Power Drilling with a strong jump in profits – E24

The drilling company increases profits for shareholders.

Tor Olav Trøim reports its first-quarter results on Thursday.

• The quarterly report shows a pre-tax profit of $32.6 million, up from $7.9 million in the first quarter of last year.
• Operating profit was $85 million in the quarter, compared to $46 million in the corresponding period last year.
• Revenues were $234 million, up from $172 million in the corresponding period of the previous year.
• The Board of Directors approved a dividend of $0.10 per share during the quarter, up from $0.05 per share in the prior quarter.
• Analysts had previously expected revenue of $231 million, operating profit of $90 million, and pre-tax profits of $49 million, according to Bloomberg.

We believe in a new decade for the suspended platform

Borr Drilling's share, like other drilling rig shares exposed to Saudi Aramco, has come under pressure this year, after the oil giant announced lower production targets.

Several companies later reported suspended contracts. In April, Power Drilling announced the suspension of the Arabia I jack-up contract.

Borr Drilling CEO Patrick Schorn says that based on conversations with customers, the company is “optimistic” that it will secure a new contract before the end of the third quarter.

Power Drilling indicates that 11 new contracts have been awarded so far this year, including five after the end of the first quarter, equivalent to revenues of $318 million.

Shorn points out that the average daily price on new contracts is about $183,000.

Burr reiterates an EBITDA forecast of $500 million to $550 million in 2024.