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1 Borr Drilling Borr Drilling Limited Announces Trading Update Including Key Financial Information For First Quarter 2021 Hamilton , Bermuda , May 31 , 2021 : Borr Drilling Limited ( " Borr ” , “ Borr Drilling " or the " Company " ) announces preliminary unaudited results for the three months ended March 31 , 2021 . • • • • • Highlights Total operating revenues of $ 48.4 million , net loss of $ 58.1 million and Adjusted EBITDA¹ of $ ( 10.6 ) million for the first quarter of 2021 . Total operating revenues includes a reduction of related party revenues of $ 9.2 million recorded in the first quarter of 2021 relating to prior periods , following an amendment of our Mexican JV agreements regulating the treatment of standby rates charged for our rigs operating in the JVs . Without this reduction for prior periods , the Adjusted EBITDA would have been $ ( 1.4 ) million for the quarter . On January 22 , 2021 , we completed an equity offering raising total proceeds of $ 46 million . In January , the Company finalized the terms and executed agreements with certain of our creditors for the previously announced liquidity improvement plan . The Company and its Drilling JVs has been awarded 17 new contracts , extensions , exercised options and LOAs / LOIs since the start of 2021 to the date of this report , representing 5,352 days of potential backlog and $ 458 million in potential revenue . CEO , Patrick Schorn commented : " We are encouraged by the signs of a recovering shallow water rig market so far in 2021. The number of Borr operating rigs stood at 13 at the end of the first quarter , up by five units from trough levels experienced in 2020 . Tendering and contracting activity remain strong . Since the beginning of this year , Borr has secured new contracts and confirmed optional periods with a total revenue potential of approximately $ 162 million , excluding unexercised option periods . Additionally , the Company and its Drilling JVs have secured LOIS and LOAs , that once converted into contracts will add a total revenue potential of approximately $ 296 million . We are optimistic about the market opportunities going forward , and expect to see several of our currently warm stacked rigs coming back into operation at accretive rates . Part of our liquidity improvement plan outlined in our Q4 2020 report has been to pursue initiatives to improve cash distributions from our JV operations in Mexico . Year to date , Borr has received $ 15 million in cash from its JVs which is a considerable improvement compared to previous periods . The IWS JVs have added roughly 125,000 BOPD to Pemex's production and we continue to receive very positive feedback from the customer regarding service quality and performance . In addition , we are pleased to announce that according to the latest activity plans in the IWS JVs , we expect that our five rigs in the country will continue providing services for the project until the end of 2022. " For a definition of Adjusted EBITDA and why we use this measure , see page 4 of this report . 1