Shares of Borr Drilling Limited (BORR) stock were declining today on June 1, 2021, following the announcement of trading update and first quarter 2021 financial results. BORR stock price saw a downtrend of 1.91% to drop at $0.90 a share at the time of this writing. The previous trading was not so much attractive as BORR per share price was down by 1.80% at closing. Let’s look at the recent events in detail.
First Quarter 2021 Financial Results:
- Borr generated total operating revenues of $48.4 million in the first quarter of 2021 while the previous year’s operating revenues for the same period were $60.2 million. $9.2 million related party revenue followed by the Mexican JV agreements amendment had been deducted from the total operating revenues.
- Net loss for the BORR stock in the first quarter was reported at $58.1 million as compared to $59.1 million in the same quarter of the previous year.
- The reduction of $9.2 million related party revenue resulted in adjusted EBITDA of $10.6 million otherwise it would have been $(1.4) million for the reported quarter. The previous year same period adjusted EBITDA was $9.0 million.
- Total Operating expenses spent by BORR stock in the reported quarter were reduced to $88.8 million from $91.5 million in the same tenure of the prior year.
- The operating loss suffered by BORR stock totaled $40.5 million in the first three months of 2021 while this operating loss was $25.4 million for the first three months of 2020.
Balance Sheet:
As of March 31, 2021, the cash balance of BORR stock was $49.0 million. The total assets were reduced to $3,169.5 million by the end of March as compared to $3,171.1 million by the end of December 2020.
Business Developments:
- Borr Drilling stock completed the equity offering on January 22, 2021, and raised total proceeds of $46 million.
- In connection with the liquidity improvement plan, which was previously announced, the BORR stock had finalized the terms during the first quarter and executed agreements with its creditors.
- Borr Drilling and its Drilling JVs had won 17 new contracts, extensions, exercised options, and LOAs/LOIs in the first quarter which represent 5,352 days of potential backlog and potential revenue of $458 million.
Conclusion:
BORR stock is passing through a hard time as far as market sentiment is concerned even after the announcement of first-quarter 2021 financial results due to a decrease in the operating revenue over the year. Hence investors eyeing BORR stock need to do deep research before adding this stock to their portfolio.
