Borr Drilling Limited (NYSE:BORR) Stock Rockets 20% After Quarterly Earnings
Shares of Borr Drilling Limited (NYSE:BORR) ended sharply higher on Friday after issuing quarterly results.
Market Stats
On Friday, BORR stock gained 18.10% at $1.2400 with more than 14.25 million shares, compared to its average volume of 1.76 million shares. The stock has moved within a range of $1.2100 – 1.3400 after opening the trade at $1.3300.
Earnings Recap
Borr Drilling Limited (NYSE:BORR) has released preliminary unaudited results for the three and nine months ended September 30, 2021. Total operating revenue has shot up by 33%, and reached $73.0 million, as compared to the second quarter of 2021. However, there has been a net loss of $32.6 million, though it means an improvement of $27.3 million, when compared to Q2 of 2021.
At the end of Q3 2021, cash and cash equivalents stands at $68.9 million, an increase of $36.5 million from the end of the second quarter of 2021. Adjusted EBITDA is $20.0 million, which is an increase of $16.3 million. In addition to that the company has secured new contracts, extensions, exercised options and LOA/LOIs year-to-date, representing 7,929 days and $668 million of potential backlog including contracts through its Drilling JVs and mobilization compensation.
CEO, Patrick Schorn is thrilled with the company’s performance in the 3rd quarter of 2021, and praised the teams for their efforts in operational turnarounds. Their 13 operating rigs provided solid EBITDA and positive cash flows in the quarter. The cash position has been impacted positively, thanks to the sale of integrated well services joint ventures and streamlining operations in Mexico. He is confident about improving financial performance even further, due to more active rigs, along with an upward adjustment of the 2022 E&P capex budgets.
Key Quote
“We are pleased with the performance in the third quarter of 2021, marking a significant milestone in the operational turnaround efforts led by our teams around the world. Our 13 operating rigs provided solid EBITDA and positive cash flows in the quarter. The cash position is further positively impacted by the sale of our integrated well services joint ventures and streamlining our Mexico operations.
Traders Corner
BORR stock is trading above the 20-Day and 50-Day Moving averages of $1.07 and $0.93 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.95. The stock is up 70% in the past 3-month.