Borr Drilling Ltd stock declines amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 07 2024
0mins
Should l Buy BORR?
Borr Drilling Ltd's stock fell by 5.85% as it crossed below its 5-day SMA, reflecting a challenging trading environment.
The decline in Borr Drilling's stock price is attributed to sector rotation, as investors shifted their focus away from energy stocks despite a slight uptick in the S&P 500. This shift indicates a broader market trend where investors are reallocating their portfolios, impacting companies like Borr Drilling.
This movement may suggest a reevaluation of energy sector investments, and Borr Drilling could face continued pressure unless there are significant changes in market sentiment or operational performance.
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Analyst Views on BORR
Wall Street analysts forecast BORR stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 5.430
Low
3.60
Averages
4.10
High
4.60
Current: 5.430
Low
3.60
Averages
4.10
High
4.60
About BORR
Borr Drilling Limited is an international drilling contractor providing offshore drilling services to the oil and gas industry. The Company's primary business is the ownership, contracting and operation of jack-up rigs for operations in shallow-water areas (in water depths up to approximately 400 feet), including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production customers. The Company owns approximately 29 rigs. Its rigs include Skald, Groa, Idun, Thor, Norve, Gerd, Natt, Ran, Odin, Gersemi, Grid, Galar, Njord, Prospector 1, Saga, Prospector 5, Mist, Gunnlod, Arabia III, Arabia I, Vali, Arabia II, and others. It operates oil-producing geographies throughout the world, including the Middle East, the North Sea, Latin America, West Africa and South East Asia. The Company contracts its jack-up rigs primarily on a daily rate basis to drill wells for its customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Borr Drilling Q4 Earnings Beat Expectations
- Earnings Performance: Borr Drilling reported a Q4 GAAP EPS of $0.00, beating expectations by $0.03, indicating stability in profitability despite a slight decline in overall revenue.
- Revenue Breakdown: Total revenue reached $259.4 million, down 1.4% year-over-year, with dayrate revenue at $225.0 million, bareboat charter revenue at $23.6 million, and management contract revenue at $10.8 million, reflecting the company's ongoing efforts in diversifying its revenue streams.
- Adjusted EBITDA Decline: The fourth quarter's adjusted EBITDA was $105.2 million, a decrease of $30.4 million or 22% compared to Q3 2025, highlighting the pressure on profitability from rising operational costs.
- Strong Cash Flow: Net cash provided by operating activities for Q4 was $34.8 million, demonstrating effective cash flow management despite revenue challenges, which enhances the company's flexibility for future investments.
See More
BORR DRILLING LIMITED REPORTS FOURTH QUARTER 2025 FINANCIAL RESULTS
Company Overview: Borr Drilling Limited has announced its financial results for the fourth quarter of 2025.
Financial Performance: The results indicate significant developments in the company's operations and financial health during this period.
See More
Borr Drilling Reports Q4 2025 Results with Strong Operational Metrics
- Strong Operational Performance: Borr Drilling achieved a technical utilization rate of 98.8% and an economic utilization rate of 97.8% in Q4 2025, with operational revenue at $259.4 million, reflecting resilience despite sanctions-related contract terminations and lower average day rates.
- Adjusted EBITDA Results: The company reported an adjusted EBITDA of $105.2 million for Q4, aligning with expectations, while the full-year adjusted EBITDA reached $470.1 million, at the top end of guidance, demonstrating strong financial execution amid various challenges.
- Optimistic Market Outlook: Contract coverage is expected to reach 80% in H1 2026 and 48% in H2, with improving market conditions anticipated as new contracts are awarded and demand recovers, supporting better pricing and earnings visibility.
- Fleet Expansion and Acquisition: Borr Drilling expanded its fleet through the acquisition of five premium rigs from Noble, enhancing its competitive edge for upcoming market opportunities, which is expected to deepen customer relationships and boost long-term shareholder value.
