Q1 2024 Earnings Summary
Reported on Jan 9, 2025 (Before Market Open)
Pre-Earnings Price$5.83Last close (May 22, 2024)
Post-Earnings Price$6.43Open (May 23, 2024)
Price Change
$0.60(+10.29%)
- Borr Drilling has secured $318 million in new revenue backlog so far this year, including its first ever contract with a day rate exceeding $200,000 per day, demonstrating strong demand and the company's ability to secure premium rates despite temporary market fluctuations. ,
- The company anticipates only 5 to 6 rigs will enter the market in the next 18 to 24 months, a relatively low number that is unlikely to affect general supply, supporting a tight market and strong day rates.
- Borr Drilling is confident in recontracting the Arabia I rig in the near term due to a robust pipeline of opportunities and its stellar operational performance, indicating continued fleet utilization and revenue generation.
- The recent suspension by Saudi Aramco of 22 rigs, including Borr's Arabia I, indicates potential overcapacity in the market and may lead to lower utilization and revenue for Borr Drilling. Despite the company's optimism, they currently have no firm contract for the Arabia I rig.
- Borr Drilling has two newbuild rigs scheduled for delivery by the end of the year but has yet to secure a commitment for one of them, which could result in idle assets and increased costs if they are unable to find contracts in time.
- There were delays in cash collections from Mexico, with Q1 collections at $15 million compared to the regular expectation of $30 million, potentially impacting cash flow and indicating customer payment risks.