Added to YB: 2025-08-25
Pitch date: 2025-08-22
BORR [bullish]
Borr Drilling Limited
+127.21%
current return
Author Info
Aurelion Research is a research analyst with a passion for markets, specializing in high‑conviction ideas across shipping, offshore drilling, and thematic equity research. Sign up for the newsletter.
Company Info
Borr Drilling Limited operates as an offshore shallow-water drilling contractor to the oil and gas industry in the Americas, Southeast Asia, West Africa, the Middle East, North Africa, and Europe.
Market Cap
$2.0B
Pitch Price
$2.72
Price Target
3.50 (-43%)
Dividend
N/A
EV/EBITDA
7.86
P/E
38.88
EV/Sales
3.73
Sector
Energy Equipment and Services
Category
value
BORR: The Offshore Bet
BORR: Young jack-up fleet in Saudi, UAE, Qatar, SEAsia, Mexico for multi-year NOC programs. Day rates doubled to $130-150k/day, 91% utilization, ~11 new rigs in supply (2.5% fleet). Older contracts rolling to 2x rates = rising FCF w/o adding rigs. Cash break-even $415-470M vs $460M+ 2025e EBITDA, debt amortizing $135M/yr. Trades 5.5x 2025e EBITDA, $100M/rig EV. Base case: $3.50/share (+75% upside), bull $7.00 if repricing + options convert. Risks: oil price drop, Saudi pause, newbuild restart.
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