Cover
Cover | 6 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-39007 |
Entity Registrant Name | Borr Drilling Limited |
Entity Address, Address Line One | S.E. Pearman Building |
Entity Address, Address Line Two | 2nd Floor 9 Par-la-Ville Road |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM11 |
Entity Address, Country | BM |
Entity Central Index Key | 0001715497 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating revenues | ||||
Dayrate revenue | $ 87.7 | $ 49.4 | $ 151 | $ 96.8 |
Related party revenue | 17.6 | 5.4 | 36.3 | 6.4 |
Total operating revenues | 105.3 | 54.8 | 187.3 | 103.2 |
Gain on disposal | 0.7 | 0.8 | 0.7 | 0.7 |
Operating expenses | ||||
Rig operating and maintenance expenses | (65.5) | (47.4) | (121.1) | (96.2) |
Depreciation of non-current assets | (29.5) | (26.4) | (59) | (54.8) |
Impairment of non-current assets | (124.4) | 0 | (124.4) | 0 |
General and administrative expenses | (9.6) | (7.8) | (18.8) | (19.5) |
Total operating expenses | (229) | (81.6) | (323.3) | (170.5) |
Operating loss | (123) | (26) | (135.3) | (66.6) |
Other non-operating income | 2 | 0 | 2 | 0 |
(Loss) / income from equity method investments | (1.1) | (5.7) | 0 | 10.3 |
Financial income (expenses), net | ||||
Interest income | 3.9 | 0 | 3.9 | 0 |
Interest expense, net of amounts capitalized | (30.5) | (23.9) | (57.7) | (45.7) |
Other financial expenses, net | (10.3) | (5.3) | (18.4) | (11) |
Total financial expenses, net | (36.9) | (29.2) | (72.2) | (56.7) |
Loss before income taxes | (159) | (60.9) | (205.5) | (113) |
Income tax (expense) / credit | (6.3) | 1 | (11.1) | (1.3) |
Net loss attributable to shareholders of Borr Drilling Limited | (165.3) | (59.9) | (216.6) | (114.3) |
Total comprehensive loss attributable to shareholders of Borr Drilling Limited | $ (165.3) | $ (59.9) | $ (216.6) | $ (114.3) |
Earnings Per Share [Abstract] | ||||
Basic loss per share (in dollars per share) | $ (1.09) | $ (0.44) | $ (1.45) | $ (0.86) |
Diluted loss per share (in dollars per share) | $ (1.09) | $ (0.44) | $ (1.45) | $ (0.86) |
Weighted-average shares outstanding, basic (in shares) | 152,284,619 | 137,218,175 | 149,051,857 | 133,181,777 |
Weighted-average shares outstanding, diluted (in shares) | 152,284,619 | 137,218,175 | 149,051,857 | 133,181,777 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 29.7 | $ 34.9 |
Restricted cash | 1.4 | 3.3 |
Trade receivables | 33.4 | 28.5 |
Prepaid expenses | 11.2 | 6.6 |
Deferred mobilization and contract preparation costs | 20.4 | 17.2 |
Accrued revenue | 47.8 | 20.2 |
Due from related parties | 67.1 | 48.6 |
Other current assets | 21.4 | 16.9 |
Total current assets | 232.4 | 176.2 |
Non-current assets | ||
Non-current restricted cash | 6.7 | 7.8 |
Property, plant and equipment | 3.3 | 3.7 |
Newbuildings | 11.1 | 135.5 |
Jack-up rigs | 2,704.9 | 2,730.8 |
Equity method investments | 19.4 | 19.4 |
Other non-current assets | 12.7 | 6.9 |
Total non-current assets | 2,758.1 | 2,904.1 |
Total assets | 2,990.5 | 3,080.3 |
Current liabilities | ||
Trade payables | 45.3 | 34.7 |
Accrued expenses | 155.8 | 60.9 |
Short-term debt | 1,642.7 | 0 |
Other current liabilities | 40.5 | 22.3 |
Total current liabilities | 1,884.3 | 117.9 |
Non-current liabilities | ||
Long-term accrued interest and other items | 22.9 | 70.1 |
Long-term debt | 281.8 | 1,915.9 |
Other non-current liabilities | 18.7 | 15.2 |
Onerous contracts | 71.3 | 71.3 |
Total non-current liabilities | 394.7 | 2,072.5 |
Total liabilities | 2,279 | 2,190.4 |
Shareholders’ Equity | ||
Common shares of par value $0.10 per share: authorized 180,000,000 (2021:180,000,000) shares, issued 152,901,508 (2021: 137,218,175) shares and outstanding 152,495,175 (2021: 136,811,842) shares | 15.4 | 13.8 |
Treasury shares | (13.7) | (13.7) |
Additional paid in capital | 2,014.6 | 1,978 |
Accumulated deficit | (1,304.8) | (1,088.2) |
Total equity | 711.5 | 889.9 |
Total liabilities and equity | $ 2,990.5 | $ 3,080.3 |
Unaudited Consolidated Balanc_2
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 14, 2021 | Jun. 30, 2021 |
Shareholders’ Equity | |||||
Ordinary shares, par value (in dollars per share) | $ 0.1 | $ 0.10 | $ 0.10 | $ 0.05 | |
Authorized shares (in shares) | 180,000,000 | 180,000,000 | |||
Common stock, shares issued (in shares) | 152,901,508 | 137,218,175 | 137,218,175 | ||
Common stock, shares outstanding (in shares) | 152,495,175 | 136,811,842 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | |||||
Net loss | $ (165.3) | $ (59.9) | $ (216.6) | $ (114.3) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Non-cash compensation expense related to stock options | 0.2 | 0.2 | 0.5 | 0.9 | |
Depreciation of non-current assets | 29.5 | 26.4 | 59 | 54.8 | |
Impairment of non-current assets | 124.4 | 0 | 124.4 | 0 | $ 0 |
Gain on disposal of assets | (0.7) | (0.8) | (0.7) | (0.7) | |
Amortization of deferred finance charges | 1.6 | 1.9 | 3.2 | 3 | |
Effective interest rate adjustments | 2.8 | 0.7 | 5.9 | 1.7 | |
Loss/(income) from equity method investments | 1.1 | 5.7 | 0 | (10.3) | |
Deferred income tax | 1.1 | (0.5) | 1 | (0.8) | |
Change in assets and liabilities: | |||||
Amounts due to/from related parties | (7.4) | 0.1 | (18.5) | 4.7 | |
Accrued expenses | 24.8 | (0.9) | 85.6 | 0.3 | |
Long-term accrued interest | (3.1) | 15.7 | (47.2) | 31.8 | |
Other current and non-current assets | (28.5) | (6.5) | (52.1) | 0.6 | |
Other current and non-current liabilities | 11 | 7 | 32.3 | 0.7 | |
Net cash used in operating activities | (8.5) | (10.9) | (23.2) | (27.6) | |
Cash Flows from Investing Activities | |||||
Payments to Acquire Machinery and Equipment | (0.4) | 0 | (0.4) | 0 | |
Proceeds from sale of fixed assets | 0.7 | 0.8 | 0.7 | 2.2 | |
Investments in equity method investments | 0 | (1.6) | 0 | 1.5 | |
Additions to jack-up rigs | (15.9) | (4.9) | (23) | (7.7) | |
Net cash used in investing activities | (15.6) | (5.7) | (22.7) | (4) | |
Cash Flows from Financing Activities | |||||
Proceeds from share issuance, net of issuance cost | 3.6 | 0 | 37.7 | 44.8 | |
Net cash provided by financing activities | 3.6 | 0 | 37.7 | 44.8 | |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (20.5) | (16.6) | (8.2) | 13.2 | |
Cash, cash equivalents and restricted cash at the beginning of the period | 58.3 | 49 | 46 | 19.2 | 19.2 |
Cash, cash equivalents and restricted cash at the end of the period | 37.8 | 32.4 | 37.8 | 32.4 | 46 |
Supplementary disclosure of cash flow information | |||||
Interest paid, net of capitalized interest | (15) | (13.7) | (22.1) | (23.2) | |
Income taxes paid, net | (5) | 1.6 | (6.6) | 0.8 | |
Cash and cash equivalents | 29.7 | 29.7 | 34.9 | ||
Restricted cash | 1.4 | 1.4 | 3.3 | ||
Non-current restricted cash | 6.7 | 6.7 | 7.8 | ||
Total cash and cash equivalents and restricted cash | $ 37.8 | $ 32.4 | $ 37.8 | $ 32.4 | $ 46 |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Millions | Total | Common shares | Treasury shares | Additional paid in capital | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 109,429,495 | ||||
Beginning balance at Dec. 31, 2020 | $ 1,036.8 | $ 11 | $ (26.2) | $ 1,947.2 | $ (895.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issue of common shares (in shares) | 27,058,824 | ||||
Issue of common shares | 46 | $ 2.8 | 43.2 | ||
Equity issuance costs | (1.2) | (1.2) | |||
Share based compensation (in shares) | 275,131 | ||||
Share-based compensation | 0.7 | 10.4 | (9.7) | ||
Total comprehensive loss | (54.4) | (54.4) | |||
Ending balance (in shares) at Mar. 31, 2021 | 136,763,450 | ||||
Ending balance at Mar. 31, 2021 | 1,027.9 | $ 13.8 | (15.8) | 1,979.5 | (949.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation | 0.2 | 0.2 | |||
Total comprehensive loss | (59.9) | (59.9) | |||
Ending balance (in shares) at Jun. 30, 2021 | 136,763,450 | ||||
Ending balance at Jun. 30, 2021 | 968.2 | $ 13.8 | (15.8) | 1,979.7 | (1,009.5) |
Beginning balance (in shares) at Dec. 31, 2021 | 136,811,842 | ||||
Beginning balance at Dec. 31, 2021 | 889.9 | $ 13.8 | (13.7) | 1,978 | (1,088.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issue of common shares (in shares) | 14,840,323 | ||||
Issue of common shares | 35.2 | $ 1.5 | 33.7 | ||
Equity issuance costs | (1.1) | (1.1) | |||
Share-based compensation | 0.3 | 0.3 | |||
Total comprehensive loss | (51.3) | (51.3) | |||
Ending balance (in shares) at Mar. 31, 2022 | 151,652,165 | ||||
Ending balance at Mar. 31, 2022 | 873 | $ 15.3 | (13.7) | 2,010.9 | (1,139.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issue of common shares (in shares) | 843,010 | ||||
Issue of common shares | 3.7 | $ 0.1 | 3.6 | ||
Equity issuance costs | (0.1) | (0.1) | |||
Share-based compensation | 0.2 | 0.2 | |||
Total comprehensive loss | (165.3) | (165.3) | |||
Ending balance (in shares) at Jun. 30, 2022 | 152,495,175 | ||||
Ending balance at Jun. 30, 2022 | $ 711.5 | $ 15.4 | $ (13.7) | $ 2,014.6 | $ (1,304.8) |
General Information
General Information | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | General Information Borr Drilling Limited was incorporated in Bermuda on August 8, 2016. We are listed on the Oslo Stock Exchange and on the New York Stock Exchange under the ticker BORR. Borr Drilling Limited is an international offshore drilling contractor providing services to the oil and gas industry. Our primary business is the ownership, contracting and operation of modern jack-up drilling rigs for operations in shallow-water areas (i.e., in water depths up to approximately 400 feet), including the provision of related equipment and work crews to conduct drilling of oil and gas wells and workover operations for exploration and production customers. As of June 30, 2022, we had a total of 23 jack-up rigs, including five rigs which were "warm stacked", and had agreed to purchase five additional premium jack-up rigs under construction. Of our total fleet of 28 jack-up drilling rigs (including newbuilds under construction), five jack-up drilling rigs are scheduled for delivery in 2023. On June 26, 2022, we entered into a letter of intent for the sale of three premium jack-up rigs under construction. Upon conclusion of the sale of these rigs, our fleet will be composed of 23 jack-up rigs and two premium jack-up rigs under construction scheduled for delivery in 2023 (which we have agreed in principle with the yard to extend to 2025, as discussed below), for a total of 25 jack-up drilling rigs. As used herein, and unless otherwise required by the context, the terms “Company,” “Borr”, “we,” “Group,” “our” and words of similar nature refer to Borr Drilling Limited and its consolidated companies. The use herein of such terms as “group”, “organization”, “we”, “us”, “our” and “its”, or references to specific entities, is not intended to be a precise description of corporate relationships. Going concern The unaudited consolidated financial statements have been prepared on a going concern basis. We have incurred significant losses since inception and will be dependent on additional financing in order to fund our losses expected in the next 12 months, meet our existing capital expenditure commitments and our substantial debt maturities in 2023. We have principal debt of $1,862.5 million of which $1,603.3 million matures in 2023. In July 2022, we announced that we had reached agreements in principle with our secured creditors to extend the debt maturing in 2023 to 2025, subject to the respective boards' and credit committees' approvals and binding documentation. As part of these agreements, we contemplate to repay the $310.5 million outstanding on our $450 million Syndicated Facility and $100 million New Bridge Facility collateralized by eight rigs and replace it with a (i) $150 million bilateral facility provided by the existing lender in the facilities DNB Bank ASA, secured by five rigs and (ii) a repayment of the remaining balance with the proceeds of the August Equity Offering. We have also received a commitment from a syndicate of existing lender which would make available a $107.5 million facility secured by three rigs, if required, pursuant to a conditional backstop agreement, however the Company does not expect to utilize this facility, given the size of the offering we have priced. In addition, the agreements in principle contemplate a $45.0 million pay down of the Hayfin Facility ($30 million upon completion of an equity financing and the remaining $15 million by the end of 2022). The agreements in principle with our secured creditors provide for amending the maturity date of all secured debt to 2025 and also provide for certain payments to PPL and Keppel upon completion of the contemplated August Equity Raise. The agreement with Keppel also contemplates a deferral of the delivery dates for two newbuild rigs and an agreement by Keppel to the sale of the other three newbuild rigs we have agreed to purchase. These agreements are still subject to the creditors board’s approvals and binding documentation and the final terms may be different. On August 10, 2022 the Company announced that it had priced a public equity offering of $250 million of its common shares with proceeds being used to consummate the refinancing described above, with its lenders under its Syndicated Facility, New Bridge Facility, Hayfin Facility and shipyard delivery financing arrangements with Keppel and PPL and for general corporate purposes. Closing of the offering is subject to increasing the Company's authorized share capital and the Company entering into binding term sheets or other binding agreements with (or obtaining commitments from) all applicable secured lenders, no later than August 16, 2022. Furthermore, on June 27, 2022, we announced we have entered into a letter of intent for the sale of three newbuilding jack-ups for $320.0 million, subject to various conditions, including entering into an agreement to give effect to the LOI. Negotiations continue under the LOI with the intention that the