Borr Drilling Limited - Updated 2022 and 2023 guidance

Rhea-AI Summary

Borr Drilling Limited (NYSE: BORR) updated its preliminary revenue and EBITDA guidance for 2022 and 2023. For 2022, revenue is projected between $435-$450 million, with adjusted EBITDA of $152-$162 million, an increase from previous estimates of $375-$400 million in revenue and $115-$140 million for EBITDA. For 2023, Borr expects revenues of $740-$780 million and adjusted EBITDA of $360-$400 million. The year-end cash balance for 2022 is estimated at ~$105 million. CEO Patrick Schorn stated the company has activated 21 rigs and sees a favorable industry outlook.

Positive

• Increased 2022 revenue guidance from $375-$400 million to $435-$450 million.
• Adjusted EBITDA for 2022 raised from $115-$140 million to $152-$162 million.
• Projected revenue for 2023 is $740-$780 million.
• Adjusted EBITDA for 2023 increased from $290-$330 million to $360-$400 million.
• Cash and cash equivalents at year-end 2022 estimated at ~$105 million.

Negative

• Financial results are subject to audit and may change, introducing uncertainty.

HAMILTON, Bermuda, Jan. 25, 2023 /PRNewswire/ -- Borr Drilling Limited (the "Company") (NYSE: BORR) (OSE: BORR) is pleased to announce updates to its preliminary Revenue and EBITDA guidance for 2022 and 2023. 

For 2022, Borr Drilling expects to record revenues of $435-$450 million and adjusted EBITDA of $152-$162 million* (previous guidance was revenue between $375-$400 million and Adjusted EBITDA of $115-140 million). This implies estimated Q4 2022 Revenues between $140-$155 million, and Q4 2022 Adjusted EBITDA of between $50-$60 million.

For 2023, based on current contracts and projections for new contracts, the Company expects to generate revenues of $740-$780 million and Adjusted EBITDA of $360-$400 million (previous guidance was adjusted EBITDA of $290-330 million).

The cash and cash equivalents balance at year end 2022 is estimated to be ~$105 million.

"Borr Drilling has been through a transformational journey the last years, activating and putting 21 rigs successfully to work and significantly strengthening the Company's balance sheet. The outlook for the industry and our Company is continuing to improve, which is likely to lead to further increased utilisation and higher day-rates," says CEO Patrick Schorn 

It is important to note that the financial preliminary guidance for Q4 and 2022 is based on estimates, and the financial results are not finalised. The results are also subject to audit, and as such are subject to change. 

Forward looking statements

This press release includes forward looking statements, which do not reflect historical facts and may be identified by words such as "expect", "will" and similar expressions and include statements relating to letter of awards including the duration of such contracts and backlog, and other non-historical statements. These forward-looking statements reflect the Company's beliefs, intentions and current expectations concerning, among other things, the Company's results of operations, financial condition, preliminary and  expected financial results, including revenue and adjusted EBITDA, cash and cash equivalents, industry outlook, further increased utilization and higher day rates and other non-historical statements. Such forward-looking statements are subject to risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein, and other risks and uncertainties described in the section entitled "Risk Factors" in our most recent annual report on Form 20-F and other filings with the Securities and Exchange Commission. Such risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward -looking statements included herein. These forward-looking statements are made only as of the date of this release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

^* The Company provides guidance on expected adjusted EBITDA, which is a financial measure calculated on a basis other than in accordance with accounting principles generally accepted in the United States (US GAAP). Adjusted EBITDA represents our periodic net loss adjusted for: depreciation and impairment of non-current assets, other non-operating income; (income)/loss from equity method investments, total financial (income) expense net, income tax expense, amortization of deferred mobilization costs and revenue. The Company provides guidance on Adjusted EBITDA because it believes this measure provides useful information regarding the Company's expected operational performance. Due to the forward-looking nature of Adjusted EBITDA, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure. Accordingly the Company is unable to present a quantitative reconciliation of such forward looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure without unreasonable effort.

Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208

View original content:https://www.prnewswire.com/news-releases/borr-drilling-limited--updated-2022-and-2023-guidance-301729946.html

SOURCE Borr Drilling Limited

FAQ

What is Borr Drilling's revenue guidance for 2022?

Borr Drilling expects 2022 revenues between $435-$450 million.

What is the adjusted EBITDA forecast for Borr Drilling in 2023?

The adjusted EBITDA for 2023 is projected to be between $360-$400 million.

How many rigs has Borr Drilling successfully activated?

Borr Drilling has successfully activated 21 rigs.

What is the cash balance estimate for Borr Drilling at the end of 2022?

Borr Drilling's estimated cash and cash equivalents balance at year end 2022 is ~$105 million.

When was the updated guidance for Borr Drilling announced?

The updated guidance was announced on January 25, 2023.