Slide 1: Borr Drilling Limited Company presentation Q4 2018 Results
Borr Drilling Limited Company presentation Q4 2018 Results 28 February 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$53.5 million, EBITDA of negative US$18.7 million and net loss of US$110.7 million for the fourth quarter of 2018 ▪ Operating revenues of US$164.9 million, EBITDA of negative US$65.8 million and net loss of US$190.9 million for the year ended December 31, 2018 ▪
Slide 4: Key Financials Q4 2018
Key Financials Q4 2018 Income Statement Comments Q4 2018 ▪ Revenues: on average 8.6 operating rigs USDm FY 2018 Q4 2018 Q3 2018 in the fourth quarter. Mist and Prospector 1 entered operation in the quarter. Operating revenues 164.9 53.5 49.7 ▪ Rig operating and maintenance expenses Gain on disposals
Slide 5: Key Financials Q4 2018
Key Financials Q4 2018 Balance Sheet Key Numbers Movements from Q3 2018 USDm Q4 2018 Q3 2018 Q4 2017 ▪ Total assets increased by US$123.2 primarily due to - delivery of the newbuilding “Natt”, Total assets 2,913.7 2,790.5 1,672.3 - capital expenditures from the activation of the “Gerd” and Total lia
Slide 6: Fleet Status Report February 2019
Fleet Status Report February 2019 Fleet Summary Operating / Under Available Cold Stack Committed Construction Premium Jack-Ups 29 9 10 2 8 Standard Jack-Ups 6 4 2 Total Jack-Ups 35 Semi - Submersible 1 1 Total Fleet 36 14 10 4 8 Contractual Developments Other Fleet Updates o Gerd: Firm contract for
Slide 7: Fleet Update
Fleet Update Contracted and Future Contracted Rigs (14) 2018 2019 2020 2021 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Odin In Transit / Mexico Mobilization PanAmerican Frigg 1 Nigeria Total Total Shell (via Assignment) Option Prospector 1 1 Netherlands Tulip
Slide 8: Fleet Update continued
Fleet Update continued Available (10), Under Construction (8) and Cold Stacked (4) 2018 2019 2020 2021 Rig Name Location Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Premium Jack-Ups Galar Singapore Available - Warm Stacked Gersemi Singapore Available - Warm Stacked Grid Singapore Available - War
Slide 9: Market Update
Market Update Shorter fall and stronger rebound Marketed Utilisation continues to trend upwards… for modern rigs Modern Standard 82% 81% 80% 79% 78% Marketed Utilization 82% 73% 75% 73% +3 Q-o-Q -1 p.p. p.p. 71% Y-o-Y +9 +2 70% p.p. p.p. From +13 +6 trough p.p. p.p. 65% Dec 2017 Mar 2018 Jun 2018 Se
Slide 10: Why modern assets?
Why modern assets? Large part of the fleet is old - Old rigs are not qualified for key tenders 70 Able to tender for Mexico 60 Able to tender for Qatar 50 40 30 20 10 - 1981 2000 2019 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1982 1983 1984 1985 1986 1
Slide 11: Marketed Utilization and Fleet Size in key jack-up markets
Marketed Utilization and Fleet Size in key jack-up markets NW Europe Modern Std (97%) (86%) 30 7 Mexico Modern Std (60%) (22%) ME and India Modern Std Asia Pacific (89%) (77%) Modern Std 32 9 (75%) (76%) Global Utilization W Africa Modern Std 96 97 Modern (82%) Std (73%) (100%) (75%) 76 17 10 8 269
Slide 12: Offshore spending is recovering
Offshore spending is recovering Capex increases have started Oil Companies under estimate capex growth 30 E&P co own estimate (% y/y) Actual spending growth (% y/y) 25 20 15 10 5 0 2004 2005 2006 “In the international markets… this means that after four years of underinvestment and “There is a treme
Slide 13: Tender activity is normalising and day rates are moving
Tender activity is normalising and day rates are moving Jack up tenders at highs Day-rate improving # jack-up tenders Dayrate USDk/day 95 Jan 18 – Dayrates USD50k – share price NOK35 Jan 19 – Dayrates USD100k – share price NOK23 275 85 225 75 65 175 55 125 45 75 35 25 25 06/2006 01/2010 01/2011 01/2
Slide 14: Market can be “sold out” in 2019
Market can be “sold out” in 2019 Incremental demand in 2019 set to outstrip available rigs # jack-up rigs 50 45 40 Thailand Other GCC 35 30 <2010 Malaysia 25 20 Mexico 15 >2010 10 5 Qatar 0 Supply premium rigs Incremental demand Source: Borr Drilling 14 |
Slide 15: Conclusion
Conclusion Jack-up dayrates gone from USD60k/day to >USD100k/day last year New bank financing secured – received term sheet for long-term solution Borr Drilling will based on current contracts be cash-flow positive from end of Q2 Contracting environment positive 15 |
Slide 16: Q&A
Q&A |