Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q1 2019 Earnings Presentation
17 slides from Borr Drilling's earnings presentation, May 29, 2019
Slide 1: Company presentation Q1 2019 Results
Borr Drilling Limited Company presentation Q1 2019 Results 29 May 2019 |
Slide 2: Important information and disclaimer
Important information and disclaimer 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 fina
Slide 3: Highlights
Highlights ▪ Operating revenues of US$51.9 million, EBITDA of negative US$15.3 million and net loss of US$56.4 million for the first quarter of 2019 ▪ Technical utilization for the operating rigs was 99.1% in the first quarter of 2019 ▪ Secured commitment for US$645 million financing with maturity i
Slide 4: Key Financials Q1 2019
Key Financials Q1 2019 Income Statement Comments Q1 2019 ▪ On average 9.1 operating rigs in the first quarter. USDm Q1 2019 Q4 2018 FY 2018 ▪ Rig operating and maintenance expenses affected by Operating revenues 51.9 53.5 164.9 reactivation costs of $7.6 million for the “Ran” Gain on disposals - 1.3
Slide 5: Key Financials Q1 2019
Key Financials Q1 2019 Balance Sheet Key Numbers Movements in the quarter ▪ Total assets increased by US$184.7 million primarily due to USDm Q1 2019 Q4 2018 Q1 2018 - Acquisition of “Thor” at the end of March 2019 - Delivery of the newbuilding “Njord” in January Total assets 3,098.4 2,913.7 2,137.3
Slide 6: Fleet Status Report May 2019
FLEET SUMMARY Fleet Status Report May 2019 Contractual Developments Operating / Under Available Cold Stack Committed Construction Premium Jack-Ups 30 12 8 2 8 Standard Jack-Ups 4 3 1* 2 Total Jack-Ups 34 Semi - Submersible 1 1 Total Fleet 35 16 8 3 8 Other Fleet Updates Time Rig Client Contract stat
Slide 7: Operating and Contracted fleet developments
Operating and Contracted fleet developments Growth from 1 to 13 operating rigs in 18 months, and 3 future contracts/commitments 18 16 Operating rigs by July 19 16 14 12 10 8 6 4 1 Operating rig 2 0 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-
Slide 8: New long-term financing facilities
New long-term financing facilities Old debt repayment profile New debt repayment profile USDm USDm 450 Bank Shipyard 700 New bank facility Shipyard 400 600 350 500 300 250 400 200 300 150 200 100 50 100 0 0 2019 2020 2021 2022 2019 2020 2021 2022 Remaining capex USDm Remaining to Committed Rig name
Slide 9: Low leverage in the current market
Low leverage in the current market Day rate scenario Current market Average 10y Last 10y peak Day-rate USDk/day 100,000 145,000 250,000 Utilisation 98% 98% 98% Opex and G&A USDk/day 50,000 50,000 50,000 EBITDA pr rig (USDm) USDm/year 18 34 71 Est. fully invested NIBD* pr rig USDm 73 73 73 NIBD/EBITD
Slide 10: Tender activity up >100% - day rates up 100% - its happening now
Tender activity up >100% - day rates up 100% - its happening now Jack up tenders at highs Day-rate improving # jack-up tenders Dayrate USDk/day 95 275 85 225 75 65 175 55 125 45 75 35 25 25 06/2002 01/2010 01/2011 01/2012 01/2013 01/2014 01/2015 01/2016 01/2017 01/2018 06/2000 06/2004 06/2006 06/200
Slide 11: Market trends confirming the modern rig strategy
Market trends confirming the modern rig strategy Marketed Utilization continues to trend upwards… Modern JU availability is tight 92% Marketed Utilization (%) Modern (>=2000) Adjusted 91.1% Standard (<2000) Supply and Demand Matrix 87% # of Rigs Modern Rigs Average 85.1% 82% Total Fleet 284 80.7% 77
Slide 12: Marketed Utilization and Fleet Size in key jack-up markets
Marketed Utilization and Fleet Size in key jack-up markets 5 NW Europe Modern Std (97%) (85%) 3 30 7 2 Mexico 1 Modern Std (62%) (29%) ME and India 5 Modern Std Asia Pacific (92%) (74%) Modern Std Global Utilization 35 7 (79%) (76%) W Africa Std (73%) Modern Std 92 94 Modern (85%) (100%) (75%) 80 17
Slide 13: You need to drill to get oil – Mexico activity coming back
You need to drill to get oil – Mexico activity coming back Mexican production is dropping due to less drilling Activity is coming back now Mexico Crude Production (kbpd) 60 2400 52 2300 50 2200 40 2100 2000 30 Ongoing Tenders 25 15 1900 15 rigs 20 19 1800 1700 10 19 Current rig count 1600 19 rigs 15
Slide 14: Standard vs Modern rigs
Standard vs Modern rigs Time-Depth Curve … resulting in lower well cost 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 $3.5 Millions $3.3MM Time (Days) 1,000 2,000 $3.0 25% - 30% 3,000 cheaper 4,000 $2.5 $2.4MM 5,000 6,000 7,000 $2.0 8,000 ~25% more 9,000 efficient $1.5 Depth (ft) 10,000 11,000 $1.0
Slide 15: Some reflections about the drilling and stock market
Some reflections about the drilling and stock market Area Current USD/day ~9 months ago Delta South-east Asia 60-85k 40-60k 40% North Sea JU2000/Super A 85-115k 70-90k 22% Old high-spec 65-80k 50-60k 32% Middle-East Saudi Aramco 70-80k 60k 25% Competitive areas 50-70k 35-50k 41% Special jobs 90-105k
Slide 16: Conclusion
Conclusion Company to be fully financed with long-term facilities Positive cash-flow from operations after interest expected in Q3 2019 Record tender activity – leading day rates above USD100k/day Delivering on integrated business model with Schlumberger Expect most of the open capacity sold out bef
Slide 17: Q&A
Q&A |