Awilco Drilling PLC

Investor Presentation • Mar 1, 2022

AWILCO DRILLING Q4 2021 PRESENTATION

1 March 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. Q4 2021 and Preliminary 2021 Results
• 1. Operations Update
• 1. Disputes Update
• 1. Summary
• 1. Q&A

1. Main Events

MAIN EVENTS

• Total Q4 revenue USD 1.0 million, EBITDA loss of USD 7.8 million, Net loss of USD 50.7 million, including impairment of USD 31.0 million
• Revenue efficiency was 90.1% and contract utilisation was 8.2% during the quarter
• In process of arranging a shareholder loan giving an adequate cash buffer for anticipated requirements

2. Q4 2021 and preliminary 2021 results

Q4 2021 INCOME STATEMENT

Condensed statement of comprehensive income

in USD thousands, earnings per share except	YTD			YTD
	Q4 2021	31.12.21	Q4 2020	31.12.20
	(unaudited)	(unaudited)	(unaudited)	(audited)
Contract revenue	1.032	32.411	8.264	25.293
Reimbursables	10	604	254	257
Other revenue	2	62	48	52
	1.044	33.077	8.566	25.602
Rig operating expenses	5.766	24.573	6.128	21.644
Reimbursables	5	146	23	38
General and administrative expenses	3.027	12.657	5.028	13.736
Depreciation	1.171	6.241	2.518	10.072
Impairment	31.009	31.009	25.000	25.000
De-recognition of assets			110.839	111.280
	40.978	74.626	149.536	181.771
Operating loss	(39.934)	(41.549)	(140.970)	(156.169)
Interest income	-	-	-	386
Interest expense	(1.400)	(1.441)	(7)	(28)
Other financial items	(66)	(258)	(67)	(132)
financial Net items	(1.465)	(1.699)	(73)	226
Loss before tax	(41.399)	(43.248)	(141.044)	(155.943)
Tax expense	(9.265)	(9.266)	(67)	(161)
Net loss	(50.664)	(52.514)	(141.111)	(156.104)
Total comprehensive loss	(50.664)	(52.514)	(141.111)	(156.104)
Attributable shareholders of the to parent	(50.664)	(52.514)	(141.111)	(156.104)
Basic and diluted loss per share	(0,93)	(0,96)	(2,59)	(2,86)

Q4 2021 BALANCE SHEET

Condensed statement of financial position

in USD thousands

	31 12 2021	31 12 2020
	(unaudited)	(audited)
Rigs , machinery and equipment	31 677	76 795
Right-of-use asset	775	1 096
Deferred tax asset	0	16
	32 452	77 907
Trade and other receivables	37	3 523
Prepayments and accrued revenue	625	2 800
Inventory	3 141	3 026
Cash and cash equivalents	9 685	14 738
	13 488	24 087
Total assets	45 940	101 994
Paid in capital	218 905	218 905
Retained earnings	(188 292)	(124 023)
	30 613	94 882
Trade and other creditors	885	2 231
Accruals and provisions	5 191	4 815
Current tax payable	9 251	66
	15 327	7 112
Total equity and liabilities	45 940	101 994

3. Operations Update

OPERATIONS UPDATE

• Operational uptime for WilPhoenix in Q4 was 100% for period the rig was under contract
• Contract with Ithaca was completed on 9 October, WilPhoenix is currently warm-stacked in Invergordon
• Average WilPhoenix Opex was approximately USD 61,500 per day in the quarter
  • Further cost saving measures will reduce Opex until such time that backlog is in place
• Remaining recertification of equipment work to take place prior to new work
• WilPhoenix is bid against two opportunities and further tenders are expected during Q1/Q2 2022
• Process of recycling of the WilHunter progresses and is expected to be concluded by end of Q2 2022

4. 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 expected to follow a couple of months after
  • Legal fees may increase from earlier estimates due to the nature of the cases
• WilHunter (UK) Ltd. Tax Dispute
  • The Rule 38 application demanding the Tribunal's decision to be set aside and re-made was dismissed on 6 December 2021
  • Parent company funding for an appeal not provided
  • Insolvency practitioners appointed and liquidation process initiated for WilHunter (UK) Ltd.
  • This is considered a liability of the subsidiary and not the parent company

SUMMARY

• Actively pursuing future work for WilPhoenix
• In process of arranging a shareholder loan
• Actively managing the arbitration processes towards Keppel FELS to receive refunds of paid instalments
• Actively pursuing opportunities in a recovering global rig market