Borr Drilling Limited Announces Third Quarter 2024 Results

Core Viewpoint - Borr Drilling Limited reported a decline in financial performance for the third quarter of 2024, with total operating revenues of $241.6 million, a net income of $9.7 million, and adjusted EBITDA of $115.5 million, all showing significant decreases compared to the previous quarter [2][3][6]. Financial Performance - Total operating revenues decreased by $30.3 million or 11% compared to the second quarter of 2024 [2]. - Net income fell by $22.0 million or 69% compared to the second quarter of 2024 [2]. - Adjusted EBITDA decreased by $20.9 million or 15% compared to the second quarter of 2024 [2]. Contractual Developments - The company has secured seventeen new contract commitments year-to-date, representing 4,129 days and $731 million in potential contract revenue [2]. - New contracts for rigs "Skald", "Norve", and "Natt" commenced with significantly higher day rates than previous contracts [4]. - Rigs "Gunnlod", "Gerd", and "Arabia I" experienced fewer operational days due to preparations for upcoming contracts [4]. Operational Updates - The technical utilization rate was reported at 98.7%, while the economic utilization rate was at 96.9% for the third quarter [3]. - The newbuild "Vali" was delivered in August and will begin operations in early 2025, while the final newbuild "Var" is scheduled for delivery in mid-November 2024 [5]. Market Conditions - Concerns regarding near-term oil supply exceeding demand have led to customer caution in confirming rig contracts, potentially delaying new projects [6]. - The company updated its full-year 2024 adjusted EBITDA guidance to be at or about the lower end of the range of $500 to $550 million [6]. Strategic Initiatives - Borr Drilling has 78% of its rig fleet contracted through 2025 at an average day rate of $148,000 per day, which is 10% higher than in 2024 [7]. - The board declared a cash distribution of $0.02 per share ($4.8 million) for the third quarter of 2024 and committed to a share buyback of $20 million before year-end 2024, totaling a shareholder return of $25 million [2][8].