final proceeds from the sale would be used to pay the delivery installments of the three newbuilding jack-up rigs and further eliminate the associated activation costs that would have applied in the future. We have received extensions of covenant waivers to implement the Refinancing, which waivers extend to August 10, 2022 and are then automatically extended to (i) August 18, 2022 if we enter into binding term sheets or other binding agreements in respect of the Refinancing by August 10, 2022 and (ii) to September 15, 2022 if we receive on or prior to August 18, 2022 commitments (subject only to completion of the transaction contemplated by the Refinancing term sheets) for the issuance of additional ordinary shares with gross proceeds of at least $150 million. We believe that this waiver has been automatically extended as a consequence of the execution of the underwriting agreement for the August Equity Offering. In July 2021, we established an ATM program under which we may offer and sell from time to time up to $40.0 million of our common shares to be listed on the New York Stock Exchange. As at July 31, 2022, we have sold 2,350,000 shares, raising $8.8 million in net proceeds under the ATM program. On December 28, 2021, as contemplated by the December 2021 agreements in principle with the shipyard creditors, outlined above, the Company launched a private placement which closed in January 2022, raising net proceeds of $28.9 million. The sale of shares under our ATM program and equity raise have improved our liquidity situation, however, our ability to continue as a going concern is dependent on a continuing improvement in the jack-up drilling market and securing our rigs on accretive contracts, in addition to being able to defer or refinance our debt maturities to at least 2025, complete the August Equity Raise and enter into a definitive sales agreement for the sale of the three newbuilding rigs noted above. While we have agreements in principle in place with all the secured creditors to extend the majority of secured debt to 2025, these agreements remain subject to approvals and binding documentation to extend all maturities to at least 2025. In addition, while we have priced our August Equity Raise in the amount of $250.0 million, the closing of the offering is subject to various closing conditions. As such, we have concluded that a substantial doubt exists over our ability to continue as a going concern. The financial statements included in this report do not include any adjustments that might result from the outcome of this uncertainty. We will continue to explore additional financing opportunities and strategic sale of a limited number of modern jack-ups or joint ventures in order to further strengthen the liquidity of the Company. While we have confidence that these actions will enable us to better manage our liquidity position, and we have a track record of delivering additional financing and selling rigs and joint ventures, there is no guarantee that any additional financing or sale measures will be concluded successfully. |
Basis of Preparation and Accoun
Basis of Preparation and Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Accounting Policies | Basis of Preparation and Accounting Policies Basis of preparation The unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited consolidated financial statements do not include all of the disclosures required under U.S. GAAP in the annual consolidated financial statements, and should be read in conjunction with our audited annual financial statements for the year ended December 31, 2021, which are included in our annual report on Form 20-F for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission on April 11, 2022. The consolidated balance sheet data for December 31, 2021 was derived from our audited annual financial statements. The amounts are presented in millions of United States dollars ("U.S. dollar" or "$"), unless otherwise stated. The financial statements have been prepared on a going concern basis and in management's opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. On December 14, 2021, the Board of Directors approved a 2-to-1 reverse share split of the Company’s shares. Upon effectiveness of the Reverse Split, every two shares of the Company’s issued and outstanding common shares, par value $0.05 per share was combined into one issued and outstanding common share, par value $0.10 per share. Unless otherwise indicated, all share and per share data in these unaudited consolidated financial statements have been adjusted to give effect of our Reverse Share Split and is approximate due to rounding. Significant accounting policies The accounting policies adopted in the preparation of the unaudited consolidated financial statements for the six months ended June 30, 2022 are consistent with those followed in preparation of our annual audited consolidated financial statements for the year ended December 31, 2021. Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Adoption of new accounting standards In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). The amendments simplify the issuer’s accounting for convertible instruments and its application of the equity classification guidance. The new guidance eliminates some of the existing models for assessing convertible instruments, which results in more instruments being recognized as a single unit of account on the balance sheet and expands disclosure requirements. The new guidance simplifies the assessment of contracts in an entity’s own equity and existing EPS guidance in ASC 260. These amendments are effective from January 1, 2022. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2022. In May 2021, the FASB issued ASU 2021-04 Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging —Contracts in Entity’s Own Equity (Subtopic 815-40). The amendments clarify the issuer's recognition and measurement considerations resulting from exchanges or modifications to freestanding instruments (written call options) classified in equity. Such exchanges or modifications are treated as adjustments to the cost to raise debt, to the cost to raise equity or as share based payments (ASC 718) when issued to compensate for goods or services. If not treated as costs of debt funding, equity funding or share-based payments, it results in an adjustment to EPS/net income (loss). These amendments are effective from January 1, 2022. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2022. In July 2021, the FASB issued ASU 2021-05 Leases (Topic 842) - Lessors - Certain leases with Variable Lease Payments. The amendments affect lessors with lease contracts that have variable lease payments that do not depend on a reference index or a rate and would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing leases. The new guidance amends the lease classification requirements where lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not recognize the underlying asset, and, therefore, does not recognize a selling profit or loss. These amendments are effective from January 1, 2022. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2022. In November 2021, the FASB issued ASU 2021-10 Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this Update require the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: (i) information about the nature of the transactions and the related accounting policy used to account for the transactions, (ii) the line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item and (iii) significant terms and conditions of the transactions, including commitments and contingencies. These amendments are effective from January 1, 2022. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2022. Accounting pronouncements that have been issued but not yet adopted Standard Description Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The amendments in this Update require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of, and after, a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. January 1, 2023 Under evaluation ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method The amendments clarify the accounting for, and promote consistency in, the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers as follows: January 1, 2023 Under evaluation ASU 2022-02 Financial Instruments—Credit Losses (Topic 326) The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the Current Expected Credit Losses (CECL) model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. January 1, 2023 Under evaluation As of August 11, 2022, the FASB have issued further updates not included above. We do not currently expect any of these updates to have a material impact on our consolidated financial statements and related disclosures either on transition or in future periods. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information During the three and six months ended June 30, 2022, we had a single reportable segment: our operations performed under out dayrate model (which includes rig charters and ancillary services). During the three and six months ended June 30, 2021, we had two operating segments: operations performed under our dayrate model (which includes rig charters and ancillary services) and operations performed under the Integrated Well Services ("IWS") model. IWS operations were performed by our joint venture entities Opex and Akal. On August 4, 2021, the Company executed a Stock Purchase Agreement for the sale of the Company's 49% interest in each of Opex and Akal, representing the Company's disposal of the IWS operating segment (see Note 6 - Equity Method Investments). Our Chief Operating Decision Maker (our Board of Directors) reviews financial information provided as an aggregate sum of assets, liabilities and activities that exist to generate cash flows, by our operating segments. The following presents financial information by segment for the three months to June 30, 2022: (In $ millions) Dayrate Reconciling Items (1) Consolidated total Dayrate revenue 139.3 (51.6) 87.7 Related party revenue — 17.6 17.6 Gain on disposal — 0.7 0.7 Rig operating and maintenance expenses (115.9) 50.4 (65.5) Depreciation of non-current assets (1) (29.1) (0.4) (29.5) Impairment of non-current assets (124.4) — (124.4) General and administrative expenses (1) — (9.6) (9.6) Income from equity method investments — (1.1) (1.1) Operating (loss)/income including equity method investment (130.1) 6.0 (124.1) Total assets 3,226.5 (236.0) 2,990.5 The following presents financial information by segment for the three months ended June 30, 2021: (in $ millions) Dayrate IWS Reconciling Items (1) Consolidated total Dayrate revenue 49.4 85.6 (85.6) 49.4 Related party revenue 5.4 — — 5.4 Intersegment revenue 43.1 — (43.1) — Gain on disposal — — 0.8 0.8 Rig operating and maintenance expenses (83.3) (56.0) 91.9 (47.4) Intersegment expenses — (43.1) 43.1 — Depreciation of non-current assets (1) (26.1) — (0.3) (26.4) General and administrative expenses (1) — — (7.8) (7.8) Income from equity method investments — — (5.7) (5.7) Operating loss including equity method investment (11.5) (13.5) (6.7) (31.7) Total assets 3,346.3 589.5 (793.6) 3,142.2 The following presents financial information by segment for the six months to June 30, 2022: (In $ millions) Dayrate Reconciling Items (1) Consolidated total Dayrate revenue 254.8 (103.8) 151.0 Related party revenue — 36.3 36.3 Gain on disposal — 0.7 0.7 Rig operating and maintenance expenses (222.2) 101.1 (121.1) Depreciation of non-current assets (1) (58.2) (0.8) (59.0) Impairment of non-current assets (124.4) — (124.4) General and administrative expenses (1) — (18.8) (18.8) Income from equity method investments — — — Operating (loss)/income including equity method investment (150.0) 14.7 (135.3) The following presents financial information by segment for the six months to June 30, 2021: (in $ millions) Dayrate IWS Reconciling Items (1) Consolidated total Dayrate revenue 96.8 245.1 (245.1) 96.8 Related party revenue 6.4 — — 6.4 Intersegment revenue 75.7 — (75.7) — Gain on disposal — — 0.7 0.7 Rig operating and maintenance expenses (161.7) (154.0) 219.5 (96.2) Intersegment expenses — (75.7) 75.7 — Depreciation of non-current assets (1) (54.0) — (0.8) (54.8) General and administrative expenses (1) — — (19.5) (19.5) Income from equity method investments — — 10.3 10.3 Operating (loss)/income including equity method investment (36.8) 15.4 (34.9) (56.3) (1) General and administrative expenses and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income / (loss) and are included in "Reconciling items." The full operating results included above for our equity method investments are not included within our consolidated results and thus are deducted under "Reconciling items" and replaced with our Income from equity method investments (see Note 6 - Equity Method Investments for additional information). Geographic data Revenues are attributed to geographical location based on the country of operations for drilling activities, and thus the country where the revenues are generated. The following presents our revenues by geographic area: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 South East Asia 39.1 21.4 69.9 48.3 West Africa 24.6 12.5 46.9 19.7 Mexico 17.5 3.4 36.4 3.8 Europe 19.0 17.5 29.0 31.4 Middle East 5.1 — 5.1 — Total 105.3 54.8 187.3 103.2 Major customers The following customers accounted for more than 10% of our dayrate and related party revenues: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In % of operating revenues) PTT Exploration and Production Public Company Limited 14 % 12 % 16 % 24 % Perfomex 9 % 8 % 11 % 2 % CNOOC Petroleum Europe Limited — % 18 % — % 19 % BWE Energy Gabon S.A. — % 13 % — % 7 % JX Nippon Oil & Gas Exploration (Malaysia) Limited — % 12 % — % 6 % Vestigo Petroleum Sdn. Bhd. — % 11 % — % 7 % Total 23 % 74 % 27 % 65 % Fixed Assets — Jack-up rigs (1) The following presents the net book value of our jack-up rigs by geographic area: June 30, 2022 December 31, 2021 (In $ millions) South East Asia 1,264.2 1,266.7 Mexico 631.9 645.7 West Africa 417.7 568.1 Europe 246.6 250.3 Middle East 144.5 — Total 2,704.9 2,730.8 (1) The fixed assets referred to in the table above excludes assets under construction. Asset locations at the end of a period are not necessarily indicative of the geographical distribution of the revenues or operating profits generated by such assets during the associated periods. |
