Borr Drilling Limited Announces New Contracts and Fleet Progress
Borr Drilling Limited Enhances Fleet and Contractual Commitments
Borr Drilling Limited (NYSE: BORR) has made significant strides in its operations by securing new contract commitments for its premium jack-up rigs. This initiative underscores the company's commitment to expanding its operational footprint while optimizing revenue streams.
Key Contract Highlights
Recently, Borr Drilling Limited has announced that it has been awarded new contracts that are expected to bolster its operational timeline. The company has secured commitments for three jack-up rigs, which include the "Thor", "Gerd", and "Norve". These new awards collectively span approximately 774 days and are projected to generate around $120 million in contract revenues, excluding additional mobilization and demobilization costs.
Moreover, the company has received mobilization notices for three other rigs—"Galar", "Grid", and "Gersemi"—that had previously been idled in Mexico. The recommencement of operations for these rigs is anticipated to contribute significantly to the overall revenue and EBITDA starting in the upcoming quarters.
Contracting Updates
In Southeast Asia, the "Thor" has received a binding Letter of Award from an operator in Vietnam. This award includes a firm scope involving three wells, with a planned duration of 75 days set to commence in the next quarter. The changes will slightly adjust the rig's operational schedule, ensuring it aligns with new commitments.
Similarly, in West Africa, the "Gerd" has secured a one-year firm program from an operator in Ivory Coast, with operations expected to begin in late Q4. Added to this, the rig "Norve" has received an award for a campaign lasting approximately 11 months that is contingent upon the customer's Final Investment Decision, aimed for later this year.
Progress on Fleet Developments
The fleet developments of Borr Drilling Limited present a proactive approach to maximizing operational capability. The re-mobilization requests for the "Galar", "Grid", and "Gersemi" suggest that the company is positioning itself to drive revenue growth through longstanding contracts while continuing to leverage its existing assets efficiently.
Notably, the "Galar" is set to be deployed in the Bacab-Lum field, which will operate under a private investment structure involving its affiliate. In addition, the rigs "Arabia I" and the newbuild "Vali" have commenced their respective earning cycles with Petrobras and Mellitah Oil and Gas, which is expected to add approximately $48 million in lump-sum mobilization revenues to the company's financials soon.
Looking Ahead: Potential for Growth
The recent contract awards and fleet reactivations provide Borr Drilling Limited with a solid foundation for growth in the upcoming quarters. With six rigs set to resume operations after a period of idleness, there's an optimistic outlook for improving utilization, incremental revenue, and overall EBITDA performance in Q2 and beyond.
Maintaining a Focus on Operational Excellence
Borr Drilling Limited is committed to maintaining operational excellence across all its projects. With new contracts in place and a revitalized fleet, the company is strategically positioned to enhance its market presence while meeting the evolving needs of its clients efficiently.
Frequently Asked Questions
What new contracts has Borr Drilling Limited secured?
Borr Drilling Limited has secured new contracts for three rigs—"Thor", "Gerd", and "Norve"—with an expected duration of 774 days and revenues projected at $120 million.
When is the expected start date for the engagements?
The engagements for the rigs are anticipated to commence soon, with specific schedules aligning with operational readiness in Southeast Asia and West Africa.
Which areas are being targeted for the operations of the new contracts?
The new contracts target regions such as Southeast Asia and West Africa, aiming for efficient deployment and operational success.
How does the reactivation of idle rigs affect revenue?
The reactivation of idle rigs is expected to significantly improve revenue and EBITDA performance starting in Q2, enhancing overall operational efficiency.
Who can be contacted for further information regarding Borr Drilling Limited?
For inquiries, you can reach out to Magnus Vaaler, CFO, at +44 1224 289208 for more details.
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