Borr Drilling Limited (NYSE:BORR) Q1 2023 Earnings Conference Call May 23, 2023 10:00 AM ET

Company Participants

Patrick Schorn - Chief Executive Officer

Magnus Vaaler - Chief Financial Officer

Bruno Morand - Vice President, Commercial

Conference Call Participants

Greg Lewis - BTIG

Fredrik Stene - Clarksons Securities

Charles Olson - Conning Securities

Operator

Good day and thank you for standing by. Welcome to the Borr Drilling Limited Q1 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, sir.

Patrick Schorn

Thank you. Good morning. And thank you for participating in the Borr Drilling first quarter 2023 earnings call. I am Patrick Schorn talking to you from Hamilton, Bermuda, and with me here today is Magnus Vaaler, our CFO; and Bruno Morand, our Vice President, Commercial.

Next slide, first I would like to cover 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 differ materially from those projected in these statements. I, therefore, refer you to our latest public filings.

Next slide, the first quarter of 2023 continued the positive trend experienced over the last several quarters with an increase of revenue of 16% quarter-on-quarter and a further increase in adjusted EBITDA of 31% to $72.4 million. Q1 2023 is also the first quarter where we generated positive income before tax.

We reaffirm our previously communicated guidance of adjusted EBITDA of $360 million to $400 million for 2023, and while we expect a similar performance in the second quarter to the first quarter of 2023, we expect further increases in the third quarters and fourth quarters of 2023, as our two remaining stacked rigs are being activated and will commence their respective contracts in the Middle East and Mexico.

The first quarter has evidenced our continued ability to add backlog at market leading rates, confirming the tight supply of jack-up drilling rigs in the market. At the same time, we see positive prospects for continuing work for our rigs that are finishing their contracts at the end of this year, both with current customers, as well as in new geographies with new clients.