BDRILL - Trøim, Magni Partners forhandler kjøp av 4 flytere

Slettet bruker
BDRILL 12.09.2019 kl 15:04 5710

July 17, 2019

Sete Brasil creditors will meet August 9 to deliberate on Magni Partners’ new and seemingly final offer to acquire the Urca, Frade, Arpoador and Guarapari rigs. After four months of negotiations, the group raised the value of its proposal from US $ 250 million to US $ 296 million, ensuring contractual improvements.

Sources participating in the negotiations claim that the creditors’ perception of the new value presented is better, even though it is well below the initially stipulated minimum of $ 554 million. The assessment is that lenders are “conformed.”

The date of the new General Meeting of Creditors (AGC) was set during a meeting to clarify details of the process and the new proposal. Most of the requests for clarification were answered by creditors linked to public institutions, who were concerned to avoid future questions about their areas of compliance.

Magni Partners made gains in the negotiations with Brasfels and Jurong Aracruz, arriving at the final proposal about two weeks ago. Offers for the purchase of the four Sete rigs were opened at the end of March, and the deadline to finalize the negotiations ends in September.

Magni to sell rigs

If approved, the purchase of rigs will grant Magni Partners ten-year charter agreement with Petrobras, at a rate of US $ 299,000 / day. The technical conditions of the offer will have to be approved by the oil company. In the proposal presented, the group indicates Etesco as operator of the units.

Drilling companies are betting that Magni Partners will acquire the units to sell them in the future, attracting the long-term contract with Petrobras. It is speculated that the group will finalize the construction works and then seek a buyer.

Executives heard by BE Petroleo consider that the case of Sete Brasil and the trading capacity of Magni Partners and the Brasfels and Jurong yards are close to the limit. Alvarez & Marsal – a law firm that advises the group of rigs – and Licks Contadores Associado (judicial administrator of the process) defend, from the beginning, the sale of the units.

The transaction is part of the judicial recovery process of Sete Brasil, which is conducted by the 3rd Business Court of the Court of Justice of Rio de Janeiro. It involves a liability of about $ 5 billion. Even if the rigs are sold, the group can hardly settle all its debt.

The list of creditors of the company includes Banco do Brasil, Bradesco, FI-FGTS, FGCN, Caixa Econômica, Santander and Canvas, which bought the Itaú BBA credit, among others. The rig group has 12 shareholders: BTG Pactual, Luce, EIG Global Energy Partners, Lakeshore, Previ, Petros, Funcef, Valia, FI-FGTS, Santander, Bradesco and Petrobras.

In addition to Magni Partners, the auction attracted the Keppel Fels group, with a global offer of $ 50 million to acquire the two semisubmersibles under construction at its own site ($ 35 million for Urca and $ 15 million for Frade) .

https://brazilenergyinsight.com/2019/07/17/magni-partners-raises-offer-for-sete-brasil-rigs/
Redigert 20.01.2021 kl 22:23 Du må logge inn for å svare
Slettet bruker
12.09.2019 kl 15:05 5703

Det blir avgjordt i disse dager iflg Upstream
https://www.upstreamonline.com/weekly/magni-is-closing-in-on-deal-to-buy-stranded-rigs/2-1-668386
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Slettet bruker
12.09.2019 kl 15:07 5700

https://www.upstreamonline.com/weekly/decisive-meeting-looms/2-1-668820

Noen som har adgang til hele nyheten og kan legge den ut?
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Slettet bruker
12.09.2019 kl 16:29 5622

halv pris av røverpris er jo bra ✌️
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Investor 33
12.09.2019 kl 19:05 5526

Lite nytt fra Borr Drilling!!! Ser ikke lyst ut? Hadde håpet på noe nyheter som kunne vært bra for børs kursen og selskapet forøvrig mot lønnsomhet.
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Slettet bruker
12.09.2019 kl 19:18 5506

Hva er det som ikke ser lyst ut?
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Investor 33
12.09.2019 kl 19:31 5484

Ja hva er det som ser lyst ut da? Enn ikke fått kontrakter for sine rigger som står klar for oppdrag. Ved presentasjonen sa de at de var med på flere anbud. Når eventuelt er disse klare? Mulig noe utålmodig, men venter spent på nye nytt fra Borr Drilling.
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Slettet bruker
12.09.2019 kl 20:04 5448

Company appears ideally positioned for a widely anticipated, further recovery in the high-specification jack-up segment.


