Borr Drilling Ltd 6-K, filed Nov 9, 2021

Borr Drilling Ltd (BORR)

6-K 2021-11-09 For: 2021-11-09

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Added on July 04, 2026

About this 6-K

Borr Drilling Ltd filed this 6-K on November 9, 2021.

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	BORR DRILLING LIMITED

Date: November 9, 2021	By:	/s/ Georgina Sousa
	Name:	Georgina Sousa
	Title:	Director

In $ million	Q3 - 2021		Q2 - 2021		Change ($)			Change (%)
Total operating revenues	73.0		54.8			18.2			33	%
Rig operating and maintenance expenses	(45.6	)	(47.4	)		1.8			(4	)%
General and administrative expenses	(7.7	)	(7.8	)		0.1			(1	)%
Total operating expenses	(81.7	)	(81.6	)		(0.1	)		—	%
Adjusted EBITDA	20.0		3.7			16.3			441	%
Other non-operating income	3.6		—			3.6			100	%
Income / (loss) from equity method investments	3.8		(5.7	)		9.5			-
Net loss	(32.6	)	(59.9	)		27.3			(46	)%

Cash and cash equivalents			68.9				32.4				36.5				113	%
Total equity			935.8				968.2				(32.4	)			(3	)%

	3 months ended September 30, 2021			3 months ended September 30, 2020			9 months ended September 30, 2021			9 months ended September 30, 2020
Operating revenues
Dayrate revenue		57.6			47.9			154.4			212.9
Related party revenue		15.4			11.3			21.8			34.4
Total operating revenues		73.0			59.2			176.2			247.3

Gain on disposal		—			—			0.7			13.1

Operating expenses
Rig operating and maintenance expenses		(45.6	)		(63.4	)		(141.8	)		(216.5	)
Depreciation of non-current assets		(28.4	)		(28.9	)		(83.2	)		(88.8	)
Impairment of non-current assets		—			(0.8	)		—			(77.1	)
General and administrative expenses		(7.7	)		(10.7	)		(27.2	)		(40.6	)
Total operating expenses		(81.7	)		(103.8	)		(252.2	)		(423.0	)

Operating loss		(8.7	)		(44.6	)		(75.3	)		(162.6	)

Other non-operating income		3.6			—			3.6			—

Income from equity method investments		3.8			8.1			14.1			16.6

Financial income (expenses), net
Interest income		—			—			—			0.2
Interest expense, net of amounts capitalized		(22.9	)		(22.8	)		(68.6	)		(65.0	)
Other financial expenses, net		(3.7	)		0.8			(14.7	)		(34.7	)
Total financial expenses, net		(26.6	)		(22.0	)		(83.3	)		(99.5	)

Loss before income taxes		(27.9	)		(58.5	)		(140.9	)		(245.5	)
Income tax credit/(expense)		(4.7	)		(3.4	)		(6.0	)		(13.0	)
Net loss attributable to shareholders of Borr Drilling Limited		(32.6	)		(61.9	)		(146.9	)		(258.5	)
Total comprehensive loss attributable to shareholders of Borr Drilling Limited		(32.6	)		(61.9	)		(146.9	)		(258.5	)

Basic and diluted loss per share		(0.12	)		(0.39	)		(0.55	)		(1.98	)
Weighted-averages shares outstanding		273,623,685			156,972,197			268,047,056			130,526,380

	September 30, 2021		December 31, 2020
ASSETS	Unaudited		Audited
Current assets
Cash and cash equivalents		68.9		19.2
Trade receivables		32.1		22.9
Jack-up drilling rigs held for sale		—		4.5
Prepaid expenses		5.7		6.4
Deferred mobilization and contract preparation costs		1.7		5.7
Accrued revenue		15.7		20.3
Tax retentions receivable		1.9		10.5
Due from related parties		41.1		34.9
Other current assets		15.0		16.4
Total current assets		182.1		140.8

