Borr Drilling Ltd (BORR) 2021 Q3 法說會逐字稿

Good morning, and thank you for participating in the Borr Drilling Q3 Earnings Call. I'm Patrick Schorn, talking to you from London, the U.K. And on the call with me today is Magnus Vaaler, our CFO.

早安，感謝您參加 Borr Drilling 第三季財報電話會議。我是 Patrick Schorn，在英國倫敦與您通話。

Next slide, please. For good order, 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.

請下一張投影片。為了保持秩序，我想提醒所有參與者，有些陳述將具有前瞻性。這些事項涉及風險和不確定性，可能導致實際結果與這些聲明中的預測有重大差異。因此，我建議您參閱我們最新的公開文件。

Now with that out of the way, next slide, I'm very pleased with the performance of Borr Drilling this quarter with all the credit going to our people in the field and onshore staff supporting them. They have the privilege of having a great asset base of first-class rigs to work with. And during the quarter, we have been able to win additional work, activate more rigs and have an overall strong operational quarter, which has set us up well for the last quarter of the year.

現在，在下一張幻燈片中，我對 Borr Drilling 本季的業績感到非常滿意，這一切都歸功於我們的現場人員和為他們提供支援的陸上工作人員。他們有幸擁有一流的鑽孔機資產基礎。在本季度，我們贏得了額外的工作，啟用了更多的鑽機，並擁有一個整體強勁的季度運營，這為我們今年最後一個季度的表現奠定了良好的基礎。

Some of the resulting highlights in Q3 are that we have increased revenue by 33%. Magnus will give you, shortly, more details regarding the financial performance. Even though we covered additional activity, we have been able to keep our OpEx flat and have improved the adjusted EBITDA to $20 million in the quarter. Clearly, all signs that the execution machine starts to run on all cylinders.

第三季的一些亮點是我們的收入增加了 33%。馬格努斯很快就會向您提供有關財務業績的更多詳細資訊。儘管我們涵蓋了額外的活動，但我們仍能夠保持營運支出持平，並將本季調整後的 EBITDA 提高至 2000 萬美元。顯然，所有跡像都表明執行機開始在所有氣缸上運行。

Most significantly though, is that we have grown our cash balance significantly in the quarter, which I'm very pleased to report as it is a strong sign of what lies ahead of us, when all our rigs are activated and day rates further increase.

但最重要的是，我們在本季度的現金餘額顯著增加，我很高興地報告這一點，因為這是一個強烈的跡象，表明當我們所有的鑽機都被激活並且日費率進一步增加時，我們將面臨什麼。

As mentioned earlier, Magnus will now discuss the financial highlights in some more detail.

如前所述，馬格努斯現在將更詳細地討論財務亮點。

Thank you, Patrick. We're now on the slide key financials Q3 2021. The Q3 2021 revenue increased by $18.2 million or 33% compared to Q2 into $73 million in the quarter. $10 million of the increase is from related party revenues, which mainly consists of variables earnings from our Mexico joint ventures. The increase is partly a result of more operating days.

謝謝你，派崔克。我們現在正在查看 2021 年第三季的關鍵財務數據。其中 1000 萬美元的成長來自關聯方收入，其中主要包括來自我們墨西哥合資企業的可變收入。增加的部分原因是營業天數增加。

In addition, mobilization and contract preparation costs were fully amortized in the JV in the previous quarter, leading to an increase in the variable rate paid to Borr, the remaining $8 million increase in revenues can be attributed to higher day rate earnings due to more rig operating days. Although we had an increase in revenues, we saw a slight decrease in rig operating and maintenance expenses for the third quarter by $1.8 million or 4% from the previous quarter; part of the reason for the operating expenses not increasing its tight cost control. But in addition, the earnings in Mexico is on variable basis, i.e., net of OpEx.

