Awilco Drilling PLC

Investor Presentation • Nov 24, 2020

Q3 2020 presentation

24 November 2020

Agenda

• 1. Q3 Financials
• 1. UK Status
• 1. Newbuild Status
• 1. Q&A

1. Q3 Financials

Q3 2020 Income Statement

Condensed statement of comprehensive income

USD in thousands, earnings per share except	YTD			YTD
	Q3 2020	30.09.20	Q3 2019	30.09.19
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Contract revenue	10,301	16,419	10,299	28,907
Reimbursables	3	3	12	(12)
Other revenue	306	614	5	921
	10,610	17,036	10,316	29,816
Rig operating expenses	5,885	15,516	6,319	18,703
Reimbursables	14	14	9	11
General and administrative expenses	2,996	8,709	1,420	6,352
Depreciation	2,518	7,554	2,932	8,329
	11,413	31,793	10,680	33,395
Operating loss	(803)	(14,757)	(364)	(3,579)
Interest income	-	385	72	675
Interest expense	(7)	(20)	-	-
Other financial items	(143)	(506)	(393)	(414)
financial Net items	(150)	(141)	(321)	261
before Loss tax	(953)	(14,898)	(685)	(3,318)
Tax expense	(8)	(94)	(168)	(280)
Net loss	(961)	(14,992)	(853)	(3,598)
Total comprehensive loss	(961)	(14,992)	(853)	(3,598)
of Attributable shareholders the to parent	(961)	(14,992)	(853)	(3,598)
Basic and diluted loss per share	(0.02)	(0.27)	(0.02)	(0.07)

Q3 2020 Balance Sheet

Condensed statement of financial position

in USD thousands

	30 09 2020	30 09 2019
	(unaudited)	(unaudited)
Rigs , machinery and equipment	156 978 ,	225 115 ,
Right-of-use asset	1 176 ,	-
Deferred tax asset	17	185
	158 171 ,	225 300 ,
Trade and other receivables	58 487 ,	076 7 ,
Prepayments and accrued revenue	4 597 ,	4 355 ,
Inventory	4 647 ,	4 808 ,
Cash and cash equivalents	15 968 ,	41 317 ,
Current tax	-	340
	83 699 ,	896 57 ,
Total assets	241 870 ,	283 196 ,
Paid in capital	218 905 ,	218 905 ,
Retained earnings	17 088 ,	59 073 ,
	235 993 ,	277 978 ,
Trade and other creditors	2 685 ,	1 077 ,
Accruals and provisions	3 192 ,	4 141 ,
	5 877 ,	5 218 ,
Total equity and liabilities	241 870 ,	283 196 ,

2. UK Status

UK Status

• Completion of the Petrofac contract on 2 September
• Commencement of the Serica contract on 14 September
• Operational uptime for standard dayrate work was 100% in Q3
• Opex average for WilPhoenix was USD 62 300 per day
• WilPhoenix expected to stay on contract with Serica until late January 2021
• Mostly seasonal opportunities in 2021 but more term demand appearing from 2022 both in development and P&A

3. Newbuild Status

Newbuild Update

• Preparations for arbitration related to termination of new build Rig 1 (Nordic Winter) continue
• Substantial delay of new build Rig 2 (Nordic Spring) predominantly due to Covid-19
• It is not possible at this stage to give a definitive prediction of when delivery may take place

Cost reduction measures

• The organisation in Stavanger was established in 2019 to prepare for operation of Nordic Winter in 2021 but with the termination of Nordic Winter and the expected delay of Nordic Spring, operational readiness in Norway has been postponed for the time

• The effect of the cost savings are yet to be concluded on, but is expected to be in the

• The site team in Singapore and China, and the organisation in the UK remains intact

• being.
• range of USD 7-8 million annually
• • project with sufficient operational input during construction at this stage

^o The remaining organisation possesses all required disciplines to support the newbuild

Market Opportunities

• Norwegian tax incentive accelerates new projects on the NCS
• Positive demand trend from 2022 onward

Financing

• Exploring financing options for next instalment on Nordic Spring, due March 2021