Borr Drilling Limited

Good morning, and thank you for participating in the Board Drilling Third Quarter Earnings Call. I'm Patrick Schorn, and with me here in Bermuda today, following the Board Drilling Board Meeting is Bruno Morant, our Chief Commercial Officer, and Magnus Fahler, our Chief Financial Officer. Next slide, please. First, covering the required disclaimers. I would like to remind all participants that some of the statements will be forward-looking. These matters involve risks and uncertainties that could cause actual results to differ materially from those projected in these statements. I therefore refer you to our latest public filings. This quarter's results were as expected, though slightly below the prior quarter. Recall that Q2 results were boosted by one-off benefits related to our Mexico contracts and suspension of the Arabia One. Without these one-off items, Q3 adjusted EBITDA of 115 million was essentially flat with Q1. Our core operations performed strongly with a technical utilization of 98.7% and an economic utilization rate of 96.9. In terms of contracting, we have commenced new contracts at accretive day rates for the Scald, Norva, and NET. Three other rigs, the Gunlot, GERD, and Arabia One, had fewer operational days quarter over quarter as they undergo preparation for upgoing accretive contracts scheduled to start in Q4 and Q1 2025. Our contract portfolio has strong revenue visibility into 2025, with 78% of our fleet contracted through 2025 at an average day rate of $148,000 per day, which is 10% higher than in 2024. With the delivery of the Darn DeVar next week, our new build program will be complete, bringing Boar's fleet to 24 premium rigs, the youngest fleet in the industry and a clear competitive advantage. The VAR is now expected to be contracted by early 2025 rather than by the end of 2024 as previously anticipated.

The completion of a new bill program along with a reduced number of special periodic surveys in 2025 compared to this year is projected to increase cash flow in 2025.

However, and recently driven oil prices lower, leading customers to ask greater caution in confirming rig contracts and options. And in some instances, delaying the start of new projects. This coupled with the lingering impact of rig suspensions in Saudi earlier this year, and potential suspensions in Mexico is creating uncertainties in the jack-up market in specific regions. Consequently, there is a risk of contract delays and potential gaps in activity in the coming quarters. Due to these developments in the market, we have updated our full year 2024 adjusted EBITDA guidance of 500 to 550 million to be at or about the lower end of the range. This is a dynamic situation where headwinds may also abruptly abate. So we are managing the situation closely and will provide a 2025 adjusted EBITDA guidance on the next earnings call in February. From a cash perspective, we are well positioned for the future. Last month, we tapped our 20 to 30 bonds to finance the VAR, our final new build, raising $175 million at more economic cost than the available shipyard financing. We have an undrawn $150 million revolving credit facility, a $45 million guarantee facility, and $185 million in cash at the end of the quarter, resulting in a total liquidity of approximately $335 million. The board has decided to continue with a quarterly total shareholder return of $25 million, an amount similar to previous quarters. The board has declared a cash distribution of two cents per share for a total of $4.8 million for the third quarter and committed to buy back $20 million in shares under the company authorized share buyback program before the end of 2024. The fundamentals of the global jack-up rig market remain supportive in the medium and long-term favoring BOR. With an aging global fleet, 30% which is over 35 years old, driving additional retirements. And now, no new orders in a decade, conditions support our position as the operator of the youngest fleet of 24 premium rigs. In closing, I would like to extend our gratitude to the Euronext Oslo Stock Exchange for their support of bore drilling since our listing in 2017. They have provided a supportive environment as our company has grown over the years. With the OSE approving our delisting application, our final trading day there will be December 30th, 2024, after which Bohr Drilling will maintain a single listing on the New York Stock Exchange. Magnus will now discuss the financial details of the quarter.