此外，上一季合資企業已完全攤銷了動員和合約準備成本，導致支付給 Borr 的可變利率增加，其餘 800 萬美元的收入增長可歸因於更多鑽機帶來的日費收入增加營業天數。儘管我們的收入有所增長，但我們看到第三季的鑽機營運和維護費用比上一季略有下降 180 萬美元，即 4%；營運費用增加的部分原因是其嚴格的成本控制。但此外，墨西哥的收入是可變的，即扣除營運支出。

General and admin expenses were flat quarter-on-quarter at $7.7 million and confirms the company's targeted and expected run rate on corporate overhead costs. The total financial expenses was $26.6 million in the quarter, and it reflects the relatively low capital costs of the company's debt at an average interest rate of 4.7% only.

一般費用和管理費用與上一季持平，為 770 萬美元，證實了公司管理費用的目標和預期運作率。該季度總財務費用為2,660萬美元，反映出該公司債務的資本成本相對較低，平均利率僅4.7%。

Net loss for the quarter was $32.6 million, which is a $27.3 million improvement from Q2. The main reason for the positive development is the improvement in operating results, in addition to an increase of $9.5 million in income from equity method investments and the gain of $3.6 million generated from the sale of the IWS JV classified as nonoperating income.

本季淨虧損為 3,260 萬美元，較第二季減少 2,730 萬美元。積極發展的主要原因是經營業績的改善，此外權益法投資收入增加了 950 萬美元，以及出售 IWS 合資企業產生的 360 萬美元收益被列為非經營收入。

Adjusted EBITDA for the quarter was $20 million, an improvement of $16.3 million from Q2. We are very pleased to show the EBITDA growth for 2 consecutive quarters, a result of very good marketing and contracting for our rigs, coupled with stringent cost control.

本季調整後 EBITDA 為 2,000 萬美元，比第二季增加 1,630 萬美元。我們很高興看到 EBITDA 連續兩個季度成長，這是我們鑽機良好的行銷和承包以及嚴格的成本控制的結果。

Our cash position at the end of the third quarter was $68.9 million, an increase of $36.5 million compared to Q2. The increase is mainly a result of higher distributions from Mexico, shown in cash from investing activities totaling just below $50 million in the quarter. Approximately half of this, $26.5 million, is due to the sale of our Integrated Well Services JV, representing both the sale proceeds and release of previous funding and retained profits.

第三季末我們的現金部位為 6,890 萬美元，比第二季增加了 3,650 萬美元。這一增長主要是由於墨西哥的分配增加，本季投資活動產生的現金總額略低於 5,000 萬美元。其中約一半（2,650 萬美元）是由於出售我們的綜合油井服務合資企業而產生的，既包括出售收益，也包括先前資金和留存利潤的釋放。

The remaining distributions from Mexico are attributable to improved collections for the drilling operations in the country. This was partly offset by cash payments related to activation of rates amounting to $5.8 million. Cash used in operations was $7 million, which includes $11.2 million of interest payments. However, as mentioned, the cash payments from Mexico in the quarter is the result of improved collections from operations but classified as repayments from equity method investments and not shown in cash from operations.

墨西哥的剩餘分配歸因於該國鑽探作業的收集增加。這部分被與激活費率相關的現金支付 580 萬美元所抵消。營運中使用的現金為 700 萬美元，其中包括 1,120 萬美元的利息支付。然而，如前所述，本季來自墨西哥的現金支付是營運收款改善的結果，但被歸類為權益法投資的償還款，並未以營運現金形式顯示。

Now and moving to the next slide and a more detailed overview of our fleet and contracts. Year-to-date 2021, we have been awarded 32 new contracts, extensions, exercise options, LOAs and LOIs, representing approximately 7,900 days and $668 million of potential backlog. These calculations include contracts made through drilling JVs on 100% basis, in addition to any modernization compensation in the contract. The added backlog in 2021 represents 21.7 years of backlog, while during the same period, our operating rigs have consumed approximately 11.5 years of backlog. This shows our backlog replenishment ratio stands at a multiple of 2, meaning that we added twice as many days of backlog as they've consumed during the same period.

