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Overview
Borr Drilling Ltd is an international drilling contractor that plays a significant role within the oil and gas exploration and production industry. With a focus on delivering safe and high quality drilling operations, the company specializes in the acquisition and operation of modern, high-specification jack-up rigs designed for offshore drilling. Employing advanced engineering and operational strategies, Borr Drilling combines technical expertise with a robust contract portfolio to navigate a competitive and evolving market environment.
Business Model and Core Operations
At its core, Borr Drilling’s business model is centered on the ownership and operation of a premium fleet of jack-up rigs. This approach not only emphasizes the importance of modern and efficient asset management but also positions the company to capitalize on market opportunities created by historically low asset prices. The company’s operational framework is built on the principles of safety, reliability, and technical excellence, thereby ensuring that each drilling assignment is executed with precision and adherence to strict industry standards.
Operational Excellence and Fleet Capabilities
Borr Drilling’s fleet is characterized by its state-of-the-art design and operational readiness. The rigs are engineered to meet modern drilling requirements, providing enhanced performance and safety measures that are critical for successful deepwater exploration and production. This operational excellence is underpinned by rigorous maintenance standards, a strong focus on technological innovation, and continuous improvements to drilling operations, marking the company as an expert operator in the realm of offshore drilling services.
Market Position and Industry Dynamics
Operating primarily in critical regions within the oil and gas sector, including areas in and around Norway, Borr Drilling has strategically positioned itself to benefit from the ongoing evolution in offshore energy exploration. Its expertise in managing assets in a volatile market environment, where contract terms, mobilization, and demobilization play a significant role, has allowed the company to secure a competitive edge. By harnessing operational expertise and cutting-edge technology, Borr Drilling navigates industry stress points and capitalizes on strategic opportunities as they emerge.
Contracting Strategy and Revenue Generation
The company’s revenue generation is fundamentally linked to its contracting strategy. Borr Drilling secures long-term, binding contracts with major players in the oil and gas industry, resulting in robust contract backlogs and diversified revenue streams. This contracting approach mitigates market volatility and underscores the company’s focus on operational consistency and financial resilience. The ability to negotiate contracts that include compensations for mobilization and demobilization further reinforces its commitment to delivering uninterrupted drilling services.
Risk Management and Strategic Asset Acquisition
Borr Drilling is adept at managing industry risks, including market fluctuations and operational disruptions, through a disciplined asset acquisition strategy and operational best practices. The company capitalizes on periods of reduced asset valuation to strengthen its fleet portfolio, thereby benefitting from subsequent market recoveries. This strategic approach, combined with a focus on safety and quality, underlines the firm’s sophisticated risk management and operational planning capabilities.
Industry Keywords and Sectoral Expertise
Integral to understanding Borr Drilling’s operational landscape are terms such as offshore drilling, jack-up rigs, and oil and gas exploration. These keywords not only highlight the technical expertise and innovation embedded in their operations but also serve as signals of the company’s deep-rooted knowledge of industry dynamics. The company’s detailed operational disclosures and extensive experience within an intricate market further validate its standing as a knowledgeable and trustworthy operator.
Comprehensive Operational Framework
The breadth of Borr Drilling’s operations is supported by a well-orchestrated framework that integrates asset management, advanced technology, and strategic contract negotiations. This comprehensive approach enables the company to consistently deliver high-quality drilling services, reinforcing its reputation in the industry. The detailed structure of its operations, from fleet management to contract execution, exemplifies how Borr Drilling maintains its competitive positioning while addressing the challenges inherent to the offshore drilling segment.
Conclusion
In summary, Borr Drilling Ltd is a pivotal entity in the oil and gas sector. Its commitment to operating modern jack-up rigs and focus on acquiring strategic contracts allow it to navigate complex industry challenges with a blend of technical acumen and operational discipline. The company’s clear dedication to safety, quality, and innovation continues to underscore its ability to provide reliable drilling services under a variety of market conditions. Investors and industry observers can appreciate the balanced portrayal of asset management, operational excellence, and strategic contracting that defines Borr Drilling’s business model.
