Borr Drilling Limited Announces Trading Update Including Key Financial Information For First Quarter 2021

Rhea-AI Summary

Borr Drilling Limited reported preliminary results for Q1 2021, revealing total operating revenues of $48.4 million and a net loss of $58.1 million. Adjusted EBITDA was $(10.6) million, improved to $(1.4) million with prior period revenue adjustments. The company raised $46 million through an equity offering in January and secured 17 contracts since January, representing $458 million in potential revenue. CEO Patrick Schorn highlighted a recovering market with an increased number of operating rigs and positive cash flows from joint ventures.

Positive

• Total operating revenues of $48.4 million, showing potential growth.
• Reduction of related party revenue adjustments positively impacts Adjusted EBITDA.
• Raised $46 million in equity offering boosts liquidity.
• Secured 17 contracts since January, representing $458 million in potential revenue.
• Cash received from joint ventures improves significantly to $15 million year-to-date.

Negative

• Net loss of $58.1 million in Q1 2021 presents financial challenges.
• Adjusted EBITDA remains negative at $(10.6) million.

HAMILTON, Bermuda, May 31, 2021 /PRNewswire/ -- 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 EBITDA 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." 

The full report is available in the attached file. Also attached to this release is an updated Fleet Status Report for the Company, and a company presentation.

May 31, 2021

The Board of Directors
Borr Drilling Limited 
Hamilton, Bermuda
Questions should be directed to: 
Magnus Vaaler: CFO
+47 22483000 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/borr-drilling-limited/r/borr-drilling-limited-announces-trading-update-including-key-financial-information-for-first-quarter,c3357128

The following files are available for download:

https://mb.cision.com/Public/16983/3357128/a14e159606ce2829.pdf	1st Quarter 2021 Results
https://mb.cision.com/Public/16983/3357128/a47d89701b828300.pdf	Fleet-Status-Report-May-2021
https://mb.cision.com/Public/16983/3357128/a2db127c23ae4fb4.pdf	Borr Q1 2021 presentation

 

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SOURCE Cision AB

FAQ

What were the total operating revenues for Borr Drilling in Q1 2021?

Borr Drilling reported total operating revenues of $48.4 million for Q1 2021.

What was the net loss reported by Borr Drilling for the first quarter of 2021?

Borr Drilling reported a net loss of $58.1 million for the first quarter of 2021.

How much was raised in the equity offering completed by Borr Drilling on January 22, 2021?

Borr Drilling raised a total of $46 million in the equity offering completed on January 22, 2021.

What is the potential revenue from the contracts secured by Borr Drilling in 2021?

Borr Drilling secured contracts in 2021 that represent a potential revenue of $458 million.

What is the current status of Borr Drilling's operating rigs?

As of the end of Q1 2021, Borr Drilling had 13 operating rigs, an increase of five from 2020.