現在轉到下一張投影片，更詳細地概述我們的機隊和合約。 2021 年迄今，我們已獲得 32 份新合約、延期合約、履約選項、LOA 和 LOI，相當於約 7,900 天和 6.68 億美元的潛在積壓。這些計算包括透過 100% 鑽井合資企業簽訂的合同，以及合約中的任何現代化補償。 2021 年新增的積壓訂單相當於 21.7 年的積壓，而同期，我們的營運鑽機消耗了約 11.5 年的積壓。這表明我們的積壓補貨比率是 2 的倍數，這意味著我們添加的積壓天數是同期消耗天數的兩倍。

The most recent update to the fleet overview is that we have secured new contracts and LOAs for the currently active rig Idun in addition to the warm stacked rigs, Groa and Ran. The Idun has been awarded a binding LOA for a program in Southeast Asia with an expected duration of 421 days plus options. The Groa has been awarded a binding LOA for a program in the Middle East with a duration of 2 years plus options. And finally, the Ran has been awarded an accommodation contract for a program in the U.K., with an expected duration of 100 days, plus options. Subsequent to this contract, the rig is expected to be relocated to Mexico. All of this increases the company's contracted and committed fleet to 17 units.

船隊概況的最新更新是，除了暖堆鑽機 Groa 和 Ran 之外，我們還為目前活躍的 Idun 鑽機獲得了新合約和 LOA。 Idun 已獲得東南亞項目的具有約束力的 LOA，預計持續時間為 421 天，外加選項。 Groa 已獲得中東項目的具有約束力的 LOA，為期 2 年並帶有選項。最後，Ran 獲得了一份英國項目的住宿合同，預計為期 100 天，並提供選擇權。這份合約簽訂後，鑽井平台預計將搬遷至墨西哥。所有這些使該公司的簽約和承諾車隊數量增加到 17 輛。

With this, I would like to give the word back to Patrick.

藉此，我想把話轉達給派崔克。

Thank you, Magnus. Next slide, please. We have witnessed for a while that the tide is turning. We have arrived at a point where the impact of the multiyear underinvestment in the E&P industry has started to erode the spare capacity that previously was in place. The demand regardless of significant impacts like the pandemic is returning very strong and therefore, activity in the E&P will have to follow suit to ensure sufficient energy is available. The current oil price is underwriting the required increased investment and activity.

謝謝你，馬格努斯。請下一張投影片。一段時間以來，我們見證了潮流正在轉變。我們已經到了這樣一個階段：勘探與生產行業多年來投資不足的影響已經開始侵蝕先前的閒置產能。無論疫情等重大影響如何，需求都將非常強勁地回歸，因此，勘探與生產活動必須緊隨其後，以確保有足夠的能源可用。目前的油價正在支撐所需增加的投資和活動。

Previously, I have mentioned that the number of shallow water wells to be drilled will increase by approximately 19% from 2021 until 2022. This significant increase is now also supported by the first indications of year-over-year CapEx growth in the E&P sector, which is expected to be in excess of 20%. All of this, of course, funded by an elevated oil price, as is shown on the left-hand side. And just to remind you, at the end of 2019, we had 375 jack-ups contracted, while we currently just have 347 contracted jack-ups.

此前，我曾提到，從 2021 年到 2022 年，待鑽探的淺水井數量將增加約 19%。將超過20%。當然，這一切都是由油價上漲提供的，如左圖所示。提醒您一下，截至 2019 年底，我們簽訂了 375 座自升式鑽井平台合同，而目前我們僅簽訂了 347 座自升式鑽井平台合同。

That the contracted jack-up number is likely to increase, can be concluded to a certain extent, from the slide on the right-hand side, which shows the inventory draws. We are clearly not producing as much as there is demand, which is okay for a while, but these volumes will need to be replenished.

從右側的幻燈片（顯示庫存減少）可以在一定程度上得出結論，自升式鑽井平台合約數量可能會增加。顯然，我們的產量沒有滿足需求，這在一段時間內還可以，但這些產量需要補充。

Next slide, please. Since our last report in August, we have continued adding backlog with currently 17 rigs being committed or contracted, which has led to 3 additional warm stacked rigs being activated. We see stronger customer demand for our rigs through a higher frequency of commercial discussions and tendering in recent months, coupled with the increase in recent tenders for multiyear multi rig contracts. This leads us to expect utilization levels to improve rapidly.

