 2018 Total assets 3,280.0 3,199.5 2,913.7 Total liabilities 1,994.9 1,848.6 1,380.2 Total equity 1,285.1 1,350.9 1,533.5 Cash and cash equivalents 59.1 39.5 27.9 Restricted cash 69.4 77.1 63.4 Comments Q4 2019 Total assets in
Slide 6: Fleet Status Report February 2020
Fleet Status Report February 2020 6 Contractual Developments Other Fleet Updates * Includes Eir, which is under sales agreement, expected to be concluded early 2020, subject to conditions Time Rig Client Contract Status Oct-19 Galar Pemex Contract: Q1 2020 to Q2 2021 Oct-19 Njord Pemex Contract: Q1
Slide 7: From 1 to 19 rigs in operations – achieved critical mass in all regions
From 0 to 19 rigs in operations – achieved critical mass in all regions 7 Growth from 1 to 19 rigs after 26 months in operations 19 operating rigs Mar-20 1 operating rigDec -17 99.0% technical utilization in 2019
Slide 8: Jack-up demand growing – shallow water has lowest break even cost
Jack-up demand growing – shallow water has lowest break even cost 8 US onshore rig count Floater rig count Jack-up rig count Source: Bloomberg and IHS, Rystad -15% +6% +27% Break-even USD55/bbl Break-even USD45-50/bbl Break-even USD18-40/bbl
Slide 9: Jack-up demand growing – shallow water has faster payback
Jack-up demand growing – shallow water has faster payback 9 Jack-up demand is mainly brownfield Core countries are drilling significantly more today Source: IHS Petrodata, DNB Markets, Borr Drilling # Jack-ups Outstanding and expected tenders Brownfield Greenfield Exploration Greenfielddevelopment I
Slide 10: Modern replacing standard rigs – Borr very well positioned
Modern replacing standard rigs – Borr very well positioned 10 Marketed Utilization continues to trend upwards… Modern JU availability is tight … while market bifurcation continues to play out Source: IHS, Borr Drilling Marketed Utilization (%) Modern (>=2000) Standard (<2000) Average 234 113 193 223
Slide 11: Available modern rig capacity largely depleted – Borr very well positioned
Available modern rig capacity largely depleted – Borr very well positioned 11 Visible incremental demand Borr controls > 1/3 of available capacity Only 12 rigs with same standard as the Borr rigs left # units stranded in yards down 87 Middle East 19 Mexico 10 South-east Asia 7 West Africa 3 India 2
Slide 12: Industry backlog and contract length increasing – dayrate increases to continue
Industry backlog and contract length increasing – dayrate increases to continue 12 Trailing 12 months contracted days back at 2013 peak Average contract length past 2013 peak IHS
Slide 13: Forward utilisation now at 2012 levels
Forward utilisation now at 2012 levels 13 Forward utilisation all jack-ups Forward utilisation premium jack-ups Average 6 month forward utilisation 59%Average 1 year forward utilisation 51%Average 2 year forward utilisation 39%2012: Premium JU day-rate USD151k/day
Slide 14: Summary
Jack-up market approaching inflection point of utilisation and dayratesBorr very well positioned in all key operating regions2020 focus on strengthening balance sheet and cashflow building on:Activity having reached critical massStringent rig activation criteriaTight control on cost and working capi
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