Borr Drilling — Earnings Release 2020

Feb 26, 2021

Borr Drilling Limited Announces Preliminary Results for the Fourth Quarter and Full Year of 2020

Borr Drilling Limited Announces Preliminary Results for the Fourth Quarter and Full Year of 2020

Hamilton, Bermuda, February 26, 2021: Borr Drilling Limited ("Borr", "Borr

Drilling" or the "Company") announces unaudited results for the three and twelve

months ended December 31, 2020.

Highlights in the Fourth Quarter of 2020

.    Total operating revenues of $60.2 million, net loss of $46.7 million and

Adjusted EBITDA  of $6.6 million for the fourth quarter of 2020.

.    On October 5, 2020, equity offering raised total proceeds of $27.5 million.

A subsequent offering closed on November 30, 2020, raising an additional $5.3

million.

.    The Company entered into agreements to divest its remaining three non-core

drilling rigs for total gross proceeds of $17.5 million.

Subsequent events

.    In January, the Company finalized the terms and executed agreements with

certain of its creditors for the previously announced liquidity improvement plan

and completed an equity offering raising gross proceeds of $46 million.

.    The Company has been awarded eight new contracts/LOAs/LOIs or contract

extensions since the start of the fourth quarter 2020 to the date of this

report.

CEO, Patrick Schorn commented:

"In the fourth quarter 2020 and up until the end of January 2021, our main focus

has been to complete the previously announced liquidity improvement plan,

including restructuring of the debt maturities, interest payments and capex

delivery payments. We are pleased to have reached a solution with our

stakeholders, which allows the Company to focus on its customers, safe and

efficient operations and continue to deploy our fleet in a strengthening market.

With oil prices above $60/bbl we anticipate seeing a stronger market developing

going forward.

Even though we received broad support for the liquidity improvement plan,

concluded in January, we are convinced that some opportunities remain to further

improve our capital structure and liquidity in 2021. Part of the future

liquidity improvement also will have to come from our Mexico operations. In

order to achieve this we are pursuing several independent initiatives intended

to allow us to improve the cash distributions from the JV operations in Mexico

back into Borr Drilling. We are pleased to announce the award of new contracts

with key customers, and the extension of current contracts.

In Mexico, on of the integrated well services JVs has been awarded contract

extension from Pemex which will keep the five rigs the Company has in the region

active until the end of 2021. Additionally, the Company has entered into a multi

-year contract for one of its currently active rigs in Thailand, with a

strategically important customer in the region.

The fourth quarter financials were impacted by the lower activity at the start

of the quarter, and higher expenses related to the COVID pandemic (approximately

$6 million for the quarter). However, the activity since the third quarter is

increasing, with three previously idle rigs having started new contracts in the

fourth quarter, and three more expected to commence operations in the first half

of 2021."

The full report, financial statements and Fleet Status Report is available in

the enclosed file to this release.

February 26, 2021

The Board of Directors

Borr Drilling Limited

Hamilton, Bermuda

Questions should be directed to:

Magnus Vaaler: CFO, +47 22483000

Forward looking statements

This announcement includes forward looking statements. Forward looking

statements are, typically, statements that do not reflect historical facts and

may be identified by words such as "anticipate", "believe", "continue",

"estimate", "expect", "intends", "may", "should", "will", "likely" and similar

expressions and include expectations regarding industry trends including

activity levels in the jack-up rig and oil industry, expectations as to global

jack-up rig count and expected tenders and demand levels, strategy with respect

to deployment of rigs, expectations on trends and potential in day rates,

delivery of newbuilds including expected delivery timing, strategy and plans

with respect to investments in joint ventures, contract backlog, expected

contracting and operation of our jack-up rigs and contract terms including

estimated duration of contracts, expectations with respect to contracting

available rigs including warm stacked rigs, expected ability to generate cash

from operations, or extend our liquidity runway, ability to attract additional

capital, thereby strengthening the group's overall liquidity and financial

position, expected results in the first quarter of 2021, strategy with respect

to asset base, expected business environment and market upturn including

statements made under "Market" and "Outlook" above, expected payments from

Pemex, expected funding needs and ability to meet obligations for newbuilds,

expected increase in tenders for jack-up rigs, global jack-up rig count,

increase in demand from IOCs and NOCs, increases in oil production by geography,

expected returns for oil companies, ability to fix rig rates at current market

prices, competitive advantages from joint ventures, generation of free cash

flow, remediation of advances, expectations with respect to amendments to our

finance facilities, expected industry trends including with respect to demand

for and expected utilization of rigs, expectations as to the role of Borr

Drilling in any industry consolidation, and other non-historical statements. The

forward-looking statements in this announcement are based upon various

assumptions, many of which are based, in turn, upon further assumptions, which

are, by their nature, uncertain and subject to significant known and unknown

risks, contingencies and other factors which are difficult or impossible to

predict and which are beyond our control. Such risks, uncertainties,

contingencies and other factors could cause actual events to differ materially

from the expectations expressed or implied by the forward-looking statements

included herein. There are important factors that could cause our actual

results, level of activity, performance, liquidity or achievements to differ

materially from the results, level of activity, performance or achievements

expressed or implied by these forward-looking statements including risks

relating to our industry and business and liquidity, the risk of delays in

payments to our Mexican JVs and consequent payments to us, the risk that our

customers do not comply with their contractual obligations, including payment or

approval of invoices for factoring, risks relating to industry conditions and

tendering activity, risks relating to the agreements we have reached with

lenders, risks relating to our liquidity, risks that the expected liquidity

improvements do not materialize or are not sufficient to meet our liquidity

requirements and other risks relating to our liquidity requirements, risks

relating to cash flows from operations, the risk that we may be unable to raise

necessary funds through issuance of additional debt or equity or sale of assets;

risks relating to our loan agreements and other debt instruments including risks

relating to our ability to comply with covenants and obtain any necessary

waivers and the risk of cross defaults, risks relating to our ability to meet

our debt obligations and obligations under rig purchase contracts and our other

obligations as they fall due and other risks described in our working capital

statement, risks relating to future financings including the risk that future

financings may not be completed when required and future equity financings will

dilute shareholders and the risk that the foregoing would result in insufficient

liquidity to continue our operations or to operate as a going concern and other

risks factors set forth under "Risk Factors" in our filings with the U.S.

Securities and Exchange Commission and prospectuses filed with the Norwegian

NSA.