Borr Drilling Limited (NYSE:BORR) Q2 2023 Earnings Conference Call August 17, 2023 9:00 AM ET
Company Participants
Patrick Schorn - CEO
Magnus Vaaler - CFO
Bruno Morand - VP, Commercial
Conference Call Participants
Gregory Lewis - BTIG
Fredrik Stene - Clarksons Securitie
Operator
Good day, and thank you for standing by. Welcome to the Borr Drilling Limited Second Quarter 2023 Results Presentation Webcast and Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Mr. Patrick Schorn, CEO. Please go ahead.
Patrick Schorn
Good afternoon, and thank you for participating in the Borr Drilling second quarter 2023 earnings call. I'm Patrick Schorn talking to you from Oslo. And here with me today is Magnus Vaaler, our Chief Financial Officer; and Bruno Morand, our Chief Commercial Officer.
Next slide, please. First, covering the required disclaimers. I would like to remind all participants that some of the statements will be forward-looking. These matters involve risks and uncertainties that could cause actual results to matter -- to differ materially from those projected in these statements. I, therefore, refer you to our latest public filings.
Next slide. In the second quarter of 2023, we recorded another strong result with an increase in revenue of 9% to $187.5 million and an increase in adjusted EBITDA of 16% to $84 million on a flat active rig count. This brings our adjusted EBITDA margin for the quarter to 45%.
We continue to see the market for jack-up drilling rigs developing strongly, and year-to-date, we have added seven new contracts and LOAs for a total estimated duration of 1,771 days or $289 million in contract value, which gives an average day rate of approximately $163,000 per day, continuing the building of an increasingly strong backlog.
In July 2023, we had previously exercised options on the Gerd, which was active in West Africa canceled. This rig was placed back on the market and we were immediately able to secure new work in the Middle East at more favorable economics. The change of contract for this rig will lead to some idle time before it commences its new contract in December 2023, which will impact our results in the second half of this year. However, at the same time, it will also improve our position in 2024 and beyond for the Gerd.