Borr Drilling (BORR) Pareto Securities' 31st annual Energy Conference Presentation summary

Company overview and strategic positioning

• Operates the youngest premium jack-up rig fleet in the industry, with 24 modern rigs and 100% contracted fleet as of August 2024.

• Maintains a diversified international footprint, serving major NOCs and IOCs across key regions including Mexico, South America, North Sea, Africa, Middle East, and Asia.

• Increased exposure to NOCs, now accounting for two-thirds of backlog days, reflecting a shift toward more stable, long-term clients.

• Focuses on shallow water projects, which offer attractive breakeven costs and represent about 66% of global offshore production.

• Benefits from a structurally tight jack-up market, with modern rigs preferred and high utilization rates at 99.2% technical and 98.4% economic.

Market dynamics and fleet competitiveness

• Modern jack-up utilization has returned to 2014 highs, with Borr's fleet achieving leading performance and dayrate premiums.

• The global jack-up orderbook is at a record low, with only 12 rigs (~3% of total fleet) under construction and limited yard capacity for new orders.

• Over 30% of the global fleet is beyond retirement age, further tightening supply and supporting high dayrates for modern assets.

• Newbuild economics are challenging, requiring dayrates above $200,000 and long-term contracts to justify investment.

• Borr's competitive advantage is underpinned by a young, high-quality fleet and strong customer relationships.

Financial performance and outlook

• Reported Q2 2024 adjusted EBITDA of $136.4M with a 50.2% margin, supported by market-leading dayrates and high utilization.

• Liquidity stood at $343.5M, including an undrawn $150M revolving credit facility.

• Backlog additions in 2024 reached $641M at an average dayrate of $184k/day, with 92% coverage for 2024 and 73% for 2025.

• Illustrative incremental cash flow in 2025 is projected at ~$200M, driven by higher dayrates, lower capex, and increased rig activity.

• Quarterly dividend doubled to $0.10/share in Q1 2024, annualized at ~$100M, with a $100M buyback authorization in place.