As of the end of Q2, the company had amassed almost $1.6 billion in debt but does not face any maturities until June 2022.

Moreover, unlike its peers, the company's balance sheet is not distorted by a vastly overstated fleet book value as Borr Drilling acquired the assets at discounted prices over the course of the downturn.

Bassoe Offshore currently values the company's fleet at roughly $2.4 billion (at the mid-point of the range) which does not include the above discussed eight newbuild rigs still awaiting delivery. In comparison, Borr Drilling carries its fleet including installment payments made for newbuild rigs at approximately $2.85 billion on the balance sheet.

In addition, the company had $106.8 million in cash (including restricted cash) at the end of the second quarter and available liquidity of $119.8 million including $75 million in undrawn credit facilities.

Another $50 million newbuild facility will become available to the company next year.

Furthermore, Borr Drilling still owns five unencumbered rigs which could provide additional liquidity if needed by either an outright sale or raising additional debt against these assets:

The Board believes, based on offers from industrial players and valuations received from third party brokers, that the total value of these assets, including backlog, to be in the region from approximately $150 million to $200 million.

The company also holds $32.9 million in marketable debt securities of which the majority is expected to be sold within the next 12 months.

To calculate the company's net asset value ("NAV"), I decided to provide three different scenarios. A conservative valuation effectively based on Bassoe Offshore estimates which only includes a small part of the more than $300 million in newbuild installments already paid by the company and a more optimistic view based simply on book value. I also calculated a mid-point scenario:

Source: Author's own work

Keep in mind that the calculation does not take into account the company's stated backlog of $620 million as of August 29.

My conservative NAV estimate almost matches Borr Drilling's recent offering price of $9.30 in late July when the company listed its shares on the NYSE.

At that time, I had accumulated a substantial position in Borr Drilling's shares but over the course of the dismal conference call of peer Valaris (NYSE:VAL) on August 1, I sold almost my entire holdings and only kept a token position, mostly for two reasons:

Despite the issues at Valaris being almost solely related to the floater site of the business, I assumed the unexpectedly weak outlook by a leading player to drag down the industry as a whole.Borr Drilling has direct exposure to the performance of Valaris' common stock due to an ill-advised derivative bet in the form of forward contracts.

As of June 30, Borr Drilling had accumulated losses of $55.1 million under the Valaris forward contracts, requiring the company to provide an additional $32.6 million of restricted cash to the respective margin account during Q2.

Unfortunately, Valaris' stock has continued to decline in Q3 but at least has recovered substantially from an all time low of $3.58 touched in mid-August.

As Borr Drilling has stated the remaining exposure under the forward contracts at $36.1 million as of June 30, we can assume, based on the Valaris stock price of $8.53 at that date, that the company is obliged to buy roughly 4.2 million shares under the contracts.

With Valaris shares trading at $6.80 as of the time of this writing, the additional losses under the contracts so far in Q3 calculate to a moderate 7.3 million.

While my original plan was to buy back my full position after an anticipated sell-off following the Q2 earnings release, I ended up repurchasing only 50% of the shares as the Valaris-related losses were not the only issue in the report.

Not only did Borr Drilling use a whopping $54.9 million of cash in operating activities, the company also had to invest heavily in newbuild rig activations, resulting in negative free cash flow for the quarter of $106.6 million.

And while management's outlook was rather positive on the surface it actually represented another backpedaling from projections made earlier this year:

The Company generated positive Adjusted EBITDA for the month of June 2019 and expects that the EBITDA level reached during Q3 will cover all operational and financial cash costs for the total fleet. Considering Borr still has another 16 available and undelivered modern units to be put into operation, the probability to generate significant cash even at current market day rates should be good.