See More
Borr Drilling Reports Q4 2025 Financial Results
- Revenue Decline: Borr Drilling reported total operating revenues of $259.4 million for Q4 2025, a decrease of $17.7 million or 6% compared to Q3 2025, reflecting the impact of sanctions-related contract terminations that pressured revenue.
- Widening Net Loss: The company recorded a net loss of $1.0 million in Q4, a decrease of $28.8 million from Q3, indicating a relatively stable financial performance despite revenue challenges, showcasing resilience in tough market conditions.
- Annual Performance Review: For the full year 2025, Borr reported a net income of $45.0 million, down $37.1 million or 45% from 2024, while Adjusted EBITDA was $470.1 million, a decrease of $35.3 million or 7%, highlighting the company's ability to navigate a difficult market environment.
- Acquisition and Expansion: The company completed the acquisition of five premium jack-up rigs from Noble Corporation for $360 million, funded through $165 million in senior secured notes and an equity offering of $84 million, enhancing its competitive position in the market.
See More
Borr Drilling to Announce Q4 Earnings on February 18
- Earnings Announcement Schedule: Borr Drilling is set to release its Q4 2023 earnings report on February 18 after market close, with consensus EPS estimate at -$0.03 and revenue estimate at $240.06 million, indicating a cautious market outlook on the company's financial performance.
- Earnings Estimate Changes: Over the past three months, Borr Drilling's EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have experienced one upward and one downward revision, reflecting analysts' mixed views and uncertainty regarding the company's future performance.
- Debt Financing Activity: Borr Drilling recently priced $165 million in additional senior secured notes maturing in 2030, a move likely aimed at enhancing the company's liquidity and financial flexibility to support future operations and investments.
- Market Rating Changes: Despite Borr Drilling's stock being in the spotlight, analyst ratings have been downgraded, reflecting concerns over the company's future profitability, which may impact investor confidence and stock price performance.
See More
Noble Corporation Sells Five Jackup Rigs for $360 Million
- Transaction Value: Noble Corporation completed the sale of five jackup rigs to Borr Drilling for $360 million, generating approximately $210 million in cash and $150 million in seller notes, which enhances the company's liquidity and financial flexibility.
- Charter Agreement: Noble intends to operate the Noble Mick O'Brien and Noble Resolute rigs under a bareboat charter agreement with Borr until December 2026, ensuring a continuous revenue stream and asset utilization.
- Market Positioning: This transaction signifies a strategic shift for Noble in the global offshore drilling market, focusing on high-specification and ultra-deepwater drilling opportunities, thereby enhancing its competitiveness in the industry.
- Historical Context: Engaged in contract drilling since 1921, Noble's asset sale further optimizes its modern and technically advanced fleet, supporting its future growth strategy.
See More
Borr Drilling Q4 Earnings Beat Expectations
- Earnings Performance: Borr Drilling reported a Q4 GAAP EPS of $0.00, beating expectations by $0.03, indicating stability in profitability despite a slight decline in overall revenue.
- Revenue Breakdown: Total revenue reached $259.4 million, down 1.4% year-over-year, with dayrate revenue at $225.0 million, bareboat charter revenue at $23.6 million, and management contract revenue at $10.8 million, reflecting the company's ongoing efforts in diversifying its revenue streams.
- Adjusted EBITDA Decline: The fourth quarter's adjusted EBITDA was $105.2 million, a decrease of $30.4 million or 22% compared to Q3 2025, highlighting the pressure on profitability from rising operational costs.
- Strong Cash Flow: Net cash provided by operating activities for Q4 was $34.8 million, demonstrating effective cash flow management despite revenue challenges, which enhances the company's flexibility for future investments.
See More
BORR DRILLING LIMITED REPORTS FOURTH QUARTER 2025 FINANCIAL RESULTS
Company Overview: Borr Drilling Limited has announced its financial results for the fourth quarter of 2025.
