Borr Drilling — Earnings Release 2024

Aug 9, 2024

Borr Drilling Limited Announces Certain Preliminary Results for the Quarter Ended June 30, 2024

Borr Drilling Limited Announces Certain Preliminary Results for the Quarter Ended June 30, 2024

Bermuda, August 9, 2024 Borr Drilling Limited (the "Company") (NYSE and OSE:

"BORR") today announced certain preliminary unaudited results for the quarter

ended June 30, 2024.

The Company expects for the three months ended June 30, 2024: (i) total

operating revenues of approximately $272 million, an increase of $38 million or

16% compared to the first quarter of 2024, (ii) operating income of

approximately $104 million, an increase of $19 million or 23% compared to the

first quarter of 2024, and (iii) adjusted EBITDA of approximately $136 million,

an increase of $19 million or 17% compared to the first quarter of 2024. The

Company expects $193.5 million in cash and cash equivalents and $150.0 million

undrawn under our RCF as of June 30, 2024.

The increase in operating income of $19 million is primarily comprised of the

following: (i) $10 million increase associated with the termination of a

contract for "Arabia I" (one-off impact from the amortization of deferred

revenue and deferred costs); (ii) $5 million net increase from the improved

operations of our jack-up fleet; and (iii) $3 million increase in amortization

of deferred revenue as a result of changes to our operating structure in Mexico

for jack-up rigs "Galar", "Odin" and "Njord".

For illustrative purposes, the Company expects the following positive impacts to

Q2 2024 adjusted EBITDA on an annualized basis:

i. $99 million on an annualised basis from the uplift in dayrates in the second

half of 2024 for the rigs Norve, Saga, Skald, Gerd and Natt;

ii. $32 million on an annualised basis from the increase in revenue from the new

contract for Arabia I which is expected to commence early 2025; and

iii. $61 million on an annualised basis from the expected contract for the rig

Vali, which is scheduled for delivery in August 2024 and whose contract is

expected to commence by year end

These positive impacts are offset by a $90 million negative impact (annualised)

as a result of the positive one-off impacts in Q2 2024 associated with the

termination of the Arabia I contract in June 2024, as well as the change in our

operating structure in Mexico.

The Company is currently finalizing its financial results for the three and six

months ended June 30, 2024, which it plans to release on August 14, 2024 after

markets close.

The expected financial results for the three months ended June 30, 2024

presented herein are estimates, based on information available to management as

of the date of this release, and are subject to further changes upon completion

of the Company's standard quarter end closing procedures. Such preliminary

operating results do not represent a comprehensive statement of financial

results and actual results may differ materially from these estimates following

the completion of Borr Drilling's standard closing procedures, or as a result of

other adjustments or developments that may arise before the results for this

period are finalized.  The Company does not intend to update such financial

information prior to release of its final second quarter 2024 financial

information, which is scheduled for August 14, 2024.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and subject to the disclosure requirements pursuant to

section 5-12 of the Norwegian Securities Trading Act.

Hamilton, Bermuda

UNAUDITED NON-GAAP MEASURE RECONCILIATION

Set forth below is a reconciliation of the Company's Net Income to Adjusted

EBITDA.

(in US$ millions) Q2 2024 Q1 2024

Net income 31.7 14.4

Depreciation of non-current assets 31.9 31.8

Income from equity method investments 2.5 (5.4)

Total financial expense, net 55.4 57.8

Income tax (credit)/expense 14.9 18.2

Adjusted EBITDA 136.4 116.8

The Company uses certain financial information calculated on a basis other than

in accordance with accounting principles generally accepted in the United States

(US GAAP) including Adjusted EBITDA. Adjusted EBITDA as presented above

represents our periodic net income/(loss) adjusted for: depreciation of

noncurrent assets, (income)/loss from equity method investments, total financial

(income) expense net and income tax (credit) expense. Adjusted EBITDA is

presented here because the Company believes that the measure provides useful

information regarding the Company's operational performance.

Due to the forward-looking nature of the expected impact of items described

above on adjusted EBITDA for Q2 2024 on an annualized basis, 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.

Forward-Looking Statements

This document and any other written or oral statements made by us in connection

with this document include forward-looking statements that are made under the

"safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of

1995.  You can identify these forward-looking statements by words or phrases

such as "may," "will," "expect," "estimate," "intend," "plan," "believe,"

"likely to" "should," "continue" or other similar expressions. These forward

-looking statements include statements about expected results for the second

quarter of 2024, the expected impact on Q2 2024 adjusted EBITDA on an annualized

basis of certain items included expected increases in contract dayrates, and

impact of new contracts and expected contracts, the expected impact of the

termination of the contract for Arabia I and expected impact of excluding

certain one-off items incurred in Q2 2024, expected contracting and the terms of

expected contracts and other non-historical statements. These forward-looking

statements are not statements of historical facts and are based upon current

estimates, expectations, beliefs and various assumptions, many of which are

based, in turn, upon further assumptions. These statements involve significant

known and unknown risks, uncertainties, contingencies and factors that are

difficult or impossible to predict and are beyond our control, and that may

cause our actual results, performance, financial results, position or

achievements to be materially different from those expressed or implied by the

forward-looking statements. Numerous factors could cause our actual results,

level of activity, performance 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 actual results

for Q2 2024 and future periods and the risk that actual results may differ

materially from those implied by the statements in this release, risks relating

to contracts and performance under contracts, including the risk that contracts

are not entered into on terms described herein or at all, dayrates received by

us, the start dates and termination of contracts and the risks described in

Part. I of "Item 3.D. Risk Factors" of our most recent Annual Report on Form 20

-F and other filings with the Commission. Any forward-looking statements that we

make in this report speak only as of the date of such statements and we caution

readers of this report not to place undue reliance on these forward-looking

statements. Except as required by law, we undertake no (and expressly disclaim

any) obligation to update or revise any forward-looking statement or statements

to reflect events or circumstances after the date on which such statement is

made.

9 August 2024

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