Borr Drilling Limited | ||||||||
(Registrant) | ||||||||
By: | /s/ Magnus Vaaler | |||||||
Name: | Magnus Vaaler | |||||||
August 17, 2023 | Title: | Principal Financial Officer |
Six months ended June 30, | ||||||||||||||
In $ millions | 2023 | 2022 | Change | % Change | ||||||||||
Total operating revenues | 359.5 | 187.3 | 172.2 | 92 | % | |||||||||
Gain on disposal | 0.3 | 0.7 | (0.4) | (57) | % | |||||||||
Rig operating and maintenance expenses | (175.0) | (121.1) | (53.9) | 45 | % | |||||||||
Depreciation of non-current assets | (56.2) | (59.0) | 2.8 | (5) | % | |||||||||
Impairment of non-current assets | — | (124.4) | 124.4 | (100) | % | |||||||||
General and administrative expenses | (22.7) | (18.8) | (3.9) | 21 | % | |||||||||
Total operating expenses | (253.9) | (323.3) | 69.4 | (21) | % | |||||||||
Operating income / (loss) | 105.9 | (135.3) | 241.2 | (178) | % | |||||||||
Other non-operating income | — | 2.0 | (2.0) | (100) | % | |||||||||
Income from equity method investments | 6.3 | — | 6.3 | 100 | % | |||||||||
Total financial expenses, net | (90.1) | (72.2) | (17.9) | 25 | % | |||||||||
Income / (loss) before income taxes | 22.1 | (205.5) | 227.6 | (111) | % | |||||||||
Income tax expense | (28.7) | (11.1) | (17.6) | 159 | % | |||||||||
Net loss | (6.6) | (216.6) | 210.0 | (97) | % |
Six months ended June 30, | ||||||||||||||
In $ millions | 2023 | 2022 | Change | % Change | ||||||||||
Net loss | (6.6) | (216.6) | 210.0 | (97) | % | |||||||||
Depreciation of non-current assets | 56.2 | 59.0 | (2.8) | (5) | % | |||||||||
Impairment of non-current assets | — | 124.4 | (124.4) | (100) | % | |||||||||
Other non-operating income | — | (2.0) | 2.0 | (100) | % | |||||||||
Income from equity method investments | (6.3) | — | (6.3) | 100 | % | |||||||||
Total financial expenses, net | 90.1 | 72.2 | 17.9 | 25 | % | |||||||||
Income tax | 28.7 | 11.1 | 17.6 | 159 | % | |||||||||
Amortization of deferred mobilization and contract preparation costs | 24.8 | 16.8 | 8.0 | 48 | % | |||||||||
Amortization of deferred mobilization, demobilization and other revenue | (30.5) | (6.5) | (24.0) | 369 | % | |||||||||
Adjusted EBITDA | 156.4 | 58.4 | 98.0 | 168 | % |
Six months ended June 30, | ||||||||||||||
In $ millions | 2023 | 2022 | Change | % Change | ||||||||||
Net cash used in operating activities | (5.8) | (23.2) | 17.4 | (75) | % | |||||||||
Net cash used in investing activities | (44.9) | (22.7) | (22.2) | 98 | % | |||||||||
Net cash provided by financing activities | 16.0 | 37.7 | (21.7) | (58) | % | |||||||||
Net decrease in cash and cash equivalents and restricted cash | (34.7) | (8.2) | (26.5) | 323 | % | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | 118.5 | 46.0 | 72.5 | 158 | % | |||||||||
Cash and cash equivalents and restricted cash at end of period | 83.8 | 37.8 | 46.0 | 122 | % |
Non-GAAP Measure | Closest Equivalent to GAAP Measure | Definition | Rationale for Presentation of this non-GAAP Measure | ||||||||
Adjusted EBITDA | Net loss attributable to shareholders of Borr Drilling Limited | Net loss adjusted for: depreciation of non-current assets; impairment of non-current assets; other non-operating income; income from equity method investments; total financial expenses, net; amortization of deferred mobilization and contract preparation costs; amortization of deferred mobilization, demobilization and other revenue; and income tax. | Increases the comparability of total business performance from period to period and against the performance of other companies by excluding the results of our equity investments, removing the impact of unrealized movements and removing the impact of depreciation, financing and tax items. | ||||||||
Page | ||||||||||||||
Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022 | ||||||||||||||
Unaudited Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 | ||||||||||||||
Unaudited Consolidated Statements of Cash Flows for the three and six months ended June 30, 2023 and 2022 | ||||||||||||||
Unaudited Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2023 and 2022 | ||||||||||||||
Notes to the Unaudited Consolidated Financial Statements |
Notes | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||||
Operating revenues | |||||||||||||||||
Dayrate revenue | 4 | ||||||||||||||||
Related party revenue | 4, 19 | ||||||||||||||||
Total operating revenues | |||||||||||||||||
Gain on disposals | |||||||||||||||||
Operating expenses | |||||||||||||||||
Rig operating and maintenance expenses | ( | ( | ( | ( | |||||||||||||
Depreciation of non-current assets | 13 | ( | ( | ( | ( | ||||||||||||
Impairment of non-current assets | 12 | ( | ( | ||||||||||||||
General and administrative expenses | ( | ( | ( | ( | |||||||||||||
Total operating expenses | ( | ( | ( | ( | |||||||||||||
Operating income / (loss) | ( | ( | |||||||||||||||
Other non-operating income | |||||||||||||||||
Income / (loss) from equity method investments | 6 | ( | |||||||||||||||
Financial income (expenses), net | |||||||||||||||||
Interest income | |||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||
Other financial expenses, net | 7 | ( | ( | ( | ( | ||||||||||||
Total financial expenses, net | ( | ( | ( | ( | |||||||||||||
Income / (loss) before income taxes | ( | ( | |||||||||||||||
Income tax expense | 8 | ( | ( | ( | ( | ||||||||||||
Net income / (loss) attributable to shareholders of Borr Drilling Limited | ( | ( | ( | ||||||||||||||
Total comprehensive income / (loss) attributable to shareholders of Borr Drilling Limited | ( | ( | ( | ||||||||||||||
Basic and diluted income / (loss) per share | 9 | ( | ( | ( | |||||||||||||
Weighted-average shares outstanding - basic | 9 | ||||||||||||||||
Weighted-average shares outstanding - diluted | 9 | ||||||||||||||||
Notes | June 30, 2023 | December 31, 2022 | |||||||||
ASSETS | Unaudited | Audited | |||||||||
Current assets | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | 10 | ||||||||||
Trade receivables, net | |||||||||||
Prepaid expenses | |||||||||||
Deferred mobilization and contract preparation costs | 5 | ||||||||||
Accrued revenue | 5 | ||||||||||
Due from related parties | 19 | ||||||||||
Other current assets | 11 | ||||||||||
Total current assets | |||||||||||
Non-current assets | |||||||||||
Non-current restricted cash | 10 | ||||||||||
Property, plant and equipment | |||||||||||
Newbuildings | 12 | ||||||||||
Jack-up drilling rigs, net | 13 | ||||||||||
Equity method investments | 6 | ||||||||||
Other non-current assets | 14 | ||||||||||
Total non-current assets | |||||||||||
Total assets | |||||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Trade payables | |||||||||||
Accrued expenses | 15 | ||||||||||
Short-term accrued interest and other items | |||||||||||
Short-term debt | 16 | ||||||||||
Short-term deferred mobilization, demobilization and other revenue | 5 | ||||||||||
Other current liabilities | 17 | ||||||||||
Total current liabilities | |||||||||||
Non-current liabilities | |||||||||||
Long-term accrued interest and other items | |||||||||||
Long-term debt | 16 | ||||||||||
Long -term deferred mobilization, demobilization and other revenue | 5 | ||||||||||
Other non-current liabilities | |||||||||||
Onerous contracts | |||||||||||
Total non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ Equity | |||||||||||
Common shares of par value $ | 21 | ||||||||||
Treasury shares | ( | ( | |||||||||
Additional paid in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities and equity | |||||||||||
Notes | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income / (loss) | ( | ( | ( | ||||||||||||||
Adjustments to reconcile net income / (loss) to net cash provided by / (used in) operating activities: | |||||||||||||||||
Non-cash compensation expense related to stock based employee and directors' compensation | |||||||||||||||||
Depreciation of non-current assets | 13 | ||||||||||||||||
Impairment of non-current assets | 12 | ||||||||||||||||
Amortization of deferred mobilization and contract preparation costs | |||||||||||||||||
Amortization of deferred mobilization, demobilization and other revenue | ( | ( | ( | ( | |||||||||||||
Gain on disposal of assets | ( | ( | ( | ( | |||||||||||||
Amortization of deferred finance charges | 7 | ||||||||||||||||
Bank commitment, guarantee and other fees | |||||||||||||||||
Effective interest rate adjustments | ( | ( | |||||||||||||||
(Income) / loss from equity method investments | 6 | ( | ( | ||||||||||||||
Deferred income tax | 8 | ||||||||||||||||
Change in assets and liabilities: | |||||||||||||||||
Amounts due to/from related parties | ( | ( | ( | ( | |||||||||||||
Accrued expenses | ( | ||||||||||||||||
Accrued interest | ( | ( | ( | ( | |||||||||||||
Other current and non-current assets | ( | ( | ( | ( | |||||||||||||
Other current and non-current liabilities | |||||||||||||||||
Net cash provided by / (used in) operating activities | ( | ( | ( | ||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Purchase of property, plant and equipment | ( | ( | ( | ( | |||||||||||||
Proceeds from sale of fixed assets | |||||||||||||||||
Repayment of loan from equity method investments | 6 | ||||||||||||||||
Additions to jack-up drilling rigs | ( | ( | ( | ( | |||||||||||||
Net cash used in investing activities | ( | ( | ( | ( | |||||||||||||
Cash flows from financing activities | |||||||||||||||||
Proceeds from share issuance, net of issuance cost | |||||||||||||||||
Repayment of debt | 16 | ( | ( | ||||||||||||||
Debt proceeds, net of issuance costs | 16 | ||||||||||||||||
Net cash (used in) / provided by financing activities | ( | ||||||||||||||||
— | — | — | — | ||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | ( | ( | |||||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | |||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the period | |||||||||||||||||
Supplementary disclosure of cash flow information | |||||||||||||||||
Interest paid | ( | ( | ( | ( | |||||||||||||
Income taxes paid | ( | ( | ( | ( | |||||||||||||
(In $ millions) | June 30, 2023 | December 31, 2022 | ||||||
Cash and cash equivalents | ||||||||
Restricted cash | ||||||||
Non-current restricted cash | ||||||||
Total cash and cash equivalents and restricted cash |
Number of outstanding shares | Common shares | Treasury shares | Additional paid in capital | Accumulated deficit | Total equity | |||||||||||||||
Balance as at December 31, 2021 | ( | ( | ||||||||||||||||||
Issue of common shares | — | — | ||||||||||||||||||
Equity issuance costs | — | — | — | ( | — | ( | ||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||
Total comprehensive loss | — | — | — | — | ( | ( | ||||||||||||||
Balance as at March 31, 2022 | ( | ( | ||||||||||||||||||
Issue of common shares | — | — | ||||||||||||||||||
Equity issuance costs | — | — | — | ( | — | ( | ||||||||||||||
Share-based compensation | — | — | — | — | ||||||||||||||||
Total comprehensive loss | — | — | — | — | ( | ( | ||||||||||||||
Balance as at June 30, 2022 | ( | ( | ||||||||||||||||||
Number of outstanding shares | Common shares | Treasury shares | Additional paid in capital | Accumulated deficit | Total equity | |||||||||||||||
Balance as at December 31, 2022 | ( | ( | ||||||||||||||||||
Issue of common shares | ( | — | ||||||||||||||||||
Convertible debt issuance cost | — | — | — | — | ||||||||||||||||
Share based compensation | — | — | — | — | ||||||||||||||||
Total comprehensive loss | — | — | — | — | ( | ( | ||||||||||||||
Balance as at March 31, 2023 | ( | ( | ||||||||||||||||||
Issue of common shares | — | ( | — | |||||||||||||||||
Share based compensation | — | — | — | — | ||||||||||||||||
Total comprehensive income | — | — | — | — | ||||||||||||||||
Balance as at June 30, 2023 | ( | ( | ||||||||||||||||||
Standard | Description | Date of Adoption | Effect on our Consolidated Financial Statements or Other Significant Matters | ||||||||
ASU 2022-03 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions | The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and require the following disclosures for equity securities subject to contractual sale restrictions: 1. The fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet 2. The nature and remaining duration of the restriction(s) 3. The circumstances that could cause a lapse in the restriction(s). | January 1, 2024 | Under evaluation | ||||||||
