Borr Drilling(BORR)

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Borr Drilling(BORR) - 2025 Q1 - Earnings Call Transcript
2025-05-22 14:00
Borr Drilling (BORR) Q1 2025 Earnings Call May 22, 2025 09:00 AM ET Company Participants Patrick Schorn - CEOMagnus Vaaler - Chief Financial OfficerBruno Morand - Chief Commercial OfficerEddie Kim - Vice President - Equity ResearchDoug Becker - Co-Founder & PartnerFredrik Stene - Head of ResearchGregory Rossi - Director - FRG AmericasFady Chammas - Investment Advisory Conference Call Participants None - Analyst Operator Good day, and thank you for standing by. Welcome to the Boro Drilling Limited Q1 twenty ...
Borr Drilling(BORR) - 2025 Q1 - Quarterly Report
2025-05-21 20:15
[Management Discussion and Analysis of Financial Condition and Results of Operation](index=7&type=section&id=Management%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operation) This section provides an overview of Borr Drilling's business, recent operational and financial performance, liquidity, and capital resources for the first quarter of 2025 [Overview](index=7&type=section&id=Overview) Borr Drilling is an offshore shallow-water drilling contractor that owns, contracts, and operates a fleet of jack-up rigs for the oil and gas industry, with 24 premium jack-up rigs as of March 31, 2025 - The company's **primary business** is the ownership, contracting, and operation of jack-up rigs for shallow-water operations (up to 400 feet)[18](index=18&type=chunk) - As of March 31, 2025, Borr Drilling's fleet comprised **24 premium jack-up rigs**[18](index=18&type=chunk) [Recent Developments](index=7&type=section&id=Recent%20Developments) In the first quarter of 2025, the company executed several key operational and corporate actions, including commencing a new contract for the 'Vali' rig, receiving notice to re-mobilize three previously suspended rigs in Mexico, and cancelling a significant number of treasury shares - In March 2025, the company cancelled **19,680,391 treasury shares** related to a share lending agreement[19](index=19&type=chunk) - The **'Vali' rig** commenced its first contract in March 2025 after being delivered in August 2024[20](index=20&type=chunk) - In April 2025, the company received notice to re-mobilize the rigs **'Galar', 'Grid', and 'Gersemi'**, which had been on temporary suspension in Mexico[20](index=20&type=chunk) [Operating and Financial Review](index=7&type=section&id=Operating%20and%20Financial%20Review) For the first quarter of 2025, Borr Drilling reported a net loss of $16.9 million, a significant downturn from a net income of $14.4 million in the same period of 2024, driven by a 7% decrease in total operating revenues and a 5% increase in total operating expenses, with Adjusted EBITDA also decreasing by 18% to $96.1 million Selected Financial Information (Q1 2025 vs Q1 2024) | In $ millions | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | 216.6 | 234.0 | (17.4) | (7)% | | **Operating income** | 60.2 | 85.0 | (24.8) | (29)% | | **(Loss) / income from equity method investments** | (1.8) | 5.4 | (7.2) | (133)% | | **Total financial expenses, net** | (62.7) | (57.8) | (4.9) | 8% | | **Net (loss) / income** | (16.9) | 14.4 | (31.3) | (217)% | - Total operating revenues decreased by **$17.4 million**, mainly due to a **$24.4 million** drop in related party revenue and a **$3.7 million** decrease in bareboat charter revenue, as three rigs were on temporary suspension, partially offset by a **$6.8 million** increase in management contract revenue and a **$3.9 million** rise in dayrate revenue[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Rig operating and maintenance expenses rose by **$5.8 million**, partly because expenses for certain rigs previously recognized in equity method investments are now recognized directly by the company following contract restructuring and suspensions[28](index=28&type=chunk) Adjusted EBITDA Reconciliation (Q1 2025 vs Q1 2024) | In $ millions | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net (loss) / income** | (16.9) | 14.4 | (31.3) | (217)% | | Depreciation of non-current assets | 35.9 | 31.8 | 4.1 | 13% | | Loss / (Income) from equity method investments | 1.8 | (5.4) | 7.2 | (133)% | | Total financial expenses, net | 62.7 | 57.8 | 4.9 | 8% | | Income tax expense | 12.6 | 18.2 | (5.6) | (31)% | | **Adjusted EBITDA** | **96.1** | **116.8** | **(20.7)** | **(18)%** | [Liquidity and Capital Resources](index=10&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $170.0 million in cash and cash equivalents, with total principal debt at $2,179.6 million, while net cash from operating activities substantially increased to $138.7 million primarily due to working capital movements including large cash