Financial Performance: The results indicate significant developments in the company's operations and financial health during this period.
See More
Borr Drilling Reports Q4 2025 Results with Strong Operational Metrics
- Strong Operational Performance: Borr Drilling achieved a technical utilization rate of 98.8% and an economic utilization rate of 97.8% in Q4 2025, with operational revenue at $259.4 million, reflecting resilience despite sanctions-related contract terminations and lower average day rates.
- Adjusted EBITDA Results: The company reported an adjusted EBITDA of $105.2 million for Q4, aligning with expectations, while the full-year adjusted EBITDA reached $470.1 million, at the top end of guidance, demonstrating strong financial execution amid various challenges.
- Optimistic Market Outlook: Contract coverage is expected to reach 80% in H1 2026 and 48% in H2, with improving market conditions anticipated as new contracts are awarded and demand recovers, supporting better pricing and earnings visibility.
- Fleet Expansion and Acquisition: Borr Drilling expanded its fleet through the acquisition of five premium rigs from Noble, enhancing its competitive edge for upcoming market opportunities, which is expected to deepen customer relationships and boost long-term shareholder value.
See More
Borr Drilling Reports Q4 2025 Financial Results
- Revenue Decline: Borr Drilling reported total operating revenues of $259.4 million for Q4 2025, a decrease of $17.7 million or 6% compared to Q3 2025, reflecting the impact of sanctions-related contract terminations that pressured revenue.
- Widening Net Loss: The company recorded a net loss of $1.0 million in Q4, a decrease of $28.8 million from Q3, indicating a relatively stable financial performance despite revenue challenges, showcasing resilience in tough market conditions.
- Annual Performance Review: For the full year 2025, Borr reported a net income of $45.0 million, down $37.1 million or 45% from 2024, while Adjusted EBITDA was $470.1 million, a decrease of $35.3 million or 7%, highlighting the company's ability to navigate a difficult market environment.
- Acquisition and Expansion: The company completed the acquisition of five premium jack-up rigs from Noble Corporation for $360 million, funded through $165 million in senior secured notes and an equity offering of $84 million, enhancing its competitive position in the market.
See More
Borr Drilling to Announce Q4 Earnings on February 18
- Earnings Announcement Schedule: Borr Drilling is set to release its Q4 2023 earnings report on February 18 after market close, with consensus EPS estimate at -$0.03 and revenue estimate at $240.06 million, indicating a cautious market outlook on the company's financial performance.
- Earnings Estimate Changes: Over the past three months, Borr Drilling's EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have experienced one upward and one downward revision, reflecting analysts' mixed views and uncertainty regarding the company's future performance.
- Debt Financing Activity: Borr Drilling recently priced $165 million in additional senior secured notes maturing in 2030, a move likely aimed at enhancing the company's liquidity and financial flexibility to support future operations and investments.
- Market Rating Changes: Despite Borr Drilling's stock being in the spotlight, analyst ratings have been downgraded, reflecting concerns over the company's future profitability, which may impact investor confidence and stock price performance.
See More
Noble Corporation Sells Five Jackup Rigs for $360 Million
- Transaction Value: Noble Corporation completed the sale of five jackup rigs to Borr Drilling for $360 million, generating approximately $210 million in cash and $150 million in seller notes, which enhances the company's liquidity and financial flexibility.
- Charter Agreement: Noble intends to operate the Noble Mick O'Brien and Noble Resolute rigs under a bareboat charter agreement with Borr until December 2026, ensuring a continuous revenue stream and asset utilization.
- Market Positioning: This transaction signifies a strategic shift for Noble in the global offshore drilling market, focusing on high-specification and ultra-deepwater drilling opportunities, thereby enhancing its competitiveness in the industry.
- Historical Context: Engaged in contract drilling since 1921, Noble's asset sale further optimizes its modern and technically advanced fleet, supporting its future growth strategy.
See More