Contracts with Customers
Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contracts with Customers | Contracts with Customers Contract Assets and Liabilities Accrued revenue is classified as a current asset. When the right to consideration becomes unconditional based on the contractual billing schedule, accrued revenue is recognized. At the point that accrued revenue is billed, trade accounts receivable are recognized. Payment terms on invoice amounts are typically 30 days. Deferred mobilization and contract preparation revenue include payments received for mobilization as well as rig preparation and upgrade activities, which are allocated to the overall performance obligation and recognized ratably over the initial term of the contract. The following presents our contract assets and liabilities from our contracts with customers: June 30, 2022 December 31, 2021 (In $ millions) Accrued revenue (1) 47.8 20.2 Current contract assets 47.8 20.2 Non-current accrued revenue (2) 1.0 — Non-current contract asset 1.0 — Total contract asset 48.8 20.2 Current deferred mobilization, demobilization and contract preparation revenue (3) (14.4) (3.9) Current contract liability (14.4) (3.9) Non-current deferred mobilization, demobilization and contract preparation revenue (4) (5.9) (2.5) Non-current contract liability (5.9) (2.5) Total contract liability (20.3) (6.4) (1) Accrued revenue inclu des $0.9 million pertaining to the current portion of deferred demobilization revenue. (2) Non-current accrued revenue pertains to the non-current portion of deferred demobilization revenue and is included in "Other non-current assets" in our Unaudited Consolidated Balance Sheets. (3) Current deferred mobilization, demobilization and contract preparation revenue is included in "Other current liabilities" in our Unaudited Consolidated Balance Sheets. (4) Non-current deferred mobilization, demobilization and contract preparation revenue is included in "Other non-current liabilities" in our Unaudited Consolidated Balance Sheets. Total movement in our contract assets and contract liabilities balances during the six months ended June 30, 2022 are as follows: (In $ millions) Contract assets Contract liabilities Balance as of December 31, 2021 20.2 6.4 Performance obligations satisfied during the reporting period 46.9 — Amortization of revenue — (6.5) Unbilled demobilization revenue 1.9 — Performance obligations to be satisfied over time — 1.9 Unbilled mobilization revenue — 9.4 Cash received, excluding amounts recognized as revenue — 9.1 Cash received against the contract asset balance (20.2) — Balance as of June 30, 2022 48.8 20.3 Timing of Revenue The Company derives its revenue from contracts with customers for the transfer of goods and services, from various activities performed both at a point in time and over time. Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Over time 102.0 52.3 179.6 97.0 Point in time 3.3 2.5 7.7 6.2 Total 105.3 54.8 187.3 103.2 Contracts Costs Deferred mobilization and contract preparation costs relate to costs incurred to prepare a rig for contract and delivery or to mobilize a rig to the drilling location. We defer pre‑operating costs, such as contract preparation and mobilization costs, and recognize such costs on a straight‑line basis, over the estimated firm period of the drilling contract. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. June 30, 2022 December 31, 2021 (In $ millions) Current deferred mobilization and contract preparation costs 20.4 17.2 Non-current deferred mobilization and contract preparation costs (1) 7.9 4.4 Total deferred mobilization and contract preparation asset 28.3 21.6 (1) Non-current deferred mobilization and contract preparation costs are included in "Other non-current assets" in our Unaudited Consolidated Balance Sheets Deferred mobilization and contract preparation costs increased by $6.7 million during the six months ended June 30, 2022 to $28.3 million, from $21.6 million as of December 31, 2021 as a result of amortization during the period of $16.8 million, offset by $23.5 million in additional deferred costs primarily relating to the contract preparations of the rigs "Groa", "Ran", "Arabia I", "Thor" and "Natt". Practical Expedient We have applied the disclosure practical expedient in ASC 606-10-50-14A(b) and have not included estimated variable consideration related to wholly unsatisfied performance obligations or to distinct future time increments within our contracts, including dayrate revenue. The duration of our performance obligations varies by contract. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments During 2019 we entered into a joint venture with Proyectos Globales de Energia y Servicos CME, S.A. DE C.V. (“CME”) to provide integrated well services to Petróleos Mexicanos (“Pemex”). This involved Borr Mexico Ventures Limited (“BMV”) subscribing to 49% of the equity of Opex Perforadora S.A. de C.V. (“Opex”) and Perforadora Profesional AKAL I, SA de CV (“Akal”). CME’s wholly owned subsidiary, Operadora Productora y Exploradora Mexicana, S.A. de C.V. (“Operadora”) owned 51% of each of Opex and Akal. In addition, we provide five jack-up rigs on bareboat charters to two other joint venture companies, Perfomex and Perfomex II, in which we previously held a 49% interest with CME. On August 4, 2021, the Company executed a Stock Purchase Agreement between BMV and Operadora for the sale of the Company's 49% interest in each of Opex and Akal joint ventures, as well as the acquisition of a 2% incremental interest in each of Perfomex I and Perfomex II joint ventures. The acquisition was completed on the same date. Effective August 4, 2021, although we now hold a 51% equity ownership in Perfomex and Perfomex II, we have assessed whether the increased investments in the Perfomex ventures results in the need to consolidate these entities under US GAAP. The significant judgements are whether the joint ventures are variable interest entities (VIEs) and, if so, whether Borr is the primary beneficiary. We concluded that the joint ventures are VIEs; however, we do not have the power to direct the decisions which most significantly impact the economic performance of the joint ventures. As such, we are not considered to be the primary beneficiary of the variable interest entities and we continue to account for our interests in Perfomex and Perfomex II as equity method investments in accordance with ASC 323, Investment - Equity Method and Joint Ventures and record the investments in "Equity method investments" in the Consolidated Balance Sheets. Prior to August 4, 2021, Opex and Akal contracted technical support services from BMV, management services from Operadora and well services from specialist well service contractors (including an affiliate of one of our shareholders Schlumberger Limited) and logistics and administration services from Logística y Operaciones OTM, S.A. de C.V, an affiliate of CME. This structure enabled Opex and Akal to provide bundled integrated well services to Pemex. The potential revenue earned was fixed under each of the Pemex contracts, while Opex and Akal managed the drilling services and related costs on a per well basis. Prior to the sale, we were obligated, as a 49% shareholder, to fund any capital shortfall in Opex or Akal should the Board of Opex or Akal make cash calls to the shareholders under the provisions of the Shareholder Agreements. On the date of sale, the outstanding funding provided to date was returned. The below tables sets forth the results from these entities, on a 100% basis, for the three months to June 30, 2022 and 2021: Three months ended June 30, 2022 Three months ended June 30, 2021 In $ millions Perfomex Perfomex II Perfomex Perfomex II Opex Akal Revenue 26.7 24.9 29.3 58.5 27.1 13.8 Operating expenses (26.0) (24.4) (27.4) (63.3) (35.7) (8.6) Net income/(loss) (2.7) 0.7 2.5 (1.5) (16.3) 3.7 The below tables sets forth the results from these entities, on a 100% basis, for the six months to June 30, 2022 and 2021: Six months ended June 30, 2022 Six months ended June 30, 2021 In $ millions Perfomex Perfomex II Perfomex Perfomex II Opex Akal Revenue 56.1 47.7 51.8 23.9 173.2 71.9 Operating expenses (54.5) (46.6) (47.7) (17.9) (148.0) (81.7) Net income/(loss) (1.4) 1.4 1.1 3.3 28.4 (9.8) Revenue in Opex and Akal is recognized on a percentage of completion basis under the cost input method. The services Opex and Akal deliver are to a single customer, Pemex, and involve delivering integrated well services with payment upon the completion of each well in the contract. Revenue in Perfomex and Perfomex II is recognized on a day rate basis on contracts with Opex and Akal, consistent with our historical revenue recognition policies, with day rate accruing each d ay as the service is performed. We provide rigs and services to Perfomex and Perfomex II for use in their contracts with Opex and Akal, respectively. As of June 30, 2022, Perfomex I and Perfomex II had $106.7 million of receivables from Opex and Akal, of which $87.9 million were outstanding and $18.8 million were unbilled. As of December 31, 2021, Perfomex and Perfomex II had $86.8 million of receivables from Opex and Akal, of which $70.5 million were outstanding and $16.3 million were unbilled. Summarized balance sheets, on a 100% basis of the Company's equity method investees are as follows: As at June 30, 2022 As at December 31, 2021 In $ millions Perfomex Perfomex II Perfomex Perfomex II Cash 11.0 15.8 9.0 7.2 Total current assets 147.6 81.2 142.2 48.7 Total non-current assets 3.6 3.6 4.2 2.1 Total assets 151.2 84.8 146.4 50.8 Total current liabilities 138.3 78.4 132.1 45.8 Equity 12.9 6.4 14.3 5.0 Total Liabilities and Equity 151.2 84.8 146.4 50.8 The following presents our investments in equity method investments as at June 30, 2022: In $ millions Perfomex Perfomex II Borr Total Balance as of January 1, 2022 16.9 2.5 19.4 Income on a percentage basis (0.7) 0.7 — Balance as of June 30, 2022 (1) 16.2 3.2 19.4 |
Other Financial Expenses, Net
Other Financial Expenses, Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Financial Expenses, net | Other Financial Expenses, net Other financial expenses, net is comprised of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Yard cost cover expense (8.0) (3.1) (13.7) (6.2) Amortization of deferred finance charges (1.6) (1.9) (3.2) (3.0) Bank commitment, guarantee and other fees (0.4) (1.3) (1.2) (2.0) Foreign exchange gain/(loss) 0.1 (1.9) (0.2) (2.5) Other financial (expense)/income (0.4) 2.9 (0.1) 2.7 Total (10.3) (5.3) (18.4) (11.0) |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Taxation | Taxation Borr Drilling Limited is a Bermuda company and is not required to pay taxes in Bermuda on ordinary income or capital gains under a tax exemption granted by the Minister of Finance in Bermuda until March 31, 2035. We operate through various subsidiaries in numerous countries throughout the world and are subject to tax laws, policies, treaties and regulations, as well as the interpretation or enforcement thereof, in jurisdictions in which we or any of our subsidiaries operate, were incorporated, or otherwise considered to have a tax presence. Our income tax expense is based upon our interpretation of the tax laws in effect in various countries at the time that the expense was incurred. For the three months ended June 30, 2022, our pre-tax loss is all attributable to foreign jurisdictions except for a $8.3 million pre-tax loss associated with Bermuda. For the three months ended 30 June, 2021, our pre-tax loss is all attributable to foreign jurisdictions except for a $32.9 million pre-tax loss associated with Bermuda. For the six months ended June 30, 2022, our pre-tax loss is all attributable to foreign jurisdictions except for a $18.9 million pre-tax loss associated with Bermuda. For the six months ended 30 June, 2021, our pre-tax loss is all attributable to foreign jurisdictions except for a $44.6 million pre-tax loss associated with Bermuda. The change in the effective tax rate from period to period is primarily attributable to changes in the profitability or loss mix of our operations in various jurisdictions. As our operations continually change among numerous jurisdictions and methods of taxation in these jurisdictions vary greatly, there is little direct correlation between the income tax provision or benefit and income or loss before taxes. We used a discrete effective tax rate method to calculate income taxes. Income tax (expense) / credit is comprised of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Current tax (7.4) 0.5 (12.1) (2.1) Change in deferred tax 1.1 0.5 1.0 0.8 Total (6.3) 1.0 (11.1) (1.3) The deferred tax assets related to our net operating losses were primarily generated in the United Kingdom and will not expire. We recognize a valuation allowance for deferred tax assets when it is more likely than not that the benefit from the deferred tax asset will not be realized. The amount of deferred tax assets considered realizable could increase or decrease in the near term if estimates of future taxable income change. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share The computation of basic loss per share (“EPS”) is based on the weighted average number of shares outstanding during the period. Diluted EPS does not include the effect of the assumed conversion of potentially dilutive instruments which are 5,532,480 share options outstanding issued to employees and directors as at June 30, 2022 and convertible bonds with a conversion price of $63.5892 for a total of 5,504,080 shares. Due to our current loss-making position and the share price being less than the conversion price of the convertible bonds these are deemed to have an anti-dilutive effect on our EPS. Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 Basic loss per share (1.09) (0.44) (1.45) (0.86) Diluted loss per share (1.09) (0.44) (1.45) (0.86) Issued ordinary shares at the end of the period 152,901,508 137,218,175 152,901,508 137,218,175 Weighted average numbers of shares outstanding for the period, basic and diluted 152,284,619 137,218,175 149,051,857 133,181,777 The effects of convertible bonds have been excluded from the calculation of diluted EPS for the three and six months ended June 30, 2022 and 2021 because the effects were anti-dilutive. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2022 | |
