Awilco Drilling PLC

Investor Presentation • Aug 9, 2022

AWILCO DRILLING Q2 2022 PRESENTATION

9 August 2022

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. Q2 2022 Results
• 1. Disputes Update
• 1. Summary
• 1. Q&A

1. Main Events

MAIN EVENTS

• No revenue earned in Q2, EBITDA loss of USD 7.9 million, Net loss of USD 5.1 million
• The sale of the WilHunter for recycling was concluded in June
• The sale of the WilPhoenix to Well-Safe Solutions Ltd. Was also concluded in June
• The short-term shareholder loan with Awilhelmsen Offshore AS and QVT Family Office Fund LP was redeemed
• Preparations for the arbitration cases against Keppel FELS continues

2. Q2 2022 results

Q2 2022 INCOME STATEMENT

Condensed statement of comprehensive income

in USD thousands, earnings per share except	YTD			YTD
	Q2 2022	30.06.22	Q2 2021	30.06.21
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Contract revenue	-	-	11.633	24.099
Reimbursables	-	-	308	463
Other revenue	-	-	17	36
	-	-	11.958	24.598
Rig operating expenses	2.463	5.073	6.280	11.442
Reimbursables	-	-	41	65
General and administrative expenses	5.458	9.083	2.675	6.437
Depreciation	17	35	1.417	3.901
Impairment	-	205	-	-
Net gain on disposal of plant and equipment property,	(2.872)	(2.872)	-	-
	5.067	11.525	10.413	21.845
Operating (loss)/profit	(5.067)	(11.525)	1.545	2.752
Interest income	5	5	-	-
Interest expense	(24)	(32)	(16)	(32)
Other financial items	8	(115)	40	128
Net financial items	(11)	(142)	24	96
(Loss)/Profit before tax	(5.077)	(11.666)	1.569	2.848
Tax expense	-	-	(1)	(2)
Net (loss)/profit	(5.077)	(11.666)	1.568	2.846
(loss)/profit Total comprehensive	(5.077)	(11.666)	1.568	2.846
Attributable shareholders of the to parent	(5.077)	(11.666)	1.568	2.846
Basic and diluted (loss)/profit per share	(0,09)	(0,21)	0,03	0,05

Q2 2022 BALANCE SHEET

Condensed statement of financial position

in USD thousands

	30 06 2022	30 06 2021
	(unaudited)	(unaudited)
Rigs , machinery and equipment	384	63 146
Right-of-use asset	-	, 936
Deferred tax asset	-	12
	384	64 094 ,
Trade and other receivables	-	4 533 ,
Prepayments and accrued revenue	2 844 ,	4 522 ,
Inventory	-	3 267 ,
Cash and cash equivalents	10 474 ,	15 373 ,
	13 318 ,	27 695 ,
Total assets	13 702 ,	91 789 ,
Paid in capital	218 905 ,	218 905 ,
Retained earnings	(219 673) ,	(132 932) ,
	(768)	85 973 ,
Trade and other creditors	959	1 456 ,
Accruals and provisions	4 358 ,	4 360 ,
Current tax payable	9 153 ,	0
	14 470 ,	5 816 ,
Total equity and liabilities	13 702 ,	91 789 ,

3. Disputes Update

DISPUTES UPDATE

• Arbitration processes related to the terminations of new build Rig 1 and Rig 2 continue
• Claim amounts to a total of USD 97.7 million plus interest
• Tribunal hearing for Rig 1 has been scheduled to commence in October 2022 with award expected in Q1 2023
• The hearing for Rig 2 has been scheduled to commence in May 2023
• Potential financing alternatives are being explored, in case new funding is needed by October 2022
• Awilhelmsen Offshore QVT remain committed to enable Awilco Rig 1 Pte. Ltd and Awilco Rig 2 Pte. Ltd to pursue the arbitration cases to their conclusion

SUMMARY

• With both rigs sold, the Company's remaining assets are the two arbitration cases
• The Company has no current outstanding debt
• New financing may be needed by October, financing options are being explored
• Actively managing the arbitration processes towards Keppel FELS to receive refunds of paid instalments