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Borr Drilling Limited (NYSE: BORR) has released its unaudited financial results for the first quarter ended March 31, 2024. The company has shown notable growth in operating revenues and adjusted EBITDA, alongside a significant increase in contract commitments.
Financial Highlights
- Operating Revenues: Borr Drilling reported total operating revenues of $234.0 million for the first quarter, marking a 6% increase from the $220.6 million reported in the fourth quarter of 2023.
- Net Income: The company's net income for Q1 2024 was $14.4 million, which represents a decrease of $14.0 million compared to the fourth quarter of 2023, where net income was $28.4 million.
- Adjusted EBITDA: Adjusted EBITDA for the first quarter stood at $116.8 million, showing a 5% increase from $111.5 million in the previous quarter.
- Debt Raising: The company successfully raised an additional $200 million of debt under the 2028 Senior Secured Notes.
Operational Achievements
Year-to-date, Borr Drilling has secured eleven new contract commitments, amounting to 1,743 days and $318 million in potential contract revenue. Notably, five of these contract commitments were signed after the close of the first quarter.
Dividend Announcement
On May 22, 2024, the Board of Directors declared a cash dividend of $0.10 per share for the first quarter of 2024, to be paid on or about June 17, 2024. This decision to double the dividend from the previous quarter reflects the company's strong operational performance and positive market outlook.
“The doubling of the dividend aligns with our commitment to progressively increase shareholder returns in line with our earnings projections,” stated the company's CEO.
Future Outlook
Based on the robust performance in the first quarter, Borr Drilling reiterates its full-year Adjusted EBITDA guidance range for 2024, which remains between $500 million and $550 million. The company is optimistic about maintaining this trajectory of growth and delivering sustained value to its shareholders.
Borr Drilling's first-quarter results demonstrate the company's strong market position and operational efficiency. The increase in dividend payout signals confidence in continued financial health and commitment to rewarding shareholders. As Borr Drilling continues to secure new contracts and manage its financial strategy effectively, it is well-positioned to achieve its projected earnings and growth targets for the year.
