Unknown Executive's questions to Borr Drilling Ltd (BORR) leadership • Q2 2024
Question
A written question from the webcast asked if market dynamics have changed to support newbuild rig orders and whether shipyards have an appetite to take on such projects.
Answer
Chief Commercial Officer Bruno Morand and Executive Patrick Arnold Schorn explained that while some shipyards have an appetite for small orders, they are extremely busy, leading to long delivery times. Newbuild orders would require long-term contracts to justify costs approaching $300 million, which day rates do not yet fully support. However, Patrick Schorn concluded that with 30% of the global fleet over 35 years old, newbuilds will eventually be necessary for the industry, driven by future economics and day rates.