HAMILTON, Bermuda, Aug. 28, 2020 /PRNewswire/ -- Borr Drilling
Limited ("Borr", "Borr Drilling" or the "Company") (NYSE: "BORR",
OSE: "BDRILL") announces unaudited results for the three and six
months ended June 30, 2020.
Highlights in the Second Quarter of
2020
- Total operating revenues of $84.0
million, net loss of $109.6
million and Adjusted EBITDA* of $(1.9) million for the second quarter of 2020.
The adjusted EBITDA includes approximately $12 million of non-recurring costs related to the
agreements reached with the Company's creditors in June
2020
- The combined Adjusted EBITDA of the four separate Mexican JVs
that the Company has 49% ownership in was $30.1 million in the second quarter 2020,
compared to negative EBITDA in the first quarter of 2020 of
($2.3) million, an increase of
$32.4 million quarter on
quarter
- On April 30, 2020, the Company
sold two standard jack-up drilling rigs, the "Dhabi II" and the
"Paragon B152", for total cash proceeds of $15.8 million, leading to a gain on disposal of
$12.8
million
- In May 2020, the Company exited
its position in forward contracts for Valaris
shares
- In June 2020, the Company
completed an equity offering raising gross proceeds of $30
million
- In June 2020, the Company made
several amendments to loan facilities with its creditors and to the
delivery schedule of rigs with its shipyards, resulting in
liquidity improvement mainly through deferral of payments of more
than $315 million until the beginning
of 2022
Subsequent
events
- On August 10, 2020, the Company
announced the appointment of Patrick
Schorn as new Chief Executive
Officer
- In August, Pemex communicated a regular monthly payment plan to
OPEX, the JV providing Integrated Well Services, which should
substantially improve the JV's liquidity position, which in turn
will benefit Borr
The Chairman of the Board, Paal
Kibsgaard, commented:
"In the second quarter, we saw the full impact of the
anticipated activity reductions linked to COVID-19, resulting in a
sequential decrease in operating revenues of 19% to $84.0 million, and Adjusted EBITDA of
$(1.9) million. The adjusted EBITDA
includes $12 million of non-recurring
costs related to the agreements reached with the Company's
creditors in June 2020.
In the current challenging operating environment, Borr
Drilling has been focused on improving its liquidity runway and
conserving cash. Through negotiations with creditors and shipyards
in June, we improved the Company's liquidity by $315 million through the start of 2022, mainly
through deferral of payments.
Operationally, the Mexican business has improved
significantly quarter on quarter. The four JVs that the Company has
ownership in delivered USD30m in
Adjusted EBITDA in the quarter. Additionally, we estimate that
COVID-19 impacted our Mexican JVs directly by $5.5 million in lost revenue and additional
expenses combined. The wells delivered by Borr's integrated
services have, based on Pemex's Q2 2020 report, increased Pemex
production by 72k barrels/day. With
the quick payback and low breakeven for the customer we expect the
integrated well delivery business model to gain further traction
going forward.
From a liquidity perspective, the operations of our Mexican
JVs have suffered from irregular payments and difficulties with
factoring of receivables, which in turn has put further strain on
the Company's liquidity position. However, in late August 2020, Pemex confirmed their commitment to
enter into a regular monthly payment plan to our JVs, which will
reduce the working capital requirements and allow cash
distributions from the JVs to Borr, and thereby improve Borr's
liquidity position.
The improvement in oil prices during the spring of 2020
triggered demand for putting three of our warm stacked units back
to work. This shows the resilience of the shallow water offshore
drilling market and, as oil prices continue to improve, we expect
to put further units back to work in the future.
The distress in the offshore drilling industry is likely to
force both needed consolidation and fleet rationalisation going
forward. Borr Drilling has a brand-new jack-up drilling rig fleet
and is well positioned to participate in such consolidation if it
benefits our shareholders."
The full report and financial statements is available in the
enclosed file to this release.
August 28, 2020
The Board of Directors
Borr Drilling Limited
Hamilton, Bermuda
Questions should be directed to:
Magnus Vaaler: VP Investor
Relations and Treasury, +47 22 48 30 00
This information is subject to disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act.
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2nd Quarter 2020
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SOURCE Borr Drilling Limited