Shares of Borr Drilling Ltd (NYSE: BORR) plummeted over 5% in after-hours trading on Tuesday, following the offshore drilling contractor's disappointing third-quarter results and reduced full-year guidance, amid concerns over near-term market volatility.
For the three months ended September 30th, 2024, Borr Drilling reported net income of $9.7 million, or $0.04 per share, significantly lower than analysts' consensus estimate of $0.09 per share. Total operating revenues of $241.6 million also missed Wall Street's expectations of $246.1 million.
The company attributed the weaker-than-expected performance primarily to one-off factors in the previous quarter, including the change in operating structure for contracts in Mexico and the suspension of the "Arabia I" rig. While operational performance remained solid with high utilization rates, day rates on some contracts were lower compared to the second quarter.
Notably, Borr Drilling lowered its full-year 2024 adjusted EBITDA guidance to be at or around the lower end of the previously announced range of $500-550 million, citing concerns about potential near-term market volatility and uncertainties in the jack-up rig market in specific regions. These factors could lead to contract delays and potential gaps in activity in the coming quarters, the company cautioned.
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