settlements from Mexico operations, and the company continued its cash distributions to shareholders - As of March 31, 2025, the company had **$170.0 million** in cash and cash equivalents and total principal debt outstanding of **$2,179.6 million**[36](index=36&type=chunk)[38](index=38&type=chunk) Cash Flow Summary (Q1 2025 vs Q1 2024) | In $ millions | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 138.7 | 23.9 | 114.8 | 480% | | Net cash used in investing activities | (25.1) | (18.7) | (6.4) | 34% | | Net cash (used in) / provided by financing activities | (4.9) | 175.2 | (180.1) | (103)% | | Net increase in cash and cash equivalents | 108.7 | 180.4 | (71.7) | (40)% | - The significant increase in net cash from operating activities was primarily due to working capital movements, including approximately **$117 million** in cash settlements from Mexico operations[42](index=42&type=chunk) Recent Cash Distributions | Date of Cash Distribution Declaration | Date of Payment to Shareholder | Cash Distribution per Share ($) | | :--- | :--- | :--- | | February 19, 2025 | March 19, 2025 | $0.02 | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes Adjusted EBITDA, a non-GAAP financial measure, to enhance comparability of its underlying business performance, defined as net income adjusted for depreciation, income/loss from equity method investments, net financial expenses, and income tax expense Definition of Adjusted EBITDA | Non-GAAP Measure | Closest Equivalent to GAAP Measure | Definition | | :--- | :--- | :--- | | Adjusted EBITDA | Net (loss) / income | Net (loss) / income adjusted for: depreciation of non-current assets; (loss) / income from equity method investments; total financial expenses, net; and income tax expense. | - Management believes **Adjusted EBITDA** improves period-to-period comparability and is representative of underlying performance, though it has limitations such as not reflecting cash requirements for capital expenditures, debt service, or taxes[45](index=45&type=chunk)[47](index=47&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's unaudited financial statements, including statements of operations, balance sheets, cash flows, and detailed notes for the first quarter of 2025 [Unaudited Condensed Consolidated Statements of Operations](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, the company reported total operating revenues of $216.6 million and a net loss of $16.9 million, a significant shift from the same period in 2024, which saw revenues of $234.0 million and a net income of $14.4 million, resulting in a basic and diluted loss per share of $0.07 for Q1 2025 Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | In $ millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Total operating revenues** | **216.6** | **234.0** | | Operating income | 60.2 | 85.0 | | Total financial expenses, net | (62.7) | (57.8) | | (Loss) / income before income taxes | (4.3) | 32.6 | | Income tax expense | (12.6) | (18.2) | | **Net (loss) / income** | **(16.9)** | **14.4** | | **Basic (loss) / income per share** | **(0.07)** | **0.06** | | **Diluted (loss) / income per share** | **(0.07)** | **0.06** | [Unaudited Condensed Consolidated Balance Sheets](index=15&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Borr Drilling's balance sheet showed total assets of $3,402.2 million and total liabilities of $2,427.3 million, resulting in total equity of $974.9 million, with cash and cash equivalents increasing significantly to $170.0 million from $61.6 million at year-end 2024, while total debt remained relatively stable Condensed Consolidated Balance Sheet Highlights | In $ millions | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | 170.0 | 61.6 | | Total current assets | 516.9 | 516.6 | | Jack-up drilling rigs, net | 2,806.5 | 2,823.2 | | **Total assets** | **3,402.2** | **3,419.6** | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | 412.4 | 409.6 | | Long-term debt | 1,996.6 | 1,992.5 | | **Total liabilities** | **2,427.3** | **2,426.3** | | **Total equity** | **974.9** | **993.3** | | **Total liabilities and equity** | **3,402.2** | **3,419.6** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=16&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, the company generated a robust $138.7 million in cash from operating activities, a sharp increase from $23.9 million in Q1 2024, with cash used in investing activities at $25.1 million and cash used in financing activities at $4.9 million, resulting in a net increase in cash and cash equivalents of $108.7 million, bringing the total to $171.2 million at the end of the period Condensed Consolidated Statements of Cash Flows (Q1 2025 vs Q1 2024) | In $ millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **138.7** | **23.9** | | Net