Borr Drilling — Earnings Release 2021

Nov 5, 2021

Borr Drilling Limited Announces Preliminary Results for the Third Quarter of 2021

Borr Drilling Limited Announces Preliminary Results for the Third Quarter of 2021

Hamilton, Bermuda, November 5, 2021: Borr Drilling Limited ("Borr", "Borr

Drilling" or the "Company") announces

preliminary unaudited results for the three and nine months ended September 30,

Highlights third quarter of 2021

. Total operating revenues of $73.0 million, an increase of $18.2 million (33%)

compared to the second quarter of

2021

. Net loss of $32.6 million, an improvement of $27.3 million compared to the

second quarter of 2021

. Cash and cash equivalents at the end of the third quarter of 2021 was $68.9

million, an increase of $36.5 million

from the end of the second quarter of 2021

. Adjusted EBITDA of $20.0 million, an increase of $16.3 million (441%) compared

to the second quarter of 2021

. Awarded 32 new contracts, extensions, exercised options and LOA/LOIs year-to

-date, representing 7,929 days

and $668 million of potential backlog including contracts through its Drilling

JVs and mobilization compensation

Subsequent events

. Secured new LOAs for the rigs "Idun" and "Groa" and a contract for "Ran"

amounting to a total of approximately

3.4 years of backlog and increasing the contracted and committed fleet to 17

rigs

. Converted the previously announced LOA/LOIs for the rigs "Mist", "Gunnlod" and

"Gerd" into contracts

CEO, Patrick Schorn commented:

"We are pleased with the performance in the third quarter of 2021, marking a

significant milestone in the operational

turnaround efforts led by our teams around the world. Our 13 operating rigs

provided solid EBITDA and positive cash

flows in the quarter. The cash position is further positively impacted by the

sale of our integrated well services joint

ventures and streamlining our Mexico operations.

Since our last report in August, we have continued adding backlog with currently

17 rigs being contracted or

committed which will lead to three additional warm stacked rigs being activated.

We see stronger customer demand

for our rigs through a higher frequency of commercial discussions and tendering

in recent months. Coupled with the

increase in recent tenders for multi-year, multi-rig contracts, this leads us to

expect utilization levels to improve rapidly.

Our strong operational performance, customer reach and fleet availability

uniquely places Borr Drilling in a position to

benefit from this strengthening market and we remain on track to fully contract

our fleet of 23 delivered rigs by 2022.

Management has continued its engagement with various creditors with the aim to

address the 2023 debt maturities.

Currently we are in advanced discussions with one of the significant creditors,

having arrived at a commonly

understood framework to extend commitments substantially beyond 2023. This is

subject to certain conditions,

including board approval of each respective company as well as reaching

acceptable concessions from other creditor

groups.

With a continued increase in the number of active rigs and an upward adjustment

of the 2022 E&P capex budgets, we

are confident in our ability to further improve our financial performance. This

improvement will also provide a

foundation ultimately leading to a solution for the 2023 maturities that will

benefit all stakeholders."

The full report and primary financial statements are available in the files

enclosed to

this release.

November 5, 2021

The Board of Directors

Borr Drilling Limited

Hamilton, Bermuda

Questions should be directed to:

Magnus Vaaler: CFO, +44 1224 289208