BORR Earnings Prediction
The chart below shows how BORR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BORR sees a +4.26% change in stock price 10 days leading up to the earnings, and a -10.46% change 10 days following the report. On the earnings day itself, the stock moves by +3.04%. This data can give you a slight idea of what to expect for the next quarter's release.
BORR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
241.60M
26.16%
-11.14%
Gross Margin
--
--
--
Operating Margin
34.56%
3.91%
-9.91%
Net Margin
4.01%
2406.25%
-65.61%
EPS
0.04
--
-63.64%
No Data Available
BORR Earnings Analysis
Borr Drilling Limited Corporation (BORR.N) Earnings Conference Call
Positive
Operational Performance Metrics: 1. High Technical Utilization: Borr Drilling achieved a technical utilization rate of 98.7% and an economic utilization rate of 96.9% in Q3 2024, indicating strong operational performance.
Robust Revenue Visibility: 2. Strong Revenue Visibility: 78% of Borr's fleet is contracted through 2025 at an average day rate of $148,000 per day, which is 10% higher than in 2024, providing robust revenue visibility.
Fleet Modernization Success: 3. Completion of Newbuild Program: With the delivery of the Var, Borr's fleet now consists of 24 premium rigs, making it the youngest fleet in the industry, enhancing competitive advantage.
Liquidity Position Overview: 4. Total Liquidity Position: Borr Drilling reported total liquidity of approximately $335 million, including $185 million in cash and an undrawn $150 million revolving credit facility, positioning the company well for future opportunities.
Shareholder Value Distribution: 5. Shareholder Returns: The Board declared a cash distribution of $0.02 per share totaling $4.8 million for Q3 2024 and committed to a $20 million share buyback program, demonstrating a commitment to returning value to shareholders.
Negative
Operating Revenue Decline: 1. Declining Total Operating Revenues: Q3 2024 total operating revenues were $241.6 million, a decrease of $30.3 million compared to Q2 2024, primarily due to one-off items that inflated the previous quarter's results.
Net Income Decline: 2. Significant Drop in Net Income: Net income for Q3 2024 was $9.7 million, down $22 million from the previous quarter, indicating a substantial decline in profitability.
Adjusted EBITDA Guidance Update: 3. Reduced Adjusted EBITDA Guidance: The company updated its full year 2024 adjusted EBITDA guidance to be at or above the lower end of the range, now projected at $500 million to $550 million, reflecting a cautious outlook amid market uncertainties.
Cash Flow Challenges: 4. Cash Decrease Despite Operating Activities: Cash decreased by $7.8 million compared to the prior quarter, despite net cash provided by operating activities being $48.4 million, highlighting cash flow challenges amid high capital expenditures.
Accounts Receivable Concerns: 5. Increased Accounts Receivable: The accounts receivable increased significantly due to lower payments from Pemex, contributing to a buildup in working capital and raising concerns about cash flow management.
BORR FAQs
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BORR Earning Call Sentiment
Borr Drilling Limited (BORR) Q3 2024 Earnings Call Transcript
BORR.N
-8.66%Positive
The earnings call reflects mixed signals. Financial performance shows declines in revenue and EBITDA, while guidance remains cautious. However, there are positive elements like the secured contracts and shareholder returns. The Q&A reveals concerns about market demand, contract delays, and increased competition, but management remains optimistic about future demand. The market cap suggests moderate sensitivity to news. Overall, the sentiment is neutral due to the balance of positive long-term demand forecasts and immediate financial challenges.
