Borr Drilling Limited Expands Contracting Capabilities
Borr Drilling Limited Expands Contracting Capabilities
Borr Drilling Limited (NYSE: BORR) has recently made significant strides in enhancing its contracting capabilities with new commitments for four of its premium jack-up rigs. This latest development brings the total number of contracted rigs to an impressive 23 out of its fleet of 24.
The newly secured contracts encompass a combined duration of approximately 1,300 days, strategically designed to optimize short-term fleet utilization. These contracts are expected to yield an estimated revenue exceeding $129 million, providing a more robust visibility into future earnings. Additionally, the progress has increased their contract coverage to an impressive 84% for 2025, with an average day rate set at $144,000, and 45% for 2026, averaging $141,000.
New Contracts Strengthening Revenue Streams
In the Middle East, Borr Drilling’s rig named 'Arabia II,' currently stationed as warm stacked, has received a binding Letter of Award from a confidential client. This contract is set to begin in the coming months and is expected to have a firm duration of 500 days, plus an optional 200 days. Moreover, this agreement includes a performance-based incentive designed to reward outstanding operational results, effectively capitalizing on the rig’s modern capabilities.
Contract Activities in Southeast Asia
Southeast Asia is buzzing with activity as the rigs 'Thor' and 'Gunnlod' have also obtained Letters of Award from unknown customers. The Thor is scheduled to kick off a well-based program lasting approximately 240 days starting from later this year in October, while the Gunnlod is anticipated to commence a 100-day contract in September, following its existing obligations. Each of these contracts includes set options for extra wells, estimated at around 80 days each, which adds significant potential to their operational timeline.
Exploring New Opportunities in Mexico
In Mexico, the rig 'Odin' faces a temporary 30-day suspension ordered by PEMEX, effective early last month. However, alternative deployment avenues have been vigorously pursued, leading to a Letter of Intent from an independent oil company in Mexico for a 60-day accommodation program expected to begin shortly. Notably, this agreement also features priced options for drilling works, which has the potential to keep the rig contracted well into Q2 of the following year. With this latest addition, four out of seven rigs currently stationed in Mexico are now engaged with independent clients.
Year-to-Date Commitments and Future Outlook
As of now, Borr Drilling Limited has secured a total of 13 new contract commitments year-to-date, totaling 3,010 potential contract days and representing an impressive forecast of $366 million in potential revenues. This clearly indicates the company’s aggressive strategy in consolidating its operational footprint and expanding its client base.
Strategic Growth and Market Positioning
Borr Drilling's recent developments in the contracting sphere not only affirm its strong market position but also highlight its dedication to providing state-of-the-art drilling services. The management's focus remains on leveraging its advanced fleet to capture substantial contracts across diverse regions.
Contact Information for Inquiries
For further inquiries, please reach out to Magnus Vaaler, CFO, at +44 1224 289208.
Frequently Asked Questions
What recent contracts has Borr Drilling secured?
Borr Drilling has secured commitments for four jack-up rigs, enhancing its total contracted rigs to 23.
What is the total estimated revenue from the new contracts?
The newly secured contracts are expected to generate more than $129 million in estimated revenue.
Which regions are involved in these new contracts?
The new contracts involve operations in the Middle East, Southeast Asia, and Mexico.
How many rigs does Borr Drilling currently have contracted?
Currently, Borr Drilling has 23 out of 24 of its rigs contracted.
Who can be contacted for more details regarding these contracts?
Magnus Vaaler, CFO, can be contacted at +44 1224 289208 for more information.
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