Q3 2024 Borr Drilling Ltd Earnings Call Transcript
Key Points
- Borr Drilling Ltd (BORR) achieved strong core operations with a technical utilization of 98.7% and an economic utilization rate of 96.9%.
- The company has secured new contracts at accretive day rates for several rigs, enhancing revenue visibility into 2025.
- Borr Drilling Ltd (BORR) completed its newbuild program, resulting in a fleet of 24 premium rigs, the youngest in the industry, providing a competitive advantage.
- The company has a strong liquidity position with approximately $335 million, including cash and undrawn credit facilities.
- Borr Drilling Ltd (BORR) continues to return value to shareholders with a quarterly total shareholder return of $25 million, including dividends and share buybacks.
- Q3 2024 results were slightly below the prior quarter due to the absence of one-off benefits that boosted Q2 results.
- There is a risk of contract delays and potential gaps in activity due to market uncertainties and customer caution.
- The company has updated its full-year 2024 adjusted EBITDA guidance to be at or above the lower end of the $500 million to $550 million range.
- Borr Drilling Ltd (BORR) faces challenges with delayed payments from Pemex, impacting accounts receivable.
- The jack-up market in specific regions is experiencing uncertainties due to rig suspensions and potential suspensions in Saudi Arabia and Mexico.
Thank you. Good morning, and thank you for participating in the Borr Drilling third-quarter earnings call. I'm Patrick Schorn and with me here in Bermuda today following the Borr Drilling Board meeting is Bruno Morand, our Chief Commercial Officer; and Magnus Vaaler, our Chief Financial Officer.
Next slide, please. First, covering the required disclaimers. I would like to remind all participants that some of the statements will be forward-looking. These matters involve risks and uncertainties that could cause actual results to differ materially from those projected in these statements.
I, therefore, refer you to our latest public filings. This quarter's results were as expected, though slightly below the prior quarter. Recall that Q2 results were boosted by one-off benefits related to our Mexico contracts and suspension of the Arabia I.
Without these one-off items, Q3 adjusted EBITDA of $115 million was essentially flat with Q1. Our core operations performed strongly with a technical
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