2024-03-29 22:49:17 ET
Summary
- Borr Drilling reported better-than-expected Q4/2023 results, with revenue and profitability reaching new all-time highs.
- With 87% of available rig days for 2024 contracted, management reaffirmed previously communicated adjusted EBITDA guidance of $500 million to $550 million.
- However, recent developments in Saudi Arabia have resulted in considerable uncertainty regarding the near-term direction of the jackup market, particularly after a concerning early data point emerged last week.
- With a meaningful number of jackup rigs likely to be released by Saudi Aramco, dayrates might experience some near-term pressure.
- Due to material uncertainty regarding the near-term market environment, I am downgrading my rating on the company's shares from "Buy" to "Hold" with a revised price target of $7.
Note:
I have covered Borr Drilling Limited ( BORR ) previously, so investors should view this as an update to my earlier articles on the company.
Last month, leading offshore driller Borr Drilling Limited or "Borr Drilling" reported better-than-expected Q4/2023 results with revenue and profitability reaching new all-time highs:
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Borr Drilling: Downgrading On Potential Saudi Aramco Jackup Market Impact