Borr Drilling Ltd 6-K, filed Sep 2, 2021
Borr Drilling Ltd (BORR)
6-K
2021-09-02
For: 2021-08-31
View Original
Added on
April 10, 2026
About this 6-K
Borr Drilling Ltd filed this 6-K on September 2, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
August 31, 2021
Commission File Number 001-39007
Borr Drilling Limited
S. E. Pearman Building
2nd Floor 9 Par-la-Ville Road
Hamilton HM11
Bermuda
(Address of principal executive office)
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K on paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K on paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Exhibits
99.1 Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
BORR DRILLING LIMITED
|
|
|
Date: August 31, 2021
|
By:
|
/s/ Georgina Sousa
|
|
|
Name:
|
Georgina Sousa
|
|
|
Title:
|
Director
|
Exhibit 99.1
Borr Drilling Limited – Q2 2021 Presentation
Please find enclosed the presentation of Borr Drilling Limited’s second quarter 2021 results to be held on the webcast/conference call at 15:00 CET
(9:00 AM New York time) on August 31, 2021.
In order to listen to the presentation, you may do one of the following:
a) Webcast
Please use the following link: www.incommuk.com/customers/online with access code: 481367
b) Conference Call
Dial in details, Participants:
Conference ID: 481367
Norway, Oslo 81 503 308
United Kingdom 020 3936 2999
United States 1 646 664 1960
All other locations +44 20 3936 2999
Participants will be asked for their full name & Conference ID.
There will be a Q&A session after the presentation. Information on how to ask questions will be given at the beginning of the Q&A session.
Q2 2021 Presentation 31 August 2021 cover
Forward looking statements This announcement includes forward looking statements. Forward looking
statements are, typically, statements that do not reflect historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will", "likely" and similar expressions
and include expectations regarding industry trends and market outlook and signals, including expected trends and activity levels in the jack-up rig and oil industry, expectations as to global jack-up rig fleet count, and expected tenders and
demand levels, delivery of newbuilds including expected delivery timing, contract backlog and potential backlog and revenue potential from backlog, contracts, LOIs and LOAs, tendering and contracting activity, market opportunities, statements
about our fleet operations and expected contracting and operation of our jack-up rigs and contract terms including estimated duration of contracts and activity of rigs on particular contracts, expected number of rigs in operation and rates,
expected offshore E&P capex and wells, demand forecasts, expectations with respect to warm stacked rigs, statements with respect to improving capital structure, expected cash payments from JVs and expected improvement in operational cash
flows, expected ability to generate positive cash flow, statements as to market sentiment including statements made under “Market” and “Outlook” above including anticipated rig demand and expectations with respect to rigs being active and in
operation and the expectation as to sufficient liquidity until 2023, statements relating to the IWS JVs and dealings with Pemex including statements about contracting and payments, statements with respect to our ATM program, risks and
uncertainties relating to the COVID-19 pandemic and other non-historical statements. The forward-looking statements in this announcement are based upon various assumptions, many of which are based, in turn, upon further assumptions, which are,
by their nature, uncertain and subject to significant known and unknown risks, contingencies and other factors which are difficult or impossible to predict and which are beyond our control. Such risks, uncertainties, contingencies and other
factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein. There are important factors that could cause our actual results, level of activity,
performance, liquidity or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements including risks relating to our industry and business and
liquidity, the risk of delays in payments to our Mexican JVs and payments from our JVs to us, the risk that our customers do not comply with their contractual obligations, risks relating to industry conditions and tendering activity, risks
relating to contracting, including our ability to convert LOIs and LOAs into contracts, the risk that options will not be exercised, risks relating to our ability to secure contracts for our rigs and the rates that we will be able to achieve,
risks relating to market trends, tender activity and rates, risks relating to the agreements we have reached with lenders, risks relating to our liquidity, risks that our liquidity improvement plan is not effective or that our available
liquidity is not sufficient to meet our liquidity requirements and other risks relating to our available liquidity and requirements, risks relating to cash flows from operations, the risk that we may be unable to raise necessary funds through
issuance of additional debt or equity or sale of assets; risks relating to our loan agreements and other debt instruments including risks relating to our ability to comply with covenants and obtain any necessary waivers and the risk of cross
defaults, risks relating to our ability to meet our debt obligations including debt service obligations and maturities and new-build contract payments in 2023 and obligations under rig purchase contracts and our other obligations as they fall
due and other risks described in our working capital statement, risks relating to future financings including the risk that future financings may not be completed when required and future equity financings will dilute shareholders and the risk
that the foregoing would result in insufficient liquidity to continue our operations or to operate as a going concern and other risks factors set forth under “Risk Factors” in our filings with the U.S. Securities and Exchange Commission and
prospectuses filed with the Norwegian NSA.