ASU 2023-01 Leases (Topic 842): Common Control Arrangements | The amendments provide a practical expedient for private companies and not-for-profit entities that are not conduit bond obligors to use the written terms and conditions of a common control arrangement to determine whether a lease exists and, if so, the classification of and accounting for that lease. If no written terms and conditions exist (including in situations in which an entity does not document existing unwritten terms and conditions in writing upon transition to the practical expedient), an entity is prohibited from applying the practical expedient and must evaluate the enforceable terms and conditions to apply Topic 842. Also, the amendments require that leasehold improvements associated with common control leases be: 1. Amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease. However, if the lessor obtained the right to control the use of the underlying asset through a lease with another entity not within the same common control group, the amortization period may not exceed the amortization period of the common control group. 2. Accounted for as a transfer between entities under common control through an adjustment to equity (or net assets for not-for-profit entities) if, and when, the lessee no longer controls the use of the underlying asset. Additionally, those leasehold improvements are subject to the impairment guidance in Topic 360, Property, Plant, and Equipment. | January 1, 2024 | Under evaluation | ||||||||
ASU 2023-02 Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force) | The amendments permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received and recognizes the net amortization and income tax credits and other income tax benefits in the income statement as a component of income tax expense (benefit). | January 1, 2024 | Under evaluation |
(In $ millions) | Dayrate | Reconciling Items (2) | Consolidated total | ||||||||
Dayrate revenue | ( | ||||||||||
Related party revenue | |||||||||||
Gain on disposal | |||||||||||
Rig operating and maintenance expenses | ( | ( | |||||||||
Depreciation of non-current assets (1) | ( | ( | ( | ||||||||
General and administrative expenses (1) | ( | ( | |||||||||
Income from equity method investments | |||||||||||
Operating income including equity method investments | |||||||||||
Total assets | ( |
(in $ millions) | Dayrate | Reconciling Items (2) | Consolidated total | ||||||||
Dayrate revenue | ( | ||||||||||
Related party revenue | |||||||||||
Gain on disposal | |||||||||||
Rig operating and maintenance expenses | ( | ( | |||||||||
Depreciation of non-current assets (1) | ( | ( | ( | ||||||||
Impairment of non-current assets | ( | ( | |||||||||
General and administrative expenses (1) | ( | ( | |||||||||
Loss from equity method investments | ( | ( | |||||||||
Operating (loss) / income including equity method investments | ( | ( | |||||||||
Total assets | ( |
(In $ millions) | Dayrate | Reconciling Items (2) | Consolidated total | ||||||||
Dayrate revenue | ( | ||||||||||
Related party revenue | |||||||||||
Gain on disposal | |||||||||||
Rig operating and maintenance expenses | ( | ( | |||||||||
Depreciation of non-current assets (1) | ( | ( | ( | ||||||||
General and administrative expenses (1) | ( | ( | |||||||||
Income from equity method investments | |||||||||||
Operating income including equity method investments |
(in $ millions) | Dayrate | Reconciling Items (2) | Consolidated total | ||||||||
Dayrate revenue | ( | ||||||||||
Related party revenue | |||||||||||
Gain on disposal | |||||||||||
Rig operating and maintenance expenses | ( | ( | |||||||||
Depreciation of non-current assets (1) | ( | ( | ( | ||||||||
Impairment of non-current assets | ( | ( | |||||||||
General and administrative expenses (1) | ( | ( | |||||||||
Income from equity method investments | |||||||||||
Operating (loss) / income including equity method investments | ( | ( |
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
South East Asia | ||||||||||||||
West Africa | ||||||||||||||
Mexico | ||||||||||||||
Middle East | ||||||||||||||
Europe | ||||||||||||||
Total | ||||||||||||||
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
(In % of operating revenues) | ||||||||||||||
Perfomex | % | % | % | % | ||||||||||
ENI Congo S.A. | % | % | % | % | ||||||||||
Saudi Arabian Oil Company | % | % | % | % | ||||||||||
PTT Exploration and Production Public Company Limited | % | % | % | % | ||||||||||
Total | % | % | % | % |
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
South East Asia | ||||||||
Mexico | ||||||||
Middle East | ||||||||
West Africa | ||||||||
Europe | ||||||||
Total | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
Accrued revenue (1) | ||||||||
Current contract assets | ||||||||
Non-current accrued revenue (2) | ||||||||
Non-current contract asset | ||||||||
Total contract asset | ||||||||
Current deferred mobilization, demobilization and other revenue | ( | ( | ||||||
Current contract liability | ( | ( | ||||||
Non-current deferred mobilization, demobilization and other revenue | ( | ( | ||||||
Non-current contract liability | ( | ( | ||||||
Total contract liability | ( | ( | ||||||
(In $ millions) | Contract assets | Contract liabilities | ||||||
Balance as of December 31, 2022 | ||||||||
Performance obligations satisfied during the reporting period | — | |||||||
Amortization of revenue | — | ( | ||||||
Unbilled variable rate revenue | — | |||||||
Cash received, excluding amounts recognized as revenue | — | |||||||
Cash received against the contract asset balance | ( | — | ||||||
Balance as of June 30, 2023 |
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
(In $ millions) | ||||||||||||||
Over time | ||||||||||||||
Point in time | ||||||||||||||
Total |
For the periods ending June 30, | ||||||||||||||
(In $ millions) | 2024 | 2025 | 2026 | 2027 onwards | ||||||||||
Dayrate revenue | ||||||||||||||
Other revenue (1) | ||||||||||||||
Total |
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
Current deferred mobilization and contract preparation costs | ||||||||
Non-current deferred mobilization and contract preparation costs (1) | ||||||||
Total deferred mobilization and contract preparation asset |
Three months ended June 30, 2023 | Three months ended June 30, 2022 | |||||||||||||
In $ millions | Perfomex | Perfomex II | Perfomex | Perfomex II | ||||||||||
Revenue | ||||||||||||||
Operating expenses | ( | ( | ( | ( | ||||||||||
Net income / (loss) | ( | |||||||||||||
Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||||
In $ millions | Perfomex | Perfomex II | Perfomex | Perfomex II | ||||||||||
Revenue | ||||||||||||||
Operating expenses | ( | ( | ( | ( | ||||||||||
Net income / (loss) | ( |
As at June 30, 2023 | As at December 31, 2022 | |||||||||||||
In $ millions | Perfomex | Perfomex II | Perfomex | Perfomex II | ||||||||||
Cash | ||||||||||||||
Total current assets | ||||||||||||||
Total non-current assets | ||||||||||||||
Total assets | ||||||||||||||
Total current liabilities | ||||||||||||||
Total non-current liabilities | ||||||||||||||
Equity | ||||||||||||||
Total Liabilities and Equity |
In $ millions | Perfomex | Perfomex II | Borr Total | ||||||||
Balance as of January 1, 2023 | |||||||||||
Funding received from shareholder loan (1) | ( | ( | |||||||||
Income on a percentage basis | |||||||||||
Balance as of June 30, 2023 (1) | |||||||||||
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
(In $ millions) | ||||||||||||||
Yard cost cover expense | ( | ( | ( | ( | ||||||||||
Amortization of deferred finance charges | ( | ( | ( | ( | ||||||||||
Foreign exchange (loss) / gain | ( | ( | ( | |||||||||||
Bank commitment, guarantee and other fees | ( | ( | ( | ( | ||||||||||
Other financial income | ( | ( | ( | ( | ||||||||||
Total | ( | ( | ( | ( |
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
(In $ millions) | ||||||||||||||
Current tax | ( | ( | ( | ( | ||||||||||
Change in deferred tax | ( | ( | ||||||||||||
Total | ( | ( | ( | ( | ||||||||||
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
Basic income (loss) per share | ( | ( | ( | |||||||||||
Diluted income (loss) per share | ( | ( | ( | |||||||||||
Issued ordinary shares at the end of the period | ||||||||||||||
Weighted average numbers of shares outstanding for the period, basic | ||||||||||||||
Dilutive effect of share options and RSU (1) | ||||||||||||||
Weighted average numbers of shares outstanding for the period, diluted | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
Restricted cash relating to the issuance of guarantees | ||||||||
Restricted cash relating to other | ||||||||
Total restricted cash | ||||||||
Less: amounts included in current restricted cash | ( | |||||||
Non-current restricted cash |
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
VAT and other tax receivable | ||||||||
Client rechargeables | ||||||||
Right-of-use lease asset (1) | ||||||||
Corporate income taxes receivable | ||||||||
Other receivables | ||||||||
Total | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
Opening balance | ||||||||
Disposals | ( | |||||||
Impairment | ( | |||||||
Total |
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
Opening balance | ||||||||
Additions | ||||||||
Depreciation and amortization | ( | ( | ||||||
Disposals | ( | |||||||
Impairment | ( | |||||||
Total |
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
Deferred mobilization and contract preparation costs (1) | ||||||||
Deferred tax asset | ||||||||
Liquidated damages (2) | ||||||||
Deferred demobilization revenue (4) | ||||||||
VAT receivable | ||||||||
Prepayments | ||||||||
Total |
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
Accrued goods and services received, not invoiced | ||||||||
Accrued payroll and bonus | ||||||||
Other accrued expenses (1) | ||||||||
Total |
Principal Amount | ||||||||
(In $ millions) | June 30, 2023 | December 31, 2022 | ||||||
PPL Delivery Financing | ||||||||
Hayfin Term Loan Facility | ||||||||
New DNB Facility | ||||||||
$ | ||||||||
Principal Outstanding | ||||||||
Hayfin Facility Back-End Fee | ||||||||
New DNB Facility Back-End Fee | ||||||||
Deferred Finance Charges (3) | ( | ( | ||||||
Carrying Value Short-Term Debt (1) |
Principal Amount | ||||||||
(In $ millions) | June 30, 2023 | December 31, 2022 | ||||||
PPL Delivery Financing | ||||||||
Keppel Delivery Financing | ||||||||
$ | ||||||||
$ | ||||||||
New DNB Facility | ||||||||
Hayfin Term Loan Facility | ||||||||
Principal Outstanding | ||||||||
PPL Delivery Financing Back-End Fee | ||||||||
Keppel Delivery Financing Back-End Fee | ||||||||
New DNB Facility Back-End Fee | ||||||||
Hayfin Facility Back-End Fee | ||||||||
Effective Interest Rate Adjustments (2) | ||||||||
Deferred Finance Charges (3) | ( | ( | ||||||
Carrying Value Long-Term Debt (1) |
Maturities | |||||
(In $ millions) | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total principal debt | |||||
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
VAT payable | ||||||||
Other current taxes payable (1) | ||||||||
Corporate income taxes payable | ||||||||
Accrued payroll and severance | ||||||||
Other current liabilities | ||||||||
Total | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
(in $ millions) | ||||||||
Delivery installments for jack-up drilling rigs | ||||||||
Total |
(In $ millions) | Less than 1 year | 1-2 years | 2-3 years | Thereafter | Total | ||||||||||||
Delivery installments for jack-up rigs |
June 30, 2023 | December 31, 2022 | |||||||
(in $ millions) | ||||||||
Bank guarantees and performance bonds(1) | ||||||||
Total |
(In $ millions) | Less than 1 year | 1–3 years | Total | ||||||||
Bank guarantees and performance bonds |
June 30, 2023 | December 31, 2022 | |||||||
(in $ millions) | ||||||||
Book value of jack-up rigs pledged as collateral for debt facilities |
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
(In $ millions) | ||||||||||||||
Bareboat Revenue - Perfomex | ||||||||||||||
Bareboat Revenue - Perfomex II | ||||||||||||||
Total |
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
(In $ millions) | ||||||||||||||
Perfomex | ( | ( | ||||||||||||
Total | ( | ( |
June 30, 2023 | December 31, 2022 | |||||||
(In $ millions) | ||||||||
Perfomex | ||||||||
Perfomex II | ||||||||
Total |
Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | |||||||||||
(In $ millions) | ||||||||||||||
