Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q3 2022 Earnings Presentation
13 slides from Borr Drilling's earnings presentation, Nov 17, 2022
Slide 1: Q3 2022 Presentation
Q3 2022 PRESENTATION November 17, 2022
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 "anticipate," "expect", "illustrative," "may", "potential," "will" and similar expressions and include statements with respect to sales of rigs, statemen
Slide 3: Strong Operational Performance in the Quarter
STRONG OPERATIONAL PERFORMANCE IN THE QUARTER MODERN FLEET AND GLOBAL PRESENCE FINANCIAL RESULTS ($ MILLION) 20 2 2 24 Total Rig Fleet Q2-22 Q3-22 Under Contracted Available Construction Revenue 105.3 107.9 2.6 Opex 65.5 60.4 (5.1) 1 6 3 EBITDA 37.0 43.9 6.9 1 2 4 1 6 Free and 37.8 286.0 248.2 restr
Slide 4: Key Financials Q3 2022
KEY FINANCIALS Q3 2022 INCOME STATEMENT COMMENTS Q3 2022 USD million Q3 2022 Q2 2022 • Revenues increased by $2.6 million primarily as a result of an increase in the number of operational days. Related party revenue (bareboat) from Mexico decreased by $0.2 Operating revenues 107.9 105.3 million quar
Slide 5: Financial Progression
FINANCIAL PROGRESSION REVENUE - QUARTERLY REVENUE YTD - 2022 VS 2021 120 105.3 107.9 350 295.2 100 17.4 300 + 68% 82 17.6 53.7 73 69.1 250 80 18.7 200 176.2 54.8 15.4 $M $M 60 48.4 17.7 5.4 21.8 1.0 150 87.7 90.5 241.5 40 63.3 100 49.4 57.6 51.4 154.4 20 47.4 50 0 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q
Slide 6: Fleet Overview – Borr Drilling
FLEET OVERVIEW – BORR DRILLING 2022 2023 2024 2025 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Eastern Hemisphere Thor Malaysia-Thailand JDA Contract Prep CPOC Option Undis- Gunnlod Malaysia IPC PTTEP closed Idun Malaysia Petronas Carigali Mist Thailand PTTEP P
Slide 7: Shallow Water Production – Key to Growth
SHALLOW WATER PRODUCTION – KEY TO GROWTH LARGE RESOURCES AT LOW BREAKEVEN COST MIDDLE EAST WITH INCREASED FOCUS ON OFFSHORE 80 Onshore Middle East Shelf 60,000 Middle East North American Shale Ultra deepwater Offshore production1 by region Deepwater Row onshore (thousand barrels of oil equivalents p
Slide 8: Tight Market – Utilisation Impacting Day Rates
TIGHT MARKET – UTILISATION IMPACTING DAY RATES UTILISATION AT HEALTHY LEVELS DAY RATE CURVE SHARPLY INFLECTING Marketed Utilisation (%) Global and Modern1 Fleet Premium Jackup Day Rates2 100% 300 95% 95% 250 90% 92% 200 85% Day Rate (k$/day) 80% 150 75% 100 70% 50 65% Global Fleet Modern Fleet 60% 0
Slide 9: High Utilisation and Strong Demand Driving the Recovery
HIGH UTILISATION AND STRONG DEMAND DRIVING THE RECOVERY 3 YEAR FORWARD UTILISATION AT PEAK LEVELS RIG DEMAND1 PIPELINE REMAINS STRONG 55% 140,000 290 50% 130,000 120,000 270 45% 110,000 250 40% 100,000 230 90,000 35% 80,000 210 30% 70,000 190 60,000 25% 170 50,000 20% 40,000 150 2 year forward 3 yea
Slide 10: Limited Availability in Key Markets
LIMITED AVAILABILITY IN KEY MARKETS NW Europe Total Fleet Contr. Available 31 1 Contr. Available ▼16 from 395 36 peak US GOM ▼57 from Contr. Available peak India Modern Fleet 6 5 Middle East Contr. Available ▼27 from peak Mexico Contr. Available 33 1 Contr. Available Contr. Available 154 10 ▼2 from
Slide 11: Stronger for Longer
STRONGER FOR LONGER GLOBAL MODERN RIG AVAILABILITY DOWN TO SINGLE DIGITS NEWBUILDS PROVIDE NO RELIEF Reduced 21 rigs under construction remain in the Not Marketed supply yards (vs. 29 at 2021YE and 49 at 2020YE) Committed 5 rigs under construction have future capacity contracts or are owner-operated
Slide 12: In Conclusion
IN CONCLUSION ✓ Refinance of secured creditors successfully completed – Convertible bond due for refinance in Q1 2023 ✓ High asset utilization – currently at 95% – with day rates increasing accordingly ✓ Revenue and EBITDA 2022 expected to be above previously guided range ✓ Shipyard new build invent
Slide 13: Built to Make a Difference
BUILT TO MAKE A wot Bor «Drilling DIFFERENCE betngcon a veove