Borr Drilling (BORR) Q4 2024 earnings summary

Executive summary

• Q4 2024 operating revenue rose to $263.1 million, up 9% sequentially, driven by higher day rates and a positive contract termination effect in Saudi Arabia.

• Adjusted EBITDA for Q4 2024 reached $136.7 million, up 18% from Q3, with a margin of 52.0% and full-year Adjusted EBITDA within the $500–$550 million guidance.

• Net income for Q4 2024 was $26.3 million, a 171% increase from Q3, with EPS of $0.11.

• Technical utilization was 98.9% and economic utilization 97.1% for the quarter.

• The board declared a $0.02 per share cash distribution and maintained a share repurchase authorization.

Financial highlights

• Q4 2024 operating income was $101.0 million, up 21% sequentially.

• Free cash at Q4 end was $61.6 million; total liquidity, including undrawn RCF, was $211.6 million.

• Cash decreased by $124.1 million from Q3, mainly due to new build payments and maintenance CapEx.

• Total assets stood at $3,419.6 million and total liabilities at $2,426.3 million as of Q4 2024.

• $175 million in new senior secured notes issued to finance the final new build; $70.8 million debt repaid.

Outlook and guidance

• 2025 faces headwinds from softening demand and lower day rates, especially in Saudi Arabia and Mexico.

• Early signs of market improvement expected in H2 2025, with increased contracting and tendering activity.

• 77% of 2025 rig days already contracted at higher average day rates ($149,000 vs. $136,000 in 2024); backlog additions of $795 million in 2024.

• Q1 2025 will be impacted by rig suspensions in Mexico and idle time, but offset by $44 million in mobilization payments and $125 million in Mexican receivables settlement.

• 2025 capex budgeted below $50 million, with no remaining growth capex after newbuild program completion.