(Borr, 9.Aug.2024) — Borr Drilling Limited announced certain preliminary unaudited results for the quarter ended 30 June 2024.
The company expects for the three months ended 30 June 2024: (i) total operating revenues of approximately $272mn, an increase of $38mn or 16% compared to the first quarter of 2024, (ii) operating income of approximately $104mn, an increase of $19mn or 23% compared to the first quarter of 2024, and (iii) adjusted EBITDA of approximately $136mn, an increase of $19mn or 17% compared to the first quarter of 2024. The company expects $193.5mn in cash and cash equivalents and $150mn undrawn under our RCF as of 30 June 2024.
The increase in operating income of $19mn is primarily comprised of the following: (i) $10mn increase associated with the termination of a contract for “Arabia I” (one-off impact from the amortization of deferred revenue and deferred costs); (ii) $5mn net increase from the improved operations of our jack-up fleet; and (iii) $3mn increase in amortization of deferred revenue as a result of changes to our operating structure in Mexico for jack-up rigs “Galar”, “Odin” and “Njord”.
For illustrative purposes, the Company expects the following positive impacts to Q2 2024 adjusted EBITDA on an annualized basis:
- $99mn on an annualised basis from the uplift in dayrates in the second half of 2024 for the rigs Norve, Saga, Skald, Gerd and Natt;
- $32mn on an annualised basis from the increase in revenue from the new contract for Arabia I which is expected to commence early 2025; and
- $61mn on an annualised basis from the expected contract for the rig Vali, which is scheduled for delivery in Aug. 2024 and whose contract is expected to commence by year end
These positive impacts are offset by a $90mn negative impact (annualised) as a result of the positive one-off impacts in Q2 2024 associated with the termination of the Arabia I contract in June 2024, as well as the change in our operating structure in Mexico.
The company is currently finalizing its financial results for the three and six months ended 30 June 2024, which it plans to release on 14 Aug. 2024 after markets close.
The expected financial results for the three months ended 30 June 2024 presented herein are estimates, based on information available to management as of the date of this release, and are subject to further changes upon completion of the company’s standard quarter end closing procedures. Such preliminary operating results do not represent a comprehensive statement of financial results and actual results may differ materially from these estimates following the completion of Borr Drilling’s standard closing procedures, or as a result of other adjustments or developments that may arise before the results for this period are finalized. The company does not intend to update such financial information prior to release of its final second quarter 2024 financial information, which is scheduled for 14 Aug. 2024.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
| Hamilton, Bermuda | ||
| UNAUDITED NON-GAAP MEASURE RECONCILIATION | ||
| Set forth below is a reconciliation of the company’s Net Income to Adjusted EBITDA. | ||
| (in US$mn) | Q2 2024 | Q1 2024 |
| Net income | 31.7 | 14.4 |
| Depreciation of non-current assets | 31.9 | 31.8 |
| Income from equity method investments | 2.5 | (5.4) |
| Total financial expense, net | 55.4 | 57.8 |
| Income tax (credit)/expense | 14.9 | 18.2 |
| Adjusted EBITDA | 136.4 | 116.8 |
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