Borr Drilling (BORR) Q3 2024 earnings summary

Executive summary

• Q3 2024 results showed a decline in revenues and net income due to the absence of Q2 one-off items, but core operations remained strong with technical utilization at 98.7% and economic utilization at 96.9%.

• Adjusted EBITDA for Q3 was $115.5 million, down 15% sequentially, with a margin of 47.8%.

• The fleet will reach 24 premium rigs with the delivery of "Var," completing the new build program and positioning the company with the youngest fleet in the industry.

• 78% of fleet days for 2025 are contracted at an average day rate of $148,000, supporting robust revenue visibility.

• Shareholder distributions maintained at $25 million per quarter, with a shift toward $20 million in buybacks and a $0.02 per share dividend.

Financial highlights

• Q3 2024 total operating revenues were $241.6 million, down 11% from Q2 due to non-repeating one-off items.

• Net income for Q3 was $9.7 million, a 69% decrease from Q2.

• Adjusted EBITDA for Q3 was $115.5 million, down from $136.4 million in Q2.

• Cash and cash equivalents at quarter-end were $185.7 million; total liquidity stood at $335.7 million.

• Total equity was $988.2 million and total liabilities $2,355.1 million at September 30, 2024.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA guidance updated to the lower end of $500 million–$550 million due to market uncertainties.

• 78% of the fleet is contracted for 2025 at an average day rate of $148,000, 10% higher than 2024.

• Lower CapEx expected in 2025 as new builds complete and fewer special periodic surveys are required.

• Marketed utilization remains strong at approximately 90%.

• 2025 Adjusted EBITDA guidance will be provided in the next earnings call.