Despite a reduced deficit in the fourth quarter, rig operator Borr Drilling exits 2020 with another deficit of more than USD 300 million. The company, which recently secured approval for a rescue plan, still projects a stronger market.
Hard-pressed offshore company Borr Drilling secures creditor approval for its crisis plan. Banking major DNB recently announced that it was prepared to take over or sell the company, founded by Tor Olav Trøim, if a solution was not found.
If strained Borr Drilling is not able to settle a rescue plan, major bank DNB considers taking over or selling the company, shows a leaked document, according to Dagens Næringsliv. Founder Tor Olav Trøim is confident that a rescue plan will be settled.
Rig company Borr Drilling has lowered its capital injection target, which the company has been working to secure for a week. Meanwhile, the company has reached agreement with its lenders about additional liquidity. Founder Tor Olav Trøim subscribed for shares.
After profiting significantly on the oil price boom, Nordic shipping families such as Mærsk and Fredriksen have seen billions of kroner vanish during the profound crisis in the drilling sector. Maersk Drilling alone has seen its market value plunge by DKK 18 billion.
Borr Drilling, founded by Tor Olav Trøim, has landed an agreement with its creditors and now plans to raise further capital. The two initiatives will strengthen the strained company's liquidity, says CEO.
The loss grew to almost USD 110 million in the second quarter at drilling company Borr Drilling, which also lost revenue due to the coronavirus crisis. The company sees a need for consolidation in the strained offshore industry.
Rig operator Borr Drilling has reached an agreement with its lenders and yards, which ensures the company's operations until mid-2022. The deal includes postponement of the delivery of five rigs by two years.
A new, deep downturn in the drilling industry is expected to cause "a wave" of restructurings, projects Nordea Markets. The bank expects to see a high number of rigs taken off-market over the coming years. So does Maersk Drilling's CEO.
Borr Drilling continues its hunt for cash with a new share emission to, among others, its majority owner Tor Olav Trøim. The company also sold a rig for scrapping last week. Creditor negotiations continue.
Borr Drilling is negotiating with its creditors to find a solution that can safeguard it until 2022, even in a scenario without further contracts, informs the company in an update. The company books a large deficit in the first quarter of the year.
The big slide in the oil price comes as a setback to the recovery in the rig sector, which is already becoming protracted. This could at worst trigger restructurings, ABG Sundal Collier's analyst tells ShippingWatch.