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Borr Drilling Limited is an international offshore drilling contractor specializing in shallow-water drilling services for the oil and gas industry. The company owns and operates a modern fleet of jack-up drilling rigs designed for exploration, development, and maintenance of oil and gas wells in shallow-water areas. Borr Drilling primarily generates revenue through its dayrate model, offering rig charters and ancillary services to a diverse range of clients, including integrated oil companies, national oil companies, and independent oil and gas producers.
- Dayrate Model - Provides rig charters and associated services for shallow-water drilling operations, including exploration, development, and workover activities. This segment encompasses all revenue-generating activities of the company.
- Given the unexpected suspensions by Aramco and the potential for further disruptions, how confident are you in achieving your 2024 adjusted EBITDA guidance of $500 million to $550 million, and what specific measures have you implemented to mitigate the impact of such suspensions on your financial performance?
- With your contracted coverage for 2025 currently at 70% and open capacity primarily in the second half of the year, what is your strategy to secure contracts for these periods at favorable day rates amidst increasing competition, particularly in regions like Asia where competitive pressures have intensified?
- Anticipating significant free cash flow in 2025 due to reduced CapEx and higher day rates, can you provide more detailed insights into your capital allocation plans between debt reduction, shareholder returns through dividends and buybacks, and potential investments, and what factors will influence these decisions?
- Regarding your entry into the Brazilian market with the Arabia I, which involves regulatory and operational complexities, what are the key risks you foresee, and how are you preparing to address potential cost overruns or delays associated with importation and acceptance of rigs?
- Considering the aging global jack-up fleet and the absence of newbuild orders over the past decade, how does Borr Drilling plan to meet future demand, and are you contemplating investing in newbuild orders despite high construction costs and extended shipyard delivery times?