Borr Drilling — Earnings Release 2022

Feb 16, 2023

Borr Drilling Limited Announces Fourth Quarter and Full Year 2022 Preliminary Results

Borr Drilling Limited Announces Fourth Quarter and Full Year 2022 Preliminary Results

Hamilton, Bermuda, February 16, 2023: Borr Drilling Limited ("Borr", "Borr

Drilling" or the "Company") announces preliminary unaudited results for the

three and twelve months ended December 31, 2022.

Highlights Fourth Quarter of 2022

· Total operating revenues of $148.6 million, an increase of $40.7 million or

38% compared to the third quarter of 2022.

· Net loss of $21.3 million, a decrease in loss of $33.6 million compared to

the third quarter of 2022.

· Cash and cash equivalents of $108.0 million at the end of the fourth quarter

of 2022.

· Adjusted EBITDA of $55.1 million, an increase of $11.2 million or 26%

compared to the third quarter of 2022.

· Total contract revenue backlog on December 31, 2022 stood at $1.7 billion,

an increase of nearly 200% year-on-year (including rigs in the Mexican JV on a

100% basis).

Subsequent events

· In January 2023, we successfully raised $400 million of gross proceeds

through the issuance of a $250 million unsecured convertible bond due in 2028

and a $150 million senior secured bond due in 2026, which will be used to

refinance our existing $350 million convertible bond due in May 2023 at or

before maturity.

· In 2023 YTD, we have been awarded five new contracts, extensions, exercised

options and letters of awards ("LOAs") representing 825 days and $100.6 million

of potential revenue.

CEO, Patrick Schorn commented:

"Our fourth quarter showed strong performance, both from an operational and

financial perspective. Both the technical and economic utilization of our fleet

were above 98.5% for the quarter and at the same time our top line grew by 38%.

This elevated level of technical utilization in a rapidly expanding operation is

a clear testament to the strong service quality focus of our teams in the field.

Safety, service quality and delivering the value our customers deserve, are the

key priorities in our organization.

The rig "Frigg" is currently being prepared for work in the Middle East, where

she will start operation as "Arabia III" in Q3 of this year. We are also

activating our last rig "Hild" to be ready to commence operations in a similar

timeframe. This would result in all 22 delivered rigs in our fleet to be

contracted and active.

During the fourth quarter we completed the refinancing of our secured debt and

extended maturities from 2023 to 2025. Subsequent to year-end, we have raised

$400 million of additional debt through the issuance of a $250 million

convertible bond and a $150 million secured bond, which will be used to

refinance the outstanding $350 million convertible bond maturing in May 2023.

With all near-term maturities addressed, our financial focus now turns to

delivering on our guidance of Adjusted EBITDA between $360 million to $400

million for the full year 2023. The strong increase in Adjusted EBITDA and the

subsequent deleveraging of the balance sheet could enable a global refinancing

of the Company in 2024, which should ultimately accommodate dividend payments to

shareholders."

Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208