請下一張投影片。自從我們 8 月的上一份報告以來，我們繼續增加積壓，目前已交付或承包了 17 個鑽機，這導致另外 3 個熱堆鑽機被啟動。透過近幾個月商業討論和招標的頻率增加，以及最近多年多鑽機合約招標的增加，我們看到客戶對我們鑽機的需求更加強勁。這使我們預計利用率水準將迅速提高。

Our strong operational performance, customer reach and fleet availability uniquely places Borr Drilling in a position to benefit from the strengthening market and we remain on track to fully contract our fleet of 23 delivered rigs by 2022.

我們強大的營運業績、客戶覆蓋範圍和機隊可用性使 Borr Drilling 能夠從不斷增強的市場中受益，並且我們仍有望在 2022 年之前完全承包我們已交付的 23 台鑽機。

Next slide, please. Global competitive jack-up utilization stood at 84% at the end of the quarter, an increase of 2 percentage points quarter-on-quarter and 4 percentage points since December 2020. Market availability of rigs built after the year 2010 has continued to tighten and currently stands at 34 available units. Year-to-date, 11 additional rigs built after the year 2010 have been contracted, and we expect this number to increase significantly in the coming quarters and driving up utilization.

請下一張投影片。截至本季末，全球有競爭力的自升式鑽井平台利用率為84%，季增2 個百分點，自2020 年12 月以來成長4 個百分點。 ，目前共有 34 個可用單位。今年迄今為止，已簽訂 2010 年之後建造的 11 個額外鑽機合同，我們預計這一數字在未來幾個季度將大幅增加，並提高利用率。

Next slide, please. In conclusion, I would like to reemphasize some of the key points. Firstly, the market is moving and the macro environment is creating a unique set of opportunities for Borr Drilling. We have the right equipment and operational focus to benefit from this. Consequently, we have started the activation of the Run, Gerd and Groa as well as the Mist in this quarter. In Q2, we did have 10 rigs available for deployment. And during the third quarter, this number of available rigs has dropped to only 6. We doubled our cash balance in the quarter and have seen similar strong performance in EBITDA generation as well.

請下一張投影片。最後，我想再次強調一些要點。首先，市場正在發生變化，宏觀環境正在為Borr Drilling創造一系列獨特的機會。我們擁有合適的設備和營運重點，可以從中受益。因此，我們在本季開始啟動 Run、Gerd 和 Groa 以及 Mist。在第二季度，我們確實有 10 個鑽孔機可供部署。在第三季度，可用鑽孔機數量已降至僅 6 個。

Together with our main creditors, we are working to construct a long-term capital structure, which would take us well beyond the current Q1 2023 maturities. Currently, we are in advanced discussions with one of the significant creditors having arrived at a commonly understood framework to extend commitments substantially beyond 2023. This is the first step towards achieving a fitting solution for all our creditors, which we aim to have in place in the foreseeable future.

我們正在與我們的主要債權人一起努力建立長期資本結構，這將使我們的到期日遠遠超出目前的 2023 年第一季。目前，我們正在與一個重要債權人進行深入討論，達成了一個普遍理解的框架，將承諾大幅延長到 2023 年之後。預見的未來。

Ladies and gentlemen, the business environment in which Borr Drilling thrives has finally come. It's now our turn to make the very best of it and generate exceptional returns for all our stakeholders. Ladies and gentlemen, thank you very much. We will now go to the Q&A.

女士們、先生們，Borr Drilling 蓬勃發展的商業環境終於來臨了。現在輪到我們充分利用這一點，為所有利害關係人創造非凡的回報。女士們先生們，非常感謝你們。我們現在進入問答環節。

(Operator Instructions) Our first question today comes from Karl Frederik Schjøtt-Pedersen from ABG.

（操作員說明）今天我們的第一個問題來自 ABG 的 Karl Frederik Schjøtt-Pedersen。

Congrats on a good quarter. With regards to the capital structure and the debt maturities. Can you provide some color on how these discussions have developed through the recent period, given the positive developments that we have seen in the oil price? And further, how should we think about the long-term sustainable capital structure? What would be the metrics that you are delevered to [steer towards]?

