Shares of Borr Drilling Ltd (NYSE: BORR), a Norwegian offshore drilling contractor, surged by 5% on November 6th, 2024, as the positive outlook for the offshore drilling sector fueled investor enthusiasm.

The company's stock rallied, driven by several favorable factors contributing to its strong performance. Borr Drilling, which operates a fleet of jack-up rigs serving oil and gas exploration firms worldwide, has secured a robust order backlog of $1.76 billion, providing clear revenue and cash flow visibility.

Additionally, the company has already secured 92% contract coverage for 2024 and 73% for 2025, demonstrating the strength of its order book. This high level of contract visibility has bolstered investor confidence in Borr Drilling's future prospects.

Furthermore, the company is benefiting from increasing day rates for new contracts, with a recent average of $184,000. This trend, coupled with a tight supply-demand scenario for modern jack-up rigs, positions Borr Drilling for EBITDA margin expansion and cash flow growth.