Borr Drilling said it is seeing “stronger customer demand” for its rigs, with greater discussions and tending.
As such, the company is forecasting utilisation levels to “improve rapidly” in the coming months.
Customer reach and fleet availability also “uniquely places” Borr Drilling to capitalise on the rebound in the offshore drilling market.
The company remains on track to fully contract its fleet of 23 delivered rigs by 2022.
Bermuda-headquartered Borr Drilling set out its optimistic predictions in its financial results, released on Friday.
In the third quarter the company fell to pre-tax losses of $27.9 million, a reduction on last year’s Q3 losses of $58.5m.
Revenue between the beginning of July and end of September totalled $73m, an improvement on 2020’s figure of $59.2m
That’s also a quarter on quarter increase of $18.2m (33%).
That represents 7,929 days and $668 million of potential backlog, including contracts through its drilling joint ventures and mobilisation compensation.
Patrick Schorn, Borr Drilling chief executive, commented: “We are pleased with the performance in the third quarter of 2021, marking a significant milestone in the operational turnaround efforts led by our teams around the world.
“Our 13 operating rigs provided solid EBITDA and positive cash flows in the quarter. The cash position is further positively impacted by the sale of our integrated well services joint ventures and streamlining our Mexico operations.
“Since our last report in August, we have continued adding backlog with currently 17 rigs being contracted or committed which will lead to three additional warm stacked rigs being activated. We see stronger customer demand for our rigs through a higher frequency of commercial discussions and tendering in recent months. Coupled with the increase in recent tenders for multi-year, multi-rig contracts, this leads us to expect utilisation levels to improve rapidly.
“Our strong operational performance, customer reach and fleet availability uniquely places Borr Drilling in a position to benefit from this strengthening market and we remain on track to fully contract our fleet of 23 delivered rigs by 2022.
“Management has continued its engagement with various creditors with the aim to address the 2023 debt maturities. Currently we are in advanced discussions with one of the significant creditors, having arrived at a commonly understood framework to extend commitments substantially beyond 2023. This is subject to certain conditions, including board approval of each respective company as well as reaching acceptable concessions from other creditor groups.
“With a continued increase in the number of active rigs and an upward adjustment of the 2022 E&P capex budgets, we are confident in our ability to further improve our financial performance. This improvement will also provide a foundation ultimately leading to a solution for the 2023 maturities that will benefit all stakeholders.”