Borr Drilling Restricted has secured new contract commitments within the North Sea and in Southeast Asia for 3 of its jack-up gigs.
The contract commitments add as much as 820 days in complete and $156.8 million in income inclusive of mobilization and demobilization compensation, Borr mentioned in a information launch Tuesday. The contracts are for Borr’s Prospector 1 and Gunnlod jack-up rigs, plus a rig nonetheless to be decided.
Within the North Sea, the corporate secured a number of contracts totaling 250 days of backlog that began in March. In Southeast Asia, Borr secured a one-well dedication, with an anticipated period of 90 days, that may start in Could, in accordance with the discharge.
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Additional, an undisclosed buyer issued a agency and binding letter of award for a marketing campaign anticipated to start out between the fourth quarter of 2024 and the primary quarter of 2025, with an estimated period of 480 days, Borr acknowledged.
In the meantime, Borr obtained a discover of short-term suspension of operations for its rig Arabia I, working in Saudi Arabia. The short-term suspension can be for a interval of as much as 12 months, and is predicted to start out within the second quarter.
The corporate mentioned it intends to hunt various engagement for the rig whereas it’s on suspension, in accordance with a separate assertion.
Fourth Quarter Outcomes
In its most up-to-date earnings launch, Borr reported fourth-quarter web revenue of $28.4 million, a rise of $28.1 million quarter over quarter. It posted complete working revenues of $220.6 million, a rise of $29.1 million, or 15 p.c, in comparison with the third quarter of 2023.
The corporate’s adjusted EBITDA for the fourth quarter of 2023 was $105.9 million, a rise of $17.7 million, or 20 p.c, sequentially.
Borr reported a complete contract income backlog of $1.75 billion as of December 31, 2023, together with its Mexico rigs.
“Our fourth quarter efficiency has been robust, enabling us to shut the yr having achieved a number of main milestones,” Borr CEO Patrick Schorn mentioned.
“On the contracting entrance, we closed the yr with all of our 22 delivered rigs contracted,” Schorn continued. “Over the course of 2023, we additionally secured a number of new contracts including $728 million, at an implied charge of roughly $161,000 per day, to our income backlog, which stood at $1.75 billion at yr finish”.
“Following the award of three further contracts in 2024, we’ve 87 p.c of our out there capability in 2024 already coated by agency contracts and priced choices, and we count on this to additional enhance within the coming months as we progress present negotiations. This robust contract protection offers each strong near-term income and earnings visibility in addition to the power to stability contracts to optimize our market place and earnings,” he outlined.
“Our Adjusted EBITDA elevated by 20 p.c from the third quarter to $105.9 million, reflecting a detailed to totally operational fleet. We count on Adjusted EBITDA to proceed to extend all through 2024 as extra rigs finish their present contracts and begin new ones at larger day charges and improved contract phrases. Primarily based on our optimistic enterprise outlook and powerful fleet protection, we preserve our estimate of Adjusted EBITDA for the total yr 2024 to be between $500 to $550 million,” Schorn added.
To contact the writer, e-mail rocky.teodoro@rigzone.com
