Q4 net loss for Borr Drilling
Borr Drilling Limited, the oilfield services company, has reported a net loss of $46.1 million in the fourth quarter of 2021.
That is an increase of $13.5 million compared with the loss in the third quarter last year, the Bermudian-based company said.
Borr, announcing its preliminary unaudited results for the quarter, said it had total operating revenues of $69.1 million, a decrease of $3.9 million or five per cent compared with the third quarter.
The company had cash and cash equivalents of $34.9 million and restricted cash of $11.1 million at the end of the fourth quarter, a decrease of $22.9 million from the end of the third quarter.
Borr reported adjusted EBITDA of $25 million, an increase of $5 million or 25 per cent compared with the third quarter.
The company said it had agreed with shipyards to defer $1.4 billion of debt and instalments from 2023 to 2025 subject to certain conditions.
Borr said it had completed a $30 million equity raise in January of this year at a price of $2.25 per share.
The company secured a new contract for Prospector 5 increasing the contracted and committed fleet to 18 rigs.
It converted the previously announced LOA/LOIs for the rigs Norve and Gerd into contracts.
Tor Olav Trøim was appointed chairman of the board, replacing Pål Kibsgaard who remains a director.
CEO Patrick Schorn said: "The current oil price in combination with a tighter oil supply/demand balance is further improving the market for shallow water offshore drilling.
“It is also becoming increasingly evident that the supply of rigs ready to go to work within six months is far less than the market previously anticipated. Therefore, we maintain the view that day rates will increase based on the current tender activity and available jack-up rig supply.”
He added: “We currently have 18 rigs contracted and committed for future contracts. Revenues in the fourth quarter were impacted by a slight delay in start-up of new contracts from what was previously anticipated. However, we remain on track to have all our available 23 rigs committed and under contract by the end of 2022. The operations in Mexico had a very good quarter, with record bareboat revenues recorded, and economic utilisation of 89 per cent.
“Regarding the refinancing efforts, we passed the first milestone in the fourth quarter with the shipyards and we have continued the engagement with the remaining creditors. Based on the constructive nature of these discussions, we expect to report significant progress in the next quarter.”