Borr Drilling Limited Announces Second Quarter 2024 Results

Core Insights - Borr Drilling Limited reported strong financial results for Q2 2024, with total operating revenues of $271.9 million, a 16% increase from Q1 2024, and net income of $31.7 million, reflecting a 120% increase compared to the previous quarter [2][3] - The company has secured fourteen new contract commitments year-to-date, representing 3,537 days and $651 million in potential contract revenue [2] - A cash dividend of $0.10 per share was declared for Q2 2024, to be paid on or about September 6, 2024 [2][7] Financial Performance - Adjusted EBITDA for the quarter was $136.4 million, up 17% from Q1 2024, contributing to a year-to-date adjusted EBITDA of $253 million [2][3] - The company has a strong cash position with nearly $200 million in cash at the end of the quarter, alongside an undrawn $150 million revolving credit facility [7][8] Operational Highlights - The technical utilization rate was reported at 99.2%, and the economic utilization rate at 98.4% for Q2 2024 [3] - All 22 delivered rigs are contracted, with only a few days remaining available in 2024, and approximately 73% of capacity contracted for 2025 [4] Contracting and Market Outlook - The company has secured new contracts at favorable day rates, including a long-term contract for the "Arabia I" in Brazil, and a replacement contract following a suspension in Saudi Arabia [4][6] - The market is expected to remain tight for premium assets, with an aging global jack-up rig fleet leading to incremental retirements, creating a favorable environment for Borr Drilling [6] Newbuilds and Future Plans - The delivery of the newbuild "Vali" is anticipated soon, with plans to assign it to a previously announced contract in Africa [5] - The final newbuild, "Var," is on schedule for delivery in late Q4 2024, with expectations of securing a contract by that time [5]