Awilco Drilling PLC

Investor Presentation • Nov 12, 2019

Q3 2019 presentation

12 th of November 2019

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 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.

Q3 Highlights

• Marketing activities towards potential NCS customers for the newbuild rigs are progressing well
• Massive response to the announcement of our most recent vacancies in Norway
• Total Q3 2019 Revenue USD 10.3 million, EBITDA USD 2.4 million, Net Loss of USD 0.9 million
• Q3 Opex average for WilPhoenix approximately USD 67 000 per day

Q3 2019 Income Statement

Condensed statement of comprehensive income

in USD thousands, except earnings per share	YTD			YTD
	Q3 2019	30.09.19	Q3 2018	30.09.18
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Contract revenue	10,299	28,907	3,040	45,726
Reimbursables	12	(12)	135	545
Other revenue	5	921	12	15
	10,316	29,816	3,187	46,286
Rig operating expenses	6,319	18,703	7,159	21,823
Reimbursables	9	11	77	248
General and administrative expenses	1,420 a	6,352	2,486	8,713
Depreciation	2,932	8,329	3,726	10,274
	10,680	33,395	13,448	41,058
Operating (loss)/profit	(364)	(3,579)	(10,261)	5,228
Interest income	72	675	85	1,140
Interest expense	-	-	(4)	(4,671)
Other financial items	(393)	(414)	(78)	300
Net financial items	(321)	261	3	(3,231)
(Loss)/Profit before tax	(685)	(3,318)	(10,258)	1,997
Tax expense	(168)	(280)	75	(681)
Net (loss)/profit	(853)	(3,598)	(10,183)	1,316
Total comprehensive (loss)/income	(853)	(3,598)	(10,183)	1,316
Attributable to shareholders of the parent	(853)	(3,598)	(10,183)	1,316
Basic and diluted earnings per share	(0.02)	(0.07)	(0.21)	0.03

Q3 2019 Balance Sheet

Condensed statement of financial position

in USD thousands

	30.09.2019	30.09.2018
	(unaudited)	(unaudited)
Rigs, machinery and equipment	225,115	212,919
Deferred tax asset	185	1,521
	225,300	214,440
Trade and other receivables	7,076	824
Prepayments and accrued revenue a	4,355	4,126
Inventory	4,808	4,879
Cash and cash equivalents	41,317	66,321
Current tax	340	5,757
	57,896	81,907
Total assets	283,196	296,347
Paid in capital	218,905	198,719
Retained earnings	59,073	86,852
	277,978	285,571
Trade and other creditors	1,077	2,263
Accruals and provisions	4,141	8,513
	5,218	10,776
Total equity and liabilities	283,196	296,347

Outstanding operational performance in Q3

• Operational uptime was 100% in Q3
• Customer feedback on WilPhoenix is very good
• Current contract with Shell UK expected to end late November/early December
• Awards pending in the UK for work for WilPhoenix in 2020 and forward
• Also seeking out opportunities outside of North Sea

Both newbuild projects are progressing

Progress on building of Rig #1 Steelcut on Rig #2

Optimized lay-out and higher degree of automation, ensuring a safer workplace

Energy regeneration from moving equipment and heat regeneration from exhaust gas

Unique energy management system with closed-bus technology

Open interface network with unique digital infrastructure, enabling the use of any applicable software application

First rig with hybrid energy solution built into design

Substantial fuel savings and vast reduction in carbon emissions

People on board today – traditional operating model and little integration

CONTRACTOR OPERATOR

Awilco Drilling can improve this

Market Outlook

Demand for harsh environment rigs expected to increase.

Source: Arctic Securities

Limited HE rig availability and increase in utilization support uptick in dayrates for Tier 1 rigs.

Source: IHS Petrodata, Arctic Securities

Awilco Drilling is a unique growth opportunity.

• "Greenest" rigs ever built meeting increased focus on lower emissions
• New technology improves safety and reduces total well cost
• Building the best team to operate the new rigs massive applicant interest
• Active discussions with several potential clients in Norway
• Market outlook for harsh environment is positive, with already high utilization of Tier 1 rigs