cash used in investing activities | (25.1) | (18.7) | | Net cash (used in) / provided by financing activities | (4.9) | 175.2 | | **Net increase in cash, cash equivalents and restricted cash** | **108.7** | **180.4** | | Cash, cash equivalents and restricted cash at the end of the period | 171.2 | 283.0 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the accounting policies and financial figures presented, including the company operating as a single segment, a geographic revenue breakdown, specifics on debt instruments and maturities, related party transactions with the Mexico JV, and changes to share capital, including a significant cancellation of treasury shares - **Note 4:** The company operates as a **single reportable segment**, with major customers in Q1 2025 including **ENI S.p.A (23% of operating revenues)** and **PTT Exploration and Production (14%)**[69](index=69&type=chunk)[71](index=71&type=chunk) - **Note 6:** The company's Mexico operations were restructured, with bareboat charters with the Perfomex JV terminated and replaced with new agreements with an external party effective January and April 2024, and three rigs under these new agreements temporarily suspended in January 2025, with notice to re-mobilize received in April 2025[82](index=82&type=chunk)[85](index=85&type=chunk) - **Note 9:** Bermuda enacted a **15% Corporate Income Tax** effective January 1, 2025, with the company expecting to be in scope in 2026 but not anticipating a material short-term impact[90](index=90&type=chunk)[95](index=95&type=chunk) - **Note 17:** Total principal debt outstanding as of March 31, 2025, was **$2,179.6 million**, and the company was in compliance with all debt covenants[115](index=115&type=chunk)[119](index=119&type=chunk) - **Note 21:** In Q1 2025, the company cancelled **19,680,391 treasury shares** following its delisting from the Oslo Stock Exchange and subsequent amendments to its Share Lending Agreement[131](index=131&type=chunk)[133](index=133&type=chunk)
Borr Drilling Limited - Invitation to webcast and conference call Q1 2025 results
Prnewswire· 2025-04-24 08:32
Company Information - Borr Drilling Limited (NYSE: BORR) plans to release its financial results for the first quarter of 2025 after the close of the New York Stock Exchange on May 21, 2025 [1] - A conference call and webcast is scheduled for 9:00 AM New York Time (15:00 CET) on May 22, 2025, with participants encouraged to dial in 10 minutes before the start [1] Access Information - The earnings report, webcast, and accompanying presentation will be available from the Investor Relations section on the company's website [2] - Participants can access the webcast through a provided link or register for the conference call to receive dial-in details [2] Replay Information - After the call, participants can stream the replay of the call using a specified link [3] - Questions regarding the event can be directed to Magnus Vaaler, CFO, at a provided contact number [3]
Borr Drilling Limited - Contracting and Fleet Updates
Prnewswire· 2025-04-08 05:00
Core Viewpoint - Borr Drilling Limited has announced new contract commitments for three premium jack-up rigs and provided updates on its fleet operations, indicating a positive outlook for revenue and utilization in the upcoming quarters [1][8]. Contracting Updates - The "Thor" rig has received a binding Letter of Award from Vietsovpetro in Vietnam for three wells, with a duration of 75 days, starting in April 2025, and extending its contract through September 2025 [3]. - The "Gerd" rig secured a one-year contract from Foxtrot in Ivory Coast, set to begin in late Q4 2025 [4]. - The "Norve" rig has received a Letter of Award for an 11-month campaign from an undisclosed operator, expected to start in the second half of 2026, pending Final Investment Decision in Q2 2025 [4]. Fleet Developments - In Mexico, the company has received re-mobilization requests for the "Galar," "Grid," and "Gersemi" rigs, with operations expected to resume in Q2 2025 after being suspended [5]. - The "Arabia I" and newbuild "Vali" rigs have commenced earning day rate revenues under long-term contracts with Petrobras in Brazil and Mellitah Oil and Gas in Libya, respectively, leading to approximately $48 million in lump-sum mobilization revenues [6]. Financial Implications - The new awards for the "Thor," "Gerd," and "Norve" rigs are expected to have a combined duration of 774 days and generate estimated contract revenues of around $120 million, excluding mobilization and demobilization fees [8]. - With the resumption of operations for six previously idle rigs, the company anticipates significant improvements in utilization, revenue, and EBITDA starting in Q2 2025 and beyond [8].
