Borr Drilling sees FY24 adjusted EBITDA ‘at or around’ lower end of $500M-$550M

The company expects FY24 adjusted EBITDA at or around the lower end of the previously disclosed guiding range of $500M-$550M. For illustrative purposes, the company expects the following future positive impacts to adjusted EBITDA on an annualized basis: $39M on an annualised basis from the increases in contracted dayrates for rigs operating in Q3 2024 (Norve, Gerd, Natt) with expected dayrates uplift in Q4 2024 compared to Q3 2024, including the impact of off-contract time in Q3 2024;; and $143M on an annualised basis from the expected contract start-up of four rigs in Q4 2024/Q1 2025, reflecting expected impact of (i) expected contract for Vale, expected to commence in early Q1 2025 ($56M expected annualized impact), (ii) Arabia I contract commencing in Q1 2025, and (iii) Prospector 1 and Gunnlod contracts commencing in Q4; includes impact of off-contract time in Q3. These positive impacts may be offset by less contribution from rigs operating in Q3 whose contracts expire in the near future (Thor and Ran) which remain to be contracted. The impact these rigs had on the Q3 EBITDA was approximately $11M. The company is currently finalizing its financial results for the three and nine months ended September 30, 2024, which it plans to release on November 6, 2024 after markets close.