2024-06-09 07:28:30 ET
Summary
- Last month, leading offshore driller Borr Drilling reported Q1/2024 results somewhat below estimates due to a combination of slightly lower-than-expected revenues and higher financial and tax expenses.
- Adjusted EBITDA margin of 49.9% reached new all-time highs with the company outperforming peers handsomely.
- The company reiterated expectations for full-year Adjusted EBITDA of $500 million to $550 million.
- In a surprise move, Borr Drilling doubled its quarterly cash dividend to $0.10 per share. Annual dividend yield calculates to an attractive 6.5%.
- While management's commentary and commitment to shareholder capital returns is encouraging, my upwardly revised estimates and price target are not sufficient to upgrade the stock. Reiterating "Hold" rating with an increased 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. ...
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For further details see:
Borr Drilling: Generous Dividend Increase Is A Strong Sign Of Confidence - Hold