Borr Drilling Limited - Filing of 2024 Annual Report on Form 20-F
Prnewswire· 2025-03-25 12:29
Core Points - Borr Drilling Limited filed its Annual Report on Form 20-F for the year ended December 31, 2024 [1] - The 2024 Annual Report is available for download from the SEC's website and the company's website [1] Company Information - The filing date of the 2024 Annual Report is March 25, 2025 [1] - Contact information for inquiries is provided, including the CFO's name and phone number [2]
Borr Drilling(BORR) - 2024 Q4 - Annual Report
2025-03-25 12:04
Contractual and Operational Performance - The company experienced an increase in contracted rigs, with 21 rigs contracted as of December 31, 2022, 22 as of December 31, 2023, and maintaining 22 for December 31, 2024[45]. - The company delivered eight, nine, six, and eight newbuild jack-up rigs during 2021, 2022, 2023, and 2024, respectively, representing increases of approximately 2.0%, 2.4%, 1.86%, and 1.04% in the total worldwide fleet[47]. - The company's Total Contract Backlog as of December 31, 2024, was approximately $1,382.8 million, relating to 23 contracts with firm terms expiring between 2025 and 2029[81]. - The company may face challenges in renewing contracts as they expire, which could affect its Total Contract Backlog[43]. - The company has experienced early terminations and suspensions of contracts, which may not fully compensate for lost revenues, impacting its financial results[76]. - The company is at risk of not securing favorable contracts for its jack-up rigs, which could lead to idling or stacking of rigs and associated cash expenditures[78]. Financial Condition and Debt Management - The company has significant debt maturities in the coming years, which may impact its ability to operate if future cash flows are insufficient[43]. - As of December 31, 2024, the company has total debt of $2,179.6 million, representing 63.7% of its assets[143]. - The company has scheduled final maturity dates for all its debt between 2028 and 2030, with annual amortization payments of approximately $134.7 million starting in 2024[142]. - The company expects to need to refinance or extend its debt prior to maturity due to insufficient cash resources[142]. - The company anticipates that a significant portion of its cash flow will be dedicated to servicing its debt, limiting availability for other purposes[151]. - The company may face defaults under its debt instruments if it is unable to repay or refinance its debt as it becomes due[149]. - The company is obligated to fund any capital shortfalls associated with cash calls to shareholders in its joint ventures, which could significantly impact liquidity[86]. Market and Economic Conditions - The offshore drilling industry is highly cyclical, with periods of low demand and oversupply adversely affecting business operations[44]. - Oil prices ranged from approximately $71.03 to $97.10 in 2023 and from approximately $70.31 to $93.12 in 2024, indicating significant volatility that impacts drilling activity[48]. - The impact of geopolitical tensions, such as the Russian invasion of Ukraine, has contributed to volatility in oil prices, affecting demand for drilling services[49]. - The company is exposed to potential declines in demand for its services due to the global transition towards renewable energy and low or zero carbon alternatives, which may impact its customers' capital expenditure budgets[58]. - Current global economic conditions, including military actions and sanctions, have impacted capital markets and may continue to affect the company's ability to raise capital[158]. Regulatory and Compliance Risks - The company may face increased compliance costs and operational restrictions due to current and future regulations related to