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Borr Drilling Ltd. shares have tumbled to a 52-week low, reaching a price level of just $2.08, underlining a period of significant bearish momentum for the offshore drilling contractor. According to InvestingPro data, the stock is currently trading below its Fair Value, despite maintaining profitability with an EBITDA of $505M and offering a substantial dividend yield of 10.48%. This latest price point reflects a stark downturn in investor sentiment, as evidenced by the stock’s precipitous 1-year decline of 64.47%. The company, which specializes in providing drilling services to the oil and gas sector, has faced a challenging market environment, with the low share price signaling potential concerns over its future growth prospects and operational resilience amidst industry volatility. InvestingPro analysis reveals several critical factors affecting the company, including significant debt levels and rapid cash burn, though the stock trades at just 0.51 times book value. Discover 9 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, Borr Drilling Ltd reported its Q4 2024 financial results, highlighting a mixed performance. The company achieved revenue of $263.1 million, surpassing the expected $251.49 million, but its earnings per share (EPS) fell short of forecasts at $0.10 compared to the anticipated $0.1124. Despite the revenue beat, investor concerns were evident as the EPS miss was more pronounced than in previous quarters. Moody’s affirmed Borr Drilling’s B3 ratings while revising the outlook to stable, citing lower contractual coverage impacting the company’s deleveraging process. The company ended 2024 with a highly negative free cash flow of $408 million, influenced by issues with receivables collection and expenditures on new rigs. However, Borr Drilling confirmed that 75% of the delayed receivables from Petroleos Mexicanos (PeMex) are expected to be recovered at the start of 2025. Market uncertainties are anticipated in 2025, but the company foresees a gradual recovery in the latter half of the year. Moody’s projects Borr Drilling’s EBITDA to remain flat in 2025 and 2026 at around $500 million, with expectations for improved free cash flow due to lower capital investments and receivables recovery.
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