Magni Partners Limited (1) | ( | ( | ( | ( | ||||||||||
Drew Holdings Limited (2) | ( | ( | ||||||||||||
Front End Limited Company (3) | ( | ( |
As at June 30, 2023 | As at December 31, 2022 | ||||||||||||||||
(In $ millions) | Hierarchy | Fair value | Carrying value | Fair value | Carrying value | ||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents (1) | 1 | ||||||||||||||||
Restricted cash (1) | 1 | ||||||||||||||||
Trade receivables (1) | 1 | ||||||||||||||||
Other current assets (1) | 1 | ||||||||||||||||
Due from related parties (1) | 1 | ||||||||||||||||
Non-current restricted cash (1) | 1 | ||||||||||||||||
Liabilities | |||||||||||||||||
Trade payables (1) | 1 | ||||||||||||||||
Accrued expenses (1) | 1 | ||||||||||||||||
Short term accrued interest and other items (1) | 1 | ||||||||||||||||
Other current liabilities (1) | 1 | ||||||||||||||||
Short-term debt (2) | 1 | ||||||||||||||||
Short-term debt (3) | 2 | ||||||||||||||||
Long-term debt (2) | 1 | ||||||||||||||||
Long-term debt (4) | 2 | ||||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||
(Number of shares of $ | ||||||||
Authorized shares |
June 30, 2023 | December 31, 2022 | |||||||
(Number of shares of $ | ||||||||
Issued | ||||||||
Treasury shares | ||||||||
Outstanding |
Cover |
6 Months Ended |
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Jun. 30, 2023 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-39007 |
Entity Registrant Name | Borr Drilling Limited |
Entity Central Index Key | 0001715497 |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Period End Date | Jun. 30, 2023 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2023 |
Feb. 24, 2023 |
Feb. 23, 2023 |
Jan. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|---|---|---|
Shareholders’ Equity | ||||||
Ordinary shares, par value (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | |
Authorized shares (in shares) | 315,000,000 | 255,000,000 | ||||
Common stock, shares issued (in shares) | 254,263,598 | 229,263,598 | 152,901,508 | |||
Common stock, shares outstanding (in shares) | 245,102,732 | 228,948,087 |
General Information |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | General Information Borr Drilling Limited was incorporated in Bermuda on August 8, 2016. We are listed on the Oslo Stock Exchange ("OSE") and on the New York Stock Exchange ("NYSE") under the ticker "BORR". Borr Drilling Limited is an international offshore drilling contractor providing services to the oil and gas industry. Our primary business is the ownership, contracting and operation of modern jack-up drilling rigs for operations in shallow-water areas (i.e., in water depths up to approximately 400 feet), including the provision of related equipment and work crews to conduct drilling of oil and gas wells and workover operations for exploration and production customers. As of June 30, 2023, we had a total of 22 premium jack-up rigs and had agreed to purchase two additional premium jack-up rigs under construction. Of our total fleet of 24 jack-up drilling rigs (including newbuilds under construction), two premium jack-up drilling rigs are scheduled for delivery in 2025. As used herein, and unless otherwise required by the context, the terms “Company,” “Borr”, “we,” “Group,” “our” and words of similar nature refer to Borr Drilling Limited and its consolidated companies. The use herein of such terms as “group”, “organization”, “we”, “us”, “our” and “its”, or references to specific entities, is not intended to be a precise description of corporate relationships. Going concern The unaudited consolidated financial statements have been prepared on a going concern basis. We have incurred significant losses since inception and may be dependent on additional financing in order to meet our existing capital expenditure commitments, working capital requirements and our debt obligations expected in the next 12 months. In April 2023, we amended our $150.0 million bilateral facility provided by DNB Bank ASA increasing the facility to $175.0 million. We drew down the $25.0 million and the proceeds are expected to be used for general corporate purposes. During July 2023, we sold 1,293,955 shares under our ATM program, raising gross proceeds of $9.7 million. The Company's issued share capital following this issuance is 255,557,553 common shares. Our ATM program, which was established in July 2021, enables us the option to offer and sell from time to time, up to $40.0 million of our common shares to be listed on the New York Stock Exchange. Since establishment of the ATM program through to August 17, 2023, we have sold 3,643,955 shares, raising $18.4 million in net proceeds under the ATM program. Despite our significant equity and debt refinancing activities as further described in our annual report on Form 20-F for the year ended December 31, 2022, which was filed with the Commission on March 30, 2023, in addition to the proceeds raised from the unsecured convertible bonds and secured bonds issued in February 2023, the draw down from the DNB bilateral facility and proceeds raised from the ATM program, our ability to continue as a going concern is dependent on a continuing improvement in the jack-up drilling market and securing our rigs on profitable contracts. In addition, our ability to continue as a going concern is dependent on being able to meet our existing capital expenditure commitments, working capital requirements and our debt obligations during 2023 and 2024. As such, we have concluded that a substantial doubt exists over our ability to continue as a going concern. The financial statements included in this report do not include any adjustments that might result from the outcome of this uncertainty. We will continue to explore additional financing opportunities and may consider the strategic sale of a limited number of modern jack-ups or joint ventures in order to further strengthen the liquidity of the Company. While we have confidence that these actions will enable us to better manage our liquidity position, and we have a track record of delivering additional financing and selling rigs and joint ventures, there is no guarantee that any additional financing or sale measures will be concluded successfully.
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Basis of Preparation and Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Accounting Policies | Basis of Preparation and Accounting Policies Basis of preparation The unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited consolidated financial statements do not include all of the disclosures required under U.S. GAAP in the annual consolidated financial statements, and should be read in conjunction with our audited annual financial statements for the year ended December 31, 2022, which are included in our annual report on Form 20-F for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission on March 30, 2023. The Consolidated Balance Sheet data for December 31, 2022 was derived from our audited annual financial statements. The amounts are presented in millions of United States dollars ("U.S. dollar" or "$"), unless otherwise stated. The financial statements have been prepared on a going concern basis and in management's opinion, all adjustments necessary for a fair presentation of the financial statements are reflected in the interim periods presented. Significant accounting policies The accounting policies adopted in the preparation of the unaudited consolidated financial statements for the six months ended June 30, 2023 are consistent with those followed in preparation of our annual audited consolidated financial statements for the year ended December 31, 2022. Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
|
Recently Issued Accounting Standards |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of new accounting standards In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of, and after, a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. These amendments are effective for the Company from January 1, 2023. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2023. In March 2022, the FASB issued ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. The amendments clarify the accounting for, and promote consistency in, the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers as follows: 1) An entity is required to maintain basis adjustments in an existing hedge on a closed portfolio basis (that is, not allocated to individual assets). 2) An entity is required to immediately recognize and present the basis adjustment associated with the amount of the de-designated layer that was breached in interest income. In addition, an entity is required to disclose that amount and the circumstances that led to the breach. 3) An entity is required to disclose the total amount of the basis adjustments in existing hedges as a reconciling amount if other areas of GAAP require the disaggregated disclosure of the amortized cost basis of assets included in the closed portfolio. 4) An entity is prohibited from considering basis adjustments in an existing hedge when determining credit losses. These amendments are effective for the Company from January 1, 2023. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2023. In March 2022, the FASB issued ASU 2022-02 Financial Instruments—Credit Losses (Topic 326). The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the Current Expected Credit Losses (CECL) model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. These amendments are effective for the Company from January 1, 2023. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2023. In September 2022, the FASB issued ASU 2022-04 Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs. These amendments are effective for the Company from January 1, 2023. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2023. Accounting pronouncements that have been issued but not yet adopted
As of August 17, 2023, the FASB have issued further updates not included above. We do not currently expect any of these updates to have a material impact on our consolidated financial statements and related disclosures either on transition or in future periods.
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Segment Information |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment InformationDuring the three months and six months ended June 30, 2023 and June 30, 2022, we had a single reportable segment: our operations performed under our dayrate model (which includes rig charters and ancillary services). Our Chief Operating Decision Maker reviews financial information provided as an aggregate sum of assets, liabilities and activities that exist to generate cash flows, by our operating segment. The following presents financial information by segment for the three months ended June 30, 2023:
The following presents financial information by segment for the three months ended June 30, 2022:
The following presents financial information by segment for the six months ended June 30, 2023:
The following presents financial information by segment for the six months ended June 30, 2022:
(1) General and administrative expenses and depreciation expense incurred by our corporate office are not allocated to our operating segment for purposes of measuring segment operating income / (loss) and are included in "Reconciling items." (2) The full operating results included above for our equity method investments are not included within our consolidated results and thus are deducted under "Reconciling items" and replaced with our income / (loss) from equity method investments (see Note 6 - Equity Method Investments). Geographic data Revenues are attributed to geographical location based on the country of operations for drilling activities, and thus the country where the revenues are generated. The following presents our revenues by geographic area:
Major customers The following customers accounted for more than 10% of our dayrate and related party revenues:
Fixed Assets — Jack-up rigs (1) The following presents the net book value of our jack-up rigs by geographic area:
(1) The fixed assets referred to in the table above excludes assets under construction. Asset locations at the end of a period are not necessarily indicative of the geographical distribution of the revenues or operating profits generated by such assets during the associated periods.
