Borr Drilling ( (BORR) ) has released its Q3 earnings. Here is a breakdown of the information Borr Drilling presented to its investors.
Borr Drilling Limited, established in Bermuda, operates as a global contractor specializing in modern jack-up rigs for the offshore oil and gas industry, focusing on shallow-water drilling services.
In its third-quarter 2024 earnings report, Borr Drilling revealed a decrease in financial performance compared to the previous quarter, with total operating revenues dropping by 11% to $241.6 million and net income plummeting by 69% to $9.7 million. Despite these declines, the company highlighted securing 17 new contract commitments throughout the year, offering significant potential revenue.
The report detailed a reduction in adjusted EBITDA by 15% to $115.5 million, attributing a portion of the revenue decrease to one-off items in the previous quarter. Operationally, several rigs began new contracts with improved day rates, while others saw reduced operational days as they prepared for upcoming engagements. Additionally, Borr took delivery of the newbuild rig ‘Vali’ and anticipates the delivery of ‘Var’ in November 2024. The company accessed bond financing to bolster its financial position, raising $175 million.
Looking forward, Borr Drilling remains cautious about potential market volatility due to uncertainties in the jack-up rig market. However, with 78% of its fleet contracted through 2025 and favorable market fundamentals, the company is poised for resilience. The management has adjusted its full-year EBITDA guidance to reflect the lower end of its forecasted range.
As Borr Drilling continues to navigate market challenges, its focus on maintaining contract coverage and optimizing operational efficiency positions it to leverage ongoing demand in the offshore drilling sector.
