Borr Drilling Limited · NYSE:BORR
Borr Drilling — Q2 2021 Earnings Presentation
12 slides from Borr Drilling's earnings presentation, Aug 31, 2021
Slide 1: Q2 2021 Presentation
Q2 2021 PRESENTATION 31 August 2021
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: Borr Drilling Today
BORR DRILLING TODAY BUILDING A FLEET OF 28 PREMIUM JACK-UP RIGS WITH AVERAGE AGE 4 YRS • 2 jack-up rigs from Hercules offshore 2016 • 10 jack-up rigs and 5 new builds from Transocean 2017 Retired 27 old assets • 9 jack-up rigs from PPL Shipyard 2017 from the market • 2 premium jack-up rigs, 20 stand
Slide 4: Borr Drilling Today: Gaining Momentum
BORR DRILLING TODAY GAINING MOMENTUM Dual Listed In Oslo and NYSE Fleet 28 premium jack up rigs avg. age approx. 4 years 13 rigs currently operating Activity Providing positive cash from operations Negotiations progressing to have 17 rigs Operations operating at year end 2021 Net debt $1.9B Capital
Slide 5: Key Milestones Going Forward
KEY MILESTONES GOING FORWARD Operations • Activate additional rigs – reaching up to 17 at year-end • Based on current tendering outlook – targeting 100% utilization of the delivered fleet by year end 2022 Finance • Working with key creditors to extend debt maturities • Increasing cashflow improves r
Slide 6: Key Financials Q2 2021
KEY FINANCIALS Q2 2021 INCOME STATEMENT COMMENTS AND HIGHLIGHTS Q2 2021 USDm YTD 2021 Q2 2021 Q1 2021 • Revenues increased by $6.4 million or 13% in comparison to the prior quarter Operating revenues 103.2 54.8 48.4 primarily as a result of an increase in related party revenues and number of rig ope
Slide 7: Fleet Status August 2021
FLEET STATUS AUGUST 2021 2021 2022 2023 2024 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Gunnlod Malaysia PTTEP LOA Idun Malaysia Vestigo Petronas Saga Malaysia JX Nippon PTTEP Hess Skald Thailand PTTEP Frigg 1 Cameroon / West Africa Warm Stacked LOI LOI Option
Slide 8: Attractive Cost Structure
ATTRACTIVE COST STRUCTURE ILLUSTRATIVE SCENARIOS OF OPERATING CASH IN 2021 AT DIFFERENT ACTIVITY LEVELS ($m in 2021) # rigs working Day-rate 8 13 17 23 equivalent Idun, Saga, Gunnlod, P1, P5, + Galar, Gersemi, Grid, Odin, Norve, Natt, Skald Njord $70k/day ($75) ($41) ($4) $51 $80k/day ($49) $2 $52 $
Slide 9: Offshore E&P Capex and Wells
OFFSHORE E&P CAPEX AND WELLS Offshore CAPEX set to increase … … shallow water drives the growth USD Billions Offshore Wells (#) Forecast 3000 200.0 180.0 2500 160.0 +19% 140.0 2000 YoY 120.0 100.0 1500 80.0 +8% +26% +6% y-o-y 1000 60.0 y-o-y y-o-y 40.0 500 20.0 0.0 0 2012 2013 2014 2015 2016 2017 20
Slide 10: Supply and Demand Overview
SUPPLY AND DEMAND OVERVIEW UTILIZATION IS RECOVERING DEMAND FORECAST IMPROVING1 SUCCESSFUL TENDERING2 Utilization (%) Rigs (#) Utilization (%) Rig Years 100% 500 Forecast 100% 200 FY Fcst 90% 180 240 - 290 90% 450 83% 80% 160 80% 70% 140 400 60% 120 Borr 10% 70% of Total 350 50% 100 138 Years 40% 80
Slide 11: In Conclusion
IN CONCLUSION Currently 13 rigs operating – expected to reach 17 year-end 2021 With current market outlook and tendering success we anticipate 23 active rigs by end 2022 Collections from Mexico have improved – expecting normalised payments going forward Flexible debt structure – Improving cashflows
Slide 12: Built to Make a Difference
BUILT TO MAKE A wits Bort »¢« Drilling DIFFERENCE teitngcn a veiw?