Shares of Borr Drilling Ltd (NYSE: BORR) tumbled over 5% in after-hours trading on Tuesday, following the offshore drilling contractor's lackluster third-quarter results and reduced full-year guidance, citing 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, well below analysts' consensus estimate of $0.09 per share. Total operating revenues came in at $241.6 million, missing Wall Street's expectations of $246.1 million.
In its earnings release, 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.
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