Awilco Drilling PLC

Investor Presentation • May 12, 2021

AWILCO DRILLING Q1 2021 PRESENTATION

12 May 2021

DISCLAIMER

This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated («relevant persons»). Any person who is not a relevant person should not act or rely on these presentations or any of its contents. Information in the following presentations relating to price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to future performance of such investments. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Awilco Drilling PLC or any affiliated company thereof. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation has been prepared for information purposes only. It has not been prepared for the purposes of, and does not form part of the subscription material for, any offering of securities.

This presentation may include certain forward-looking statements, estimates, predictions, influences and projections with respect to anticipated future performance and as to the market for products or services which may reflect various assumptions made by the management of the Company. These assumptions may or may not prove to be correct and no representation is made as to the accuracy of such statements, estimates, projections, predictions and influences. These statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. The information and opinions contained in this presentation are subject to change without notice and the Company assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein.

AGENDA

• 1. Main Events
• 1. Q1 2021 Results
• 1. Operations Update
• 1. Arbitration Update
• 1. Company Outlook
• 1. Q&A

1. Main Events

MAIN EVENTS

• Total Q1 revenue USD 12.6 million, EBITDA of USD 3.7 million, Net profit of USD 1.3 million
• Revenue efficiency was 87.5% during the quarter
• Total contract backlog at end of Q1 2021 was approx. USD 8.0 million
• WilPhoenix awarded one well contract with Ithaca Oil & Gas in April

2. Q1 2021 results

Q1 2021 INCOME STATEMENT

Condensed statement of comprehensive income

in USD thousands, except earnings per share

	Q1 2021	Q1 2020
	(unaudited)	(unaudited)
Contract revenue	12.466	-
Reimbursables	155	-
Other revenue	19	3
	12.640	3
Rig operating expenses	5.162	4.857
Reimbursables	24	-
General and administrative expenses	3.762	2.575
Depreciation	2.485	2.518
	11.433	9.950
Operating profit/(loss)	1.207	(9 .947)
Interest income	-	371
Interest expense	(16)	(7)
Other financial items	88	258
Net financial items	72	622
Profit before tax	1.279	(9 .325)
Tax expense	(1)	(78)
Net profit/(loss)	1.278	(9 .403)
Total comprehensive profit/(loss)	1.278	(9 .403)
Attributable shareholders of the to parent	1.278	(9 .403)
Basic and diluted earnings per share	0,02	(0 ,17)

Q1 2021 BALANCE SHEET

Condensed statement of financial position

in USD thousands

	31 03 2021	31 03 2020
	(unaudited)	(unaudited)
Rigs , machinery and equipment	64 482 ,	212 382 ,
Right-of-use asset	1 016 ,	1 337 ,
Deferred tax asset	15	30
	65 513 ,	213 749 ,
Trade and other receivables	4 711 ,	259
Prepayments and accrued revenue	4 873 ,	1 109 ,
Inventory	3 026 ,	4 695 ,
Cash and cash equivalents	13 195 ,	27 718 ,
	25 805 ,	33 781 ,
Total assets	91 318 ,	247 530 ,
Paid in capital	218 905 ,	218 905 ,
Retained earnings	(134 500) ,	22 677 ,
	84 405 ,	241 582 ,
Trade and other creditors	1 139 ,	2 459 ,
Accruals and provisions	5 708 ,	3 418 ,
Current payable tax	66	71
	6 913 ,	948 5 ,
Total equity and liabilities	91 318 ,	247 530 ,

3. Operations Update

OPERATIONS UPDATE

• Operational uptime for WilPhoenix in Q1 was 95.9 % with average OPEX of approximately USD 56,100 per day in the quarter
• Tendering for 2021, 2022 and 2023 in the UK is at levels not seen for 10 years
• Reduced supply through attrition is contributing to a tighter supply/demand balance in the UK
• WilPhoenix 5-year SPS is scheduled to take place after the Ithaca Fotla well and prior to any follow-on work
• SPS is estimated at USD 10 mill
• High levels of tendering activity in the UK are expected to lead to contract awards from late June 2021

4. Arbitration Update

ARBITRATION UPDATE

• Arbitration process related to the termination of new build Rig 1 continues
  • Claim amounts to USD 54.7 million
  • Tribunal hearing has been scheduled to commence in October 2022 with award expected in Q1 2023
• Arbitration process related to the termination of new build Rig 2 has commenced
  • Claim amounts to USD 43.0 million
  • Expected commencement of tribunal hearing is late 2022
• Total legal fees for both cases expected to be approx. USD 10 million

5. Company Outlook

COMPANY OUTLOOK

• Actively managing the arbitration processes towards Keppel FELS to receive refund for paid instalments
• Actively pursuing opportunities in a recovering global rig market
  • Consolidation
  • Acquisition
  • Management of units