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million from BOT Lease Co., Ltd. The original ordering price of the rig was
approximately USD240 million. An important criteria for the transaction was a
quick settlement before March 31, 2019 and the acquisition has been fully
financed through an expedited establishment of a new secured financing facility
arranged by two Nordic banks.
The purchase of Hull B378 should be seen as an opportunistic deal, with the
target to acquire a high specification rig at what we consider a very attractive
price. The transaction does not indicate that Borr has a strong strategic desire
to significantly increase the size of its existing fleet. With a largely
homogenous fleet of 30 premium jack-up drilling rigs, the Company has
established a foundation which provides strong cost and operating benefits
compared to our competitors. Borr’s focus on premium jack-up drilling rigs has
made it possible to achieve the strong growth witnessed from 2018, keeping
technical utilisation above 99% and keeping an industry leading safety standard.
Hull B378 is a KFELS Super B Bigfoot design and will need approximately six
months to be operationally ready from the yard. The rig has 2,200,000 lbs hook
load capacity, 75 feet cantilever and significant crane capacity which makes the
unit ideal for drilling of deep HPHT wells. The rig is of similar design as the
five newbuildings Borr bought from Transocean. Two of these five units have
been delivered from the yard and both units have as stated in today’s fleet
report received LOIs for multi-year contracts at attractive terms.
Borr believes that the acquired unit is well positioned for contractual work at
attractive rates. Market rates for term works for similar units is currently
estimated to generate an EBITDA in excess of USD 20 million per year.
This morning, the Company has also announced an updated fleet status report,
available on the Company’s website and attached to this release. As disclosed in
the report, Borr has now increased the number of contracted and committed units
from zero in the beginning of 2017, to a total of 18. The company expects to,
based on having 18 rigs in operation, be generating positive cash flow after
taking into account operating cost, layup cost for the remaining units and
financing cost.
April 1, 2019
The Board of Directors
Borr Drilling Limited
Hamilton, Bermuda
Questions should be directed to:
Svend Anton Maier: Chief Executive Officer, Borr Drilling Management DMCC
Rune Magnus Lundetræ: Chief Financial Officer, Borr Drilling Management DMCC
Forward looking statements
This announcement includes forward looking statements. Forward looking
statements are, typically, statements that do not reflect historical facts and
may be identified by words such as “anticipate”, “believe”, “continue”,
“estimate”, “expect”, “intends”, “may”, “should”, “will” and similar expressions
and include expectations regarding industry trends including activity levels in
the jack-up rig industry, trends in oil prices, the suitability of our fleet in
the existing environment, utilization levels, delivery of newbuilds, and
contract backlog, expected business environment in 2019 including expected
offshore spending, expected contracting and operation of our rigs in 2019 and
expectation of contracting at favourable rates, expected funding needs,
execution of the indicative funding term sheet and entrance into the credit
facility and other non-historical statements. The forward-looking statements in
this announcement are based upon various assumptions, many of which are based,
in turn, upon further assumptions. Although Borr Drilling Limited believes that
these assumptions are reasonable, they are, by their nature, uncertain and
subject to significant known and unknown risks, contingencies and other factors
which are difficult or impossible to predict and which are beyond our control.
Such risks, uncertainties, contingencies and other factors could cause actual
events to differ materially from the expectations expressed or implied by the
forward-looking statements included herein. In addition to the important factors
and matters discussed elsewhere in this report, important factors that, in our
view could cause actual results to differ materially from those discussed in the
forward looking statements are included in our most recent annual report.
The information, opinions and forward-looking statements contained in this
announcement speak only as of the date hereof and are subject to change without
notice.
About Borr Drilling Limited
Borr Drilling Limited is an international drilling contractor incorporated in
Bermuda in 2016 and listed on the Oslo Stock Exchange from August 30, 2017. The
Company owns and operates jack-up rigs of modern and high specification designs
and provides services focused on the shallow water segment to the offshore oil
and gas industry worldwide.
Please visit our website at: www.borrdrilling.com
http://www.netfonds.no/quotes/release.php?id=20190401.OBI.20190401S29