Restricted Cash [Abstract] | |
Restricted Cash | Restricted Cash Restricted cash is comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) Restricted cash relating to the issuance of guarantees 6.7 10.0 Restricted cash relating to debt financings 1.1 1.1 Restricted cash relating to other 0.3 — Total restricted cash 8.1 11.1 Less: amounts included in current restricted cash (1.4) (3.3) Non-current restricted cash 6.7 7.8 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2022 | |
Other Current Assets [Abstract] | |
Other Current Assets | Other Current Assets Other current assets are comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) VAT and other tax receivable 9.6 8.0 Client rechargeables 7.0 2.6 Deferred financing fee 0.4 0.9 Right-of-use lease asset (1) 0.2 0.2 Other receivables 4.2 5.2 Total 21.4 16.9 (1) The right-of-use lease asset pertains to our office lease. |
Newbuildings
Newbuildings | 6 Months Ended |
Jun. 30, 2022 | |
New buildings [Abstract] | |
Newbuildings | Newbuildings The table below sets forth the carrying value of our newbuildings: June 30, 2022 December 31, 2021 (In $ millions) Opening balance 135.5 135.5 Impairment (124.4) — Total 11.1 135.5 No rigs were delivered in the six months ended June 30, 2022. The remaining contracted installments as of June 30, 2022 , payable on delivery, for the five Keppel newbuilds acquired in 2017 and 2018 are approximately $624.0 million. See Note 18 - Commitments and Contingencies . Impairment On June 27, 2022, the Company entered into a letter of intent for the sale of three newbuilding jack-up rigs for $320.0 million, subject to various conditions, including entering into an agreement to give effect to the LOI. As a result of the potential sale of the three newbuilding rigs, we performed an impairment assessment and concluded that, based on management's best estimate as at June 30, 2022 of the most likely outcome, an impairment charge of $124.4 million was required to reflect the difference between the best estimate of the sales amount and the sum of the current capitalized cost and the expected cost to complete (level 3 fair value). June 30, 2022 (In $ millions) Three newbuildings considered in the LOI carrying value 132.0 Estimated cost to complete and respective onerous contract, net 312.4 Total 444.4 Potential sale price 320.0 Impairment charge (124.4) Three newbuildings considered in the LOI fair value 7.6 |
Jack-Up Rigs
Jack-Up Rigs | 6 Months Ended |
Jun. 30, 2022 | |
Jack Up Rigs [Abstract] | |
Jack-Up Rigs | Jack-Up Rigs June 30, 2022 December 31, 2021 (In $ millions) Opening balance 2,730.8 2,824.6 Additions 32.3 23.8 Depreciation and amortization (58.2) (117.6) Total 2,704.9 2,730.8 Depreciation of property, plant and equipment In addition to the depreciation in the above table, we recognized a depreciation charge of $0.4 million and $0.8 million for the three and six months ended June 30, 2022 related to property, plant and equipment ($0.4 million and $0.9 million for the three and six months ended June 30, 2021). Impairment During the six months ended June 30, 2022, we considered whether indicators of impairment existed that could indicate that the carrying amounts of our jack-up rigs may not be recoverable as of June 30, 2022 and concluded that no such events or changes in circumstances have occurred to warrant a change in the assumptions utilized in the December 31, 2021 impairment tests of our jack-up rig fleet. We will continue to monitor developments in the markets in which we operate for indications that the carrying values of our long-lived assets are not recoverable. |
Other Non-Current Assets
Other Non-Current Assets | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Other Non-Current Assets | Other Non-Current Assets Other long-term assets are comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) Deferred mobilization and contract preparation costs (1) 7.9 4.4 Deferred tax asset 1.7 0.7 Right-of-use lease asset, non-current (2) 1.2 1.3 Deferred demobilization revenue (3) 1.0 — Prepayments 0.5 0.1 VAT receivable 0.4 0.4 Total 12.7 6.9 (1) Non-current deferred mobilization and contract preparation costs relates to the non-current portion of contract mobilization and preparation costs for the jack-up rigs "Groa", "Skald" and "Arabia I" (see Note 5 - Contracts with Customers). (2) The right-of-use lease asset pertains to our office lease. (3) Non-current deferred demobilization revenue relates to demobilization revenue for one of our jack-up rigs, which will be billed upon contract completion. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses are comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) Accrued interest 105.7 15.3 Accrued goods and services received, not invoiced 14.7 7.7 Accrued payroll and bonus 3.7 6.2 Other accrued expenses (1) 31.7 31.7 Total 155.8 60.9 |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other cu rrent liabilities are comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) Deferred mobilization revenue (1) 13.7 3.9 Other current taxes payable (2) 9.0 4.6 VAT payable 8.2 6.6 Corporate income taxes payable 6.3 4.4 Accrued payroll and severance 0.8 0.7 Deferred demobilization revenue (1) 0.7 — Operating lease liability, current 0.2 0.7 Other current liabilities 1.6 1.4 Total 40.5 22.3 (1) Deferred mobilization revenue and deferred demobilization revenue comprise our current contract liability (see Note 5 - Contracts with Customers ). |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-term debt is comprised of the following: Principal Amount (In $ millions) June 30, 2022 December 31, 2021 Hayfin Term Loan Facility 197.0 — Syndicated Senior Secured Credit Facilities 272.7 — New Bridge Revolving Credit Facility 30.3 — $350m Convertible bonds 350.0 — PPL Delivery Financing 753.3 — Total 1,603.3 — Back end fee due to PPL on Delivery of rigs 29.3 — Effective interest rate adjustments on PPL Delivery financing 13.9 — Deferred finance charges (3.8) — Carrying Value Short-Term Debt 1,642.7 — Long-term debt is comprised of the following: Principal Amount (In $ millions) June 30, 2022 December 31, 2021 Hayfin Term Loan Facility — 197.0 Syndicated Senior Secured Credit Facilities — 272.7 New Bridge Revolving Credit Facility — 30.3 $350m Convertible bonds — 350.0 PPL Delivery Financing — 753.3 Keppel Delivery Financing 259.2 259.2 Total 259.2 1,862.5 Back end fee due to PPL and Keppel on Delivery of rigs 13.5 42.8 Effective interest rate adjustments on PPL and Keppel Delivery financing 9.1 17.1 Deferred finance charges — (6.5) Carrying Value Long-Term Debt 281.8 1,915.9 The carrying values in the tables above include, where applicable, deferred financing fees and certain interest adjustments to allow for variations in interest payments to be straight lined. At June 30, 2022 the scheduled maturities of our debt were as follows: Maturities (In $ millions) 2022 — 2023 1,603.3 2024 — 2025 86.4 2026 172.8 Thereafter — Total principal debt 1,862.5 Interest The weighted average interest rate for all our interest-bearing debt, excluding Convertible Bonds, was 6.2% for the six months ended June 30, 2022. Covenants |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has the following delivery installment commitments as at June 30, 2022: June 30, 2022 December 31, 2021 (in $ millions) Delivery installments for jack-up drilling rigs 615.0 621.0 Back-end fees 9.0 9.0 Total 624.0 630.0 The back-end fee is only payable and will be included as part of the cost price if we choose to accept delivery financing from Keppel or upon Keppel's discretion. In addition, under the PPL Financing, PPL is entitled to certain fees payable in connection with the increase in the market value of the relevant PPL Rig Owner from October 31, 2017 until the repayment date, less the relevant rig owner's equity cost of ownership of each rig and any interest paid on the delivery financing. The following table sets forth when our commitments fall due as of June 30, 2022: (In $ millions) Less than 1 year 1-2 years 2-3 years Thereafter Total Delivery installments for jack-up rigs and back end fees — 624.0 — — 624.0 Other commercial commitments We have other commercial commitments which contractually obligate us to settle with cash under certain circumstances. Surety bonds and parent company guarantees entered into between certain customers and governmental bodies guarantee our performance regarding certain drilling contracts, customs import duties and other obligations in various jurisdictions. The Company has the following guarantee commitments as at June 30, 2022: June 30, 2022 December 31, 2021 (in $ millions) Surety bonds, bank guarantees and performance bonds 13.4 20.8 Total 13.4 20.8 As at June 30, 2022, the expected expiration dates of these obligations are as follows: (In $ millions) Less than 1 year 1–3 years Total Surety bonds, bank guarantees and performance bonds 3.8 9.6 13.4 Assets pledged as collateral June 30, 2022 December 31, 2021 (in $ millions) Book value of jackup rigs pledged as collateral for long-term debt facilities 2,704.9 2,730.8 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions a) Transactions with entities over which we have significant influence We provide three rigs on a bareboat basis to Perfomex to service its contract with Opex and two rigs on a bareboat basis to Perfomex II to service its contract with Akal. Perfomex and Perfomex II provide the jack-up rigs under traditional dayrate and technical services agreements to Opex and Akal, respectively. This structure enables Opex and Akal to provide bundled integrated well services to Pemex. The potential revenue earned is fixed under each of the Pemex contracts, while Opex and Akal manage the drilling services related costs on a per well basis. The revenue from these contracts is recognized as "Related party revenue" in the Unaudited Consolidated Statements of Operations. On August 4, 2021, the Company executed a Stock Purchase Agreement between BMV and Operadora for the sale of the Company's 49% interest in each of the Opex and Akal joint ventures, as well as the acquisition of a 2% incremental interest in each of Perfomex and Perfomex II joint ventures. The sale was completed on the same date. Until their sale, as a 49% shareholder we were required to fund any capital shortfall in Opex or Akal should the Board of Opex or Akal make cash calls to the shareholders under the provisions of the Shareholders Agreement (see Note 6 - Equity Method Investments ). For the three and six months ended June 30, 2022 and 2021, the management services revenues and bareboat revenues from our related parties consisted of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Management Services Revenue - Perfomex — 1.9 — 4.1 Management Services Revenue - Perfomex II — 1.2 — 2.3 Bareboat Revenue - Perfomex 9.5 2.2 20.2 (1.6) Bareboat Revenue - Perfomex II 8.1 0.1 16.1 1.6 Total 17.6 5.4 36.3 6.4 For the three and six months ended June 30, 2022 and 2021 funding provided to and (received from) our joint ventures consisted of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Perfomex — 0.8 — (2.5) Perfomex II — 0.8 — 1.0 Total — 1.6 — (1.5) Receivables: The balances with the joint ventures as of June 30, 2022 and December 31, 2021 consisted of the following: June 30, 2022 December 31, 2021 (In $ millions) Perfomex 40.7 40.8 Perfomex II 26.4 7.8 Total 67.1 48.6 b) Transactions with Other Related Parties Expenses: The transactions with other related parties for the three months ended June 30, 2022 and 2021 consisted of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Magni Partners Limited (1) (0.1) — (0.5) (0.4) (1) Magni Partners Limited ("Magni") is party to a Corporate Services Agreement with the Company pursuant to which it provides strategic advice and assists in sourcing investment opportunities, financing and other such services as the Company wishes to engage, at the Company's option. There is both a fixed and variable element of the agreement, with the fixed cost element representing Magni's fixed costs and any variable element being at the Company's discretion. Mr. Tor Olav Trøim, the Chairman of our Board, is the sole owner of Magni. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We recognize our fair value estimates using a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on reliability of inputs used to determine fair value as follows: Level 1: Quoted market prices in active markets for identical assets and liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data The carrying value and estimated fair value of our financial instruments at June 30, 2022 and December 31, 2021 were as follows: As at June 30, 2022 As at December 31, 2021 (In $ millions) Hierarchy Fair value Carrying value Fair value Carrying value Assets Cash and cash equivalents (1) 1 29.7 29.7 34.9 34.9 Restricted cash (1) 1 1.4 1.4 3.3 3.3 Trade receivables (1) 1 33.4 33.4 28.5 28.5 Other current assets (excluding deferred finance fee) (1) 1 21.0 21.0 14.1 14.1 Due from related parties (1) 1 67.1 67.1 48.6 48.6 Non-current restricted cash 1 6.7 6.7 7.8 7.8 Liabilities Trade payables (1) 1 45.3 45.3 34.7 34.7 Accrued expenses and other current liabilities (1) 1 196.3 196.3 83.2 83.2 Short-term debt (2) 2 1,588.9 1,632.6 — — Long-term debt (1) 1 272.7 272.7 1,728.6 1,915.9 (1) The carrying values approximate the fair values due to their near term expected receipt of cash . (2) Short-term debt includes our 3.875% convertible bond due in 2023 which is fair valued using observable market based inputs. |