恭喜季度表現良好。關於資本結構和債務期限。鑑於我們在油價方面看到的積極發展，您能否提供一些關於最近一段時間這些討論如何發展的資訊？更進一步，我們該如何思考長期可持續的資本結構？您要[轉向]的指標是什麼？

All right. So thanks for your question. And maybe let me talk a little bit more about some of the things that we set out to do in Borr initially and then kind of walk into the capital structure. So as we were looking at the company, there were some key things that we needed to address quite rapidly. One thing was related to the operational turnaround, specifically focused on Mexico issues and the IWS business that we have and also the financials around that business. That is something that we took head on, and we have completed that.

好的。謝謝你的提問。也許讓我多談談我們最初打算在 Borr 做的一些事情，然後再談談資本結構。因此，當我們審視這家公司時，我們需要迅速解決一些關鍵問題。其中一件事與營運週轉有關，特別關注墨西哥問題和我們擁有的 IWS 業務以及圍繞該業務的財務狀況。這是我們所採取的行動，我們已經完成了。

Our second focus was really related to strengthening the marketing and business development team and put ourselves in a position where we can win accretive contracts in the appropriate way. We also have completed that, and we have that team in place, and the results are there.

我們的第二個重點實際上與加強行銷和業務開發團隊有關，並使我們能夠以適當的方式贏得增值合約。我們也已經完成了這個任務，我們的團隊已經就位，結果也已經出來了。

The third thing that is for us to address is the capital structure. And in particular, there, the Q1 '23 debt maturities and I'll come back to that in a second.

我們要解決的第三件事是資本結構。特別是 23 年第一季的債務到期日，我稍後會回到這個問題。

The fourth point, just to kind of make sure that we have the full list of our priorities here mentioned. The fourth point is M&A. And there might be some opportunities for us in the future, but it is at this moment, not of an immediate concern as we have plenty other opportunities to generate value. So coming back to the point, where we are currently spending the majority of management time, which is really dealing with the debt maturities. And I think it is important to realize that we have a very interesting set of creditors, with some of them very closely aligned with the objectives that we have.

第四點，只是為了確保我們擁有此處提到的優先事項的完整清單。第四點是併購。未來我們可能會有一些機會，但目前這不是一個緊迫問題，因為我們還有很多其他機會來創造價值。回到我們目前花費大部分管理時間的問題，這實際上是在處理債務到期問題。我認為重要的是要認識到我們有一群非常有趣的債權人，其中一些債權人與我們的目標非常一致。

One of the key attributes of the debt structure that we currently have in place is that we have a very low cash interest cost, which is a competitive advantage, and it has also allowed us to stomach the tough business environment that now lies behind us. So going forward, what we are looking for is to extend the maturities and ensure that our creditors are appropriately rewarded for their investment. And at the same time, allow the company to further expand its operational footprint and increase the cash-generating capability much further than where we are today.

我們目前的債務結構的關鍵屬性之一是我們的現金利息成本非常低，這是一種競爭優勢，也讓我們能夠承受現在嚴峻的商業環境。因此，展望未來，我們尋求的是延長期限並確保我們的債權人的投資得到適當的回報。同時，使公司能夠進一步擴大其營運範圍並提高現金產生能力，遠遠超過我們今天的水平。

So far, we have continued our engagement with the various creditors with an initial focus on some of the largest and most aligned partners that we've had since the beginning. At this moment, we are in advanced discussions with one of the significant creditors and have arrived at a common understood framework to extend the commitment substantially beyond 2023. And just to be clear, substantially is, of course, much more than 1 year. This is still subject to certain conditions, including the Board approval of both of the companies. And as such, it would be inappropriate to really delve into any of the terms and conditions that we are discussing. But it was important that we gave you an update on where we stand and that we are indeed making progress in this department.

