Slide 1: Q4 2021 Presentation
Q4 2021 PRESENTATION 16 February 2022
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: Modern Fleet & Strong Operational Team
Modern Fleet & Strong Operational Team … Modern Fleet & Global Presence Financial Results 18 5 5 28 Total Rig count Q3 Q4 Under Contracted Available Construction Revenue 73.0 69.1 (5)% Opex 45.6 38.7 15% 3 5 1 EBITDA 20.0 25.0 +5.0 4 5 3 1 6 Free and 68.9 46.0 (22.9) restricted Cash Source: Company
Slide 4: Key Financials Q4 2021
KEY FINANCIALS Q4 2021 INCOME STATEMENT COMMENTS Q4 2021 USDm FY 2021 Q4 2021 Q3 2021 • Revenues decreased by $3.9 million (5%) primarily as a result of a decrease in number of operational days for rigs on charter in comparison to the prior quarter Operating revenues 245.3 69.1 73.0 Rig operating an
Slide 5: Extension of $1.4 Billion Until 2025
Extension of $1.4 billion until 2025 BEFORE AMENDMENTS AFTER AMENDMENTS 2500 2500 $m $m 2000 2000 1500 1500 $1.4bn extended by 2 years 1000 1000 500 500 0 0 2021 2022 2023 2023 2025 2026 2021 2022 2023 2023 2025 2026 Bank Hayfin PPL Keppel Newbuilding installments CB Bank Hayfin PPL Keppel Newbuildi
Slide 6: Fleet Status February 2022
FLEET STATUS FEBRUARY 2022 2021 2022 2023 2024 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Thor Southeast Asia Warm Stacked LOA Option Gunnlod Malaysia PTTEP IPC Idun Malaysia Vestigo Petronas Carigali Petronas Carigali Option Mist Thailand ROC Oil Warm Stacked
Slide 7: Commodity Fundamentals Are Constructive
COMMODITY FUNDAMENTALS ARE CONSTRUCTIVE OIL PRICE AT HIGHEST IN 7 YEARS… … WHILE OIL INVENTORIES AT LOWEST IN 7 YEARS US$/bbl OECD Crude Stock (mbbl) 100 1,400 5 year range 2019 90 1,350 2020 2021 80 1,300 70 1,250 60 1,200 50 1,150 40 1,100 30 1,050 20 1,000 10 950 0 900 Jan Feb Mar Apr May Jun Jul
Slide 8: Capex Growth to Drive Increased Activity Levels
CAPEX GROWTH TO DRIVE INCREASED ACTIVITY LEVELS CAPEX SPENDING RECOVERING NOCs AMBITIOUS GROWTH TARGETS SHALLOW WATER REMAINS STRONG Offshore Wells (#) 3,000 Capex Spending ($m) 2,800 2021 2022e Y-o-Y % BP 8,018 8,990 12% 2,600 Chevron 9,614 12,600 31% 2,400 ConocoPhillips 5,324 7,200 35% 2,200 Equi
Slide 9: Utilization Returning to Pre-COVID Levels
UTILIZATION RETURNING TO PRE-COVID LEVELS UTILIZATION IS UP … AND BOUND TO INCREASE FURTHER Utilization % Rigs # Contracted but idle (rhs) 100% Marketed Utilization 80 Working Utilization RIG YEARS ON OFFER 95% 70 90% 84% 85% Feb 2021 Feb 2022 Change 60 80% 76% 75% 50 70% 40 68 153 124% 65% Rig Year
Slide 10: Modern Rigs Bound to Be Short Supplied
MODERN RIGS BOUND TO BE SHORT SUPPLIED DEMAND RECOVERING WITH LARGE UPSIDE POTENTIAL AND AVAILABILITY OF MODERN RIGS IS LIMITED Brent Brent 500 ~$50 - 80 > $90 ~60 rigs contracted 30 rigs required to reach in 2 yrs pre-COVID 450 400 350 444 300 386 349 357 340 329 250 200 2014 Feb-18 Feb-19 Feb-20 F
Slide 11: Guidance 2022
GUIDANCE 2022 2021 RESULTS 2021 vs 2022 GUIDANCE 100.0 450 Revenue EBITDA 375 - 400 400 80.0 73.0 350 69.1 300 60.0 245 54.8 250 48.4 $ million $ million 200 40.0 115 - 140 150 25.0 20.0 100 20.0 50 38 3.7 - 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 2022e 2021 2022e Revenue Adj. EBITDA 2021 -10.7 -20.0
Slide 12: Illustrative Annual Cash Flow Potential
ILLUSTRATIVE ANNUAL CASH FLOW POTENTIAL (based on 95% utilisation) Rate 2H 2019 20 year avg. Peak Current status # of Rigs @ $80,000/day @ $100,000/day @ $140,000/day @ $250,000/day Contracted rigs 18 $171m $296m $545m $1,232m Warm stacked (guidance end 22) 5 $47m $82m $151m $342m Under Construction
Slide 13: In Conclusion
IN CONCLUSION 18 Rigs contracted – with current focus on rig activation & placing in operation Market for modern rigs is tight – particularly for units ready to be deployed on a short notice Maintaining expectation that all 23 delivered rigs will be contracted by 2022 Expect to finalize the extensio
Slide 14: Built to Make a Difference
BUILT TO MAKE A wot Bor «Drilling DIFFERENCE betngcon a veove
Slide 15: Non GAAP Measures and Reconciliations
NON GAAP MEASURES AND RECONCILIATIONS • Set forth below is a reconciliation of the Company's Net Loss to Earnings Before Interest, Tax and Depreciation (“Adjusted EBITDA”) (in US$ millions) Q4 - 2021 Q3 - 2021 Net loss (46.1) (32.6) Depreciation of non-current assets 36.4 28.4 Loss/(Income) from equ