Common Shares
Common Shares | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Common Shares | Common Shares Authorized share capital June 30, 2022 December 31, 2021 (Number of shares of $0.10 each) Authorized shares 180,000,000 180,000,000 Issued and outstanding share capital June 30, 2022 December 31, 2021 (Number of shares of $0.10 each) Issued 152,901,508 137,218,175 Treasury shares 406,333 406,333 Outstanding 152,495,175 136,811,842 On December 28, 2021, we conducted a private placement for gross proceeds of $30 million by issuing 13,333,333 new depository receipts (representing the same number of shares) at a subscription price of $2.25 per depository receipt. Share issuance costs associated with this equity raise were $1.1 million. On January 31, 2022, the equity offering was settled and the Company's issued share capital was increased by $1.3 million to $151.0 million, divided into 150,551,508 common shares with a nominal value of $0.10 per common share. Equity distribution |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On August 10, 2022, the Company priced a public equity offering of $250.0 million (plus an additional $25.0 million that we may issue and sell upon the exercise of the underwriters' options) of its common shares with proceeds being used to consummate a refinancing with its lenders under its Syndicated Facility, New Bridge Facility, Hayfin Facility and shipyard delivery financing arrangements with Keppel and PPL ("secured lenders"), and for general corporate purposes. Closing of the offering is subject to increasing the Company's authorized share capital for which we have called a special general meeting of shareholders to be held on August 16, 2022 to approve 40,000,000 additional shares, but as such additional shares together with our currently authorized share capital, are not expected to be sufficient for all of the common shares expected to be issued in this offering, we have called for a second special general meeting of shareholders to be held on August 25, 2022 to approve the authorization of additional shares for this offering, including additional shares to take account for a potential exercise by the underwriters of the option to purchase up to an additional $25 million of shares. Closing of the offering is also conditional upon the Company entering into binding term sheets or other binding agreements with (or obtaining commitments from) all applicable secured lenders, no later than August 16, 2022. On August 11, 2022, the Board of Directors of the Company has resolved to grant 4 million options under the Company's approved share option scheme to certain of its employees. The grant is to become effective on September 1, 2022, following a planned Special General Meeting and increase in the approved share capital. Each share option gives the right to subscribe for one share of the Company. The options will vest over a 3.5 year period and have strike prices as follows: • One third will vest on March 1, 2024 and will have a strike price of $4.00; • One third will vest on March 1, 2025 and will have a strike price of $4.75; and • One third will vest on March 1, 2026 and will have a strike price of $5.50. In addition, the Company's Chief Executive Officer has been awarded 0.5 million Performance Stock Units that will all cliff vest on September 1, 2025 subject to certain performance criteria linked to the Company's share price. |
Basis of Preparation and Acco_2
Basis of Preparation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Going concern | Going concern The unaudited consolidated financial statements have been prepared on a going concern basis. We have incurred significant losses since inception and will be dependent on additional financing in order to fund our losses expected in the next 12 months, meet our existing capital expenditure commitments and our substantial debt maturities in 2023. We have principal debt of $1,862.5 million of which $1,603.3 million matures in 2023. In July 2022, we announced that we had reached agreements in principle with our secured creditors to extend the debt maturing in 2023 to 2025, subject to the respective boards' and credit committees' approvals and binding documentation. As part of these agreements, we contemplate to repay the $310.5 million outstanding on our $450 million Syndicated Facility and $100 million New Bridge Facility collateralized by eight rigs and replace it with a (i) $150 million bilateral facility provided by the existing lender in the facilities DNB Bank ASA, secured by five rigs and (ii) a repayment of the remaining balance with the proceeds of the August Equity Offering. We have also received a commitment from a syndicate of existing lender which would make available a $107.5 million facility secured by three rigs, if required, pursuant to a conditional backstop agreement, however the Company does not expect to utilize this facility, given the size of the offering we have priced. In addition, the agreements in principle contemplate a $45.0 million pay down of the Hayfin Facility ($30 million upon completion of an equity financing and the remaining $15 million by the end of 2022). The agreements in principle with our secured creditors provide for amending the maturity date of all secured debt to 2025 and also provide for certain payments to PPL and Keppel upon completion of the contemplated August Equity Raise. The agreement with Keppel also contemplates a deferral of the delivery dates for two newbuild rigs and an agreement by Keppel to the sale of the other three newbuild rigs we have agreed to purchase. These agreements are still subject to the creditors board’s approvals and binding documentation and the final terms may be different. On August 10, 2022 the Company announced that it had priced a public equity offering of $250 million of its common shares with proceeds being used to consummate the refinancing described above, with its lenders under its Syndicated Facility, New Bridge Facility, Hayfin Facility and shipyard delivery financing arrangements with Keppel and PPL and for general corporate purposes. Closing of the offering is subject to increasing the Company's authorized share capital and the Company entering into binding term sheets or other binding agreements with (or obtaining commitments from) all applicable secured lenders, no later than August 16, 2022. Furthermore, on June 27, 2022, we announced we have entered into a letter of intent for the sale of three newbuilding jack-ups for $320.0 million, subject to various conditions, including entering into an agreement to give effect to the LOI. Negotiations continue under the LOI with the intention that the final proceeds from the sale would be used to pay the delivery installments of the three newbuilding jack-up rigs and further eliminate the associated activation costs that would have applied in the future. We have received extensions of covenant waivers to implement the Refinancing, which waivers extend to August 10, 2022 and are then automatically extended to (i) August 18, 2022 if we enter into binding term sheets or other binding agreements in respect of the Refinancing by August 10, 2022 and (ii) to September 15, 2022 if we receive on or prior to August 18, 2022 commitments (subject only to completion of the transaction contemplated by the Refinancing term sheets) for the issuance of additional ordinary shares with gross proceeds of at least $150 million. We believe that this waiver has been automatically extended as a consequence of the execution of the underwriting agreement for the August Equity Offering. In July 2021, we established an ATM program under which we may offer and sell from time to time up to $40.0 million of our common shares to be listed on the New York Stock Exchange. As at July 31, 2022, we have sold 2,350,000 shares, raising $8.8 million in net proceeds under the ATM program. On December 28, 2021, as contemplated by the December 2021 agreements in principle with the shipyard creditors, outlined above, the Company launched a private placement which closed in January 2022, raising net proceeds of $28.9 million. The sale of shares under our ATM program and equity raise have improved our liquidity situation, however, our ability to continue as a going concern is dependent on a continuing improvement in the jack-up drilling market and securing our rigs on accretive contracts, in addition to being able to defer or refinance our debt maturities to at least 2025, complete the August Equity Raise and enter into a definitive sales agreement for the sale of the three newbuilding rigs noted above. While we have agreements in principle in place with all the secured creditors to extend the majority of secured debt to 2025, these agreements remain subject to approvals and binding documentation to extend all maturities to at least 2025. In addition, while we have priced our August Equity Raise in the amount of $250.0 million, the closing of the offering is subject to various closing conditions. As such, we have concluded that a substantial doubt exists over our ability to continue as a going concern. The financial statements included in this report do not include any adjustments that might result from the outcome of this uncertainty. We will continue to explore additional financing opportunities and strategic sale of a limited number of modern jack-ups or joint ventures in order to further strengthen the liquidity of the Company. While we have confidence that these actions will enable us to better manage our liquidity position, and we have a track record of delivering additional financing and selling rigs and joint ventures, there is no guarantee that any additional financing or sale measures will be concluded successfully. |
Basis of preparation | Basis of preparation The unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited consolidated financial statements do not include all of the disclosures required under U.S. GAAP in the annual consolidated financial statements, and should be read in conjunction with our audited annual financial statements for the year ended December 31, 2021, which are included in our annual report on Form 20-F for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission on April 11, 2022. The consolidated balance sheet data for December 31, 2021 was derived from our audited annual financial statements. The amounts are presented in millions of United States dollars ("U.S. dollar" or "$"), unless otherwise stated. The financial statements have been prepared on a going concern basis and in management's opinion, all adjustments necessary for a fair statement are reflected in the interim periods presented. On December 14, 2021, the Board of Directors approved a 2-to-1 reverse share split of the Company’s shares. Upon effectiveness of the Reverse Split, every two shares of the Company’s issued and outstanding common shares, par value $0.05 per share was combined into one issued and outstanding common share, par value $0.10 per share. Unless otherwise indicated, all share and per share data in these unaudited consolidated financial statements have been adjusted to give effect of our Reverse Share Split and is approximate due to rounding. |
Use of estimates | Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Adoption of new accounting standards and Accounting pronouncements that have been issued but not yet adopted | Adoption of new accounting standards In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). The amendments simplify the issuer’s accounting for convertible instruments and its application of the equity classification guidance. The new guidance eliminates some of the existing models for assessing convertible instruments, which results in more instruments being recognized as a single unit of account on the balance sheet and expands disclosure requirements. The new guidance simplifies the assessment of contracts in an entity’s own equity and existing EPS guidance in ASC 260. These amendments are effective from January 1, 2022. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2022. In May 2021, the FASB issued ASU 2021-04 Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging —Contracts in Entity’s Own Equity (Subtopic 815-40). The amendments clarify the issuer's recognition and measurement considerations resulting from exchanges or modifications to freestanding instruments (written call options) classified in equity. Such exchanges or modifications are treated as adjustments to the cost to raise debt, to the cost to raise equity or as share based payments (ASC 718) when issued to compensate for goods or services. If not treated as costs of debt funding, equity funding or share-based payments, it results in an adjustment to EPS/net income (loss). These amendments are effective from January 1, 2022. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2022. In July 2021, the FASB issued ASU 2021-05 Leases (Topic 842) - Lessors - Certain leases with Variable Lease Payments. The amendments affect lessors with lease contracts that have variable lease payments that do not depend on a reference index or a rate and would have resulted in the recognition of a selling loss at lease commencement if classified as sales-type or direct financing leases. The new guidance amends the lease classification requirements where lessors should classify and account for a lease with variable lease payments that do not depend on a reference index or a rate as an operating lease if certain criteria are met. When a lease is classified as operating, the lessor does not recognize a net investment in the lease, does not recognize the underlying asset, and, therefore, does not recognize a selling profit or loss. These amendments are effective from January 1, 2022. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2022. In November 2021, the FASB issued ASU 2021-10 Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The amendments in this Update require the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: (i) information about the nature of the transactions and the related accounting policy used to account for the transactions, (ii) the line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item and (iii) significant terms and conditions of the transactions, including commitments and contingencies. These amendments are effective from January 1, 2022. There was no impact resulting from these amendments on our unaudited consolidated financial statements or related disclosures as presented in this interim set of accounts for the six months ended June 30, 2022. Accounting pronouncements that have been issued but not yet adopted Standard Description Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The amendments in this Update require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of, and after, a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. January 1, 2023 Under evaluation ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method The amendments clarify the accounting for, and promote consistency in, the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers as follows: January 1, 2023 Under evaluation ASU 2022-02 Financial Instruments—Credit Losses (Topic 326) The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the Current Expected Credit Losses (CECL) model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. January 1, 2023 Under evaluation As of August 11, 2022, the FASB have issued further updates not included above. We do not currently expect any of these updates to have a material impact on our consolidated financial statements and related disclosures either on transition or in future periods. |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting pronouncements that have been issued but not yet adopted | Accounting pronouncements that have been issued but not yet adopted Standard Description Date of Adoption Effect on our Consolidated Financial Statements or Other Significant Matters ASU 2021-08 Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers The amendments in this Update require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of, and after, a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. January 1, 2023 Under evaluation ASU 2022-01 Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method The amendments clarify the accounting for, and promote consistency in, the reporting of hedge basis adjustments applicable to both a single hedged layer and multiple hedged layers as follows: January 1, 2023 Under evaluation ASU 2022-02 Financial Instruments—Credit Losses (Topic 326) The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the Current Expected Credit Losses (CECL) model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. January 1, 2023 Under evaluation |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following presents financial information by segment for the three months to June 30, 2022: (In $ millions) Dayrate Reconciling Items (1) Consolidated total Dayrate revenue 139.3 (51.6) 87.7 Related party revenue — 17.6 17.6 Gain on disposal — 0.7 0.7 Rig operating and maintenance expenses (115.9) 50.4 (65.5) Depreciation of non-current assets (1) (29.1) (0.4) (29.5) Impairment of non-current assets (124.4) — (124.4) General and administrative expenses (1) — (9.6) (9.6) Income from equity method investments — (1.1) (1.1) Operating (loss)/income including equity method investment (130.1) 6.0 (124.1) Total assets 3,226.5 (236.0) 2,990.5 The following presents financial information by segment for the three months ended June 30, 2021: (in $ millions) Dayrate IWS Reconciling Items (1) Consolidated total Dayrate revenue 49.4 85.6 (85.6) 49.4 Related party revenue 5.4 — — 5.4 Intersegment revenue 43.1 — (43.1) — Gain on disposal — — 0.8 0.8 Rig operating and maintenance expenses (83.3) (56.0) 91.9 (47.4) Intersegment expenses — (43.1) 43.1 — Depreciation of non-current assets (1) (26.1) — (0.3) (26.4) General and administrative expenses (1) — — (7.8) (7.8) Income from equity method investments — — (5.7) (5.7) Operating loss including equity method investment (11.5) (13.5) (6.7) (31.7) Total assets 3,346.3 589.5 (793.6) 3,142.2 The following presents financial information by segment for the six months to June 30, 2022: (In $ millions) Dayrate Reconciling Items (1) Consolidated total Dayrate revenue 254.8 (103.8) 151.0 Related party revenue — 36.3 36.3 Gain on disposal — 0.7 0.7 Rig operating and maintenance expenses (222.2) 101.1 (121.1) Depreciation of non-current assets (1) (58.2) (0.8) (59.0) Impairment of non-current assets (124.4) — (124.4) General and administrative expenses (1) — (18.8) (18.8) Income from equity method investments — — — Operating (loss)/income including equity method investment (150.0) 14.7 (135.3) The following presents financial information by segment for the six months to June 30, 2021: (in $ millions) Dayrate IWS Reconciling Items (1) Consolidated total Dayrate revenue 96.8 245.1 (245.1) 96.8 Related party revenue 6.4 — — 6.4 Intersegment revenue 75.7 — (75.7) — Gain on disposal — — 0.7 0.7 Rig operating and maintenance expenses (161.7) (154.0) 219.5 (96.2) Intersegment expenses — (75.7) 75.7 — Depreciation of non-current assets (1) (54.0) — (0.8) (54.8) General and administrative expenses (1) — — (19.5) (19.5) Income from equity method investments — — 10.3 10.3 Operating (loss)/income including equity method investment (36.8) 15.4 (34.9) (56.3) (1) General and administrative expenses and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income / (loss) and are included in "Reconciling items." The full operating results included above for our equity method investments are not included within our consolidated results and thus are deducted under "Reconciling items" and replaced with our Income from equity method investments (see Note 6 - Equity Method Investments |
Revenues by Geographic Area | The following presents our revenues by geographic area: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 South East Asia 39.1 21.4 69.9 48.3 West Africa 24.6 12.5 46.9 19.7 Mexico 17.5 3.4 36.4 3.8 Europe 19.0 17.5 29.0 31.4 Middle East 5.1 — 5.1 — Total 105.3 54.8 187.3 103.2 |
Major Customers by Reporting Segments | The following customers accounted for more than 10% of our dayrate and related party revenues: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In % of operating revenues) PTT Exploration and Production Public Company Limited 14 % 12 % 16 % 24 % Perfomex 9 % 8 % 11 % 2 % CNOOC Petroleum Europe Limited — % 18 % — % 19 % BWE Energy Gabon S.A. — % 13 % — % 7 % JX Nippon Oil & Gas Exploration (Malaysia) Limited — % 12 % — % 6 % Vestigo Petroleum Sdn. Bhd. — % 11 % — % 7 % Total 23 % 74 % 27 % 65 % Fixed Assets — Jack-up rigs (1) |
Long-lived Assets by Geographic Areas | The following presents the net book value of our jack-up rigs by geographic area: June 30, 2022 December 31, 2021 (In $ millions) South East Asia 1,264.2 1,266.7 Mexico 631.9 645.7 West Africa 417.7 568.1 Europe 246.6 250.3 Middle East 144.5 — Total 2,704.9 2,730.8 (1) The fixed assets referred to in the table above excludes assets under construction. Asset locations at the end of a period are not necessarily indicative of the geographical distribution of the revenues or operating profits generated by such assets during the associated periods. |
Contracts with Customers (Table
Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets, Contract Liabilities and Contract Costs from Contracts with Customers | The following presents our contract assets and liabilities from our contracts with customers: June 30, 2022 December 31, 2021 (In $ millions) Accrued revenue (1) 47.8 20.2 Current contract assets 47.8 20.2 Non-current accrued revenue (2) 1.0 — Non-current contract asset 1.0 — Total contract asset 48.8 20.2 Current deferred mobilization, demobilization and contract preparation revenue (3) (14.4) (3.9) Current contract liability (14.4) (3.9) Non-current deferred mobilization, demobilization and contract preparation revenue (4) (5.9) (2.5) Non-current contract liability (5.9) (2.5) Total contract liability (20.3) (6.4) (1) Accrued revenue inclu des $0.9 million pertaining to the current portion of deferred demobilization revenue. (2) Non-current accrued revenue pertains to the non-current portion of deferred demobilization revenue and is included in "Other non-current assets" in our Unaudited Consolidated Balance Sheets. (3) Current deferred mobilization, demobilization and contract preparation revenue is included in "Other current liabilities" in our Unaudited Consolidated Balance Sheets. (4) Non-current deferred mobilization, demobilization and contract preparation revenue is included in "Other non-current liabilities" in our Unaudited Consolidated Balance Sheets. Contracts Costs Deferred mobilization and contract preparation costs relate to costs incurred to prepare a rig for contract and delivery or to mobilize a rig to the drilling location. We defer pre‑operating costs, such as contract preparation and mobilization costs, and recognize such costs on a straight‑line basis, over the estimated firm period of the drilling contract. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. June 30, 2022 December 31, 2021 (In $ millions) Current deferred mobilization and contract preparation costs 20.4 17.2 Non-current deferred mobilization and contract preparation costs (1) 7.9 4.4 Total deferred mobilization and contract preparation asset 28.3 21.6 (1) Non-current deferred mobilization and contract preparation costs are included in "Other non-current assets" in our Unaudited Consolidated Balance Sheets |
Changes in the Remaining Performance Obligation Contract Asset Balances | Total movement in our contract assets and contract liabilities balances during the six months ended June 30, 2022 are as follows: (In $ millions) Contract assets Contract liabilities Balance as of December 31, 2021 20.2 6.4 Performance obligations satisfied during the reporting period 46.9 — Amortization of revenue — (6.5) Unbilled demobilization revenue 1.9 — Performance obligations to be satisfied over time — 1.9 Unbilled mobilization revenue — 9.4 Cash received, excluding amounts recognized as revenue — 9.1 Cash received against the contract asset balance (20.2) — Balance as of June 30, 2022 48.8 20.3 |
Disaggregation of Revenue | Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Over time 102.0 52.3 179.6 97.0 Point in time 3.3 2.5 7.7 6.2 Total 105.3 54.8 187.3 103.2 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The below tables sets forth the results from these entities, on a 100% basis, for the three months to June 30, 2022 and 2021: Three months ended June 30, 2022 Three months ended June 30, 2021 In $ millions Perfomex Perfomex II Perfomex Perfomex II Opex Akal Revenue 26.7 24.9 29.3 58.5 27.1 13.8 Operating expenses (26.0) (24.4) (27.4) (63.3) (35.7) (8.6) Net income/(loss) (2.7) 0.7 2.5 (1.5) (16.3) 3.7 The below tables sets forth the results from these entities, on a 100% basis, for the six months to June 30, 2022 and 2021: Six months ended June 30, 2022 Six months ended June 30, 2021 In $ millions Perfomex Perfomex II Perfomex Perfomex II Opex Akal Revenue 56.1 47.7 51.8 23.9 173.2 71.9 Operating expenses (54.5) (46.6) (47.7) (17.9) (148.0) (81.7) Net income/(loss) (1.4) 1.4 1.1 3.3 28.4 (9.8) Summarized balance sheets, on a 100% basis of the Company's equity method investees are as follows: As at June 30, 2022 As at December 31, 2021 In $ millions Perfomex Perfomex II Perfomex Perfomex II Cash 11.0 15.8 9.0 7.2 Total current assets 147.6 81.2 142.2 48.7 Total non-current assets 3.6 3.6 4.2 2.1 Total assets 151.2 84.8 146.4 50.8 Total current liabilities 138.3 78.4 132.1 45.8 Equity 12.9 6.4 14.3 5.0 Total Liabilities and Equity 151.2 84.8 146.4 50.8 The following presents our investments in equity method investments as at June 30, 2022: In $ millions Perfomex Perfomex II Borr Total Balance as of January 1, 2022 16.9 2.5 19.4 Income on a percentage basis (0.7) 0.7 — Balance as of June 30, 2022 (1) 16.2 3.2 19.4 |
Other Financial Expenses, Net (
Other Financial Expenses, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | Other financial expenses, net is comprised of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Yard cost cover expense (8.0) (3.1) (13.7) (6.2) Amortization of deferred finance charges (1.6) (1.9) (3.2) (3.0) Bank commitment, guarantee and other fees (0.4) (1.3) (1.2) (2.0) Foreign exchange gain/(loss) 0.1 (1.9) (0.2) (2.5) Other financial (expense)/income (0.4) 2.9 (0.1) 2.7 Total (10.3) (5.3) (18.4) (11.0) |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income tax (expense) / credit is comprised of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Current tax (7.4) 0.5 (12.1) (2.1) Change in deferred tax 1.1 0.5 1.0 0.8 Total (6.3) 1.0 (11.1) (1.3) |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic EPS | Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 Basic loss per share (1.09) (0.44) (1.45) (0.86) Diluted loss per share (1.09) (0.44) (1.45) (0.86) Issued ordinary shares at the end of the period 152,901,508 137,218,175 152,901,508 137,218,175 Weighted average numbers of shares outstanding for the period, basic and diluted 152,284,619 137,218,175 149,051,857 133,181,777 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restricted Cash [Abstract] | |