到目前為止，我們繼續與各個債權人接觸，最初的重點是我們從一開始就擁有的一些最大、最一致的合作夥伴。目前，我們正在與一位重要債權人進行深入討論，並達成了一個共同理解的框架，將承諾大幅延長至 2023 年之後。這仍需滿足某些條件，包括兩家公司董事會的批准。因此，真正深入研究我們正在討論的任何條款和條件都是不合適的。但重要的是，我們向您通報了我們的最新情況，以及我們確實在該部門取得了進展。

So what we are going to do going forward is make sure that we are taking the framework that we are having developed so far and taking it to all of our creditors and obviously, needing to make sure that what we put in place is something that works for all our creditor groups. There is no point striking a deal with 1 or the other. So therefore, we will spend the next few weeks in making sure that we get everybody on board and supporting it and making sure that we have a solution that is putting the company in a position where it needs to be.

因此，我們接下來要做的就是確保我們採用迄今為止開發的框架並將其提供給我們所有的債權人，顯然，需要確保我們所實施的框架是有效的對於我們所有的債權人群體。與其中一方達成協議是沒有意義的。因此，我們將在接下來的幾週內確保每個人都參與其中並提供支持，並確保我們有一個解決方案，使公司處於所需的位置。

I think that actually you were asking about metrics. I think that one of the key things that we want to do is make sure that we get the company in a position, where through the cash that we generate, we have alternative ways of financing some portions of our debt, which is what we're focusing on. And what is incredibly important to us, of course, is to have the business environment as it is developing today. There is far more contracts out there. There is price increases that are coming up. We see utilization going up, and we see overall a very good interest in the types of equipment that we have available to us.

我認為您實際上是在詢問指標。我認為我們想要做的關鍵事情之一是確保我們讓公司處於一個位置，透過我們產生的現金，我們有其他方式為我們的部分債務融資，這就是我們的目的。當然，對我們來說極為重要的是擁有當今發展的商業環境。還有更多的合約。價格即將上漲。我們看到利用率正在上升，而且我們總體上對我們可用的設備類型非常感興趣。

So based on that and having the focus on the cash generation that allows us to have a broader pool of credit options to work with. I think that we are well placed to work through the debt maturities that are currently standing at Q1 '23, and that is really the approach that we have.

因此，在此基礎上，重點關注現金生成，這使我們能夠擁有更廣泛的信貸選擇。我認為我們已經準備好解決目前 23 年第一季的債務到期問題，這確實是我們所採取的方法。

I understand that I don't give you as much detail as you might want, but you have to understand that at this moment, dealing with the 5 parties that we have, we need to make sure that we first appropriately deal with them and have the communications with all of those before we are able to be public about any of this. I think I will have to leave that.

我知道我沒有向您提供您可能想要的詳細信息，但您必須了解，此時此刻，在處理我們擁有的 5 個方面時，我們需要確保我們首先與他們進行適當的處理，並在我們能夠公開此事之前與所有這些人進行了溝通。我想我必須離開它。

Could you comment on the absolute debt level? Or is that something that you'd refrain from commenting on also?

您能否評論一下絕對債務水平？或者您也不願對此發表評論？

I think I'll back up the comment that Patrick said that we stand by the absolute debt level that we have today. And taking into account a normalized market or a historic market where newbuild prices have typically been around $200 million or even above. And with the cycle that we are projecting now, I think in a historical perspective, the debt levels are not that high in a normalized market. So I think also we can leave it at without giving any specific numbers, but that's the perspective and that's something we have emphasized in previous presentations also.

我想我會支持派崔克所說的觀點，即我們堅持目前的絕對債務水準。考慮到正常化市場或歷史市場，新建價格通常約為 2 億美元甚至更高。從我們現在預測的週期來看，我認為從歷史角度來看，正常化市場的債務水準並沒有那麼高。因此，我認為我們也可以保留它，而不給出任何具體數字，但這就是我們的觀點，也是我們在先前的演示中強調的內容。

(Operator Instructions) Our next question is Fredrik Stene from Clarksons Platou Securities.

