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Borr Drilling's Share Price Falls 8.29% Amid Energy Stocks Decline
ByAinvest
Monday, Jul 21, 2025 10:19 am ET1min read
Borr Drilling (BORR) shares fell 8.29% between July 11 and July 18, 2025, due to a downgrade by BTIG from 'Buy' to 'Neutral'. The firm sees the slowdown in offshore drilling activity as a pause in the cycle but still sees upside potential if utilization improves. BORR had previously secured four new contracts worth over $124 million, bringing its total new commitments in 2025 to thirteen.
Borr Drilling (BORR) shares fell 8.29% between July 11 and July 18, 2025, following a downgrade by BTIG from 'Buy' to 'Neutral'. The downgrade was attributed to ongoing softness in the offshore drilling market and continued pressure on day rates and utilization levels [1]. Despite the downgrade, Borr’s fleet remains one of the most modern in the offshore space, fully dedicated to drilling operations. The company recently secured four new contracts worth over $124 million, bringing its total new commitments in 2025 to thirteen [1].Borr Drilling's strategic liquidity measures, including a $102.5 million dual-tranche equity offering, have bolstered its financial position. The first tranche of $61.5 million has already settled, while the second tranche of $41 million awaits shareholder approval. These funds will address long-term debt and provide operational flexibility [4]. Additionally, the company's leadership transition, with Bruno Morand assuming the CEO role and Patrick Schorn becoming Executive Chairman, signals a fresh approach to navigating the sector's cyclical nature [4].
The offshore drilling industry is at an inflection point, with global upstream capital expenditures rebounding to $300 billion annually. Offshore projects capture 68% of new conventional hydrocarbon investments, positioning Borr Drilling as a consolidator in the sector [4]. Despite the current market conditions, Borr Drilling maintains a strong position and is well-positioned for a sustained recovery in the offshore drilling market.
References:
[1] https://finance.yahoo.com/news/borr-drilling-downgraded-offshore-bulls-092206663.html
[2] https://www.oedigital.com/news/528119-slb-narrowly-beats-quarterly-profit-estimates
[3] https://www.ainvest.com/news/oil-drilling-slowdown-5-key-charts-watch-global-commodity-markets-week-2507/
[4] https://www.ainvest.com/news/borr-drilling-strategic-liquidity-leadership-transition-catalyst-outperformance-consolidating-offshore-drilling-sector-2507/
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