Borr Drilling (BORR) Investor Presentation summary

Strategic positioning and market fundamentals

• Operates a global fleet of 24 modern jack-up rigs, with a strong international presence and diversified portfolio across key offshore markets.

• Premium fleet is among the youngest in the industry, providing resilience and higher contract rates compared to older rigs.

• Shallow water drilling remains cost-competitive, representing about 66% of offshore production with attractive breakeven prices and shorter cycle times.

• Maintains strong relationships with major NOCs and IOCs, supporting stable demand and long-term planning.

• Orderbook for new jack-up rigs is at a record low, with limited yard capacity and challenging newbuild economics, supporting tight supply.

Financial performance and outlook

• Achieved Q3 2024 Adjusted EBITDA of $115.5M, with a margin of 47.8%; Q2 2024 Adjusted EBITDA was $136.4M and margin 50.2%.

• Full-year 2024 Adjusted EBITDA expected at the lower end of $500–550M guidance.

• Maintains robust revenue visibility with 91% contract coverage for 2024 and 76% for 2025; average dayrates rising from $136k/d in 2024 to $177k/d in 2025.

• Illustrative scenarios at full fleet utilization show potential annual Adjusted EBITDA between $731M and $1,148M, depending on dayrates.

• Shareholder distributions continue, with Q3 2024 dividend at $0.02 per share and $20M buyback by year-end 2024.

Operational efficiency and capital structure

• Technical utilization at 98.7% and economic utilization at 96.9%, reflecting strong operational performance.

• End of new build capex program supports strong cash generation and a sustainable long-term capital structure.

• Focus on maintaining liquidity, prudent debt management, and compliance with financial covenants.

• Non-GAAP measures like Adjusted EBITDA are used to evaluate operational performance and guide investor understanding.

• Exposure to risks includes market volatility, customer compliance, geopolitical events, and regulatory changes, but long-term fundamentals remain intact.