Borr Drilling : Board of Directors Report Q3 2017

Hamilton, Bermuda, 22 November 2017, Borr Drilling Limited ("Borr Drilling" or the "Company") announces its third quarter unaudited results for the period ended 30 September 2017.

• Letter of commitment received from Total E&P Nigeria Limited for work in Nigeria.

• Completed the listing on Oslo Stock Exchange 30 August 2017

• In September 2017 the contract with BW Energy Dussafu, a subsidiary of BW Offshore, for a drilling campaign offshore Gabon was signed.

  Subsequent events

• On 6 October 2017, Borr Drilling and Schlumberger signed an enhanced collaboration agreement.

• On 6 October 2017, the Company signed a master agreement with PPL setting forth the terms pursuant to which PPL agreed to sell six premium jack-up drilling rigs and three premium jack-up drilling rigs under construction

• On 8 October 2017, the Company concluded a private placement of 162,500,000 new shares at a subscription price of US$ 4.00 raising gross proceeds to the Company of US$ 650 million

• In November 2017 the contract with Total in Nigeria was concluded and fully executed

• In November 2017 the Company took delivery of the first new build jack-up drilling rig from PPL

Consolidated Statement of Operations (Financial Performance & Operating Results) Three months ended 30 September 2017

No operating revenues were reported for the three months ended 30 September 2017. The

project commencement for Total E&P Nigeria Limited, previously scheduled for the third quarter of 2017, was delayed by the operator and will commence operations in late November 2017. The drilling campaign for BW Energy Dussafu is scheduled to start in January 2018.

Total operating expenses were US$24.9 million for the three months ended 30 September 2017. Total operating expenses consists of rig operating and maintenance expenses, depreciation and amortization and general and administrative expenses.

Total rig operating and maintenance expenses were US$9.4 million for the three months ended 30 September 2017. These costs relate to stacking costs for our jack-up drilling rig fleet and re- activation costs for the rigs scheduled for new contracts.

Total depreciation and amortization was US$8.0 million for the three months ended 30 September 2017. This relates to depreciation charges for our jack-up drilling fleet.

Total general and administrative expenses were US$7.5 million for the three months ended 30 September 2017. US$2.5 million is non-cash costs related to employee benefit programs. The remaining US$5.0 million is linked to salaries, consulting fees, professional fees and one-off costs associated with the Oslo Stock Exchange listing.

Total general and administrative expenses excluding one-off costs were approximately US$4 million in the quarter.

Consolidated Balance Sheet

The Company has total assets of US$1,008.2 million as of September 30, 2017, (31 December 2016: US$158.1 million). The increase in total assets of the Company is primarily driven by cash and cash equivalents from the proceeds from the private placement in March 2017 and the acquisition of ten jack-up drilling rigs from Transocean Inc., and the completed asset acquisition of the two Hercules jack-up drilling rigs.

As of 30 September 2017, equity was US$916.6 million which corresponds to an equity ratio of

90.9 percent. As of 31 December 2016, equity was US$157.8 million which corresponds to an equity ratio of 99.8 percent.

Total liabilities as of 30 September 2017, were US$91.6 million (31 December 2016: US$0.2 million). The increase is mainly attributable to trade payable and accruals and a US$71.4 million non-current liability related to the onerous contract position of the five newbuilding contracts acquired from Transocean Inc.

Consolidated Statement of Cash Flows

Net cash flow generated from operating activities was negative US$17.7 million for the three months ended 30 September 2017.

Net cash flow used in investing activities was US$26.4 million for the three months ended 30 September 2017. The investments activities mainly relate to purchase of securities issued by a rig company for approximately US$21.3 million.

Net cash flow used in financing activities was US$8.4 million during the three months ended 30 September 2017 and relate to purchase of treasury shares.

As of 30 September 2017, the Company's cash and cash equivalents amounted to US$141.2 million (31 December 2016: US$138.1 million).