Sounds good, but compare this to the outlook from the Q1/2019 report (emphasis added by author):

The Company expects to generate positive operating cash-flow in the third quarter 2019 (...).

Note that the outright expectation to generate positive operating cash flow in Q3 has been removed from the most recent outlook quoted above. The company also moved the timeline from the end of the second quarter to the third quarter.

Or take a look at the projections made at the end of Q4/2018(emphasis added by author):

The Company expects to be cash-flow positive in terms of cash from operations at the end of the second quarter of 2019 when all of these contracts have commenced. This is a watershed moment in the history of Borr compared to the cash-burn experienced in 2018.

Clearly, things have moved somewhat slower as originally anticipated by management as also evidenced by the unexpected withdrawal of two letters of intent for drilling contracts earlier this year.

In combination, the higher than expected cash usage in Q2, the irresponsible derivative bet on Valaris and the slower than expected progress in contracting the company's large fleet of modern jack-up rigs, have cooled down my enthusiasm for Borr Drilling somewhat.

That said, it would have been far more lucrative to stick to the original plan given the recent recovery rally in offshore drilling stocks with the company's shares up almost 50% over the past two weeks.

Bottom Line:

Borr Drilling has advanced to a leading player in the modern jack-up segment with the company's large number of available high-specification rigs providing for material upside in case of a widely anticipated, further market recovery.

The company has fully financed its remaining newbuild deliveries and does not face any debt maturities before June 2022. Should Borr Drilling indeed manage to generate positive cash flow from operations later this year.

https://seekingalpha.com/article/4291180-borr-drilling-promising-albeit-risky-bet-high-specification-jack-market






















Redigert 20.01.2021 kl 22:23 Du må logge inn for å svare
Slettet bruker
12.09.2019 kl 21:03 5386

Oljeselskapene tenker jeg flirer rått, når Borr går så høyt ut som de gjør. Trøym har satt dyreste Champagne til kjøling, sigarene er ferdig kuttet og Celina har fått siste skrik av en håndsydd kjole. Det hele ender opp i en gigantisk konkurs.
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Investor 33
12.09.2019 kl 21:26 5352

Jeg tenker Trøym ikke ønsker å tape sine penger. Derimot kan Fredriksen slå Seadrill konkurs eller utvanne aksjonærene. Må tenke logisk.............
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Investor 33
13.09.2019 kl 07:45 5223

Liten jobb for Borr drilling leser jeg, men en liten begynnelse på noe positivt muligens.
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Tm3P
13.09.2019 kl 08:18 5159

Forhåpentligvis bare en liten kontrakt for å vise hva den er god for, og så en lengre etterpå basert hvor godt jobben ble gjort. Inngår vel ikke slike kontrakter medmindre de har gode antydninger på at det kan bli mer senere.
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Slettet bruker
13.09.2019 kl 09:28 5067

For shallow-water jack-up rigs, rates have doubled since early 2018 to about $100,000 a day. The market is especially favorable to modern machines like the ones operated by Borr Drilling Ltd., chief financial officer Rune Magnus Lundetrae said at the conference.

Read more about Borr founder Troim’s bet on rigs

“Interesting enough, now that we have rigs in operation and we actually make some money and day rates are going up, the share price is going down,” the CFO said. “So you decide if this is an opportunity or if this is sort of a conclusion that this is not working.”

https://finance.yahoo.com/news/rig-bosses-try-win-back-230100895.html
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Slettet bruker
15.09.2019 kl 10:47 4774

wow

Analytikere tror oljeprisen kan snuse på 80-tallet etter nattens droneangrep, som nå struper oljeproduksjonen til Saudi-Arabia
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Slettet bruker
16.09.2019 kl 15:42 4510

lurer på når shorten på 5,5 millioner aksjer skal begynne å dekke inn, venter de på 70+? 😁
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Tm3P
16.09.2019 kl 15:48 4503

Valaris(det selskapet der Borr har et stort urealisert tap) er opp 25% hittil idag..
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danmark1
16.09.2019 kl 16:00 4488