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Contracts with Customers |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts with Customers | Contracts with Customers Contract Assets and Liabilities When the right to consideration becomes unconditional based on the contractual billing schedule, accrued revenue is recognized. At the point that accrued revenue is billed, trade accounts receivable are recognized. Payment terms on invoice amounts are typically 30 days. Deferred mobilization, demobilization and contract preparation revenue includes revenues received for rig mobilization as well as preparation and upgrade activities, in addition to demobilization revenues expected to be received upon contract commencement and other lump-sum revenues relating to the firm periods of our contracts. These revenues are allocated to the overall performance obligation and recognized on a straight-line basis over the initial firm term of the contracts. The following presents our contract assets and liabilities from our contracts with customers:
(1) Accrued revenue includes $1.7 million ($0.7 million as of December 31, 2022) pertaining to the current portion of deferred demobilization revenue, $2.1 million ($0.5 million as of December 31, 2022) related to the current portion of deferred variable rate revenue and $1.2 million ($0.9 million as of December 31, 2022) related to the current portion of liquidated damages associated with a known delay in the operational start date of two of our contracts. (2) Non-current accrued revenue includes $1.4 million ($2.3 million as of December 31, 2022) related to the non-current portion of liquidated damages associated with a known delay in the operational start date of two of our contracts and $0.5 million ($1.5 million as of December 31, 2022) pertaining to the non-current portion of deferred demobilization revenue. Non-current accrued revenue is included in "Other non-current assets" in our Unaudited Consolidated Balance Sheets (see Note 14 - Other Non-Current Assets). Total movement in our contract assets and contract liabilities balances during the six months ended June 30, 2023 are as follows:
Timing of Revenue The Company derives its revenue from contracts with customers for the transfer of goods and services, from various activities performed both at a point in time and over time.
Revenue on existing contracts, where performance obligations are unsatisfied or partially unsatisfied at the balance sheet date, is expected to be recognized as follows as at June 30, 2023:
(1) Other revenue represents lump sum revenue associated with contract preparation and mobilization and is recognized ratably over the initial firm term of the associated contract in "Dayrate revenue" in the Unaudited Consolidated Statements of Operations. Contract Costs Deferred mobilization and contract preparation costs relate to costs incurred to prepare a rig for contract and delivery or to mobilize a rig to the drilling location. We defer pre‑operating costs, such as contract preparation and mobilization costs, and recognize such costs on a straight‑line basis, over the estimated firm period of the drilling contract. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization period.
(1) Non-current deferred mobilization and contract preparation costs are included in "Other non-current assets" in our Unaudited Consolidated Balance Sheets (see Note 14 - Other Non-Current Assets). Deferred mobilization and contract preparation costs decreased by $5.7 million during the six months ended June 30, 2023 to $49.8 million, from $55.5 million as of December 31, 2022 as a result of additional deferred costs of $19.1 million primarily relating to the contract preparations of the rigs "Arabia I", "Arabia II", "Arabia III", "Saga" and "Hild" offset by amortization of $24.8 million during the six months ended June 30, 2023.
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Equity Method Investments |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | Equity Method InvestmentsWe own a 51% interest in two Mexico-based joint ventures, Perfomex and Perfomex II. We provide five jack-up rigs on bareboat charters to these joint ventures. These joint ventures provide dayrate drilling services to Opex Perforadora S.A. de C.V. (“Opex”) and Perforadora Profesional AKAL I, SA de CV (“Akal”), which both provide integrated well services to Petróleos Mexicanos (“Pemex”). Opex and Akal are wholly owned by Operadora Productora y Exploradora Mexicana, S.A. de C.V. (“Operadora”), a fully owned subsidiary of Proyectos Globales de Energia y Servicos CME, S.A. DE C.V. (“CME”). CME owns the remaining 49% interest in our joint ventures Perfomex and Perfomex II. The below tables sets forth the results from these entities, on a 100% basis, for the three months ended June 30, 2023 and 2022:
The below tables sets forth the results from these entities, on a 100% basis, for the six months ended June 30, 2023 and 2022:
As of June 30, 2023, Perfomex and Perfomex II had $123.0 million of receivables from Opex and Akal, of which $106.9 million was outstanding and $16.1 million was unbilled. As of December 31, 2022, Perfomex and Perfomex II had $113.9 million of receivables from Opex and Akal, of which $105.1 million was outstanding and $8.8 million was unbilled. Summarized balance sheets, on a 100% basis of the Company's equity method investees are as follows:
The following presents our investments in equity method investments as at June 30, 2023:
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Other Financial Expenses, Net |
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Other Financial Expenses, net | Other Financial Expenses, net Other financial expenses, net is comprised of the following:
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Taxation |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxation | Taxation Borr Drilling Limited is a Bermuda company and is not required to pay taxes in Bermuda on ordinary income or capital gains under a tax exemption granted by the Minister of Finance in Bermuda until March 31, 2035. We operate through various subsidiaries, affiliates and branches in numerous countries throughout the world and are subject to tax laws, policies, treaties and regulations, as well as the interpretation or enforcement thereof, in jurisdictions in which we or any of our subsidiaries, affiliates and branches operate, were incorporated, or are otherwise considered to have a tax presence. Our income tax expense is based upon our interpretation of the tax laws in effect in various countries at the time that the expense was incurred. For the three months ended June 30, 2023, our pre-tax income is all attributable to foreign jurisdictions except for a $15.4 million pre-tax loss associated with Bermuda. For the three months ended June 30, 2022, our pre-tax loss is all attributable to foreign jurisdictions except for a $8.3 million pre-tax loss associated with Bermuda. For the six months ended June 30, 2023, our pre-tax income is all attributable to foreign jurisdictions except for a $30.0 million pre-tax loss associated with Bermuda. For the six months ended June 30, 2022, our pre-tax loss is all attributable to foreign jurisdictions except for a $18.9 million pre-tax loss associated with Bermuda. The change in the effective tax rate from period to period is primarily attributable to changes in the profitability or loss mix of our operations in various jurisdictions. As our operations continually change among numerous jurisdictions and methods of taxation in these jurisdictions vary greatly, there is little direct correlation between the income tax provision or benefit and income or loss before taxes. We used a discrete effective tax rate method to calculate income taxes. Income tax (expense) / benefit is comprised of the following:
The deferred tax assets related to our net operating losses were primarily generated in the United Kingdom and will not expire. We recognize a valuation allowance for deferred tax assets when it is more likely than not that the benefit from the deferred tax asset will not be realized. The amount of deferred tax assets considered realizable could increase or decrease in the near term if estimates of future taxable income change.
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Income/loss Per Share |
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Income/loss Per Share | Income/loss Per Share The computation of basic income/loss per share (“EPS”) is based on the weighted average number of shares outstanding during the period. Our potentially anti-dilutive instruments for the six months ended June 30, 2023 were are as follows: •9,220,000 share options outstanding issued to employees and directors; •500,000 performance stock units issued to employees; •88,584 restricted share units issued to directors; and •34,027,031 shares associated with our convertible bonds due in May 2028 with a conversion price of $7.3471. Diluted EPS for the six months ended June 30, 2023, the three months ended June 30, 2022 and the six months ended June 30, 2022, do not include the effect of the assumed conversion of potentially dilutive instruments listed above, due to losses sustained in these periods as this is deemed to have an anti-dilutive effect on our EPS. For the three months ended June 30, 2023, the Company recognized net income, however, for the three months ended June 30, 2023, 34,027,031 shares associated with our convertible bonds due in May 2028 with a conversion price of $7.3471 have been excluded as they are anti-dilutive. In addition, the impact of 280,000 stock options and 500,000 performance share units using the treasury stock method were anti-dilutive, as the exercise price was higher than the average share price, and therefore have been excluded from the calculation. Our potentially dilutive instruments for the three and six months ended June 30, 2022 were 5,532,480 share options outstanding issued to employees and directors and 5,504,080 shares associated with our convertible bonds due in May 2023 with a conversion price of $63.5892.
(1) Includes the impact of 9,028,584 share options and 88,584 restricted stock units using the treasury stock method.
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Restricted Cash |
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Restricted Cash [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash | Restricted Cash Restricted cash is comprised of the following:
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Other Current Assets |
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Other Current Assets | Other Current Assets Other current assets are comprised of the following:
(1) The right-of-use lease asset pertains to our office and yard leases.
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Newbuildings |
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Newbuildings | Newbuildings The table below sets forth the carrying value of our newbuildings:
No rigs were delivered in the six months ended June 30, 2023. Impairment During the six months ended June 30, 2023, we considered whether indicators existed that the carrying amounts of our newbuildings may not be recoverable as of June 30, 2023, and concluded that no indicators, events, or changes in circumstances, have occurred to warrant a change in the assumptions utilized in the December 31, 2022 impairment tests of our newbuilding jack-up rig fleet. We will continue to monitor developments in the markets in which we operate for indications that the carrying values of our long-lived assets are not recoverable. Commitments The remaining contracted installments as of June 30, 2023, payable on delivery, for the two Keppel newbuilds ordered in 2017 are approximately $294.8 million (see Note 18 - Commitments and Contingencies).
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Jack-Up Rigs |
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Jack Up Rigs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jack-Up Rigs | Jack-Up Rigs
Accumulated depreciation related to jack-up rigs as at June 30, 2023 is $538.0 million (as at December 31, 2022 was $482.6 million). Depreciation of property, plant and equipment In addition to the depreciation in the above table, the Company recognized depreciation of $0.4 million and $0.8 million for the three and six months ended June 30, 2023 related to property, plant and equipment ($0.4 million and $0.8 million for the three and six months ended June 30, 2022). Impairment During the six months ended June 30, 2023, we considered whether indicators of impairment existed that could indicate that the carrying amounts of our jack-up rigs may not be recoverable as of June 30, 2023, and concluded that no such events or changes in circumstances have occurred to warrant a change in the assumptions utilized in the December 31, 2022 impairment tests of our jack-up rig fleet. We will continue to monitor developments in the markets in which we operate for indications that the carrying values of our long-lived assets are not recoverable.
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Other Non-Current Assets |
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Other Assets, Noncurrent Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Current Assets | Other Non-Current Assets Other long-term assets are comprised of the following:
(1) Non-current deferred mobilization and contract preparation costs relates to the non-current portion of contract mobilization and preparation costs for the jack-up rigs "Arabia I", "Arabia II", "Arabia III", "Saga", "Ran" and "Hild" (see Note 5 - Contracts with Customers). (2) Relates to the non-current portion of liquidated damages associated with a known delay in the operational start date of two of our contracts, which is amortized over the firm contract terms and recognized as reduction of "Dayrate revenue" in the Consolidated Statements of Operations. (3) The right-of-use lease asset pertains to our offices and yard leases. (4) Non-current deferred demobilization revenue relates to demobilization revenue for one of our jack-up rigs, which will be billed upon contract completion.