Outstanding shares

As of 30 September 2017 common shares in Borr Drilling totalled 315,792,500 shares. The Company issued 162,500,000 new shares in October, taking the total count to 478,292,500 shares. Additionally, the Board has approved up to 10 million options to be used as a long-term incentive program for the Company's employees.

On 6 October 2017 the Company issued a further 4,736,887 warrants ("Warrants") to Schlumberger as a consequence of signature of an enhanced collaboration agreement between the Company and Schlumberger.

Immediately thereafter, the Company agreed to repurchase all of the 9,473,774 Warrants held by Schlumberger at a price of US$ 0.50 per Warrant, US$ 4.7 million in total. Consequently, all Warrants were then cancelled.

During the quarter the company completed the listing process and started trading on the Oslo Stock Exchange on August 30, 2017. Borr Drilling will, as of 1 December 2017, be included in the OSEBX index.

On 6 October 2017 Borr and Schlumberger signed an enhanced collaboration agreement. The agreement forms an important milestone in the relationship and provides further detail around the structure and operation of this groundbreaking relationship. The two parties continue to work on a number of fronts to challenge traditional business models in the industry. The target is to offer a more flexible and efficient service to our customers.

Also on 6 October 2017 the Company signed a master agreement with PPL to purchase a total of 9 premium jack-up drilling rigs with deliveries from November 2017 into Q2 2019. All rigs are of the BMC Pacific Class 400 design. The first unit has been named "Galar" and was delivered in accordance with plan on 15 November 2017. The Board is pleased with the agreement with PPL and Borr´s growing fleet of 22 premium jack-up rigs following this transaction.

To finance the purchase, Borr completed an equity issue on 8 October 2017 raising gross proceeds of US$ 650 million. In addition, debt financing for all remaining payments to the yards was secured at attractive terms. The structure and terms of the PPL transaction attracted significant interest from a broad range of investors.

The total fleet count is currently 26 rigs.The Board consider the four older units that are cold stacked in Scotland to be non-core. More specifically, we are not actively marketing these units for drilling contracts at present given the capital investment needed to reactivate the assets and

the current day rate levels in this segment of the market. Given the significant over supply present in the market, further consolidation and scrapping of older units is needed and anticipated.

Subsequent to the third quarter, the Company realized a gain of approximately US$ 15 million on forward contracts to purchase shares in Atwood Oceanics which, due to a merger, was converted to a forward contract for Ensco shares. The Board was pleased to see that the merger between Ensco and Atwood was completed and believe this to be part of the necessary consolidation of our fragmented industry.

The Ensco position has subsequently been reduced, however Borr intends to continue to look for opportunistic equity and debt investments within our core markets. A critical criteria will be attractive valuation of underlying assets.

The Company executed a contract with Total E&P Nigeria Limited for upcoming work in Nigeria during the quarter. Together with the contract already in place with BW Energy Dussafu, this pivotal contract with one of the most important procurers of jackup rig time reflects Borr's growing acceptance in the marketplace.

The overall jack-up market continues to show healthy tendering activity and the company is optimistic about a further increase in utilization levels going into 2018. Over the past year, Independent Cantilever (IC) jack-up rig count in our key markets (West Africa, South East Asia and Middle East) has increased by 11%. Supported by strong current tendering activity in these regions, including several multi-year opportunities, the company expect the positive trend to continue.

Customer preference for modern rigs has continued throughout the year with third quarter rig count for IC jack-ups that are less than 10 years old rising by more than 10% since the start of the year. Utilization is at the highest levels experienced since third quarter 2015. For IC jack- ups older than 10 years, the rig count is down by 7% since the beginning of 2017.

Announced attrition of jack-ups remains low with 11 jack-ups being retired in 2017, and a total of 44 removed from service since the start of the downturn. However, of the 150 jack-ups built prior to 2000 that are sitting idle, 91 have been idle for more than 2 years. The Company believe that many of these rigs require meaningful capital investment in order to return to the market, and should be considered uncompetitive and are unlikely to be reactivated without a significant improvement in day rates.