Også det selskab er kørt urimeligt langt ned. Vi kommer til at se selskaber komme tilbage med raketfart. SA`s lagre holder ikke længe, med et undeskud på over 5 mio. tønder pr. dag.
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Fra Sidelinjen
16.09.2019 kl 21:21 4348

Q3 i BORR blir rock n roll, er så mye ikke så mye annet å konkludere med med tanke på økt aktiviteten i flåten, oljeprisgalopp og kraftig reversering av veddemålet i Valaris.
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Tm3P
17.09.2019 kl 11:04 4181

Borr har også veldig liten eksponering mot midtøsten i tilfelle det skulle bryte ut en stor konflikt. Kun 3 kontrakter med UAE som henger igjen fra oppkjøp, 2 av de er bygd på 80-tallet og skal nok skrapes etterhvert uansett.
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danmark1
17.09.2019 kl 11:50 4138

Når uroen har lagt sig omkring olieprisen, og markedet har taget til sig og accepteret en højere oliepris, vil investorerne komme løbende efter olieaktier.
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Tm3P
17.09.2019 kl 12:04 4127

Solgte det som ble kjøpt på 40-60 nå, sitter igjen med det som ble kjøpt på 60-80. Orker ikke sove dårlig på nettene lenger.. Går ting riktig vei så blir det veldig god gevinst uansett :)
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Slettet bruker
17.09.2019 kl 14:27 4058

Det store short nedsalget begynte rundt 125 og aksjen ble presset ned til ca 70.
Neste bølge begynte rundt 90 og aksjen ble presset ned til ca 42.

Det ligger en del motstand i 65-72 området, men regner den går gjennom før ukeslutt
og da er 90 neste stopp.

I samme tidsrom som aksjen begynte ferden nordover med ca 30% økning har MARSHALL WACE LLP øket shorten med nesten 400K.

Den registrerte shorten er på 5262k, en normal infradag ligger på ca 500k, så det vil ta over 10 dagers omsetning bare til å dekke inn den registrerte shorten

Litt mere muslimsk sabelrasling og ett par gode kontrakter så flyr den langt over 100

Redigert 20.01.2021 kl 22:23 Du må logge inn for å svare
Slettet bruker
17.09.2019 kl 14:31 4046

Den kan se ut som en OHS er under utvikling med potensiale til 73, slutter den over 66 i dag kan det bli fest på onsdag
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Tm3P
18.09.2019 kl 09:19 3880

Shorterne nekter å gi slipp og fortsetter å øke posisjonen. Tror ikke det blir noe mer rally i denne før de begynner å dekke seg inn eller at det kommer flere solide kontrakter sammen med innsidekjøp. Lever heldigvis greit med den posisjonen jeg har idag, skal vurdere å kjøpe litt igjen hvis den faller under 50.
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danmark1
18.09.2019 kl 09:22 3871

Jeg tror, der blev dækket godt ind i går.
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Tm3P
18.09.2019 kl 09:25 3862

Jeg tror de øket mer.
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danmark1
18.09.2019 kl 09:27 3858

Olieprisen holder et højere niveau på grund af den stadige frygt for nye angreb og uro i Mellemøsten. 8-10% betyder større indtægter og dermed mere lyst til at opretholde, eller udbygge kapacitet.
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Slettet bruker
18.09.2019 kl 15:24 3741

https://oilprice.com/Energy/Energy-General/Is-It-Time-To-Invest-In-Offshore-Drillers.html

Borr Drilling, for example, noted in its Q2 financials presentation the total disconnect between rising day rates for rigs and sliding share price of the company over the past year.
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Slettet bruker
18.09.2019 kl 16:28 3709

Kepler Cheuvreux spår dobling av aksjekursen i Borr Drilling
STIAN JACOBSEN
PUBLISERT: 11:10 - 18. 09 2019 | OPPDATERT: 12:22 - 18. 09 2019
Borr Drilling har ikke vært mye å skryte av for Tor Olav Trøim og resten av aksjonærene.

I skrivende stund omsettes aksjen for 60,63 kroner, ned 0,02 prosent. Det gir en markedsverdi på 6,7 milliarder kroner.

