Borr Drilling Limited (NYSE:BORR) Q1 2024 Earnings Conference Call May 23, 2024 9:00 AM ET

Company Participants

Patrick Schorn - Chief Executive Officer
Magnus Vaaler - Chief Financial Officer
Bruno Morand - Chief Commercial Officer

Conference Call Participants

Nikhil Bhat - J.P. Morgan

Operator

Good day and thank you for standing by. Welcome to the Borr Drilling Limited First Quarter 2024 Results Presentation Webcast and Conference. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that this conference has been recorded.

I would now like to hand the conference over to our first speaker today, Mr. Patrick Schorn, CEO, please go ahead.

Patrick Schorn

Thank you. Good morning and thank you for participating in the Borr Drilling First Quarter 2024 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, 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 differ materially from those projected in these statements. I therefore refer you to our latest public filings.

Next slide. The first quarter results have been strong, driven by solid operational performance with technical utilization coming in at 99% and economic utilization at 98.6%. We operate currently a fleet of 22 rigs and have two new builds joined the fleet later this year. The adjusted EBITDA margin increased this quarter to 47.2%, keeping us right on track to meet our annual plan. We finished the first quarter with all 22 delivered rigs operating, however, after the close of the quarter, one rig in Saudi Arabia has been suspended.

We expect this rig to be re-contracted in a different region by the end of Q3 based on current customer discussions. On the contracting front, we continue to deliver strong results, securing $318 million in revenue backlog year to date, translating to an average day rate of approximately $183,000 per day.

Notably, in the second quarter, we achieved our first-ever contract exceeding $200,000 per day on a clean-day rate basis. This milestone not only underscores the premium quality and operational excellence of our fleet, but it is a positive confirmation of our views of a well-balanced market despite the recent developments in Saudi Arabia.