Schedule of Restricted Cash | Restricted cash is comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) Restricted cash relating to the issuance of guarantees 6.7 10.0 Restricted cash relating to debt financings 1.1 1.1 Restricted cash relating to other 0.3 — Total restricted cash 8.1 11.1 Less: amounts included in current restricted cash (1.4) (3.3) Non-current restricted cash 6.7 7.8 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets are comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) VAT and other tax receivable 9.6 8.0 Client rechargeables 7.0 2.6 Deferred financing fee 0.4 0.9 Right-of-use lease asset (1) 0.2 0.2 Other receivables 4.2 5.2 Total 21.4 16.9 (1) The right-of-use lease asset pertains to our office lease. |
Newbuildings (Tables)
Newbuildings (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
New buildings [Abstract] | |
Carrying Value of New Buildings | The table below sets forth the carrying value of our newbuildings: June 30, 2022 December 31, 2021 (In $ millions) Opening balance 135.5 135.5 Impairment (124.4) — Total 11.1 135.5 June 30, 2022 (In $ millions) Three newbuildings considered in the LOI carrying value 132.0 Estimated cost to complete and respective onerous contract, net 312.4 Total 444.4 Potential sale price 320.0 Impairment charge (124.4) Three newbuildings considered in the LOI fair value 7.6 |
Jack-Up Rigs (Tables)
Jack-Up Rigs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Jack Up Rigs [Abstract] | |
Schedule of Jack-Up Rigs | June 30, 2022 December 31, 2021 (In $ millions) Opening balance 2,730.8 2,824.6 Additions 32.3 23.8 Depreciation and amortization (58.2) (117.6) Total 2,704.9 2,730.8 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Schedule of Other Non-Current Assets | Other long-term assets are comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) Deferred mobilization and contract preparation costs (1) 7.9 4.4 Deferred tax asset 1.7 0.7 Right-of-use lease asset, non-current (2) 1.2 1.3 Deferred demobilization revenue (3) 1.0 — Prepayments 0.5 0.1 VAT receivable 0.4 0.4 Total 12.7 6.9 (1) Non-current deferred mobilization and contract preparation costs relates to the non-current portion of contract mobilization and preparation costs for the jack-up rigs "Groa", "Skald" and "Arabia I" (see Note 5 - Contracts with Customers). (2) The right-of-use lease asset pertains to our office lease. (3) Non-current deferred demobilization revenue relates to demobilization revenue for one of our jack-up rigs, which will be billed upon contract completion. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses are comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) Accrued interest 105.7 15.3 Accrued goods and services received, not invoiced 14.7 7.7 Accrued payroll and bonus 3.7 6.2 Other accrued expenses (1) 31.7 31.7 Total 155.8 60.9 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities, Current [Abstract] | |
Schedule of Other Current Liabilities | Other cu rrent liabilities are comprised of the following: June 30, 2022 December 31, 2021 (In $ millions) Deferred mobilization revenue (1) 13.7 3.9 Other current taxes payable (2) 9.0 4.6 VAT payable 8.2 6.6 Corporate income taxes payable 6.3 4.4 Accrued payroll and severance 0.8 0.7 Deferred demobilization revenue (1) 0.7 — Operating lease liability, current 0.2 0.7 Other current liabilities 1.6 1.4 Total 40.5 22.3 (1) Deferred mobilization revenue and deferred demobilization revenue comprise our current contract liability (see Note 5 - Contracts with Customers ). |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | Short-term debt is comprised of the following: Principal Amount (In $ millions) June 30, 2022 December 31, 2021 Hayfin Term Loan Facility 197.0 — Syndicated Senior Secured Credit Facilities 272.7 — New Bridge Revolving Credit Facility 30.3 — $350m Convertible bonds 350.0 — PPL Delivery Financing 753.3 — Total 1,603.3 — Back end fee due to PPL on Delivery of rigs 29.3 — Effective interest rate adjustments on PPL Delivery financing 13.9 — Deferred finance charges (3.8) — Carrying Value Short-Term Debt 1,642.7 — |
Schedule of Long-Term Debt | Long-term debt is comprised of the following: Principal Amount (In $ millions) June 30, 2022 December 31, 2021 Hayfin Term Loan Facility — 197.0 Syndicated Senior Secured Credit Facilities — 272.7 New Bridge Revolving Credit Facility — 30.3 $350m Convertible bonds — 350.0 PPL Delivery Financing — 753.3 Keppel Delivery Financing 259.2 259.2 Total 259.2 1,862.5 Back end fee due to PPL and Keppel on Delivery of rigs 13.5 42.8 Effective interest rate adjustments on PPL and Keppel Delivery financing 9.1 17.1 Deferred finance charges — (6.5) Carrying Value Long-Term Debt 281.8 1,915.9 |
Schedule of Maturities of Debt | At June 30, 2022 the scheduled maturities of our debt were as follows: Maturities (In $ millions) 2022 — 2023 1,603.3 2024 — 2025 86.4 2026 172.8 Thereafter — Total principal debt 1,862.5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | The Company has the following delivery installment commitments as at June 30, 2022: June 30, 2022 December 31, 2021 (in $ millions) Delivery installments for jack-up drilling rigs 615.0 621.0 Back-end fees 9.0 9.0 Total 624.0 630.0 |
Maturity of Commitments | The following table sets forth when our commitments fall due as of June 30, 2022: (In $ millions) Less than 1 year 1-2 years 2-3 years Thereafter Total Delivery installments for jack-up rigs and back end fees — 624.0 — — 624.0 |
Other Commercial Commitments | The Company has the following guarantee commitments as at June 30, 2022: June 30, 2022 December 31, 2021 (in $ millions) Surety bonds, bank guarantees and performance bonds 13.4 20.8 Total 13.4 20.8 As at June 30, 2022, the expected expiration dates of these obligations are as follows: (In $ millions) Less than 1 year 1–3 years Total Surety bonds, bank guarantees and performance bonds 3.8 9.6 13.4 |
Assets Pledged as Collateral | Assets pledged as collateral June 30, 2022 December 31, 2021 (in $ millions) Book value of jackup rigs pledged as collateral for long-term debt facilities 2,704.9 2,730.8 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the three and six months ended June 30, 2022 and 2021, the management services revenues and bareboat revenues from our related parties consisted of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Management Services Revenue - Perfomex — 1.9 — 4.1 Management Services Revenue - Perfomex II — 1.2 — 2.3 Bareboat Revenue - Perfomex 9.5 2.2 20.2 (1.6) Bareboat Revenue - Perfomex II 8.1 0.1 16.1 1.6 Total 17.6 5.4 36.3 6.4 For the three and six months ended June 30, 2022 and 2021 funding provided to and (received from) our joint ventures consisted of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Perfomex — 0.8 — (2.5) Perfomex II — 0.8 — 1.0 Total — 1.6 — (1.5) Receivables: The balances with the joint ventures as of June 30, 2022 and December 31, 2021 consisted of the following: June 30, 2022 December 31, 2021 (In $ millions) Perfomex 40.7 40.8 Perfomex II 26.4 7.8 Total 67.1 48.6 Expenses: The transactions with other related parties for the three months ended June 30, 2022 and 2021 consisted of the following: Three months ended June 30, 2022 Three months ended June 30, 2021 Six months ended June 30, 2022 Six months ended June 30, 2021 (In $ millions) Magni Partners Limited (1) (0.1) — (0.5) (0.4) (1) Magni Partners Limited ("Magni") is party to a Corporate Services Agreement with the Company pursuant to which it provides strategic advice and assists in sourcing investment opportunities, financing and other such services as the Company wishes to engage, at the Company's option. There is both a fixed and variable element of the agreement, with the fixed cost element representing Magni's fixed costs and any variable element being at the Company's discretion. Mr. Tor Olav Trøim, the Chairman of our Board, is the sole owner of Magni. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Cash and Financial Instruments | The carrying value and estimated fair value of our financial instruments at June 30, 2022 and December 31, 2021 were as follows: As at June 30, 2022 As at December 31, 2021 (In $ millions) Hierarchy Fair value Carrying value Fair value Carrying value Assets Cash and cash equivalents (1) 1 29.7 29.7 34.9 34.9 Restricted cash (1) 1 1.4 1.4 3.3 3.3 Trade receivables (1) 1 33.4 33.4 28.5 28.5 Other current assets (excluding deferred finance fee) (1) 1 21.0 21.0 14.1 14.1 Due from related parties (1) 1 67.1 67.1 48.6 48.6 Non-current restricted cash 1 6.7 6.7 7.8 7.8 Liabilities Trade payables (1) 1 45.3 45.3 34.7 34.7 Accrued expenses and other current liabilities (1) 1 196.3 196.3 83.2 83.2 Short-term debt (2) 2 1,588.9 1,632.6 — — Long-term debt (1) 1 272.7 272.7 1,728.6 1,915.9 (1) The carrying values approximate the fair values due to their near term expected receipt of cash . (2) Short-term debt includes our 3.875% convertible bond due in 2023 which is fair valued using observable market based inputs. |
Common Shares (Tables)
Common Shares (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Share Capital | June 30, 2022 December 31, 2021 (Number of shares of $0.10 each) Authorized shares 180,000,000 180,000,000 June 30, 2022 December 31, 2021 (Number of shares of $0.10 each) Issued 152,901,508 137,218,175 Treasury shares 406,333 406,333 Outstanding 152,495,175 136,811,842 |
General Information (Details)
General Information (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Aug. 10, 2022 USD ($) | Jun. 27, 2022 USD ($) rig | Jun. 26, 2022 rig | Jul. 31, 2022 USD ($) rig | Jan. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) rig shares | Jul. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | Jul. 31, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Number of newbuild jack-up rigs for sale | rig | 3 | ||||||||
Total principal debt | $ 1,862.5 | ||||||||
Debt maturing in 2023 | $ 1,603.3 | $ 0 | |||||||
Proceeds from issuance of private placement | $ 28.9 | ||||||||
At-The-Market Offering | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Amount authorized for issuance | $ 40 | ||||||||
Number of shares sold in transaction (in shares) | shares | 2,350,000 | ||||||||
Subsequent event | At-The-Market Offering | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Number of shares sold in transaction (in shares) | shares | 2,350,000 | ||||||||
Sale of stock, consideration received on transaction | $ 8.8 | ||||||||
Subsequent event | Common shares | Forecast | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Sale of stock, public offering | $ 250 | ||||||||
Syndicated Senior Secured Credit Facilities and New Bridge Revolving Credit Facility | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Debt maturing in 2023 | $ 310.5 | ||||||||
Syndicated Senior Secured Credit Facilities and New Bridge Revolving Credit Facility | Subsequent event | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Number of jack-up rigs secured by mortgage | rig | 8 | ||||||||
Syndicated Senior Secured Credit Facilities and New Bridge Revolving Credit Facility | Subsequent event | Bilateral Facility | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Maximum borrowing capacity | $ 150 | 150 | |||||||
Number of jack-up rigs secured by mortgage | rig | 5 | ||||||||
Syndicated Senior Secured Credit Facilities and New Bridge Revolving Credit Facility | Subsequent event | Backstop Facility | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Maximum borrowing capacity | $ 107.5 | 107.5 | |||||||
Number of jack-up rigs secured by mortgage | rig | 3 | ||||||||
Syndicated Senior Secured Credit Facilities | Subsequent event | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Maximum borrowing capacity | $ 450 | 450 | |||||||
New Bridge Revolving Credit Facility | Subsequent event | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Maximum borrowing capacity | 100 | $ 100 | |||||||
Hayfin Term Loan Facility | Subsequent event | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Repayments of debt | 45 | ||||||||
Repayments of debt on completion of equity financing | 30 | ||||||||
Repayments of debt on completion of equity financing before year end | $ 15 | ||||||||
Letter of Intent | Newbuildings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Potential sale price | $ 320 | $ 320 | |||||||
Jack-up rigs | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Number of rigs owned | rig | 23 | ||||||||
Number of rigs under construction | rig | 5 | ||||||||
Number of jack-up rigs owned, including jack-up rigs under construction | rig | 28 | ||||||||
Number of jack-up rigs scheduled for delivery | rig | 5 | ||||||||
Number of newbuild jack-up rigs for sale | rig | 3 | ||||||||
Number of jack-up rigs owned subsequent to sale | rig | 23 | ||||||||
Number of jack-up rigs scheduled for delivery subsequent to sale | rig | 2 | ||||||||
Number of jack-up rigs owned, including jack-up rigs under construction subsequent to sale | rig | 25 | ||||||||
Warm stacked rigs | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Number of rigs owned | rig | 5 |
Basis of Preparation and Acco_3
Basis of Preparation and Accounting Policies - Narrative (Details) | Dec. 14, 2021 $ / shares | Jun. 30, 2022 $ / shares | Jan. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares |
Accounting Policies [Abstract] | ||||
Stock conversion ratio | 0.5 | |||
Ordinary shares, par value (in dollars per share) | $ 0.05 | $ 0.1 | $ 0.10 | $ 0.10 |
Segment Information - Segment R
Segment Information - Segment Reporting Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Aug. 04, 2021 | |
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 2 | 2 | ||||
Dayrate revenue | $ 87.7 | $ 49.4 | $ 151 | $ 96.8 | ||
Related party revenue | 17.6 | 5.4 | 36.3 | 6.4 | ||
Intersegment revenue | 0 | 0 | ||||
Gain on disposal | 0.7 | 0.8 | 0.7 | 0.7 | ||
Rig operating and maintenance expenses | (65.5) | (47.4) | (121.1) | (96.2) | ||
