Oslo, 17th of August 2017

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.

Agenda

1. Highlights
1. Q2 2017 Financial Results
1. Operational Update
1. Market Outlook
1. Summary
1. Q&A

1. Highlights

Announcement of USD 0.20 dividend
Total Q2 Revenue USD 33.5 million; EBITDA of USD 24.6 million, net profit of USD 15.1 million
Q2 Opex average for WilPhoenix approx. USD 66,900 per day
Total contract backlog at end of Q2 2017 was USD 113 million

2. Q2 2017 Financial Results

Q2 2017 Income Statement

Condensed statement of comprehensive income

in USD thousands, except earnings per share		YTD
	Q2 2017	YTD 30.06.17	Q2 2016	30.06.16
	(unaudited)	(unaudited)	(unaudited)	(audited)
Contract revenue	33,149	64,796	24,436	24,436
Reimbursables	336	632	17	50
Other revenue	6	12	(4)	10
	33,491	65,440	24,449	24,496
Rig operating expenses	6,319	12,440	9,753	21,304
Reimbursables	86	128	-	-
General and administrative expenses	2,484	3,496	2,504	4,379
Depreciation	3,913	7,762	3,444	8,366
	12,802	23,826	15,702	34,049
Operating profit/(loss)	20,689	41,614	8,747	(9,553)
Interest income	66	98	180	467
Interest expense	(1,687)	(3,504)	(1,892)	(3,906)
Other financial items	(191)	(5)	(186)	(700)
Net financial items	(1,812)	(3,411)	(1,898)	(4,139)
Profit/(loss) before tax	18,877	38,203	6,849	(13,692)
Tax (expense)/benefit	(3,807)	(7,331)	80	1,940
Net profit/(loss)	15,070	30,872	6,929	(11,752)
Total comprehensive income/(loss)	15,070	30,872	6,929	(11,752)
Attributable to shareholders of the parent	15,070	30,872	6,929	(11,752)
Basic and diluted earnings per share	0.50	1.03	0.23	(0.39)

Q2 2017 Balance Sheet

Condensed statement of financial position

in USD thousands

	30.06.2017	31.12.2016
	(unaudited)	(audited)
Rigs, machinery and equipment	231,545	238,868
Deferred tax asset	470	3,058
	232,015	241,926
Trade and other receivables	11,345	17,269
Prepayments and accrued revenue	13,296	7,213
Inventory	4,809	4,844
Cash and cash equivalents	93,926	70,070
Current tax	227	22,079
	123,603	121,475
Total assets	355,618	363,401
Paid in capital	130,142	130,142
Retained earnings	115,786	96,926
	245,928	227,068
Deferred tax liability	2,254	1,129
Long-term interest-bearing debt	85,000	90,000
	87,254	91,129
Current portion of long-term debt	10,000	10,000
Trade and other creditors	1,553	573
Accruals and provisions	8,130	10,708
Current tax payable	2,753	23,923
	22,436	45,204
Total equity and liabilities	355,618	363,401

3. Operational Update

Contract Status – Current Backlog USD 95 million*

Operational Update

Operational uptime in Q2 was 99.6 %
Continued excellent HSE performance
Rig returned to Apache from TAQA late May
Reached agreement with client regarding contract escalation adjustment
Dayrate reduced due to reduced labour cost
New headline dayrate ca. USD 382,500
Margin protected
Announcement of dividend payable of USD 0.20 per share
Dividend payable on or around the 22nd of September 2017
Shares will trade ex-dividend on 22nd of August 2017, the record date will be 23rd of August
The Company's dividend policy remains unchanged:

"The Company intends to distribute all free cash flow above a robust cash buffer to support operational working capital requirements and capital expenditure, including SPS."

4. Market Outlook

Dayrates in the UK Market continue to be very low

Further Semi-Sub Attrition seen in the UK and Globally

UK FLOATER MARKET
CONTRACT STATUS
				2017			2018											2019
Company	Rig name	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Transocean	Sedco 711
	Sedco 714
	Sedco 712		on contract
	Paul B. Loyd, Jr		on contract				warm stacked					options
	Transocean Spitsbergen		on contract
	Transocean Leader		on contract																						options
	Ocean Guardian		on contract			warm stacked
Diamond Offshore	Ocean Valiant		on contract							options
	Ocean Patriot		on contract		yard			warm stacked
Dolphin Drilling	Blackford Dolphin
Awilco Drilling	WilHunter
	WilPhoenix		on contract
Stena Drilling	Stena Spey		on contract
Paragon Drilling	Paragon MSS1		on contract			warm stacked
North Atlantic Drilling	West Hercules									on contr.
	West Phoenix		on contract
Odfjell	Deepsea Aberdeen		on contract
COSL Drilling Europe	COSLPioneer								on contract
ON CONTRACT OPTIONS EN ROUTE YARD WARM STACKED																COLD STACKED

More Confidence in Market Improvement

Seasonal demand remains a feature of 2018, although term has also appeared
Dayrates continue to be at challenging levels
Decommissioning demand firming up from 2018/2019
Seeing increased interest from Operators of all sizes from Q2 2018
Significant attrition and cold stacking is creating a better balanced market
Further M&A activity has been seen in the market

5. Summary

Announcement of dividend payable of USD 0.20
Current contract backlog of USD 95 million
Increased confidence in market reaching inflection point
Evaluating growth opportunities on a case-by-case basis, Awilco Drilling's fundamentals are good

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Awilco Drilling PLC

3547_rns_2017-08-17_7d0978b2-7978-4cdb-8441-b9ba0bff0014.pdf