Non-current assets
Property, plant and equipment		4.2		5.6
Jack-up rigs		2,758.2		2,824.6
Newbuildings		135.5		135.5
Equity method investments		23.7		62.7
Other non-current assets		4.6		1.9
Total non-current assets		2,926.2		3,030.3
Total assets		3,108.3		3,171.1

LIABILITIES AND EQUITY
Current liabilities
Trade payables		14.7		20.4
Accrued expenses		67.5		51.7
Other current liabilities		16.6		23.9
Total current liabilities		98.8		96.0

Non-current liabilities
Long-term debt		1,912.8		1,906.2
Other liabilities		15.3		19.7
Long-term accrued interest and other items		74.3		41.1
Onerous contracts		71.3		71.3
Total non-current liabilities		2,073.7		2,038.3
Total liabilities		2,172.5		2,134.3

Shareholders’ Equity
Common shares of par value $0.05 per share: authorized 360,000,000 (2020:238,653,846) shares, issued 274,436,351 (2020: 220,318,704) shares and outstanding 273,623,685 (2020: 218,858,990) shares	13.8		11.0
Additional paid in capital	1,977.8		1,947.2
Treasury shares	(13.7	)	(26.2	)
Accumulated deficit	(1,042.1	)	(895.2	)
Total equity	935.8		1,036.8
Total liabilities and equity	3,108.3		3,171.1

Supplementary disclosure of cash flow information	—				—
Interest paid, net of capitalized interest	(11.2	)	(4.2	)	(34.4	)	(29.6	)
Income taxes refunded (paid), net	2.0		(1.7	)	2.8		(7.7	)
Issuance of long-term debt as non-cash settlement for newbuild delivery installment	—		—		—		181.8

In millions of $	Number of outstanding shares		Common shares		Treasury shares			Additional paid in capital			Accumulated Deficit			Non- controlling interest		Total equity
Balance as at December 31, 2019		110,818,351		5.6		(26.2	)		1,891.2			(576.7	)		0.2		1,294.1
ASU 2016-13 - Measurement of credit losses		—		—		—			—			(2.9	)		—		(2.9	)
Adjusted balance at January 1, 2020		110,818,351		5.6		(26.2	)		1,891.2			(579.6	)		0.2		1,291.2
Share-based compensation		—		—		—			0.6			—			—		0.6
Total comprehensive loss		—		—		—			—			(87.0	)		—		(87.0	)
Other, net		—		—		—			—			1.5			—		1.5
Balance as at March 31, 2020		110,818,351		5.6		(26.2	)		1,891.8			(665.1	)		0.2		1,206.3
Issue of common shares		46,153,846		2.3		—			27.7			—			—		30.0
Equity issuance costs		—		—		—			(1.2	)		—			—		(1.2	)
Share-based compensation		—		—		—			0.2			—			—		0.2
Total comprehensive loss		—		—		—			—			(109.6	)		—		(109.6	)
Other, net		—		—		—			—			(1.1	)		—		(1.1	)
Consolidated balance at June 30, 2020		156,972,197		7.9		(26.2	)		1,918.5			(775.8	)		0.2		1,124.6
Share-based compensation		—		—		—			0.2			—			—		0.2
Total comprehensive loss		—							—			(61.9	)		—		(61.9	)
Other, net		—							—			1.5			—		1.5
Consolidated balance at September 30, 2020		156,972,197		7.9		(26.2	)		1,918.7			(836.2	)		0.2		1,064.4

