Offshore driller Borr Drilling is looking to sell some of its rigs as part of its long-term business strategy, the company revealed in its fourth quarter report.
Paal Kibsgaard, chairman of Borr Drilling said the company’s cash position has been challenging in the financial year of 2019, mainly driven by rig deliveries and activation costs, and the company has recently obtained amended terms to both loans and rig delivery schedules with the strong support of partner banks and shipyard, which significantly improves the company’s liquidity.
“We are in discussions to sell a limited number of our modern rigs, as part of creating a long term business relationship in a key operating region, which will free up additional cash,” Kibsgaard said.
Additionally, Borr Drilling is actively pursuing options to reduce its risk profile in Mexico by lowering its participation in the integrated well services joint venture, and instead focus attention on the core rig operations in the country.
“This will also allow the company to focus even more on the execution of our global, core business, as the jack-up market continues to tighten in the coming year,” Kibsgaard added.
Borr Drilling reported a net loss of $308.1m for the full year of 2019. The company currently operates a fleet of 29 drilling rigs with another eight on the orderbook.