Borr Drilling announces major update on share repurchase program
- Borr Drilling Limited has authorized a $20 million share repurchase program, as part of a larger $100 million plan.
- The company successfully completed the first $10 million purchases under this plan by November 20, 2024.
- The remaining $10 million purchases will begin on December 13, 2024, and aim to conclude by December 31, 2024, targeting 4 million shares.
In Hamilton, Bermuda on December 12, 2024, Borr Drilling Limited disclosed a series of updates regarding its share repurchase program. The Board of Directors had earlier authorized a commitment to repurchase shares worth $20 million as part of a broader $100 million share repurchase authorization. This announcement follows a previous update on November 20, 2024, when the company confirmed the completion of the first tranche of $10 million in share repurchases, setting a clear path for the ongoing buyback strategy. The new agreement with DNB Markets allows Borr Drilling to begin the remaining $10 million worth of share repurchases starting December 13, 2024, using both the Oslo Stock Exchange (OSE) and the New York Stock Exchange (NYSE). The purchases under this second tranche are capped at 4 million shares, which ensures that the company can execute a structured approach to buybacks despite market fluctuations. Borr Drilling aims to conclude these transactions by December 31, 2024, although they possess the flexibility to suspend or terminate the repurchase program at any time if necessary. The company intends for the share buyback to benefit shareholders by effectively reducing its share capital. This structuring of the repurchase program underlines Borr Drilling’s commitment to enhancing shareholder value while navigating potential market volatility. The financial implications of these repurchases are significant, given the existing authorization and the strategic importance of share buybacks in managing equity and investor relations. Forward-looking statements included in the announcement caution investors about uncertainties related to the timing and total amount of shares to be repurchased. This includes risks stemming from liquidity, limitations imposed by debt instruments, and general market conditions. Borr Drilling has not provided explicit predictions on the outcomes of the repurchase efforts, thus emphasizing the unpredictable nature of stock buybacks in a fluctuating market environment. These insights regarding the share repurchase plan aim to keep shareholders informed and engaged with the company’s financial maneuvers.