（操作員指示）我們的下一個問題是來自 Clarksons Platou 證券公司的 Fredrik Stene。

Congratulations on very nice performance this quarter. It seems like the stock market is appreciating that as well. And I think what I'm looking forward to get a more -- a bit more color on with -- now that we've kind of covered the CapEx -- or sorry, the (inaudible) aspect of it, would be the plans to employ more rigs. You've hit your 17 rig target as you -- for this year, at least, as you communicated in the second quarter. And now, at least from the wording in your report, you seem very confident in being able to employ the remaining 6 through next year as well. And from my side, I think the Middle East contracts was maybe the most interesting one today because that's an area where you haven't really done work before. So I was wondering, could you give us any color as to how you got that contract? Are there any partners here? Has this opened any doors for new or additional contracts for your currently stacked rigs? Anything related to that would be super helpful.

恭喜本季的出色表現。股市似乎也對此表示讚賞。我認為，既然我們已經涵蓋了資本支出，或者抱歉，它的（聽不清楚）方面，我期待得到更多的、更多的色彩，那就是計劃使用更多的鑽機。正如您在第二季所傳達的那樣，至少今年您已經實現了 17 台鑽孔機的目標。現在，至少從您報告中的措辭來看，您似乎非常有信心在明年之前僱用剩下的 6 名員工。從我的角度來看，我認為中東合約可能是今天最有趣的合約，因為這是一個你以前從未真正做過工作的領域。所以我想知道，你能否告訴我們你是如何獲得這份合約的？這裡有合作夥伴嗎？這是否為您當前堆積的鑽孔機打開了新合約或額外合約的大門？任何與此相關的內容都會非常有幫助。

Yes. Thank you, Fredrik. So clearly, the Middle East is the largest market. And therefore, for particularly Borr being absent in that market, it is a fantastic growth opportunity. And we have made a lot of effort to some of the larger tenders that are currently in that market to participate in a variety of ways, as we have mentioned previously. And there, we have also worked with partners to get into certain contracts, where we felt it was beneficial for the client ultimately to have access to our equipment, and that doesn't necessarily only go through Borr Drilling directly. So there are constructions that we have worked through bareboat charter for particular contracts.

是的。謝謝你，弗雷德里克。很明顯，中東是最大的市場。因此，對於特別缺席該市場的 Borr 來說，這是一個絕佳的成長機會。正如我們之前提到的，我們已經為該市場目前的一些較大招標做出了許多努力，以多種方式參與。在那裡，我們還與合作夥伴合作簽訂了某些合同，我們認為客戶最終能夠使用我們的設備是有利的，而這不一定只能直接通過 Borr Drilling。因此，我們透過光船租賃來完成特定合約的建設。

The one that we have mentioned at this moment is a contract that we do fully by ourselves. Borr Drilling is operating it. It is a normal day rate type of contract, in an environment where we have focused for quite a while. There is -- there are high-tech specifications to it. We have a long-term contract. It's a 2-year plus options, and we're very pleased with where we are at this moment. At this moment, we are not at liberty yet to release the name of the customer. But clearly, it has been a focus area of us. We're very happy with the opportunity to work.

我們現在提到的合約是我們完全自己做的。 Borr Drilling 正在運作它。這是一種正常的日費率合同，在我們已經關注了相當長一段時間的環境中。它有高科技規格。我們有長期合約。這是一個為期兩年的附加選項，我們對目前的狀況非常滿意。目前，我們還不能隨意透露該客戶的姓名。但顯然，它一直是我們的重點領域。我們很高興有這個工作機會。

And quite frankly, it's not the only one. We are discussing other opportunities in the area, and this is clearly in several countries, there are opportunities. There is not just one country where the opportunities are, even though there has been a significant focus on Saudi Aramco and some of the larger tenders that have come out, there is actually quite a bit of activity. And also, if you look at the overall requirement in the area, there is continued requirement for the higher end rigs that we have. So we're very pleased to have the ability again to show what we can do and what levels of service quality and safety we can be providing to the customers also then in the Middle East.