Borr Drilling Today Building a fleet OF 28 premium jack-up rigS with average age 4 yrs Retired 27
old assets from the market
Borr Drilling Today Gaining momentum
Key milestones going forward
Revenues increased by $6.4 million or 13% in comparison to the prior quarter primarily as a result of an
increase in related party revenues and number of rig operating daysRig operating and maintenance expenses decreased by $1.4 million in comparison to the prior quarterG&A decreased by $3.9 million due to lower corporate overhead costs and
lower legal feesTotal financial expenses reflects the relatively low capital cost of the Company’s debt, at an average interest rate of 4.7% YTDIncome from equity method investments decreased as a result of lower income in the IWS JVs due to
increased idle timeAdjusted EBITDA increased by $14.5 million quarter on quarterCash decreased by $16.6 million in comparison to the prior quarter and is driven by:Cash used in operations of $10.9 million which includes interest payments of
$13.7 million and a tax retention receipt of $5.4 millionCash used in investing activities of $5.7 million, which includes activation and long-term maintenance cost of $4.9 million INCOME STATEMENT COMMENTS AND HIGHLIGHTS Q2 2021 USDm YTD
2021 Q2 2021 Q1 2021 Operating revenues 103.2 54.8 48.4 Rig operating and maintenance expenses (96.2) (47.4) (48.8) G&A Total operating expenses (170.5) (81.6) (88.9) Operating loss (66.6) (26.0)
(40.6) Income/(loss) from equity method investments 10.3 (5.7) 16.0 Total financial expenses net (56.7) (29.2) (27.5) Net loss (114.3) (59.9) (54.4) Adjusted EBITDA (7.0) 3.7
(10.7) Balance sheet (USDm) Q2 2021 Q1 2021 Total assets 3,142 3,173 Total liabilities 2,174 2,145 Total equity 968 1,028 Cash and cash equivalents 32 49 KEY FINANCIALS Q2 2021
FLEET STATUS AUGUST 2021
Attractive cost structure Illustrative scenarios of operating cash in 2021 at different activity
levels 1) Assumes $32m in SG&A normalised cost, $16m in capex and LTM (excluding any activation costs), $55m in cash interest (incl. deferred interest for bank loans of ~$8m from 2020 into 2021 + $6m PPL interest), $6m hold cost/cost cover
to Keppel. Stacking cost of $6k/day. Opex of $45k/day. 4% cash revenue tax, 95% economic utilisation # rigs outside Mexico # delivered rigs # current contracted rigs # est. YE21contracted rigs ($m in 2021) # rigs working Day-rate
equivalent 8 13 17 23 Idun, Saga, Gunnlod, P1, P5, Norve, Natt, Skald + Galar, Gersemi, Grid, Odin, Njord $70k/day ($75) ($41) ($4) $51 $80k/day ($49) $2 $52 $126 $90k/day ($23) $45 $107 $202 $100k/day $3
$87 $163 $277
Offshore CAPEX set to increase … … shallow water drives the growth OFFSHORE E&P CAPEX AND
WELLS Source: IHS Markit Forecast USD Billions +26%y-o-y +6%y-o-y +8%y-o-y Offshore Wells (#) +19%YoY
SUPPLY AND DEMAND OVERVIEW Utilization is recovering Demand forecast improving1 Successful
tendering2 Source:1 IHS Petrodata (under contract and marketed supply), Company projection (future contracted)2 IHS Petrodata, excludes fixtures from related parties (i.e.: CNOOC/COSL, ARAMCO/ARO, ADNOC/ADNOC Drilling) Activity levels
accelerating fast Utilization (%) Forecast 30 Additional Rig Demand Utilization (%) Rigs (#) FY Fcst240 - 290 Borr 5%of Total Borr 10%of Total 111 Years 138 Years Rig Years
IN CONCLUSION Flexible debt structure – Improving cashflows allows for capital structure
optimisation Borr Drilling is increasingly well positioned to capitalise on the upturn With current market outlook and tendering success we anticipate 23 active rigs by end 2022 Currently 13 rigs operating – expected to reach 17 year-end
2021 Collections from Mexico have improved – expecting normalised payments going forward