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Accrued Expenses |
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Accrued Expenses | Accrued Expenses Accrued expenses are comprised of the following:
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Other Current Liabilities | Other Current Liabilities Other current liabilities are comprised of the following:
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Short-term debt is comprised of the following:
Long-term debt is comprised of the following:
(1) Carrying amounts in the table above include, where applicable, deferred financing fees and certain interest adjustments to allow for variations in interest payments to be straight lined. (2) Effective interest rate adjustments relate to the Keppel Delivery Financing Facility, PPL Delivery Financing Facility and new DNB Facility, all of which have variations in base interest rates throughout their terms. (3) As at June 30, 2023, deferred finance charges include the unamortized legal and bank fees associated with the new DNB facility, amended Hayfin Term Loan Facility, $250.0 million Convertible Bond, $150.0 million Secured Bond, the unamortized extension fee associated with the amended PPL Delivery Financing Facility as well as the debt issuance cost associated with the fair value of the Share Lending Agreement (see Note 21 - Common Shares). At June 30, 2023 the scheduled maturities of our debt were as follows:
Set forth below is a summary of some of the key terms of our New Secured Facility with DNB Bank ASA ("DNB Facility"), our Unsecured Convertible Bonds due in 2028 and our Senior Secured Bonds due in 2026, which were issued, entered into or amended in 2023. DNB Facility In April 2023, we amended our $150.0 million bilateral facility provided by DNB Bank ASA, increasing the facility to $175.0 million. No other amendments were made to the existing terms and conditions of the agreement. We drew down the additional $25.0 million in April 2023 which the Company intends to use for general corporate purposes. In addition, the Company entered into a facility with DNB Bank ASA to provide guarantees and letters of credit of up to $25.0 million collateralized by the rigs that secure the $175.0 million facility, enabling the Company to free up certain restricted cash which was collateralized for guarantees and recognized in the Consolidated Balance Sheets as restricted cash as at December 31, 2022. During the six months ended June 30, 2023, the Company made a principal repayment on the facility of $10.0 million. Unsecured Convertible Bonds due 2028 ($250M Convertible Bonds) In February 2023, we raised gross proceeds of $250.0 million through the issuance of new unsecured convertible bonds, which mature in February 2028, the proceeds of which have been used to repay in part our Convertible Bonds which were due in May 2023. The initial conversion price is $7.3471 per share, with the full amount of the convertible bonds convertible into 34,027,031 shares. The convertible bonds have a coupon of 5.0% per annum payable semi-annually in arrears in equal installments. The terms and conditions governing our convertible bonds contain customary events of default, including failure to pay any amount due on the bonds when due, and certain restrictions, including, among others, restrictions on disposal of assets and our ability to carry out any merger or corporate reorganization, subject to exceptions. In connection with the $250.0 million Convertible Bonds, the Company entered into a Share Lending Framework Agreement ("SLFA") with DNB Markets ("DNB") and Drew Holdings Limited ("Drew") with the intention of making up to 25.0 million common shares ("Issuer Lending Shares") available to lend to DNB for the purposes of allowing the holders of the New Convertible Bonds to perform hedging activities on the Oslo Stock Exchange ("OSE") (see Note 21 - Common Shares). Senior Secured Bonds due 2026 ($150M Secured Bonds) In February 2023, we raised gross proceeds of $150.0 million through the issuance of senior secured bonds, which mature in February 2026, the proceeds of which were used to repay the remaining parts of our Convertible Bonds due in May 2023 not repaid by the funds of the Unsecured Convertible Bonds due 2028, and for general corporate purposes. The senior secured bonds have a coupon of 9.50% per annum payable semi-annually in arrears in equal installments, and are secured by, among other assets, first priority mortgages over the jack-up rigs “Frigg”, “Odin” and “Ran”. The terms and conditions governing our senior secured bonds contain customary events of default, including failure to pay any amount due on the bonds when due, and certain restrictions, including, among others, restrictions on incurring additional indebtedness and entering into joint ventures; restrictions on dividends and investments and repurchases of our shares, restrictions on providing financial support, restrictions on disposals of assets, a negative pledge over certain assets and restrictions on new secured debt, to carry out any merger or corporate reorganization, subject to exceptions. Furthermore, a change of control event occurs if any person obtains a majority of the voting rights in the Company or the right to elect or remove a majority of the board, upon which each bondholder will have the right to require that the Company purchases all or some of the bonds held by that bondholder at a price equal to 101.00% of the nominal amount. Further, the terms and conditions governing our senior secured bonds contain customary events of default and the corresponding acceleration of the bonds, which include, among others, non-payment, cross default, breach of covenants, misrepresentation, insolvency, any expropriation, sequestration or execution of any assets having an aggregate value exceeding $10 million. The terms and conditions governing our senior secured bonds include certain financial covenants, including a requirement that we maintain: (i) a minimum equity ratio until December 31, 2023, equal to or higher than 20% and from January 1 2024 and thereafter equal to or higher than 25%; (ii) a minimum liquidity until December 31, 2023 equal to or higher than $15 million and from January 1, 2024 and thereafter equal to or higher than $50 million; and (iii) positive working capital. Our Convertible Bonds due 2023 As noted above, in February 2023, we raised $250.0 million gross proceeds through the issuance of the New Convertible Bonds, due in 2028 and $150.0 million gross proceeds through the issuance of Senior Secured Bonds, due in 2026. During the six months ended June 30, 2023, part of the proceeds of these financings were applied to repay our $350.0 million Convertible Bonds, which were due in May 2023. Interest The weighted average nominal interest rate for all of our interest-bearing debt was 8.9% for the six months ended June 30, 2023 (5.8% for the six months ended June 30, 2022). Excluding our Convertible Bonds, the weighted average interest rate for our interest-bearing debt was 10.3% for the six months ended June 30, 2023 (6.2% for the six months ended June 30, 2022). Covenants As at June 30, 2023, we were in compliance with the covenants and our obligations under our debt agreements.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The Company has the following delivery installment commitments:
The following table sets forth when our commitments fall due as of June 30, 2023:
Other commercial commitments We have other commercial commitments which contractually obligate us to settle with cash under certain circumstances. Bank and parent company guarantees entered into between certain customers and governmental bodies guarantee our performance regarding certain drilling contracts, customs import duties and other obligations in various jurisdictions. The Company has the following guarantee commitments:
(1) In April 2023, the Company entered into a facility with DNB Bank ASA to provide guarantees and letters of credit of up to $25.0 million collateralized by the rigs that secure the $175.0 million facility, enabling the Company to free up the restricted cash used to be collateralized for guarantees and recognized in the Consolidated Balance Sheets as restricted cash. As a result, no restricted cash is supporting bank guarantee as at June 30, 2023 ($10.1 million as at December 31, 2022). See Note 10 - Restricted Cash). As at June 30, 2023, the expected expiration dates of these obligations are as follows:
Assets pledged as collateral
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Related Party Transactions |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions a) Transactions with entities over which we have significant influence We provided three rigs on a bareboat basis to Perfomex to service its contracts with Opex and two rigs on a bareboat basis to Perfomex II to service its contract with Akal. Perfomex and Perfomex II provided the jack-up rigs under traditional dayrate and technical service agreements to Opex and Akal, respectively. This structure enabled Opex and Akal to provide bundled integrated well services to Pemex. Effective October 20, 2022, we provide all five rigs on a bareboat basis to Perfomex, to service its contracts with Opex and Akal. The bareboat revenue from these contracts is recognized as "Related party revenue" in the Unaudited Consolidated Statements of Operations. For the three and six months ended June 30, 2023 and 2022, the bareboat revenues from our related parties consisted of the following:
For the three and six months ended June 30, 2023 and 2022, repayment of loans from our equity method investments consisted of the following:
Receivables: The balances with the joint ventures as of June 30, 2023 and December 31, 2022 consisted of the following:
b) Transactions with Other Related Parties Expenses: The transactions with other related parties for three and six months ended June 30, 2023 and 2022 consisted of the following:
(1) Magni Partners Limited ("Magni") is a party to a Corporate Services Agreement with the Company, pursuant to which it provides strategic advice and assists in sourcing investment opportunities, financing and other such services as the Company wishes to engage, at the Company's option. There is both a fixed and variable element of the agreement, with the fixed cost element representing Magni's fixed costs and any variable element being at the Company's discretion. Mr. Tor Olav Trøim, the Chairman of our Board, is the sole owner of Magni. (2) Mr. Tor Olav Trøim, the Chairman of our Board, is the sole owner of Drew Holdings Limited ("Drew"). In January 2023 Drew entered into a Share Lending Framework Agreement ("SLFA") with the Company and DNB Markets for the purposes of facilitating investors’ hedging activities in connection with the $250.0 million Senior Unsecured Convertible bonds due in 2028. In order to make the Company's shares available for lending, and only until a certain number of new shares were issued by the Company in connection with such lending arrangement, Drew made up to 15 million shares available to DNB Markets under the SLFA to facilitate such lending to the convertible bond investors requiring such hedging activities. Under the terms of the SLFA, the Company incurred fees payable to Drew for the shares available for lending (see Note 21 - Common Shares). (3) Front End Limited Company ("Front End") owns 3% of Borr Arabia Well Drilling LLC, an entity that is consolidated by Borr Drilling Limited and incorporated in the Kingdom of Saudi Arabia (the "KSA"). Front End is a party to a Management Agreement with Borr Arabia Well Drilling LLC to provide management services in the KSA, for which it receives a management fee. In addition, in January 2023, the Company recognized $1.3 million payable to Magni under a Call-off Contract to cover direct costs related to assistance in relation to the Unsecured Convertible Bonds and Secured Bonds completed in February 2023. As these costs are directly attributable to the issuance of these bonds, the amount was recognized as a deferred finance charge and will be amortized over the term of the facilities as "Other Financial Expenses, net" in the Unaudited Consolidated Statements of Operations.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments We recognize our fair value estimates using a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on reliability of inputs used to determine fair value as follows: Level 1: Quoted market prices in active markets for identical assets and liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data The carrying value and estimated fair value of our financial instruments at June 30, 2023 and December 31, 2022 were as follows:
(1) The carrying values approximate the fair values due to their near term expected receipt/payment of cash. (2) Short-term and long-term debt excludes deferred charges and effective interest rate adjustments. (3)This relates to our 3.875% convertible bonds which were due in May 2023 and which were fair valued using observable market-based inputs. (4)This relates to our 5.00% convertible bonds due in 2028 which are fair valued using observable market-based inputs. Share Lending Agreement In addition, during the six months ended June 30, 2023, the Company recognized a deferred finance charge in the amount of $12.4 million in relation to our Share Lending Framework Agreement ("SFLA") , which was fair valued using observable market-based inputs and is amortized over the term of the $250.0 million Convertible Bonds. During the six months ended June 30, 2023, $1.0 million was amortized and recognized in "Other Financial Expenses, net" in the Unaudited Consolidated Statements of Operations. As at June 30, 2023, the current element of the unamortized deferred finance charge of $2.5 million and the non-current element of the unamortized deferred finance charge of $8.9 million are presented as a reduction to short-term and long-term debt, respectively, in the Unaudited Consolidated Balance Sheets (see Note 21 - Common Shares).
