Highlights Second Quarter of 2022
- Total operating revenues of
$105.3 million , an increase of$23.3 million or 28% compared to the first quarter of 2022
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Net loss of
$165.3 million , an increase in loss of$114.0 million compared to the first quarter of 2022, mainly attributable to an impairment loss in Q2 2022 of$124.4 million due to an LOI entered into in June for the sale of three newbuild rigs, resulting in a decrease in net loss quarter on quarter of$10.4 million when excluding impairment
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Cash and cash equivalents of
$29.7 million at the end of the second quarter of 2022, a decrease of$20.5 million from the end of the first quarter of 2022 of which$15.9 million was used on rig activations
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Adjusted EBITDA of
$37.0 million , an increase of$15.6 million or 73% compared to the first quarter of 2022
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Raised net proceeds of
$3.6 million under the At-The-Market ("ATM") program during the quarter
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Entered into a letter of intent ("LOI") to sell three newbuild rigs we have ordered from
Keppel FELS Shipyard
Subsequent events
- Year to date in 2022, we have been awarded fourteen new contracts, extensions, exercised options and letters of awards ("LOAs") representing 5,610 days, or 15.4 years, and
$650.2 million of potential revenue (including mobilization revenues but excluding options).
- Reached agreements in principle with all secured creditors to defer all secured debt to 2025 subject to raising equity and the boards' and credit committees' approvals and final documentation.
CEO,
"Second quarter performance clearly demonstrates the compounding impact of improving day rates combined with incremental activity, resulting in a top-line increase of 28% with an EBITDA fall through of 73%, while still being in the early stages of this upcycle. Our operational team has remained very focused on bringing out additional rigs to meet our customers' requirements. We are on track to have all 23 rigs contracted by year-end and currently the day rates are increasing faster than previously anticipated. We have been working closely with our customers to ensure we provide them with the necessary assurances regarding equipment availability as many of them are valuing this over a lower day rate with operational uncertainties.
Utilization of the modern jack-up fleet (rigs built after 2000) has now surpassed 92%, representing an increase of 10 percentage points year to date, and day rates are increasing meaningfully as evidenced by our recent awards and extensions in
Refinancing the company's capital structure has reached the final phase and we expect to be concluding this shortly. This important milestone will provide us with a sustainable financing cost, which when combined with opex, activation capex and amortization, will be in the range of approximately
https://news.cision.com/borr-drilling-limited/r/borr-drilling-limited-announces-second-quarter-and-six-months-2022-preliminary-results,c3611620
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https://mb.cision.com/Public/16983/3611620/a2ce16eca165341b.pdf
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