坦白說，這並不是唯一的一個。我們正在討論該領域的其他機會，這顯然在幾個國家都有機會。儘管沙特阿美公司和一些已發布的大型招標受到了極大關注，但並非只有一個國家擁有機會，但實際上有相當多的活動。而且，如果你看看該地區的整體需求，你會發現對我們擁有的高階鑽孔機的持續需求。因此，我們很高興能夠再次向中東地區的客戶展示我們的能力以及我們可以提供的服務品質和安全水準。

Just a follow-up there. On your -- this rig year that's been working before, if I remember correctly, but on some of the -- that you've taken out regards, but haven't been working, there's this stacking costs. And we've recently discussed that before. Do you think bareboat partnering structures that you have bridge CapEx or activation costs for additional rigs will be more likely in the cases where you're offering rigs that haven't worked before to save some of your liquidity going forward as well? Or do you think that given the fact that you have now doubled your cash, you could take some of that CapEx on your own balance sheet as well.

只是後續行動。如果我沒記錯的話，在你的——這個鑽孔機年份之前一直在工作，但在一些——你已經表達了問候，但還沒有工作，有這個堆積成本。我們最近已經討論過這個問題。您認為，如果您提供以前無法使用的鑽機以節省未來的部分流動性，那麼您是否更有可能採用光船合作結構，以橋接資本支出或額外鑽機的激活成本？或者您是否認為，鑑於您現在的現金已增加一倍，您也可以將部分資本支出計入您自己的資產負債表上。

Yes. So this is -- I mean, I think what you described is a little bit what we are working on at this moment. Clearly, we have a market that can absorb more of our rigs, and we have more contracts coming up. We have won them already. So what we are looking at, at the moment is making sure that the rigs where the smallest amount of cash is required to get them back to work. We obviously fully want to do that under our own banner, and that is how we make best use of our cash. If there are some specific opportunities where through working through somebody else that indeed then would take care of the activation and making sure that certain contractual equipment requirements are being met. If we can do that through partners, then that is perfectly fine.

是的。所以這就是——我的意思是，我認為你所描述的就是我們目前正在做的事情。顯然，我們有一個可以吸收更多鑽機的市場，而且我們還有更多合約即將簽訂。我們已經贏了他們。因此，我們目前正在考慮的是確保鑽井平台需要最少的現金才能恢復工作。顯然，我們完全希望在自己的旗幟下做到這一點，這就是我們充分利用我們的現金的方式。如果有一些特定的機會，透過其他人的工作，確實會負責啟動並確保滿足某些合約設備要求。如果我們可以透過合作夥伴做到這一點，那就完全沒問題了。

I think what we want to make sure is that we are using our own cash smartly and therefore, we will try to keep all the rigs that previously have worked. And as you mentioned correctly, the Groa has been working previously, that obviously requires a significant lesser amount to get that back to work. And therefore, those are the ones that we concentrate on right now for ourselves. And as we go forward, we are also taking some of the new rigs out of the shipyard because there are some opportunities that we have for those as well. But as you mentioned, even though we have grown our cash balance quite significantly. The activation of rigs costs a significant amount of investment as well. So we just want to be wise about that and make sure that we basically stretch the dollar as much as we can and make the best out of the cash balance as it is.

我認為我們要確保的是，我們正在明智地使用自己的現金，因此，我們將盡力保留所有以前可用的鑽孔機。正如您正確提到的，Groa 之前一直在工作，顯然需要更少的量才能恢復工作。因此，這些是我們現在關注的重點。隨著我們的前進，我們還將從造船廠取出一些新鑽井平台，因為我們也為這些鑽井平台提供了一些機會。但正如您所提到的，儘管我們的現金餘額大幅增加。鑽機的啟動也需要大量的投資。因此，我們只想明智地對待這一點，並確保我們基本上盡可能多地使用美元，並充分利用現有的現金餘額。

(Operator Instructions) As we have no further questions, this does conclude today's Q&A session, and it concludes today's call. Thank you very much for your attendance. You may now disconnect your lines.

（操作員說明）由於我們沒有其他問題，因此今天的問答環節和今天的電話會議就結束了。非常感謝您的出席。現在您可以斷開線路。