Borr Drilling Inc. (NASDAQ: BORR) stock gained by 0.96% at last close while the BORR stock price surged by 28.57% in the pre-market trading session. Borr Drilling Limited is a drilling company that works all over the world. The company owns and operates contemporary, high-specification jack-up rigs that provide drilling services to the exploration and production and production companies around the world in water depths of up to 400 feet.
BORR stock’ Financial Highlights
Borr Drilling announced its financial outcomes for the third quarter of 2021. Given below is the summary:
- Total operational sales for the third quarter of 2021 were $73.0 million, an increase of $18.2 million or 33 percent from the second quarter of 2021.
- In the second quarter of 2021, the net loss was $32.6 million, down $27.3 million from the previous quarter.
- Cash and cash equivalents totaled $68.9 million at the end of the third quarter of 2021, an increase of $36.5 million from the second quarter of 2021.
- Adjusted EBITDA of $20.0 million, up from $16.3 million in the second quarter of 2021, a 441 percent gain.
- Year to date, the company has been granted 32 new contracts, extensions, exercised options, and LOA/LOIs, totaling 7,929 days and $668 million in potential backlog, including contracts through its Drilling JVs and mobilization compensation.
CEO, Patrick Schorn stated that,
They are happy with their success in the third quarter of 2021, which represents a critical milestone in their global operational turnaround efforts. In the quarter, their 13 operating rigs generated strong EBITDA and positive cash flows. The selling of their integrated well services joint ventures and the downsizing of their Mexico operations have also helped to improve their cash situation.
Management has maintained contact with several creditors in order to meet the debt maturities in 2023. They’re currently in early talks with one of the major creditors, and they’ve agreed on a structure that will allow them to prolong commitments well beyond 2023. This is contingent on a number of factors, including the consent of each company’s board of directors and the achievement of appropriate concessions from other creditor groupings.
They are optimistic in their capacity to improve their financial performance significantly with further growth in the number of active rigs and an upward adjustment of the E&P capital budgets for 2022. This progress will also lay the groundwork for a solution for the 2023 maturities that will benefit all parties involved.
