Borr Drilling Shows Resilience in Q1 with Double Dividend Announcement
Investors cheer a doubled dividend, now yielding 6.2%
While actual first-quarter profits may have underwhelmed, revenue beat estimates. Furthermore, management's projections for the year and decision to double the company's dividend seem to have overwhelmed all other considerations. For Q1, Borr reported $234 million in revenue, above the consensus estimate of $230 million.
Borr remains a levered play on oil prices
Borr is a somewhat risky play with a market cap of $1.7 billion and net debt around $1.6 billion. The company needs oil prices to remain strong to maintain demand for its rigs and generate profits. Analysts predict profits inflecting up to $0.76 per share this year, indicating a positive forward outlook for Borr Drilling.
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