Borr Drilling: Impressive Results And Outlook - Buy

Jan. 24, 2023 9:20 PM ETBorr Drilling Limited (BORR)DO, HLX, NE, RIG, SDRL, SMHI, TDW, VAL34 Comments
Henrik Alex profile picture
Henrik Alex


  • Company releases very strong preliminary fourth quarter and full year 2022 guidance and provides 2023 guidance well above expectations.
  • Not surprisingly, management is trying to capitalize on the momentum by addressing the company's last remaining near-term debt maturity.
  • Discussing expectations for the new debt offerings to be met with strong demand.
  • Even when assuming further recovery in the jackup market to be muted, Borr Drilling is likely to generate very substantial amounts of free cash flow going forward.
  • Given ongoing, strong industry conditions and persistent geopolitical tailwinds, investors should use any potential weakness in the shares to initiate or add to existing positions.

Aerial view maintenance repair of the jack up oil and gas rig up in the shipyard, Offshore oil and Gas processing platform, oil and gas industry.


Note: I have covered Borr Drilling Limited (NYSE:BORR) previously, so investors should view this as an update to my earlier articles on the company.

After the close of Tuesday's session, leading shallow-water offshore driller Borr Drilling reported preliminary fourth quarter

This article was written by

Henrik Alex profile picture
I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research at no charge to followers and the entire Seeking Alpha community.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am long NE, TDW, SMHI and HLX.

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