renewable energy transitions[59]. - Compliance with complex laws and regulations governing international drilling could increase operating costs and limit drilling activity[170]. - The company is subject to complex and evolving tax laws across multiple jurisdictions, which may lead to higher tax liabilities and effective tax rates[203]. - Future government regulations related to climate change may require significant financial expenditures for compliance, including new emission controls[207]. - Regulatory enforcement in privacy and data protection is increasing, potentially impacting the company's reputation and operational costs[197]. Operational Challenges and Risks - The company faces risks from geopolitical tensions, including the Russian invasion of Ukraine and conflicts in the Middle East, which could lead to increased volatility in oil and gas prices, adversely affecting revenues and profits[57]. - The company is exposed to risks related to technological obsolescence and the growing importance of Artificial Intelligence (AI) in the oil and gas industry[42]. - The reliance on artificial intelligence (AI) technologies is increasing in the oil and gas industry, and failure to effectively integrate AI could adversely affect the company's competitive position and profitability[69]. - The company incurs significant activation and reactivation costs for newbuild jack-up rigs, historically ranging from $11 million to $20 million per rig[100]. - The construction of newbuild jack-up rigs is subject to risks of delays and cost overruns, which could materially impact the company's financial performance[101]. Human Resources and Staffing - Limited availability of qualified personnel is expected to increase operating costs and impact staffing for drilling operations[103]. - The ability to attract and retain skilled personnel is critical for operations, with training and certification requirements posing additional challenges[106]. - Collective bargaining agreements may lead to higher personnel costs and operational restrictions[105]. - The cyclical nature of the offshore drilling industry is causing upward pressure on wages, complicating staffing and increasing operational risks[104]. Environmental and Sustainability Concerns - The company faces adverse effects from climate change, including increased regulation and reduced demand for oil and gas services, which could significantly impact financial and operational performance[208]. - Severe weather events linked to climate change may damage equipment and disrupt operations, affecting major customers and leading to financial losses[209]. - Growing scrutiny on sustainability and ESG practices may hinder access to capital, as investors increasingly focus on these factors when making investment decisions[210]. - The company may need to implement stricter ESG standards to retain and attract investors, with potential costs and resource requirements for compliance[212]. Shareholder and Market Dynamics - The five largest customers accounted for 55% of the company's revenue for the year ended December 31, 2024, indicating a reliance on a limited customer base[89]. - The company has 244,926,821 common shares outstanding, with Related Parties owning approximately 7.9% of total shares, which may influence market dynamics[225]. - Future sales of equity securities could dilute existing shareholders and negatively impact share prices, especially if significant amounts are sold[226]. - The board declared cash distributions of $0.10 per share for Q1 and Q2 2024, and $0.02 per share for Q3 and Q4 2024, subject to future performance and financial conditions[232]. - The fluctuating market price of common shares may be influenced by various factors, including operating performance and investor sentiment[219].
