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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 (NYSE: BORR) (OSE: BORR) has announced a Special General Meeting on October 1st, 2024 to approve the delisting of its common shares from the Oslo Stock Exchange. The meeting will also authorize the Board of Directors to implement the delisting process. The record date for shareholder participation is set for September 10th, 2024 at 5:00 p.m. Bermuda time. Shareholders will receive the Notice of Special General Meeting and Form of Proxy through normal distribution methods, and these documents will also be available on the company's website. This announcement complies with the disclosure requirements of the Norwegian Securities Trading Act.
Borr Drilling (NYSE: BORR) (OSE: BORR) has announced a cash distribution of $0.10 per share for Q2 2024. This distribution of paid-in capital was approved by the company's Board of Directors on August 14, 2024. Due to the implementation of the Central Securities Depository Regulation (CSDR) in Norway and different settlement periods between NYSE (T+1) and OSE (T+2), there will be different ex-dividend dates for the two exchanges. The ex-date for OSE is August 21, 2024, while for NYSE it's August 22, 2024. The record date is August 22, 2024, with payment expected around September 6, 2024. Shareholders registered with Euronext VPS will receive the distribution in NOK, with an expected payment date of September 11, 2024.
Borr Drilling reported Q2 2024 results with total operating revenues of $271.9 million, up 16% from Q1 2024. Net income was $31.7 million, a 120% increase. Adjusted EBITDA reached $136.4 million, a 17% rise. Year-to-date, Borr secured fourteen new contracts, totaling 3,537 days and $651 million in potential revenue. In August, Borr raised $150 million in debt for the delivery of the newbuild "Vali." A cash dividend of $0.10 per share for Q2 2024 was declared, payable on September 6, 2024.
The company saw a strong operational performance with technical utilization at 99.2% and economic utilization at 98.4%. Borr plans to meet its FY 2024 Adjusted EBITDA guidance of $500-$550 million. Borr's newbuild "Vali" is set for delivery soon, and the final newbuild "Var" is on schedule for Q4 2024. Financially, Borr is stable with $200 million in cash and undrawn credit facilities.
Borr Drilling (NYSE and OSE: BORR) has announced that its subsidiary, Borr IHC , has priced an offering of additional 10.000% senior secured notes due 2028 for gross proceeds of approximately $150 million. These Additional Notes will have the same terms and conditions as the existing $1.225 billion aggregate principal amount of senior secured notes due 2028.
The proceeds are intended for the acquisition and activation costs of the newbuild rig "Vali", replacing a previously secured yard financing. This change was made due to more advantageous terms and pricing for the Additional Notes. The funds will also be used for general corporate purposes, including debt service. The settlement of the notes offering is expected around August 16, 2024, subject to customary closing conditions.
Borr Drilling (NYSE and OSE: BORR) has announced preliminary unaudited results for Q2 2024. The company expects:
- Total operating revenues of ~$272 million, up 16% from Q1 2024
- Operating income of ~$104 million, up 23% from Q1 2024
- Adjusted EBITDA of ~$136 million, up 17% from Q1 2024
The increase in operating income is primarily due to a contract termination, improved jack-up fleet operations, and changes in Mexico operations. Borr Drilling anticipates positive impacts on adjusted EBITDA from dayrate uplifts and new contracts, offset by one-off impacts. The company will release final Q2 2024 results on August 14, 2024.
Borr Drilling (NYSE: BORR) (OSE: BORR) has announced the release of its Q2 2024 financial results on August 14, 2024, after the New York Stock Exchange closes. The company will host a conference call and webcast on August 15, 2024, at 15:00 CEST (9:00 AM New York Time) to discuss the results. Participants are encouraged to join 10 minutes before the call starts. The earnings report and presentation will be available on the company's website. To access the webcast, participants can use the provided link, while for the conference call, registration is required through another link. A replay of the call will be available after the event.
Borr Drilling (NYSE: BORR) (OSE: BORR) has announced new contract commitments for three premium jack-up rigs, totaling 1,779 days and $332 million in contract revenue. The 'Arabia I' secured a 4-year contract in Brazil with Petrobras, starting Q1 2025. The 'Gunnlod' received a Letter of Award for seven wells in Malaysia, expected to start in November 2024. The 'Norve' secured a 109-day extension in Gabon until February 2025.
Additionally, the 'Gerd' will execute a previously announced 180-day commitment in Congo for ENI, starting October 2024. Year-to-date, Borr Drilling has secured 13 new contracts worth $644 million, with an average day rate of $185,000. The new Brazil contract for 'Arabia I' represents a 60% day-rate increase over its previous contract.
Borr Drilling (NYSE: BORR, OSE: BORR) has announced that its 2024 Annual General Meeting (AGM) will be held on August 14, 2024. The record date for voting eligibility is set for June 7, 2024. Detailed notices, agendas, and associated materials will be distributed prior to the meeting. This information is in accordance with section 5-12 of the Norwegian Securities Trading Act.
For further inquiries, contact Magnus Vaaler, CFO, at +44 1224 289208. The press release is available at Cision and PR Newswire websites.
Borr Drilling (NYSE: BORR, OSE: BORR) announced a cash distribution of US$0.10 per share for Q1 2024. The Board approved this on May 22, 2024.
Key dates are: last day including right on OSE is May 30, 2024, and on NYSE is May 31, 2024. Ex-dividend dates are May 31, 2024 (OSE) and June 3, 2024 (NYSE). Record date for both exchanges is June 3, 2024. Payment date is expected around June 17, 2024, with distributions to Euronext VPS shareholders around June 20, 2024.
This announcement follows the implementation of the Central Securities Depository Regulation in Norway, impacting settlement bases of NYSE (T+1) and OSE (T+2).
Borr Drilling (NYSE and OSE: BORR) will release its financial results for Q1 2024 on May 23, 2024. The company has scheduled a conference call and webcast for 15:00 CEST (9:00 AM New York Time) on the same day. Participants are encouraged to dial in 10 minutes before the call starts. The earnings report and presentation will be accessible on the company's Investor Relations section at www.borrdrilling.com.
To access the webcast, participants can click on the provided link. For the conference call, registration is required through another link, after which participants will receive dial-in details. A replay of the call will be available after its completion through a specified streaming link. For further inquiries, Magnus Vaaler, CFO, can be contacted directly.
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