Awilco Drilling PLC — Investor Presentation 2021

Feb 10, 2021

AWILCO DRILLING Q4 2020 PRESENTATION

10 February 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. Q4 2020 and preliminary 2020 results
• 1. UK Status
• 1. Arbitration Cases
• 1. Company Outlook
• 1. Q&A

1. Main Events

MAIN EVENTS

• Total Q4 revenue USD 8.6 million, EBITDA loss of USD 2.6 million, Net loss of USD 141.1 million
• Revenue efficiency was 54.1% during the quarter due to a combination of repair time and waiting on weather
• Total contract backlog at end of Q4 2020 was approx. USD 15.0 million
• Construction contract with Keppel FELS for new build Rig 2 terminated
• Substantial cost reduction in Norway
• Change of CEO effective from 1 February

2. Q4 2020 and preliminary 2020 results

Q4 2020 INCOME STATEMENT

Condensed statement of comprehensive income

in USD thousands, earnings per share except	Full Year			Full Year
	Q4 2020 (unaudited)	2020 (unaudited)	Q4 2019 (unaudited)	2019 (audited)
Contract revenue	8,264	25,293	8,097	37,004
Reimbursables	254	257	4	(8)
Other revenue	48	52	219	1,140
	8,566	25,602	8,320	38,136
Rig operating expenses	6,128	21,644	6,061	24,765
Reimbursables	23	38	3	14
General and administrative expenses	5,028	13,736	2,801	9,153
Depreciation	2,518	10,072	3,257	11,586
Impairment	25,000	25,000	23,000	23,000
De-recognition of assets	110,839	111,280	-	-
	149,536	181,771	35,122	68,518
Operating loss	(140,970)	(156,169)	(26,802)	(30,382)
Interest income	0	386	273	949
Interest expense	(7)	(28)	(14)	(14)
Other financial items	(67)	(132)	(303)	(717)
Net financial items	(73)	226	(44)	218
Loss before tax	(141,044)	(155,943)	(26,846)	(30,164)
Tax expense	(67)	(161)	(147)	(427)
Net loss	(141,111)	(156,104)	(26,993)	(30,592)
Total comprehensive loss	(141,111)	(156,104)	(26,993)	(30,592)
Attributable shareholders of the to parent	(141,111)	(156,104)	(26,993)	(30,592)
Basic and diluted loss per share	(2.59)	(2.86)	(0.49)	(0.57)

Q4 2020 BALANCE SHEET

Condensed statement of financial position

in USD thousands

	31 12 2020	31 12 2019
	(unaudited)	(audited)
Rigs , machinery and equipment	76 795	201 918
Right-of-use asset	, 1 096	, 1 417
Deferred tax asset	, 16	, 108
	77 907 ,	203 443 ,
Trade and other receivables	3 523 ,	8 908 ,
Prepayments and accrued revenue	2 800 ,	502
Inventory	3 026 ,	4 946 ,
Cash and cash equivalents	14 738 ,	41 249 ,
	24 087 ,	55 605 ,
Total assets	101 994 ,	259 048 ,
Paid in capital	218 905 ,	218 905 ,
Retained earnings	(124 023) ,	32 080 ,
	94 882 ,	250 985 ,
Trade and other creditors	2 231 ,	1 284 ,
Accruals and provisions	4 815 ,	6 708 ,
Current payable tax	66	71
	7 112 ,	8 063 ,
Total equity and liabilities	101 994 ,	259 048 ,

3. UK Status

UK STATUS

• Operational uptime for WilPhoenix was 81.8 % in Q4 due to downtime for repairs
• Opex average for WilPhoenix was USD 65,300 per day in the quarter
• WilPhoenix expected to stay on contract until late March 2021
• While the market of 2021 remains somewhat limited, WilPhoenix is currently bid against a number of programs commencing in both 2021 and 2022
• Longer term programs, particularly in the Plug & Abandonment space expected from Q2 2022

4. Arbitration Cases

STATUS AND TIMELINE FOR THE ARBITRATION CASES

• Preparations for arbitration related to termination of new build Rig 1 continue
• Claim amounts to USD 54.7 million
• Expected time to resolution from today ~12-15 months
• Preparations for arbitration related to termination of new build Rig 2 have started
• Claim amounts to USD 43.0 million
• Expected time to resolution from today ~15-18 months
• Total legal fees for both cases expected to be approx. USD 10 million

5. Company Outlook

COMPANY OUTLOOK

• Vigorously pursuing Keppel FELS to receive refund for paid instalments
• Working hard to build back-log for WilPhoenix
• Two main strategic alternatives:
• Considering attractive investment opportunities in the offshore space
• Return capital to shareholders