Borr Drilling(BORR) - 2024 Q4 - Earnings Call Transcript
2025-02-20 19:48
Financial Data and Key Metrics Changes - Operating revenue increased by $21.5 million over Q3, primarily driven by higher day rates for the Net and Prospector One [6] - Adjusted EBITDA for the quarter was $136.7 million, an increase of $21.2 million or 18% compared to the third quarter [18] - Net income for the fourth quarter was $26.3 million, an increase of $16.6 million, resulting in earnings per share of $0.11 [18] - Free cash position at the end of Q4 was $61.6 million, with total available liquidity of $211.6 million [19] Business Line Data and Key Metrics Changes - Technical utilization rate was 98.9% and economic utilization rate was 97.1% [7] - Approximately 6,700 contracted rig days in 2025, representing 77% of total available rig days, at an average day rate of $149,000 compared to $136,000 in 2024 [11] Market Data and Key Metrics Changes - A weaker market was observed with rig suspensions in Saudi Arabia and Mexico, but this was partially offset by incremental demand in West Africa and Southeast Asia [8] - Modern rig market utilization stands at 93%, with just under 90% if adjusted for suspensions [28] - In Mexico, approximately twelve rigs or 45% of PEMEX's contracted fleet are currently suspended, affecting production levels [33] Company Strategy and Development Direction - The company has completed its new build program and will focus on reducing idle periods and strengthening backlog visibility into 2026 [10][36] - The board declared a cash distribution of $0.02 per share for Q4 2024, reflecting a focus on maintaining a strong balance sheet [13] - The company anticipates budgeted capital expenditures for 2025 to be below $50 million [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the global jackup market despite near-term uncertainties [9][39] - The company expects to face headwinds in the first quarter of 2025 due to rig suspensions but remains optimistic about the recovery in the second half of the year [12][34] - Management highlighted the importance of the Mexican government's commitment to stabilize production and payments, which is expected to positively impact operations [51][72] Other Important Information - The company secured $795 million in backlog at an average rate of $177,000 per day in 2024 [24] - The company has an existing share repurchase authorization which can be used opportunistically [13] Q&A Session Summary Question: Leading edge day rates - Management noted that leading edge day rates for benign market jackups have been around $120,000 to $130,000, with some markets experiencing higher competition [44][46] Question: Update on rigs in Mexico - Management confirmed that three temporarily suspended rigs are expected to return to work in the second quarter, with a strong focus on getting production back up [50][52] Question: Latest in Saudi Arabia - Management indicated that the situation in Saudi Arabia remains steady, with a focus on offshore gas work and potential large EPC contracts being awarded [56][58] Question: Future payment schedules in Mexico - Management acknowledged the challenges in payment regularity but expressed optimism about the government's efforts to stabilize the situation and increase private investments [67][72] Question: Dialogue with clients and contract timing - Management reported constructive discussions with clients, with an increasing number of opportunities building up in the pipeline for 2025 and 2026 [86][88] Question: Financial policy going forward - Management emphasized a focus on strengthening the balance sheet and conserving cash, with plans to evaluate debt repayment and share buybacks later in the year [106][108]
Borr Drilling(BORR) - 2024 Q4 - Earnings Call Presentation
2025-02-20 18:02
Q4 2024 PRESENTATION February 20, 2025 3 Liquidity includes undrawn RCF of $150 million 3 Key Financials Q4 2024 74,2 87,9 94,2 111,5 116,8 136,4 115,5 136,7 0 50 100 150 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Forward Looking Statement This announcement and related discussions include forward looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements do not reflect historical facts and may be id ...
Borr Drilling Limited - Dividend declaration and key information relating to the cash distribution for the fourth quarter 2024
Prnewswire· 2025-02-19 21:33
Group 1 - Borr Drilling Limited's Board of Directors has approved a cash distribution of paid-in capital of US$0.02 per share for the fourth quarter of 2024 [1] - The record date for shareholders is March 3, 2025, with the ex-date also set for March 3, 2025, and the payment date expected to be on or about March 19, 2025 [1] - For shareholders registered in Euronext VPS, the ex-date is February 28, 2025, and the payment date is expected to be on or about March 24, 2025 [2]
Borr Drilling Limited - Collections update Mexico
Prnewswire· 2025-01-30 23:06
Core Viewpoint - Borr Drilling Limited has reached an agreement with a major Mexican customer to settle approximately $125 million in outstanding receivables, which is expected to be collected in the first half of February 2025 [1][2]. Financial Summary - The $125 million payment represents over 75% of the outstanding receivables with this customer as of December 31, 2024 [2]. - The collections will incur an agreed financing fee in the mid-single digit percentage range [2]. Industry Implications - The CEO of Borr Drilling highlighted that the commitments from the Mexican government and PEMEX towards a sustainable supplier payment mechanism will positively impact future offshore drilling opportunities in Mexico [3].