Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q1 2023 Earnings Presentation
12 slides from Borr Drilling's earnings presentation, May 23, 2023
Slide 1: Q1 2023 Presentation
Q1 2023 PRESENTATION May 23, 2023
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: A Leading Pure Play Company
A LEADING PURE PLAY COMPANY MODERN JACK-UP FLEET AND GLOBAL PRESENCE Market cap1 People $1.7bn 2,200 (offshore) 290 (onshore) 1 7 Contract backlog2 Modern Fleet 4 at 31 March 2023 ~6yr $1.64bn Average Age 4 6 22 Contracted 2 Fleet Fleet utilization 0 Warm Stacked 24 100% Under Modern rigs Delivered
Slide 4: Key Financials Q1 2023
KEY FINANCIALS Q1 2023 INCOME STATEMENT COMMENTS Q1 2023 USDm Q1 2023 Q4 2022 • Total operating revenues increased by $23.4 million or 16% compared to last quarter, Operating revenues 172.0 148.6 and.consisted of $141.7 million in dayrate revenues and $30.3 million in related party revenues. The inc
Slide 5: Quarterly Metrics
Quarterly Metrics REVENUE REVENUE 2021 vs 2022 AND 2023E GUIDANCE 200 1000 172.0 740 - 780 148.6 30.3 800 150 31.4 600 105.3 107.9 443.8 $M $M 100 82.0 17.6 17.4 400 85.1 18.7 245.3 141.7 117.2 200 39.5 50 87.7 90.5 358.7 63.3 205.8 0 0 FY 2021 FY 2022 2023E Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 G
Slide 6: IEA May 15th Supply and Demand Outlook
IEA MAY 15TH SUPPLY AND DEMAND OUTLOOK 104 1.00 103 0.50 102 0.00 million b/d million b/d 101 (0.50) 100 (1.00) 99 (1.50) 98 (2.00) Q1' 22 Q2' 22 Q3' 22 Q4' 22 Q1' 23 Q2' 23 Q3' 23 Q4' 23 Implied Stock Change (rhs) Supply Demand Source: International Energy Agency
Slide 7: Market Remains Tight
MARKET REMAINS TIGHT UTILIZATION AT HIGH LEVELS OVER 30% OF FLEET BEYOND RETIREMENT AGE 90 100% 500 100% 80 Retirement 90% 450 95% Age 93.3% 80% 400 70 90% 350 70% 87.8% 60 85% 60% 300 50 250 80% 50% 40 200 40% 75% 30 150 30% Contracted Rigs 70% Mkt Utilization 20 100 20% 65% 50 10 10% 0 60% 0 0% Ja
Slide 8: Improving Market to Drive EBITDA Increase
IMPROVING MARKET TO DRIVE EBITDA INCREASE LIMITED ORDERBOOK SUPPORTS RATE INCREASE ADJUSTED EBITDA & AVERAGE OPERATING RIGS1 300 80 24 72.4 70 22.0 250 22 21.0 Dayrate (USDk/day) / # of rigs on order 60 55.1 20.0 200 19.9 20 50 # Operating Rigs 43.9 150 USDm 40 37.0 18 17.1 100 30 15.9 15.7 16 21.4
Slide 9: Fleet Overview and Coverage 2023 and 2024
FLEET OVERVIEW AND COVERAGE 2023 AND 2024
Slide 10: Building Quality Backlog
BUILDING QUALITY BACKLOG PREMIUM FLEET COMMANDING PREMIUM RATES4 TOTAL CONTRACT BACKLOG NW Europe BORR Others Contracted 1 23 $1.69 36.8 $126k Market Util. 100% 79% billion1 years Avg Rate2 Leading Rate $92k $135k +134% y-o-y +82% y-o-y +29% y-o-y Middle East BORR Others Mexico BORR Others Contracte
Slide 11: In Conclusion
IN CONCLUSION ✓ Building quality backlog ✓ 100% contracted utilization of delivered fleet ✓ Delivered Q1 2023 results as per expectations – On track to deliver 2023FY ✓ Started the process to accelerate refinance of 2025 debt maturities ✓ High quality operation and customer focus remains our priorit
Slide 12: Built to Make a Difference
BUILT TO MAKE A wot Bor «Drilling DIFFERENCE betngcon a veove