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Borr Drilling High Fleet Utilization Boosts Q1 Revenue

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Borr Drilling's (BORR) fleet of jack-up rigs achieved a technical utilization of 99.4% and an economic utilization of 97.0% in Q1, helping boost revenue across its business segments, the company said Wednesday.

For the quarter ended March 31, day-rate revenue totaled $209.5 million, up from the previous year's $202.2 million, due to longer operating days worked by the rigs.

Sales from bareboat charter more than tripled year over year to $26.6 million from $7.6 million, also due to higher number of operating days, according to the report.

Revenue from management contracts grew to $10.9 million from $6.8 million, due to an increase in the number of rigs under contract agreements.

Out of the company's 29 rigs, 24 were either contracted or committed as of May 20, the company said.

Borr Drilling also highlighted that it has secured 13 deals so far this year, representing more than 2,250 days and $274 million of day-rate equivalent backlog. The acquisition of Noble added a further 772 days of contract commitments.

As a result, the company's total day-rate equivalent backlog stood at $1.17 billion as of March 31 and $1.08 billion as of May 20.

Borr Drilling noted that "the Middle East conflict has created near-term uncertainty," but "key tenders in the region continue to progress, with some modest delays."

"More broadly, in our view, recent events have strengthened the longer-term outlook for the sector providing for a higher oil price and a renewed focus on energy security," it said.

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