Borr Drilling : Consolidated Financial Statements Q3 2017

Note

9 months to September 30, 2017

3 months to September 30, 2017

August 8 (date of inception) December 31,

2016

Operating expenses

Rig operating and maintenance expenses

(14.8)

(9.4)

-

Depreciation and amortization

6

(12.5)

(8.0)

-

General and administrative expenses

(15.4)

(7.5)

(0.8)

Total operating expenses

(42.7)

(24.9)

(0.8)

Operating loss

(42.7)

(24.9)

(0.8)

Other financial income (expense), net

3

16.4

15.3

-

Total financial items

16.4

15.3

-

Loss before income taxes

(26.3)

(9.6)

(0.8)

Income tax expense

4

-

-

-

Net loss for the period

(26.3)

(9.6)

(0.8)

Basic loss per share

5

(0.139)

(0.031)

(0.075)

Diluted loss per share

5

(0.139)

(0.031)

(0.075)

Loss after income taxes

(26.3)

(9.6)

(0.8)

Other comprehensive loss

Change in unrealised loss on non-current marketable securities

11

(0.2)

-

-

Other comprehensive loss for the period

(26.5)

(9.6)

(0.8)

Note

September 30,

2017

December 31,

2016

ASSETS

Current assets

Cash and cash equivalents

141.2

138.1

Restricted cash

10

15.2

-

Other current assets

13

26.9

-

Total current assets

183.3

138.1

Non-current assets

Property, Plant and Equipment

0.3

-

Jack-up drilling rigs

6

674.8

-

Newbuildings

7

123.1

-

Marketable securities

11

26.7

-

Deposits and costs for business combinations and jack-up drilling rigs

-

20.0

Total non-current assets

824.9

20.0

Total assets

1,008.2

158.1

LIABILITIES AND EQUITY

Current liabilities

Trade payables

16

13.4

-

Accruals and other current liabilities

16

6.8

0.2

Total current liabilities

20.2

0.2

Non-Current liabilities

Other non-current liabilities

14

71.4

-

Total non-current liabilities

71.4

-

Commitments and contingencies

21

-

-

Total liabilities

91.6

0.2

EQUITY

Common shares of par value US$0.01 per share: 525,000,000 (2016: 200,000,000) shares authorized, 315,792,500 (2016: 77,505,000) issued

and 313,822,500 outstanding at September 30, 2017

3.2

0.8

Additional paid in capital

949.1

157.8

Treasury shares

(8.4)

-

Other comprehensive income

(0.2)

-

Accumulated deficit

(27.1)

(0.8)

Total equity

916.6

157.8

Total liabilities and equity

1,008.2

158.1

Note

9 months to September

30, 2017

3 months to September

30, 2017

August 8 (date of

inception) to December

31, 2016

Cash Flows from Operating Activities

Net (loss)/income

(26.3)

(9.6)

(0.8)

Adjustments to reconcile net (loss)/income to net cash provided by operating activities:

Non-cash compensation expense related to stock options and warrants

2.6

2.5

0.4

Depreciation and amortization

6

12.5

8.0

-

Unrealized gain on derivatives

12

(13.2)

(14.2)

-

Change in other current assets

(13.2)

(5.0)

-

Change in current liabilities

14.8

0.7

0.2

Net cash (used in)/provided by operating activities

(22.9)

(17.7)

(0.1)

Cash Flows from Investing Activities

Decrease (Increase) in restricted cash

10

(15.2)

(4.1)

-

Purchase of plant and equipment

(0.3)

-

-

Purchase Business Combination (Acquisition)

9

(320.7)

-

-

Purchase of marketable securities

11

(26.9)

(21.3)

-

Payment and costs in respect of newbuildings

7

(275.0)

-

-

Payments and costs in respect of jack-up drilling rigs

6

(118.7)

(1.0)

(14.0)

Net cash (used in)/provided by investing activities

(756.8)

(26.4)

(14.0)

Cash Flows from Financing Activities

Proceeds from share issuance, net of issuance costs and conversion of shareholders loans

778.4

-

139.2

Proceeds from related party shareholder loan

18

12.7

-

13.0

Purchase of treasury shares

(8.4)

(8.4)

-

Net cash (used in)/provided by financing activities

782.7

(8.4)

152.2

Net increase in cash and cash equivalents

3.1

(52.6)

138.1

Foreign exchange translation difference

-

-

-

Cash and cash equivalents at beginning of the period

138.1

193.8

-

Cash and cash equivalents at the end of period

141.2

141.2

138.1

Supplementary disclosure of cash flow information

-

-

-

Interest paid, net of capitalized interest

-

-

-

Taxes paid