Risk Factors Update Summary

• Added risks related to the Business Combination with Maersk Drilling, highlighting integration challenges. This change may impact operational efficiency and financial performance.
• Added terms for acceptable interest rates. This change might impact financial disclosures significantly.
• Higher prices do not guarantee increased drilling activity; customers consider various factors. This may impact future demand.
• Shareholders' concentration may prevent acquisitions. This could hinder corporate changes and affect share prices.
• Failure to maintain effective internal controls over financial reporting could result in misstatements in operations, account balances, or cash flows. This could lead to a material misstatement in financial statements.
• Introduction of Financial, Tax, and Governance Risks, including potential impairment charges and restrictive covenants. This change could affect financial reporting accuracy and operational flexibility.
• Changes in tax laws and environmental regulations could impact operations and financial condition.
• Inclusion of Market risks, detailing industry competitiveness and factors influencing demand. This change may impact contract negotiations and revenue generation.
• Increased number of outstanding Ordinary Shares and warrants. Dilution risk for existing shareholders.
• The company may record impairment charges on property and spares, with no impairment charges recorded in 2023, 2022, or 2021.
• Concentration of operations with major customers like ExxonMobil and Shell poses risks to financials.
• Inflationary pressures may affect operating results and cash flows, impacting margins and expenses.
• The company's Revolving Credit Agreement contains various restrictive covenants limiting management's ability, including limitations on incurring additional indebtedness, paying dividends, making investments, and more.
• The company is subject to litigation risks, including climate-related litigation, which could have adverse effects due to potential negative outcomes and legal fees.
• Operational interruptions, maintenance delays, or repair work may lead to revenue loss or contract renegotiation.
• Risks associated with cybersecurity threats and potential disruptions to operations due to cyberattacks.
• The company relies on information technology for disclosure controls and procedures, with ongoing efforts to integrate an ERP system to strengthen internal financial controls.
• The company faces risks related to compliance with anti-bribery and anti-corruption laws, with potential significant expenses and negative impacts if violations occur.
• Challenges and disruptions in the global supply chain may impact costs, revenues, and operations.
• The company's financial, tax, and governance risks include potential impairment charges, restrictive covenants in credit agreements, and risks associated with existing and future indebtedness.