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Common Shares |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Common Shares Authorized share capital
On February 23, 2023, the Company's shareholders, in a Special General Meeting, approved an increase in the Company's authorized share capital of 60,000,000 new common shares with a nominal value of $0.10 per common share. Issued and outstanding share capital
The Company issued 15.0 million shares and 10.0 million shares of par value $0.10 each on January 31, 2023 and February 24, 2023, respectively, which were subsequently repurchased into treasury. On February 22, 2023, the Company loaned 15.0 million shares to one of its shareholders at nil consideration (see Share Lending Agreement below). As of June 30, 2023, our shares were listed on the OSE and the New York Stock Exchange ("NYSE"). Of the total issued shares as at March 31, 2023, 25.0 million were not available for trading on the OSE. As at April 19, 2023, the prospectus registering the 25.0 million shares was accepted and all issued shares from this date were available for trading on both the OSE and the NYSE. Share Lending Agreement In connection with the $250.0 million Convertible Bonds (see Note 16 - Debt), the Company entered into a Share Lending Framework Agreement ("SLFA") with DNB Markets ("DNB") and Drew Holdings Limited ("Drew") with the intention of making up to 25.0 million common shares ("Issuer Lending Shares") available to lend to DNB for the purposes of allowing the holders of the New Convertible Bonds to perform hedging activities on the OSE. The SLFA contains a provision that the Issuer Lending Shares be available only for trading on the OSE. At the date of the execution of the SLFA, the Company did not have sufficient number of common shares available for trading on the OSE and therefore began the process of issuing new shares and making them available for trading on the OSE by way of a listing prospectus (the “Prospectus Event”). The Company and Drew, a shareholder of the Company, separately entered into a Share Loan Agreement (“SLA”) in which Drew would make up to 15.0 million of its shares available to DNB (“Drew Shares”) until the Prospectus Event. During this period, the Company would lend to Drew 15.0 million of its shares that were not yet available for trading on the OSE. The Prospectus Event occurred on April 19, 2023, at which time Drew returned such shares back to Borr. In addition, DNB borrowed an equivalent amount of Drew Shares from Borr to redeliver these shares back to Drew (the “Settlement”). The "Loan Period" of the SLFA is defined as the earlier of (a) the date the SLFA is terminated (b) any date the convertible bonds are either redeemed or converted into the Company’s shares in full and (c) the maturity date of the convertible bond in 2028. At the expiration of the Loan Period, DNB must return all of the Issuer Lending Shares back to Borr. During the Loan Period, if an investor returns any lending share to DNB, DNB shall return such lending shares back to the Company immediately. The Company receives no proceeds from lending out the Issuer Lending Shares to DNB. DNB must charge each investor a lending fee of a maximum of 0.5% per annum in which for the first six months from the date of the SLFA, the Company agrees to compensate DNB so that the lending fee DNB receives in total will be 1.0% per annum. There is no compensation that the Company pays DNB for returning the Issuer Lending Shares to the Company. There is no unilateral mechanism given to either party in choosing to settle in cash except for a very limited scenario involving default. DNB is not required to provide collateral for borrowing the shares. There are no dividends paid to DNB as a result of lending out the Issuer Lending Shares. At issuance, the share lending agreement was accounted for under ASC 470-20 as a "Deferred Finance Charge" of the $250.0 million Convertible Bonds, with an offset to "Additional Paid in Capital" in the Consolidated Balance Sheets. The share lending agreement was measured at a fair value in accordance with ASC 820 at inception and the Company recognized $12.4 million accordingly. Under the terms of the SLA, the Company incurs fees payable to Drew which are calculated based on the market-based value of the borrowed shares by DNB from Drew at the interest rate of the New Convertible Bonds. During the three and six months ended June 30, 2023, such fees of $0.3 million and $1.0 million were incurred (see Note 19 - Related Party Transactions). Further, as part of the SLA, the Company also guaranteed to reimburse Drew in the event DNB does not return the Drew Shares at a price equal to the higher of the Company’s share price and NOK 56.36. As DNB returned in full the shares borrowed from Drew on April 19, 2023, the Company was not required to fulfil the guarantee. The fair value of the guarantee was concluded to be immaterial as at March 31, 2023. As of March 31, 2023, 14,232,778 shares had been drawn by DNB from Drew which were repaid upon Settlement on April 19, 2023, by DNB drawing this same number of shares from the Company. As of June 30, 2023, the Company lent 16,154,645 shares to DNB for the purposes of allowing the holders of the New Convertible Bonds to perform hedging activities on the OSE. As of June 30, 2023, the unamortized amount of the issuance costs associated with the SLFA was $11.4 million.
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Subsequent Events |
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Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events During July 2023, we sold 1,293,955 shares under our ATM program, raising gross proceeds of $9.7 million and net proceeds of $9.6 million, with compensation paid by the Company to Clarksons Securities of $0.1 million. On August 16, 2023, the Company issued 1,000,000 new common shares to be held in treasury and used for issuances in connection with the exercise of vested share options under the Company's existing share option program. The Company's issued share capital following the issuance of shares under our ATM program as well as the issuance of shares in connection with the Company's long-term incentive plan was 256,557,553 common shares with a par value of $0.10 per share.
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Basis of Preparation and Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Going concern | Going concern The unaudited consolidated financial statements have been prepared on a going concern basis. We have incurred significant losses since inception and may be dependent on additional financing in order to meet our existing capital expenditure commitments, working capital requirements and our debt obligations expected in the next 12 months. In April 2023, we amended our $150.0 million bilateral facility provided by DNB Bank ASA increasing the facility to $175.0 million. We drew down the $25.0 million and the proceeds are expected to be used for general corporate purposes. During July 2023, we sold 1,293,955 shares under our ATM program, raising gross proceeds of $9.7 million. The Company's issued share capital following this issuance is 255,557,553 common shares. Our ATM program, which was established in July 2021, enables us the option to offer and sell from time to time, up to $40.0 million of our common shares to be listed on the New York Stock Exchange. Since establishment of the ATM program through to August 17, 2023, we have sold 3,643,955 shares, raising $18.4 million in net proceeds under the ATM program. Despite our significant equity and debt refinancing activities as further described in our annual report on Form 20-F for the year ended December 31, 2022, which was filed with the Commission on March 30, 2023, in addition to the proceeds raised from the unsecured convertible bonds and secured bonds issued in February 2023, the draw down from the DNB bilateral facility and proceeds raised from the ATM program, our ability to continue as a going concern is dependent on a continuing improvement in the jack-up drilling market and securing our rigs on profitable contracts. In addition, our ability to continue as a going concern is dependent on being able to meet our existing capital expenditure commitments, working capital requirements and our debt obligations during 2023 and 2024. As such, we have concluded that a substantial doubt exists over our ability to continue as a going concern. The financial statements included in this report do not include any adjustments that might result from the outcome of this uncertainty. We will continue to explore additional financing opportunities and may consider the strategic sale of a limited number of modern jack-ups or joint ventures in order to further strengthen the liquidity of the Company. While we have confidence that these actions will enable us to better manage our liquidity position, and we have a track record of delivering additional financing and selling rigs and joint ventures, there is no guarantee that any additional financing or sale measures will be concluded successfully.
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Basis of preparation | Basis of preparation The unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited consolidated financial statements do not include all of the disclosures required under U.S. GAAP in the annual consolidated financial statements, and should be read in conjunction with our audited annual financial statements for the year ended December 31, 2022, which are included in our annual report on Form 20-F for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission on March 30, 2023. The Consolidated Balance Sheet data for December 31, 2022 was derived from our audited annual financial statements. The amounts are presented in millions of United States dollars ("U.S. dollar" or "$"), unless otherwise stated. The financial statements have been prepared on a going concern basis and in management's opinion, all adjustments necessary for a fair presentation of the financial statements are reflected in the interim periods presented.
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Use of estimates | Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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Adoption of new accounting standards | Adoption of new accounting standards In October 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of, and after, a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. These amendments are effective for the Company from January 1, 2023. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2023. In March 2022, the FASB issued ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. The amendments clarify the accounting for, and promote consistency in, the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers as follows: 1) An entity is required to maintain basis adjustments in an existing hedge on a closed portfolio basis (that is, not allocated to individual assets). 2) An entity is required to immediately recognize and present the basis adjustment associated with the amount of the de-designated layer that was breached in interest income. In addition, an entity is required to disclose that amount and the circumstances that led to the breach. 3) An entity is required to disclose the total amount of the basis adjustments in existing hedges as a reconciling amount if other areas of GAAP require the disaggregated disclosure of the amortized cost basis of assets included in the closed portfolio. 4) An entity is prohibited from considering basis adjustments in an existing hedge when determining credit losses. These amendments are effective for the Company from January 1, 2023. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2023. In March 2022, the FASB issued ASU 2022-02 Financial Instruments—Credit Losses (Topic 326). The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the Current Expected Credit Losses (CECL) model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. These amendments are effective for the Company from January 1, 2023. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2023. In September 2022, the FASB issued ASU 2022-04 Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. The amendments require that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. To achieve that objective, the buyer should disclose qualitative and quantitative information about its supplier finance programs. These amendments are effective for the Company from January 1, 2023. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2023. Accounting pronouncements that have been issued but not yet adopted
As of August 17, 2023, the FASB have issued further updates not included above. We do not currently expect any of these updates to have a material impact on our consolidated financial statements and related disclosures either on transition or in future periods.
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Recently Issued Accounting Standards (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting pronouncements that have been issued but not yet adopted | Accounting pronouncements that have been issued but not yet adopted
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following presents financial information by segment for the three months ended June 30, 2023:
The following presents financial information by segment for the three months ended June 30, 2022:
The following presents financial information by segment for the six months ended June 30, 2023:
The following presents financial information by segment for the six months ended June 30, 2022:
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Revenues by Geographic Area | The following presents our revenues by geographic area:
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Major Customers by Reporting Segments | The following customers accounted for more than 10% of our dayrate and related party revenues:
Fixed Assets — Jack-up rigs (1)
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Long-lived Assets by Geographic Areas | The following presents the net book value of our jack-up rigs by geographic area:
(1) The fixed assets referred to in the table above excludes assets under construction. Asset locations at the end of a period are not necessarily indicative of the geographical distribution of the revenues or operating profits generated by such assets during the associated periods.
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Contracts with Customers (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets, Contract Liabilities and Contract Costs from Contracts with Customers | The following presents our contract assets and liabilities from our contracts with customers:
(1) Accrued revenue includes $1.7 million ($0.7 million as of December 31, 2022) pertaining to the current portion of deferred demobilization revenue, $2.1 million ($0.5 million as of December 31, 2022) related to the current portion of deferred variable rate revenue and $1.2 million ($0.9 million as of December 31, 2022) related to the current portion of liquidated damages associated with a known delay in the operational start date of two of our contracts. (2) Non-current accrued revenue includes $1.4 million ($2.3 million as of December 31, 2022) related to the non-current portion of liquidated damages associated with a known delay in the operational start date of two of our contracts and $0.5 million ($1.5 million as of December 31, 2022) pertaining to the non-current portion of deferred demobilization revenue. Non-current accrued revenue is included in "Other non-current assets" in our Unaudited Consolidated Balance Sheets (see Note 14 - Other Non-Current Assets). Contract Costs Deferred mobilization and contract preparation costs relate to costs incurred to prepare a rig for contract and delivery or to mobilize a rig to the drilling location. We defer pre‑operating costs, such as contract preparation and mobilization costs, and recognize such costs on a straight‑line basis, over the estimated firm period of the drilling contract. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization period.
(1) Non-current deferred mobilization and contract preparation costs are included in "Other non-current assets" in our Unaudited Consolidated Balance Sheets (see Note 14 - Other Non-Current Assets).
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Changes in the Remaining Performance Obligation Contract Asset Balances | Total movement in our contract assets and contract liabilities balances during the six months ended June 30, 2023 are as follows:
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Disaggregation of Revenue |
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Revenue, remaining performance obligation, expected timing of satisfaction | Revenue on existing contracts, where performance obligations are unsatisfied or partially unsatisfied at the balance sheet date, is expected to be recognized as follows as at June 30, 2023:
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Equity Method Investments (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | The below tables sets forth the results from these entities, on a 100% basis, for the three months ended June 30, 2023 and 2022:
The below tables sets forth the results from these entities, on a 100% basis, for the six months ended June 30, 2023 and 2022:
Summarized balance sheets, on a 100% basis of the Company's equity method investees are as follows:
The following presents our investments in equity method investments as at June 30, 2023:
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Other Financial Expenses, Net (Tables) |
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Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) | Other financial expenses, net is comprised of the following:
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Taxation (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense | Income tax (expense) / benefit is comprised of the following:
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Income/loss Per Share (Tables) |
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic EPS |
(1) Includes the impact of 9,028,584 share options and 88,584 restricted stock units using the treasury stock method.
