Borr Drilling - Update on Share Repurchase Program

Rhea-AI Summary

Borr Drilling (NYSE: BORR) has completed the First Tranche of its share repurchase program, buying back 2,466,281 shares at an average price of $4.055 per share, totaling $9.99 million. This represents approximately 0.93% of the company's total issued shares. The repurchase was executed between November 12-18, 2024, through DNB Markets. This initiative is part of a larger $20 million share buyback commitment authorized by the Board to be completed by the end of 2024.

Positive

• Completed $10 million share buyback program ahead of schedule
• Board authorized additional $10 million in buybacks by end of 2024
• Share repurchase represents confidence in company's financial position
• Buyback program reduces share count by 0.93%, potentially increasing value per share

Negative

• Significant cash outlay of $10 million reduces available working capital

Insights

Financial Analyst

The completion of Borr Drilling's $10 million share repurchase program represents a significant capital allocation decision that demonstrates management's confidence in the company's valuation. The company acquired 2,466,281 shares at an average price of $4.055, representing 0.93% of total shares outstanding.

This buyback program's swift execution within a week suggests strong market liquidity and efficient implementation. With another $10 million commitment remaining for 2024, this indicates a sustained focus on shareholder returns. The average purchase price reflects management's view that shares are undervalued at current levels, potentially creating a floor for the stock price while improving earnings per share metrics through reduced share count.

HAMILTON, Bermuda, Nov. 20, 2024 /PRNewswire/ -- Borr Drilling Limited ("Borr Drilling" or the "Company") (NYSE: BORR) (OSE: BORR) initiated a share repurchase program on November 12, 2024 to repurchase USD 10 million of the Company's common shares in open market transactions ("the First Tranche") on the OSE and NYSE until no later than November 30, 2024 pursuant to an agreement with DNB Markets, a part of DNB Bank ASA ("DNB Markets"). This was the initial step under the Board of Directors authorized commitment to repurchase $20 million worth of shares before the end of 2024.

For the period from and including November 12, 2024 through the last day of the repurchase program, November 18, 2024, the Company purchased a total of 2,466,281 shares at an average price of USD 4,055 per share, equal to a total of USD 9,999,789. As a result, Borr Drilling hereby announces that the First Tranche of the share repurchase program initiated on 12 November 2024 has been completed.

The transactions effected through the agreement with DNB Markets comprise all the transactions effected by or on behalf of Borr Drilling during the period.

The issuer's holding of repurchased shares: 2,466,281

Following the completion of the above transactions, the Company had repurchased a total of 2,466,281 shares, corresponding to 0.93% of the Company's total issued share count.

Appendix:

An overview of all transactions made under the Company's repurchase program and its agreement with DNB Markets that have been carried out during the above-mentioned time period is attached to this report and available at www.newsweb.no. 

For further information, please contact:
Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/borr-drilling-limited/r/borr-drilling---update-on-share-repurchase-program,c4068812

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BORR notification of buybacks 13 to 18 November 2024

 

View original content:https://www.prnewswire.com/news-releases/borr-drilling---update-on-share-repurchase-program-302311051.html

SOURCE Borr Drilling Limited

FAQ

How many shares did Borr Drilling (BORR) repurchase in November 2024?

Borr Drilling repurchased 2,466,281 shares at an average price of $4.055 per share, totaling approximately $10 million.

What is the total value of Borr Drilling's (BORR) share repurchase program for 2024?

The total share repurchase program authorized by the Board is $20 million, to be completed by the end of 2024.

What percentage of Borr Drilling's (BORR) shares were repurchased in the First Tranche?

The First Tranche repurchase of 2,466,281 shares represents 0.93% of the company's total issued share count.

When did Borr Drilling (BORR) complete its First Tranche share repurchase?

Borr Drilling completed the First Tranche of its share repurchase program on November 18, 2024.