Why Is Borr Drilling Stock Down Over 5% Today?
Portfolio Pulse from Nabaparna Bhattacharya
Borr Drilling Limited (NYSE:BORR) shares fell over 5% due to a notice of temporary suspension of operations for its rig 'Arabia I' in Saudi Arabia for up to 12 months, starting in Q2. The company plans to seek alternative engagement for the rig during this period. Despite this setback, Borr Drilling has secured several new contracts in 2023, adding $728 million, with an implied rate of approximately $161,000 per day. Firm contracts and priced options already cover 87% of available capacity in 2024. Over the past year, BORR stock has lost over 23%.
April 04, 2024 | 3:40 pm
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Borr Drilling Limited's stock fell over 5% due to a temporary suspension of its 'Arabia I' rig operations in Saudi Arabia for up to 12 months. The company is seeking alternative engagements for the rig and has secured new contracts worth $728 million for 2023.
The temporary suspension of the 'Arabia I' rig operations is a significant event that directly impacts Borr Drilling's operational capabilities and revenue in the short term, leading to a negative perception among investors and a drop in stock price. However, the company's ability to secure new contracts worth $728 million for 2023 mitigates the impact slightly, indicating potential for recovery.
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IMPORTANCE 90
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