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Restricted Cash (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Cash [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Cash | Restricted cash is comprised of the following:
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Other Current Assets (Tables) |
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | Other current assets are comprised of the following:
(1) The right-of-use lease asset pertains to our office and yard leases.
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Newbuildings (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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New buildings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value of New Buildings | The table below sets forth the carrying value of our newbuildings:
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Jack-Up Rigs (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jack Up Rigs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Jack-Up Rigs |
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Other Non-Current Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Non-Current Assets | Other long-term assets are comprised of the following:
(1) Non-current deferred mobilization and contract preparation costs relates to the non-current portion of contract mobilization and preparation costs for the jack-up rigs "Arabia I", "Arabia II", "Arabia III", "Saga", "Ran" and "Hild" (see Note 5 - Contracts with Customers). (2) Relates to the non-current portion of liquidated damages associated with a known delay in the operational start date of two of our contracts, which is amortized over the firm contract terms and recognized as reduction of "Dayrate revenue" in the Consolidated Statements of Operations. (3) The right-of-use lease asset pertains to our offices and yard leases. (4) Non-current deferred demobilization revenue relates to demobilization revenue for one of our jack-up rigs, which will be billed upon contract completion.
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Accrued Expenses (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses | Accrued expenses are comprised of the following:
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Other Current Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Liabilities | Other current liabilities are comprised of the following:
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Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-Term Debt | Short-term debt is comprised of the following:
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Schedule of Long-Term Debt | Long-term debt is comprised of the following:
(1) Carrying amounts in the table above include, where applicable, deferred financing fees and certain interest adjustments to allow for variations in interest payments to be straight lined. (2) Effective interest rate adjustments relate to the Keppel Delivery Financing Facility, PPL Delivery Financing Facility and new DNB Facility, all of which have variations in base interest rates throughout their terms. (3) As at June 30, 2023, deferred finance charges include the unamortized legal and bank fees associated with the new DNB facility, amended Hayfin Term Loan Facility, $250.0 million Convertible Bond, $150.0 million Secured Bond, the unamortized extension fee associated with the amended PPL Delivery Financing Facility as well as the debt issuance cost associated with the fair value of the Share Lending Agreement (see Note 21 - Common Shares).
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Schedule of Maturities of Debt | At June 30, 2023 the scheduled maturities of our debt were as follows:
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Commitments and Contingencies (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments | The Company has the following delivery installment commitments:
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Maturity of Commitments | The following table sets forth when our commitments fall due as of June 30, 2023:
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Other Commercial Commitments | The Company has the following guarantee commitments:
(1) In April 2023, the Company entered into a facility with DNB Bank ASA to provide guarantees and letters of credit of up to $25.0 million collateralized by the rigs that secure the $175.0 million facility, enabling the Company to free up the restricted cash used to be collateralized for guarantees and recognized in the Consolidated Balance Sheets as restricted cash. As a result, no restricted cash is supporting bank guarantee as at June 30, 2023 ($10.1 million as at December 31, 2022). See Note 10 - Restricted Cash). As at June 30, 2023, the expected expiration dates of these obligations are as follows:
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Assets Pledged as Collateral | Assets pledged as collateral
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Related Party Transactions (Tables) |
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Jun. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | For the three and six months ended June 30, 2023 and 2022, the bareboat revenues from our related parties consisted of the following:
For the three and six months ended June 30, 2023 and 2022, repayment of loans from our equity method investments consisted of the following:
Receivables: The balances with the joint ventures as of June 30, 2023 and December 31, 2022 consisted of the following:
Expenses: The transactions with other related parties for three and six months ended June 30, 2023 and 2022 consisted of the following:
(1) Magni Partners Limited ("Magni") is a party to a Corporate Services Agreement with the Company, pursuant to which it provides strategic advice and assists in sourcing investment opportunities, financing and other such services as the Company wishes to engage, at the Company's option. There is both a fixed and variable element of the agreement, with the fixed cost element representing Magni's fixed costs and any variable element being at the Company's discretion. Mr. Tor Olav Trøim, the Chairman of our Board, is the sole owner of Magni. (2) Mr. Tor Olav Trøim, the Chairman of our Board, is the sole owner of Drew Holdings Limited ("Drew"). In January 2023 Drew entered into a Share Lending Framework Agreement ("SLFA") with the Company and DNB Markets for the purposes of facilitating investors’ hedging activities in connection with the $250.0 million Senior Unsecured Convertible bonds due in 2028. In order to make the Company's shares available for lending, and only until a certain number of new shares were issued by the Company in connection with such lending arrangement, Drew made up to 15 million shares available to DNB Markets under the SLFA to facilitate such lending to the convertible bond investors requiring such hedging activities. Under the terms of the SLFA, the Company incurred fees payable to Drew for the shares available for lending (see Note 21 - Common Shares). (3) Front End Limited Company ("Front End") owns 3% of Borr Arabia Well Drilling LLC, an entity that is consolidated by Borr Drilling Limited and incorporated in the Kingdom of Saudi Arabia (the "KSA"). Front End is a party to a Management Agreement with Borr Arabia Well Drilling LLC to provide management services in the KSA, for which it receives a management fee.
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Fair Value of Financial Instruments (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value and Estimated Fair Value of Cash and Financial Instruments | The carrying value and estimated fair value of our financial instruments at June 30, 2023 and December 31, 2022 were as follows:
(1) The carrying values approximate the fair values due to their near term expected receipt/payment of cash. (2) Short-term and long-term debt excludes deferred charges and effective interest rate adjustments. (3)This relates to our 3.875% convertible bonds which were due in May 2023 and which were fair valued using observable market-based inputs. (4)This relates to our 5.00% convertible bonds due in 2028 which are fair valued using observable market-based inputs.
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Common Shares (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Capital |
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Segment Information - Revenue By Geographic Areas (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 187.5 | $ 105.3 | $ 359.5 | $ 187.3 |
South East Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 58.5 | 39.1 | 110.4 | 69.9 |
West Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 45.9 | 24.6 | 89.3 | 46.9 |
Mexico | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 43.0 | 17.5 | 82.5 | 36.4 |
Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 31.6 | 5.1 | 62.2 | 5.1 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 8.5 | $ 19.0 | $ 15.1 | $ 29.0 |
Segment Information - Major Customers By Reporting Segments (Details) - Revenues - Customer concentration risk |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Perfomex | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 17.00% | 9.00% | 18.00% | 11.00% |
ENI Congo S.A. | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 14.00% | 0.00% | 14.00% | 0.00% |
Saudi Arabian Oil Company | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 13.00% | 0.00% | 13.00% | 0.00% |
PTT Exploration and Production Public Company Limited | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 9.00% | 14.00% | 9.00% | 16.00% |
Customers accounting for more than 10% of dayrate revenue | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 53.00% | 23.00% | 36.00% | 16.00% |
Segment Information - Long-lived Assets By Geographic Areas (Details) - Operating segments - Dayrate - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,598.9 | $ 2,589.1 |
South East Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 842.5 | 832.5 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 661.3 | 675.5 |
Middle East | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 553.0 | 481.2 |
West Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 448.8 | 507.0 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 93.3 | $ 92.9 |
Contracts with Customers - Significant Changes in Contract Assets and Contract Liabilities (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2023
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Contract assets, opening balance | $ 61.2 |
Contract liability, beginning balance | 126.0 |
Performance obligations satisfied during the reporting period | 52.7 |
Amortization of revenue | (30.5) |
Unbilled variable rate revenue | 1.7 |
Cash received, excluding amounts recognized as revenue | 11.6 |
Cash received against the contract asset balance | (59.0) |
Contract assets, closing balance | 56.6 |
Contract liability, closing balance | $ 107.1 |
Contracts with Customers - Timing of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 187.5 | $ 105.3 | $ 359.5 | $ 187.3 |
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 180.2 | 102.0 | 347.1 | 179.6 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 7.3 | $ 3.3 | $ 12.4 | $ 7.7 |
Contracts with Customers - Contract Costs (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Current deferred mobilization and contract preparation costs | $ 25.7 | $ 38.4 |
Non-current deferred mobilization and contract preparation costs | 24.1 | 17.1 |
Total deferred mobilization and contract preparation asset | $ 49.8 | $ 55.5 |
Contracts with Customers - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Revenue from Contract with Customer [Abstract] | ||
Increase in deferred mobilization and contract preparation costs | $ 5.7 | |
Total deferred mobilization and contract preparation asset | 49.8 | $ 55.5 |
Additional deferred contract preparation and mobilization costs | 19.1 | |
Capitalized contract cost, amortization | $ 24.8 |
Equity Method Investments - Narrative (Details) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
jointVentureCompanies
rig
|
Dec. 31, 2022
USD ($)
|
|
Perfomex and Perfomex II | ||
Equity Method Investment, Summarized Financial Information [Abstract] | ||
Percentage acquired share by the entity | 51.00% | |
Number of joint ventures for bareboat charters | jointVentureCompanies | 2 | |
