Borr Drilling — Earnings Release 2022

Jan 24, 2023

Borr Drilling Limited - Updated 2022 and 2023 guidance

Borr Drilling Limited - Updated 2022 and 2023 guidance

Hamilton, Bermuda, 24 January 2023

Borr Drilling Limited (the "Company") (NYSE and OSE: "BORR") is pleased to

announce updates to its preliminary Revenue and EBITDA guidance for 2022 and

For 2022, Borr Drilling expects to record revenues of $435-$450 million and

adjusted EBITDA of $152-$162 million* (previous guidance was revenue between

$375-$400 million and Adjusted EBITDA of $115-140 million). This implies

estimated Q4 2022 Revenues between $140 - $155 million, and Q4 2022 Adjusted

EBITDA of between $50-$60 million.

For 2023, based on current contracts and projections for new contracts, the

Company expects to generate revenues of $740 - $780 million and Adjusted EBITDA

of $360-$400 million (previous guidance was adjusted EBITDA of $290 - 330

million).

The cash and cash equivalents balance at year end 2022 is estimated to be ~$105

million.

"Borr Drilling has been through a transformational journey the last years,

activating and putting 21 rigs successfully to work and significantly

strengthening the Company's balance sheet. The outlook for the industry and our

Company is continuing to improve, which is likely to lead to further increased

utilisation and higher day-rates." says CEO Patrick Schorn

It is important to note that the financial preliminary guidance for Q4 and 2022

is based on estimates, and the financial results are not finalised. The results

are also subject to audit, and as such are subject to change.

Forward looking statements

This press release includes forward looking statements, which do not reflect

historical facts and may be identified by words such as "expect", "will" and

similar expressions and include statements relating to letter of awards

including the duration of such contracts and backlog, and other non-historical

statements. These forward-looking statements reflect the Company's beliefs,

intentions and current expectations concerning, among other things, the

Company's results of operations, financial condition, preliminary and  expected

financial results, including revenue and adjusted EBITDA, cash and cash

equivalents, industry outlook, further increased utilization and higher day

rates and other non-historical statements. Such forward-looking statements are

subject to 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, and other risks and

uncertainties described in the section entitled "Risk Factors" in our most

recent annual report on Form 20-F and other filings with the Securities and

Exchange Commission. 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. These forward

-looking statements are made only as of the date of this release. We do not

undertake to update or revise the forward-looking statements, whether as a

result of new information, future events or otherwise.

* The Company provides guidance on expected adjusted EBITDA, which is a

financial measure calculated on a basis other than in accordance with accounting

principles generally accepted in the United States (US GAAP). Adjusted EBITDA

represents our periodic net loss adjusted for: depreciation and impairment of

non-current assets, other non-operating income; (income)/loss from equity method

investments, total financial (income) expense net, income tax expense,

amortization of deferred mobilization costs and revenue. The Company provides

guidance on Adjusted EBITDA because it believes this measure provides useful

information regarding the Company's expected operational performance. Due to the

forward-looking nature of Adjusted EBITDA, management cannot reliably predict

certain of the necessary components of the most directly comparable forward

-looking GAAP measure. Accordingly the Company is unable to present a

quantitative reconciliation of such forward looking non-GAAP financial measure

to the most directly comparable forward-looking GAAP financial measure without

unreasonable effort.

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