(Borr Drilling, 25.Oct.2024) — Borr Drilling Limited announced certain preliminary unaudited results for the quarter ended 30 Sep. 2024.
For the three months ended 30 Sep. 2024, the company expects: (i) total operating revenues of approximately $242mn, (ii) operating income of approximately $84mn, and (iii) Adjusted EBITDA of approximately $116mn. The company expects approximately $186mn in cash and cash equivalents and $150mn undrawn under our revolving credit facility as of 30 Sep. 2024.
The decrease in operating income of approximately $21mn compared to the second quarter of 2024 is primarily comprised of the following: (i) $13mn decrease associated with a one-off net impact in 2Q:24 from the amortization of deferred revenue and deferred costs related to the termination of a contract for “Arabia I”; and (ii) $11mn decrease in related party revenue associated with three rigs in Mexico, due to the one-time recognition of accelerated amortization of deferred revenue in 2Q:24 as a result of the amendments made to the Mexico structure effective 1 Apr. 2024.
Furthermore, the company expects FY 2024 adjusted EBITDA at or around the lower end of the previously disclosed guiding range of $500mn – $550mn.
For illustrative purposes, the company expects the following future positive impacts to adjusted EBITDA on an annualized basis:
- $39mn on an annualised basis from the increases in contracted dayrates for rigs operating in 3Q:24 (Norve, Gerd, Natt) with expected dayrates uplift in 4Q:24 compared to 3Q:24, including the impact of off-contract time in 3Q:24; and
- $143mn on an annualised basis from the expected contract start-up of four rigs in 4Q:24/1Q:25, reflecting expected impact of (i) expected contract for Vale, expected to commence in early Q1 2025 ($56mn expected annualized impact), (ii) Arabia I contract commencing in 1Q:25, and (iii) Prospector 1 and Gunnlod contracts commencing in 4Q:24; includes impact of off-contract time in 3Q:24
These positive impacts may be offset by less contribution from rigs operating in 3Q:24 whose contracts expire in the near future (Thor and Ran) which remain to be contracted. The impact these rigs had on the 3Q:24 EBITDA was approximately $11mn.
The company is currently finalizing its financial results for the three and nine months ended 30 Sep. 2024, which it plans to release on 6 Nov. 2024 after markets close.
The expected financial results for the three months ended 30 Sep. 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 or financial position, 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 third quarter 2024 financial information, which is scheduled for 6 Nov. 2024.
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