Borr Drilling Limited (NYSE: BORR) announced an extension of the application period for its contemplated equity offering, initially set for USD 40-50 million. The new deadline is 08:00 CET on September 29, 2020. The Company is currently engaged in discussions with its lenders to improve concessions previously announced. This announcement is not an offer to sell or buy any securities and is subject to various legal restrictions in several jurisdictions including Canada and the United States.
Borr Drilling Limited (NYSE: BORR) announced plans for an Equity Offering to raise USD 40-50 million through new depository receipts at a subscription price of USD 0.70. Approximately USD 30 million is pre-committed by certain investors, including USD 3 million from the Board and executive management. The funds will strengthen working capital and may be used to repurchase bonds from a USD 350 million convertible bond loan. The application period runs from 22 September 2020 to 25 September 2020, with settlement expected on 29 September 2020.
Borr Drilling Limited (NYSE: BORR) has secured agreement with bank syndicates and Hayfin to extend loan facilities worth USD595m to January 2023, easing the minimum liquidity covenant to USD5m. The company plans to raise equity to enhance liquidity, potentially exceeding USD700m over two years. In Mexico, Borr has received USD103m from Pemex, improving its working capital position. CEO Patrick Schorn emphasizes the positive liquidity outlook and aims for a long-term solution amid industry consolidation.
Borr Drilling Limited (NYSE: BORR) received a notice from the NYSE regarding non-compliance with the minimum share price requirement, as its average share price fell below $1.00 for 30 consecutive trading days. The company has until February 25, 2021 to meet the compliance standards by maintaining a share price of at least $1.00 on the last trading day of any month during the corrective period. Borr has confirmed its intent to regain compliance while continuing to trade on the NYSE.
Borr Drilling Limited (NYSE: BORR) has announced a significant corporate governance change. With the transition to a new CEO, Patrick Schorn will resign from the Company's board of directors effective September 8, 2020. This decision is part of the company's adherence to its governance policies. The disclosure is mandated by the Norwegian Securities Trading Act, ensuring transparency for shareholders and the market.
Borr Drilling Limited (NYSE: BORR) reported its Q2 2020 results, revealing total operating revenues of $84.0 million and a net loss of $109.6 million. Adjusted EBITDA was $(1.9 million), impacted by $12 million in non-recurring costs. The company's Mexican JVs saw a significant improvement with a combined Adjusted EBITDA of $30.1 million. Key actions included the sale of two drilling rigs for $15.8 million and an equity offering raising $30 million. Liquidity was enhanced through amendments to loan facilities resulting in the deferral of over $315 million in payments until 2022.
Borr Drilling Limited held its Annual General Meeting on August 10, 2020, in Hamilton, Bermuda. Key resolutions included the re-election of directors Pål Kibsgaard, Tor Olav Trøim, Alexandra Kate Blankenship, Patrick Arnold Henk Schorn, Georgina E. Sousa, and Neil J. Glass. Additionally, the company approved an increase in authorized share capital from US$9.18 million to US$11.18 million by issuing an additional 40 million shares. PricewaterhouseCoopers LLP was appointed as auditors, and the Board of Directors' remuneration was capped at US$950,000 for the year ending December 31, 2020.
Borr Drilling Limited (NYSE: BORR) announced the appointment of Patrick Schorn as the new CEO, effective September 8, 2020. Schorn, a Director since January 2018, succeeds Svend Anton Maier, who will transition to Special Advisor. Chairman Paal Kibsgaard expressed confidence in Schorn's extensive industry experience to lead the company through current challenges. Schorn emphasized the opportunity within the adversity faced by the oil and gas sector and highlighted Borr Drilling's distinct competitive advantage with its young jack-up fleet and skilled team.
Borr Drilling Limited (NYSE: BORR) announced a new contract and letters of intent for three warm stacked rigs, increasing its backlog by USD 21 million. This brings the total number of contracted rigs to 14. Following a downturn in the jack-up market due to lower oil prices, there are now signs of recovery with oil prices around USD 40/bbl. Additionally, three more warm stacked rigs are available for operation without significant capital expenditures.
Borr Drilling Limited will hold its Annual General Meeting (AGM) on August 10, 2020, in Bermuda. Shareholders will receive the Notice of AGM and Form of Proxy through standard distribution methods. The company's Annual Report is accessible on its website at www.borrdrilling.com. This announcement complies with the disclosure requirements of the Norwegian Securities Trading Act.
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