Number of rigs on bareboat charter | rig | 5 | |
Perfomex and Perfomex II | Proyectos Globales de Energia y Servicos CME, S.A. DE C.V. | ||
Equity Method Investment, Summarized Financial Information [Abstract] | ||
Percentage acquired share by the entity | 49.00% | |
Opex and Akal | Perfomex and Perfomex II | ||
Equity Method Investment, Summarized Financial Information [Abstract] | ||
Contracts receivable | $ 123.0 | $ 113.9 |
Billed contracts receivable | 106.9 | 105.1 |
Unbilled contracts receivable | $ 16.1 | $ 8.8 |
Equity Method Investments - Summarized Statement of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenue | $ 187.5 | $ 105.3 | $ 359.5 | $ 187.3 |
Operating expenses | (127.8) | (229.0) | (253.9) | (323.3) |
Net income / (loss) | 0.8 | (165.3) | (6.6) | (216.6) |
Perfomex | ||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenue | 72.4 | 26.7 | 142.9 | 56.1 |
Operating expenses | (71.6) | (26.0) | (140.0) | (54.5) |
Net income / (loss) | 6.0 | (2.7) | 10.1 | (1.4) |
Perfomex II | ||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenue | 9.4 | 24.9 | 15.0 | 47.7 |
Operating expenses | (8.6) | (24.4) | (14.7) | (46.6) |
Net income / (loss) | $ 1.6 | $ 0.7 | $ 2.2 | $ 1.4 |
Equity Method Investments - Investments In Equity Method Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Balance as of January 1, 2023 | $ 20.6 | |||
Funding received from shareholder loan | $ 9.8 | $ 0.0 | 9.8 | $ 0.0 |
Income on a percentage basis | 3.9 | $ (1.1) | 6.3 | $ 0.0 |
Balance as of June 30, 2022 | 17.1 | 17.1 | ||
Perfomex | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance as of January 1, 2023 | 16.9 | |||
Funding received from shareholder loan | 9.8 | |||
Income on a percentage basis | 5.2 | |||
Balance as of June 30, 2022 | 12.3 | 12.3 | ||
Perfomex II | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance as of January 1, 2023 | 3.7 | |||
Funding received from shareholder loan | 0.0 | |||
Income on a percentage basis | 1.1 | |||
Balance as of June 30, 2022 | $ 4.8 | $ 4.8 |
Other Financial Expenses, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Other Income and Expenses [Abstract] | ||||
Yard cost cover expense | $ (5.4) | $ (8.0) | $ (10.9) | $ (13.7) |
Amortization of deferred finance charges | (3.2) | (1.6) | (5.0) | (3.2) |
Foreign exchange (loss) / gain | (3.2) | 0.1 | (1.6) | (0.2) |
Bank commitment, guarantee and other fees | (0.8) | (0.4) | (1.2) | (1.2) |
Other financial income | (0.3) | (0.4) | (0.3) | (0.1) |
Total | $ (12.9) | $ (10.3) | $ (19.0) | $ (18.4) |
Taxation - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Tax Examination [Line Items] | ||||
Loss before income taxes | $ (14.2) | $ 159.0 | $ (22.1) | $ 205.5 |
Bermuda | ||||
Income Tax Examination [Line Items] | ||||
Loss before income taxes | $ 15.4 | $ 8.3 | $ 30.0 | $ 18.9 |
Taxation - Components of Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Current tax | $ (12.5) | $ (7.4) | $ (27.9) | $ (12.1) |
Change in deferred tax | (0.9) | 1.1 | (0.8) | 1.0 |
Total | $ (13.4) | $ (6.3) | $ (28.7) | $ (11.1) |
Restricted Cash (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Restricted Cash [Roll Forward] | ||
Restricted cash relating to the issuance of guarantees | $ 0.0 | $ 10.1 |
Restricted cash relating to other | 0.0 | 0.4 |
Total restricted cash | 0.0 | 10.5 |
Less: amounts included in current restricted cash | 0.0 | (2.5) |
Non-current restricted cash | $ 0.0 | $ 8.0 |
Restricted Cash - Narrative (Details) - USD ($) $ in Millions |
Apr. 30, 2023 |
Mar. 31, 2023 |
---|---|---|
DNB guarantees & letters of credit | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Principal | $ 25.0 | |
New DNB Facility | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Principal | $ 175.0 | $ 150.0 |
Other Current Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Current Assets [Abstract] | ||
VAT and other tax receivable | $ 23.8 | $ 14.6 |
Client rechargeables | 4.6 | 4.6 |
Right of use lease asset, current | 0.5 | 0.5 |
Corporate income taxes receivable | 0.0 | 1.1 |
Other receivables | 3.9 | 4.6 |
Total | $ 32.8 | $ 25.4 |
Newbuildings - Schedule of Newbuidlings (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
New buildings [Abstract] | |||||
Opening balance | $ 3.5 | $ 135.5 | $ 135.5 | ||
Disposals | 0.0 | (7.6) | |||
Impairment | $ 0.0 | $ (124.4) | 0.0 | $ (124.4) | (124.4) |
Total | $ 3.5 | $ 3.5 | $ 3.5 |
Newbuildings - Narrative (Details) $ in Millions |
Jun. 30, 2023
USD ($)
rig
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Delivery installments for jack-up drilling rigs | $ | $ 294.8 | $ 294.8 |
Jack-up rigs | ||
Property, Plant and Equipment [Line Items] | ||
Number of jack-up rigs scheduled for delivery | rig | 2 |
Jack-Up Rigs - Schedule of Jack-Up Rigs (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Jack Up Rigs [Roll Forward] | ||
Opening balance | $ 2,589.1 | $ 2,730.8 |
Additions | 65.2 | 100.2 |
Depreciation and amortization | (55.4) | (114.9) |
Disposals | 0.0 | (119.7) |
Impairment | 0.0 | (7.3) |
Total | $ 2,598.9 | $ 2,589.1 |
Jack-Up Rigs - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Jack Up Rigs [Abstract] | |||||
Accumulated depreciation, jack-up rigs | $ 538.0 | $ 538.0 | $ 482.6 | ||
Depreciation related to property, plant and equipment | $ 0.4 | $ 0.4 | $ 0.8 | $ 0.8 |
Other Non-Current Assets (Details) $ in Millions |
Jun. 30, 2023
USD ($)
rig
contract
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Deferred mobilization and contract preparation cost | $ 24.1 | $ 17.1 |
Deferred tax asset | 2.6 | 3.5 |
Liquidated damages | $ 1.4 | $ 2.3 |
Right-of-use asset, non-current [extensible list] | Other non-current assets | Other non-current assets |
Right-of-use lease asset, non-current | $ 1.4 | $ 1.7 |
Non-current accrued revenue | 1.9 | 3.8 |
VAT receivable | 0.4 | 0.4 |
Prepayments | 0.3 | 0.2 |
Other non-current assets | $ 30.7 | 26.7 |
Contracts with delayed start date | contract | 2 | |
Rigs to be billed upon completion | rig | 1 | |
Deferred demobilization revenue | ||
Disaggregation of Revenue [Line Items] | ||
Non-current accrued revenue | $ 0.5 | $ 1.5 |
Accrued Expenses (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued goods and services received, not invoiced | $ 35.7 | $ 22.2 |
Accrued payroll and bonus | 7.9 | 8.6 |
Other accrued expenses | 47.0 | 50.0 |
Total | $ 90.6 | $ 80.8 |
Other Current Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities, Current [Abstract] | ||
VAT payable | $ 21.4 | $ 22.7 |
Other current taxes payable | 17.2 | 11.4 |
Corporate income taxes payable | $ 2.5 | $ 0.0 |
Operating lease liability, current [extensible list] | Total | Total |
Operating lease liability, current | $ 0.5 | $ 0.5 |
Accrued payroll and severance | 0.5 | 0.2 |
Other current liabilities | 1.4 | 1.4 |
Total | $ 43.5 | $ 36.2 |
Debt - Schedule of Short-Term Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Apr. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 107.0 | $ 450.0 | ||
Deferred Finance Charges | (10.0) | (4.9) | ||
Carrying Value Short-Term Debt | 97.9 | 445.9 | ||
PPL Delivery Financing | ||||
Debt Instrument [Line Items] | ||||
Short-Term Debt | 62.0 | 60.0 | ||
Hayfin Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Short-Term Debt | 25.0 | 20.0 | ||
Short-Term Debt, Fee Amount | 0.5 | 0.4 | ||
New DNB Facility | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 175.0 | $ 150.0 | ||
Short-Term Debt | 20.0 | 20.0 | ||
Short-Term Debt, Fee Amount | 0.4 | 0.4 | ||
$350m Convertible Bonds | ||||
Debt Instrument [Line Items] | ||||
Principal | 350.0 | |||
Short-Term Debt | $ 0.0 | $ 350.0 |
Debt - Schedule of Maturities of Debt (Details) $ in Millions |
Jun. 30, 2023
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2023 | $ 50.0 |
2024 | 114.0 |
2025 | 870.9 |
2026 | 322.8 |
Thereafter | 250.0 |
Total principal debt | $ 1,607.7 |
Commitment and Contingencies - Commitments and Maturity of Commitments (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Delivery installments for jack-up drilling rigs | $ 294.8 | $ 294.8 |
Total | 294.8 | $ 294.8 |
Less than 1 year | 0.0 | |
1-2 years | 0.0 | |
2-3 years | 294.8 | |
Thereafter | $ 0.0 |
Commitments and Contingencies - Other Commercial Commitments (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Apr. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Other Commitments [Line Items] | ||||
Total | $ 21.6 | $ 9.7 | ||
Restricted cash | 0.0 | 10.5 | ||
DNB guarantees & letters of credit | ||||
Other Commitments [Line Items] | ||||
Principal | $ 25.0 | |||
New DNB Facility | ||||
Other Commitments [Line Items] | ||||
Principal | $ 175.0 | $ 150.0 | ||
Bank guarantees and performance bonds | ||||
Other Commitments [Line Items] | ||||
Total | 21.6 | 9.7 | ||
Bank Guarantees | ||||
Other Commitments [Line Items] | ||||
Restricted cash | $ 0.0 | $ 10.1 |
Commitments and Contingencies - Other Commercial Commitments Maturity (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Commitments [Line Items] | ||
Total | $ 21.6 | $ 9.7 |
Bank guarantees and performance bonds | ||
Other Commitments [Line Items] | ||
Less than 1 year | 20.4 | |
1–3 years | 1.2 | |
Total | $ 21.6 | $ 9.7 |
Commitments and Contingencies - Assets Pledged as Collateral (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Book value of jack-up rigs pledged as collateral for debt facilities | $ 2,598.9 | $ 2,396.2 |
Related Party Transactions - Transactions with Significant Influence Entities (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Related Party Transaction [Line Items] | |||||
Related party revenue | $ 32.4 | $ 17.6 | $ 62.7 | $ 36.3 | |
Funding received from shareholder loan | (9.8) | 0.0 | (9.8) | 0.0 | |
Related party | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 81.8 | 81.8 | $ 65.6 | ||
Perfomex | |||||
Related Party Transaction [Line Items] | |||||
Funding received from shareholder loan | (9.8) | 0.0 | (9.8) | 0.0 | |
Perfomex | Related party | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 79.3 | 79.3 | 62.9 | ||
Perfomex | Bareboat Revenue | |||||
Related Party Transaction [Line Items] | |||||
Related party revenue | 32.4 | 9.5 | 62.7 | 20.2 | |
Perfomex II | Related party | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 2.5 | 2.5 | $ 2.7 | ||
Perfomex II | Bareboat Revenue | |||||
Related Party Transaction [Line Items] | |||||
Related party revenue | $ 0.0 | $ 8.1 | $ 0.0 | $ 16.1 |
Related Party Transactions - Narrative (Details) $ in Millions |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2023
USD ($)
rig
|
Jun. 30, 2022
rig
|
Jan. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Related Party Transaction [Line Items] | ||||
Deferred finance charges | $ | $ 10.0 | $ 4.9 | ||
Magni Partners Limited | Related party | ||||
Related Party Transaction [Line Items] | ||||
Deferred finance charges | $ | $ 1.3 | |||
Perfomex | ||||
Related Party Transaction [Line Items] | ||||
Number of rigs | 3 | |||
Number of rigs on bareboat charter | 5 | |||
Perfomex II | ||||
Related Party Transaction [Line Items] | ||||
Number of rigs | 2 |
Fair Value of Financial Instruments - Narrative (Details) - $250m Convertible Bonds - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Feb. 28, 2023 |
Jan. 31, 2023 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Gross deferred finance charge, share lending arrangement | $ 11,400,000 | $ 12,400,000 | |
Principal | 250,000,000 | $ 250,000,000 | |
Deferred finance charge, share lending arrangement, amortization | 1,000,000 | ||
Gross deferred finance charge, share lending arrangement, current | 2,500,000 | ||
Gross deferred finance charge, share lending arrangement, non-current | $ 8,900,000 |
Common Shares - Share Capital (Details) - $ / shares |
Jun. 30, 2023 |
Feb. 24, 2023 |
Feb. 23, 2023 |
Jan. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
---|---|---|---|---|---|---|
Equity [Abstract] | ||||||
Ordinary shares, par value (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | |
Authorized share capital | ||||||
Authorized shares (in shares) | 315,000,000 | 255,000,000 | ||||
Issued and outstanding share capital | ||||||
Common stock, shares issued (in shares) | 254,263,598 | 229,263,598 | 152,901,508 | |||
Treasury shares (in shares) | 9,160,866 | 315,511 | ||||
Outstanding (in shares) | 245,102,732 | 228,948,087 |
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