In millions of $	Number of outstanding shares		Common shares		Treasury shares			Additional paid in capital			Accumulated Deficit			Non- controlling interest		Total equity
Balance as at December 31, 2020		218,858,990		11.0		(26.2	)		1,947.2			(895.2	)		—		1,036.8
Issue of common shares		54,117,647		2.8		—			43.2			—			—		46.0
Equity issue costs		—		—		—			(1.2	)		—			—		(1.2	)
Share based compensation		550,263		—		10.4			(9.7	)		—			—		0.7
Total comprehensive loss		—		—		—			—			(54.4	)		—		(54.4	)
Balance as at March 31, 2021		273,526,900		13.8		(15.8	)		1,979.5			(949.6	)		—		1,027.9
Share based compensation		—		—		—			0.2			—			—		0.2
Total comprehensive loss		—		—		—			—			(59.9	)		—		(59.9	)
Balance as at June 30, 2021		273,526,900		13.8		(15.8	)		1,979.7			(1,009.5	)		—		968.2
Share based compensation		96,785		—		2.1			(1.9	)		—			—		0.2
Total comprehensive loss		—		—		—			—			(32.6	)		—		(32.6	)
Balance as at September 30, 2021		273,623,685		13.8		(13.7	)		1,977.8			(1,042.1	)		—		935.8

(in US$ millions)	Q3 - 2021		Q2 2021
Net loss	(32.6	)	(59.9	)
Depreciation of non-current assets	28.4		26.4
Loss/(Income) from equity method investments	(3.8	)	5.7
Financial expense	26.6		29.2
Income tax expense	4.7		(1.0	)
Amortization of mobilization costs	1.7		4.0
Amortization of mobilization revenue	(1.4	)	(0.7	)
Gain on sale of investments in joint ventures	(3.6	)	0.0
Adjusted EBITDA	20.0		3.7

	Borr Drilling Fleet Status Report - 05^th November 2021



	New Contracts / Extensions / Amendments

		Gerd
		• Signed Contract (from LOI previously assigned to Frigg): January 2022 to March 2023, Addax, Cameroon
		Gunnlod
		• Signed Contract (from LOA): November 2021 to March 2022, IPC, Malaysia
		Mist
		• Signed Contract (from LOA): November 2021 to June 2022, PTTEP, Thailand
		Ran
		• Signed Contract: February 2022 to June 2022, Undisclosed Operator, UK (acommodation work)

	Letters of Award / Letters of Intent / Negotiations

		Groa
		• LOA: Q1 2022 to Q1 2024, Undisclosed, Middle East
		Idun
		• LOA: March 2022 to May 2023, Undisclosed, Southeast Asia

	Other Developments

		Saga
		• Concluded operations with PTTEP Malaysia in September 2021 and commenced its subsequent contract with Hess Malaysia
		Natt
		• Concluded operations with Oriental Nigeria in October 2021 and is currently under preparation for its subsequent contract
		Norve
		• Concluded operations with BWE Gabon in September 2021 and is currently under preparation for its subsequent contract
		Prospector 5
		• Optional periods under current contract have lapsed and the rig is now expected to conclude operations in January 2022




	This summary is provided as a courtesy and is not intended to replace a detailed review of the Fleet Status Report. This summary contains informaThis summary is provided as a courtesy and is not intended to replace a detailed review of the Fleet Status Report. This summary contains information on letters of intent/award and advanced negotiations. Letters of intent/award or advanced negotiations may not result in an actual drilling contract.tion on letters of intent/award and advanced negotiations. Letters of intent/award or advanced negotiations may not result in an actual drilling contract.

	Borr Drilling Fleet Status Report - 05^th November 2021



	Additional information regarding this Fleet Status Report



	This summary contains information on letters of intent/award and advanced negotiations. Letters of intent/award or advanced negotiations may not result in an actual drilling contract.



	Forward Looking Statements: The statements described in this status report that are not historical facts are "Forward Looking Statements". Forward Looking Statements reflect management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. No assurance can be given that the expectations expressed in these Forward-Looking Statements will prove to be correct. Actual results could differ materially from expectations expressed in, or implied by, the Forward-Looking Statements if one or more of the underlying assumptions or expectations proves to be inaccurate or is unrealised. These include, but are not limited to, changes to commencement dates, contract duration, earned day rates, locations and other contractual terms; risks relating to the delivery of drilling rigs under construction; sale and purchase of drilling units; oil and gas prices; and risks associated with international operations generally. No Forward-Looking Statement contained in herein or expressed elsewhere should be relied upon as predicting future events. We undertake no obligation to update or revise any Forward-Looking Statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.