Borr Drilling Limited (NYSE:BORR) Q4 2023 Earnings Call Transcript February 22, 2024 9:00 AM ET
Company Participants
Patrick Schorn - CEO & Director
Magnus Vaaler - Chief Financial Officer
Bruno Morand - CCO
Conference Call Participants
Fredrik Stene - Clarksons Securities
Greg Lewis - BTIG
Michael Boam - Sona Asset Management
Patrick Schorn
Good morning, good afternoon, and thank you for participating in the Borr Drilling fourth quarter 2023 earnings call. I'm Patrick Schorn. And with me here today is Bruno Morand, our Chief Commercial Officer; and Magnus Vaaler, our Chief Financial Officer.
Next slide. 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 differ materially from those projected in these statements. I therefore refer you to our latest public filings.
Next slide. Our fourth quarter performance has been strong and we've closed the year having achieved several major milestones. In the fourth quarter, revenue increased by 15% to $220 million. And our adjusted EBITDA increased to $105 million, which is 20% over previous quarter, resulting in a 48% adjusted EBITDA margin. Full-year 2023 adjusted EBITDA reached $350 million. Our backlog has grown and improved significantly in quality during 2023 where we added $728 million to our revenue at an implied average day rate of $161,000 per day. On the operational front, we have finished the year with excellent technical utilization for the quarter at 98.7% and a total recordable injury frequency of 0.65, the latter being well below the industry average.
Both these numbers reflect the professionalism of our operational team who have activated rigs continuously for the last 3 years and who have successfully commenced operations in numerous new countries. This performance has also resulted in external recognition that is dear to us. And just to name 2, our rig Saga has been awarded by Shell as global jack-up rig of the year. Also, we have received the award for the best recordable incident rate for our rig Skald and Borr Drilling as a company from the IADC Southeast Asia Chapter. On the map on the right-hand side, you see that we maintain operations in 4 main hubs, namely Mexico, West Africa, the Middle East, and Asia.
This allows us to benefit from economies of scale while remaining diversified enough to provide a stable activity level. There's been significant focus on the announcement by Saudi Aramco regarding their production targets for 2027. On this, I can only comment from a Borr Drilling perspective and based on some of the discussions we had in Saudi a week ago. First, we have 3 rigs out of our fleet of 24 rigs working in the Kingdom, all 3 of which are multi-year contracts. Second, maintaining a production capacity of 12 million barrels per day versus 13 million barrels per day still requires a world-leading activity level and an operation second to none in size.