Den siste uken har aksjen falt 6,44 prosent mens den er ned 43,34 prosent hittil i år. Det er verdt å nevne at aksjen faktisk er opp 29 prosent den siste måneden.

Venter dobling av aksjekursen

Nå er analytiker Magnus Olsvik i Kepler Cheuvreux ute med en ny kjøpsanbefaling på aksjen. Samtidig kutter han kursmålet fra 165 til 160 kroner.

Bloomberg kan fortelle at gjennomsnittlig kursmål på Borr Drilling ligger på 122,97 kroner.

Selv om Olsvik nå kutter kursmålet betyr det fremdeles at han forventer mer enn en dobling av aksjekursen for Tor Olav Trøim & Co.

Pareto spår også kursoppgang

For litt over en uke siden var Pareto Securities ute med en analyse på aktørene i riggsektoren.

Med den slående overskriften “RIP - Recovery in Progress” valgte analytiker Christopher Mo Dege og Bård Rosef å kutte kursmålet på flere aksjer.

Samtidig opprettholdt de kjøpsanbefalingene. Forholdene skal tross alt bli bedre, ifølge Paretos tallknusere.

Analytikerne valgte å gi Borr Drilling et kursmål på 100 kroner (kjøp).
Redigert 20.01.2021 kl 22:23 Du må logge inn for å svare
Slettet bruker
23.09.2019 kl 16:54 3410

Utskrift fra Q2
https://finance.yahoo.com/news/edited-transcript-bdrill-ol-earnings-040344328.html

Based on current day rates, which are whole fleet contracted, we will have the possibility to generate $500 million of EBITDA and free cash flow of $350 million, that is equal to more than 1/2 the current market cap. As stated, the company will, with 15 rigs in operation, cover all operating financial cash cost.

For every new rig, we put to work in the current market, the cash flow will improve by approximately $20 million from contribution, from the contract and reduced stacking cost. We still have 16 rigs left to contract, and every rig contracted equals 4% free cash flow to equity. This might seem aggressive as of today, but as stated in our report, when the market becomes tight, day rates moves fast. In 2005 and '06, rates went from $95,000 to above $200,000 in a timeframe of 12 months.
Redigert 20.01.2021 kl 22:23 Du må logge inn for å svare
danmark1
23.09.2019 kl 17:38 3367

Det er ikke let, så længe shorterne hærger aktien. Det eneste man kan gøre er at holde på aktierne og evt. købe flere. Der er kommet en ny styreleder, som er en af tungvægterne i branchen og jeg tror på, at der snart kommer en melding fra selskabet. Vi kan se, at kursmålene alle ligger flere gange højere.
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Slettet bruker
23.09.2019 kl 23:59 3242

Nei det ventes på 40-45
Det er innen rekkevidde nå
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Bullinvestor
24.09.2019 kl 00:01 3239

Celina gikk jo inn i Borr, hun må ha tapt mye? Aksjen er rasert, ble ikke noe bedre etter idiotsplitten.
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Fevang
24.09.2019 kl 00:11 3214

Aksjen har ikke blitt splittet.

Derimot ble den det motsatte - altså spleiset...
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Bullinvestor
24.09.2019 kl 00:30 3202

Ja stemmer, færre aksjer og høyere kurs. Bare tull og gjennomføre spleisen.
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Fevang
24.09.2019 kl 00:45 3186

Spleisen hadde kanskje noe med noteringen av aksjen i USA å gjøre???
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danmark1
24.09.2019 kl 09:42 3052

Ledelsen har en langsigtet plan og noteringen skal gøre aktien mere international. Den nye styreleder skal nok få styr på forretningen.
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Tm3P
24.09.2019 kl 10:17 3020

Selv om shorterne selger nok aksjer til å få den ned til 40-45 igjen så vil ikke det si at det er innen rekkevidde til å dekke seg inn på det nivået. I motsetning til deg så har ikke disse en magisk måte å dekke seg inn uten å kjøpe aksjer over børs.
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