Awilco Drilling PLC

Investor Presentation • Aug 12, 2020

Q2 2020 presentation

12 August 2020

Agenda

• 1. Q2 financials
• 1. UK status
• 1. Newbuild status
• 1. Financing
• 1. Q&A

1. Q2 Financials

Q2 2020 Income Statement

Condensed statement of comprehensive income

USD in thousands, earnings per share except	YTD			YTD
	Q2 2020	30.06.20	Q2 2019	30.06.19
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Contract revenue	6,118	6,118	9,636	18,608
Reimbursables	-	-	-	(24)
Other revenue	306	308	802	916
	6,424	6,426	10,438	19,500
Rig operating expenses	4,774	9,630	6,131	12,384
Reimbursables	-	-	-	2
General and administrative expenses	3,138	5,713	1,799	4,932
Depreciation	2,518	5,036	2,746	5,397
	10,430	20,379	10,676	22,715
Operating loss	(4,006)	(13,953)	(238)	(3,215)
Interest income	14	386	71	604
Interest expense	(7)	(14)	-
Other financial items	(620)	(363)	(163)	(21)
financial Net items	(613)	9	(92)	583
Loss before tax	(4,619)	(13,944)	(330)	(2,632)
Tax expense	(8)	(86)	(62)	(112)
Net loss	(4,627)	(14,030)	(392)	(2,744)
Total comprehensive loss	(4,627)	(14,030)	(392)	(2,744)
Attributable shareholders of the to parent	(4,627)	(14,030)	(392)	(2,744)
Basic and diluted loss per share	(0.08)	(0.26)	(0.01)	(0.05)

Q2 2020 Balance Sheet

Condensed statement of financial position

in USD thousands

	30 06 2020	30 06 2019
	(unaudited)	(unaudited)
Rigs , machinery and equipment	157 914 ,	226 501 ,
Right-of-use asset	1 257 ,	-
Deferred tax asset	22	352
	159 193 ,	226 853 ,
Trade and other receivables	56 638 ,	7 970 ,
Prepayments and accrued revenue	406 5 ,	2 059 ,
Inventory	4 648 ,	4 808 ,
Cash and cash equivalents	16 651 ,	42 397 ,
Current tax	-	340
	83 343 ,	574 57 ,
Total assets	242 536 ,	284 427 ,
Paid in capital	218 905 ,	218 905 ,
Retained earnings	18 050 ,	59 927 ,
	236 955 ,	278 832 ,
Trade and other creditors	2 903 ,	983
Accruals and provisions	2 607 ,	4 612 ,
Current payable tax	71	0
	581 5 ,	595 5 ,
Total equity and liabilities	242 536 ,	284 427 ,

2. UK Status

UK Status

• Commencement of the Petrofac contract started on 1 May 2020
  • ^o Stand-by rate to cover Opex in the period 1-24 May
• Operational uptime was 100% in Q2
• Opex average was approximately USD 51 000 per day
• The WilPhoenix team continues to build on its extensive P&A track record
• Indications of term demand appearing in the UK from 2022 both in development and P&A

3. Newbuild Status

Construction contract for Nordic Winter terminated

• On 8 June, the rig owning company terminated the construction contract for Nordic Winter (Rig 1) due to contractual breaches by Keppel FELS and claims full refund of

• On 22 June, Keppel FELS terminated the construction contract with the rig owning company for non-payment of the remaining part of the second instalment (USD 31.9

• paid instalments (USD 54.7 million)
• Keppel FELS rejected this termination
• million)
• The rig owning company does not accept Keppel FELS' grounds for termination
• Arbitration process is ongoing

Newbuild progress on Nordic Spring

• Keel laying of Nordic Spring (Rig 2) in Nantong, China, on 31 July
• The situation at the yard in Singapore is uncertain due to Covid-19
• There is delay in construction but the yard is unable to quantify this until the Covid-19 situation is under control and work is fully resumed in Singapore

Norwegian tax package sparks optimism

• Reduced market supply after Covid-19 and the oil price fall
• Norwegian tax incentive is expected to accelerate new projects on the NCS
• Continued preference for Tier 1 rigs and high ESG focus expected

Will achieve the 2030 GHG ambition in 2021

Each of our newbuilds creates 1360 jobs for Norwegian suppliers

Contract Opportunities

• Well positioned for future long term drilling programs with the most efficient technical

• rig configuration to date and unparalleled ESG profile
• Currently discussing opportunities straight from delivery
• Only considering long term opportunities
  • ^o Could be one program or a combination of several programs

3. Financing

Financing availability dependent on commercial achievement

• Exploring all viable financing alternatives for Nordic Spring (Rig 2)
• Capital to be raised only when required
• Financing structure will depend on term and value of rig contract
• Flexibility remains key in these unprecedented times

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