Intersegment expenses | 0 | 0 | ||||
Depreciation of non-current assets | (29.5) | (26.4) | (59) | (54.8) | ||
Impairment of non-current assets | (124.4) | (124.4) | ||||
General and administrative expenses | (9.6) | (7.8) | (18.8) | (19.5) | ||
Income from equity method investments | (1.1) | (5.7) | 0 | 10.3 | ||
Operating (loss)/income including equity method investment | (124.1) | (31.7) | (135.3) | (56.3) | ||
Total assets | 2,990.5 | 3,142.2 | 2,990.5 | 3,142.2 | $ 3,080.3 | |
Operating segments | Dayrate | ||||||
Segment Reporting Information [Line Items] | ||||||
Dayrate revenue | 139.3 | 49.4 | 254.8 | 96.8 | ||
Related party revenue | 0 | 5.4 | 0 | 6.4 | ||
Gain on disposal | 0 | 0 | 0 | 0 | ||
Rig operating and maintenance expenses | (115.9) | (83.3) | (222.2) | (161.7) | ||
Depreciation of non-current assets | (29.1) | (26.1) | (58.2) | (54) | ||
Impairment of non-current assets | (124.4) | (124.4) | ||||
General and administrative expenses | 0 | 0 | 0 | 0 | ||
Income from equity method investments | 0 | 0 | 0 | 0 | ||
Operating (loss)/income including equity method investment | (130.1) | (11.5) | (150) | (36.8) | ||
Total assets | 3,226.5 | 3,346.3 | 3,226.5 | 3,346.3 | ||
Operating segments | IWS | ||||||
Segment Reporting Information [Line Items] | ||||||
Dayrate revenue | 85.6 | 245.1 | ||||
Related party revenue | 0 | 0 | ||||
Gain on disposal | 0 | 0 | ||||
Rig operating and maintenance expenses | (56) | (154) | ||||
Depreciation of non-current assets | 0 | 0 | ||||
General and administrative expenses | 0 | 0 | ||||
Income from equity method investments | 0 | 0 | ||||
Operating (loss)/income including equity method investment | (13.5) | 15.4 | ||||
Total assets | 589.5 | 589.5 | ||||
Intersegment eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Intersegment revenue | (43.1) | (75.7) | ||||
Intersegment expenses | 43.1 | 75.7 | ||||
Intersegment eliminations | Dayrate | ||||||
Segment Reporting Information [Line Items] | ||||||
Intersegment revenue | 43.1 | 75.7 | ||||
Intersegment expenses | 0 | 0 | ||||
Intersegment eliminations | IWS | ||||||
Segment Reporting Information [Line Items] | ||||||
Intersegment revenue | 0 | 0 | ||||
Intersegment expenses | (43.1) | (75.7) | ||||
Segment reconciling items | ||||||
Segment Reporting Information [Line Items] | ||||||
Dayrate revenue | (51.6) | (85.6) | (103.8) | (245.1) | ||
Related party revenue | 17.6 | 0 | 36.3 | 0 | ||
Gain on disposal | 0.7 | 0.8 | 0.7 | 0.7 | ||
Rig operating and maintenance expenses | 50.4 | 91.9 | 101.1 | 219.5 | ||
Depreciation of non-current assets | (0.4) | (0.3) | (0.8) | (0.8) | ||
Impairment of non-current assets | 0 | 0 | ||||
General and administrative expenses | (9.6) | (7.8) | (18.8) | (19.5) | ||
Income from equity method investments | (1.1) | (5.7) | 0 | 10.3 | ||
Operating (loss)/income including equity method investment | 6 | (6.7) | 14.7 | (34.9) | ||
Total assets | $ (236) | $ (793.6) | $ (236) | $ (793.6) | ||
Akal | ||||||
Segment Reporting Information [Line Items] | ||||||
Ownership percentage sold | 49% | |||||
Opex | ||||||
Segment Reporting Information [Line Items] | ||||||
Ownership percentage sold | 49% |
Segment Information - Revenue B
Segment Information - Revenue By Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 105.3 | $ 54.8 | $ 187.3 | $ 103.2 |
South East Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 39.1 | 21.4 | 69.9 | 48.3 |
West Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 24.6 | 12.5 | 46.9 | 19.7 |
Mexico | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 17.5 | 3.4 | 36.4 | 3.8 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 19 | 17.5 | 29 | 31.4 |
Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 5.1 | $ 0 | $ 5.1 | $ 0 |
Segment Information - Major Cus
Segment Information - Major Customers By Reporting Segments (Details) - Revenues - Customer concentration risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
PTT Exploration and Production Public Company Limited | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 14% | 12% | 16% | 24% |
Perfomex | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 9% | 8% | 11% | 2% |
CNOOC Petroleum Europe Limited | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 0% | 18% | 0% | 19% |
BWE Energy Gabon S.A. | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 0% | 13% | 0% | 7% |
JX Nippon Oil & Gas Exploration (Malaysia) Limited | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 0% | 12% | 0% | 6% |
Vestigo Petroleum Sdn. Bhd. | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 0% | 11% | 0% | 7% |
Customers accounting for more than 10% of dayrate revenue | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of contract revenues | 23% | 74% | 27% | 65% |
Segment Information - Long-live
Segment Information - Long-lived Assets By Geographic Areas (Details) - Operating segments - Dayrate - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 2,704.9 | $ 2,730.8 |
South East Asia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 1,264.2 | 1,266.7 |
Mexico | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 631.9 | 645.7 |
West Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 417.7 | 568.1 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 246.6 | 250.3 |
Middle East | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 144.5 | $ 0 |
Contracts with Customers - Cont
Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Contract with Customer, Asset, after Allowance for Credit Loss, Current [Abstract] | ||
Accrued revenue | $ 47.8 | $ 20.2 |
Current contract assets | 47.8 | 20.2 |
Non-current accrued revenue | 1 | 0 |
Non-current contract asset | 1 | 0 |
Total contract asset | 48.8 | 20.2 |
Contract With Customer Liability Net Current [Abstract] | ||
Current deferred mobilization, demobilization and contract preparation revenue | (14.4) | (3.9) |
Contract With Customer Liability Net Non-Current [Abstract] | ||
Non-current deferred mobilization, demobilization and contract preparation revenue | (5.9) | (2.5) |
Total contract liability | (20.3) | (6.4) |
Accrued revenue | 47.8 | $ 20.2 |
Deferred Demobilization Revenue | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Current [Abstract] | ||
Accrued revenue | 0.9 | |
Contract With Customer Liability Net Non-Current [Abstract] | ||
Accrued revenue | $ 0.9 |
Contracts with Customers - Sign
Contracts with Customers - Significant Changes in Contract Assets and Contract Liabilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract assets, opening balance | $ 20.2 |
Contract liability, beginning balance | 6.4 |
Performance obligations satisfied during the reporting period | 46.9 |
Amortization of revenue | (6.5) |
Unbilled demobilization revenue | 1.9 |
Performance obligations to be satisfied over time | 1.9 |
Unbilled mobilization revenue | 9.4 |
Cash received, excluding amounts recognized as revenue | 9.1 |
Cash received against the contract asset balance | (20.2) |
Contract assets, closing balance | 48.8 |
Contract liability, closing balance | $ 20.3 |
Contracts with Customers - Timi
Contracts with Customers - Timing of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 105.3 | $ 54.8 | $ 187.3 | $ 103.2 |
Over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 102 | 52.3 | 179.6 | 97 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3.3 | $ 2.5 | $ 7.7 | $ 6.2 |
Contracts with Customers - Co_2
Contracts with Customers - Contract Costs (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Current deferred mobilization and contract preparation costs | $ 20.4 | $ 17.2 |
Non-current deferred mobilization and contract preparation costs | 7.9 | 4.4 |
Total deferred mobilization and contract preparation asset | 28.3 | $ 21.6 |
Increase in deferred mobilization and contract preparation costs | 6.7 | |
Capitalized contract cost, amortization | 16.8 | |
Additional deferred contract preparation and mobilization costs | $ 23.5 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Aug. 04, 2021 | Dec. 31, 2019 employee | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Aug. 03, 2021 | |
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Interest in equity method investment not held by the company | 51% | ||||
Opex | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Ownership percentage sold | 49% | ||||
Akal | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Ownership percentage sold | 49% | ||||
Perfomex and Perfomex II | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Percentage acquired share by the entity | 51% | 49% | |||
Number of rigs on bareboat charter | employee | 5 | ||||
Number of joint ventures for bareboat charters | employee | 2 | ||||
Perfomex and Perfomex II | Opex and Akal | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Contracts receivable | $ 106.7 | $ 86.8 | |||
Billed contracts receivable | 87.9 | 70.5 | |||
Unbilled contracts receivable | $ 18.8 | $ 16.3 | |||
Perfomex | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Additional ownership percentage acquired | 2% | ||||
Perfomex II | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Additional ownership percentage acquired | 2% | ||||
Borr Mexico Ventures Limited | Opex | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Percentage acquired share by the entity | 49% | 49% | |||
Borr Mexico Ventures Limited | Akal | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Percentage acquired share by the entity | 49% | 49% |
Equity Method Investments - Sum
Equity Method Investments - Summarized Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenue | $ 105.3 | $ 54.8 | $ 187.3 | $ 103.2 |
Operating expenses | (229) | (81.6) | (323.3) | (170.5) |
Net income (loss) | (165.3) | (59.9) | (216.6) | (114.3) |
Perfomex | ||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenue | 26.7 | 29.3 | 56.1 | 51.8 |
Operating expenses | (26) | (27.4) | (54.5) | (47.7) |
Net income (loss) | (2.7) | 2.5 | (1.4) | 1.1 |
Perfomex II | ||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenue | 24.9 | 58.5 | 47.7 | 23.9 |
Operating expenses | (24.4) | (63.3) | (46.6) | (17.9) |
Net income (loss) | $ 0.7 | (1.5) | $ 1.4 | 3.3 |
Opex | ||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenue | 27.1 | 173.2 | ||
Operating expenses | (35.7) | (148) | ||
Net income (loss) | (16.3) | 28.4 | ||
Akal | ||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenue | 13.8 | 71.9 | ||
Operating expenses | (8.6) | (81.7) | ||
Net income (loss) | $ 3.7 | $ (9.8) |
Equity Method Investments - S_2
Equity Method Investments - Summarized Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||||||
Total current assets | $ 232.4 | $ 176.2 | ||||
Total non-current assets | 2,758.1 | 2,904.1 | ||||
Total assets | 2,990.5 | 3,080.3 | $ 3,142.2 | |||
Total current liabilities | 1,884.3 | 117.9 | ||||
Equity | 711.5 | $ 873 | 889.9 | $ 968.2 | $ 1,027.9 | $ 1,036.8 |
Total liabilities and equity | 2,990.5 | 3,080.3 | ||||
Perfomex | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash | 11 | 9 | ||||
Total current assets | 147.6 | 142.2 | ||||
Total non-current assets | 3.6 | 4.2 | ||||
Total assets | 151.2 | 146.4 | ||||
Total current liabilities | 138.3 | 132.1 | ||||
Equity | 12.9 | 14.3 | ||||
Total liabilities and equity | 151.2 | 146.4 | ||||
Perfomex II | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash | 15.8 | 7.2 | ||||
Total current assets | 81.2 | 48.7 | ||||
Total non-current assets | 3.6 | 2.1 | ||||
Total assets | 84.8 | 50.8 | ||||
Total current liabilities | 78.4 | 45.8 | ||||
Equity | 6.4 | 5 | ||||
Total liabilities and equity | $ 84.8 | $ 50.8 |
Equity Method Investments (Deta
Equity Method Investments (Details) - Investments In Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Balance as of January 1, 2022 | $ 19.4 | |||
Income on a percentage basis | $ (1.1) | $ (5.7) | 0 | $ 10.3 |
Balance as of June 30, 2022 | 19.4 | 19.4 | ||
Funding provided by shareholder loans | 9.8 | 9.8 | ||
Perfomex | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance as of January 1, 2022 | 16.9 | |||
Income on a percentage basis | (0.7) | |||
Balance as of June 30, 2022 | 16.2 | 16.2 | ||
Perfomex II | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Balance as of January 1, 2022 | 2.5 | |||
Income on a percentage basis | 0.7 | |||
Balance as of June 30, 2022 | $ 3.2 | $ 3.2 |
Other Financial Expenses, Net_2
Other Financial Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Yard cost cover expense | $ (8) | $ (3.1) | $ (13.7) | $ (6.2) |
Amortization of deferred finance charges | (1.6) | (1.9) | (3.2) | (3) |
Bank commitment, guarantee and other fees | (0.4) | (1.3) | (1.2) | (2) |
Foreign exchange gain/(loss) | 0.1 | (1.9) | (0.2) | (2.5) |
Other financial (expense)/income | (0.4) | 2.9 | (0.1) | 2.7 |
Total | $ (10.3) | $ (5.3) | $ (18.4) | $ (11) |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Examination [Line Items] | ||||
Loss before income taxes | $ 159 | $ 60.9 | $ 205.5 | $ 113 |
Bermuda | ||||
Income Tax Examination [Line Items] | ||||
Loss before income taxes | $ 8.3 | $ 32.9 | $ 18.9 | $ 44.6 |
Taxation - Components of Income
Taxation - Components of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Current tax | $ (7.4) | $ 0.5 | $ (12.1) | $ (2.1) |
Change in deferred tax | 1.1 | 0.5 | 1 | 0.8 |
Total | $ (6.3) | $ 1 | $ (11.1) | $ (1.3) |
Loss Per Share - Narrative (Det
Loss Per Share - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Conversion price (in dollars per share) | $ / shares | $ 63.5892 |
Share-based payment arrangement, option | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Number of anti-dilutive securities (in shares) | 5,532,480 |
Convertible bonds | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Number of anti-dilutive securities (in shares) | 5,504,080 |
Loss Per Share - Schedule of Lo
Loss Per Share - Schedule of Loss per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||||
Basic loss per share (in dollars per share) | $ (1.09) | $ (0.44) | $ (1.45) | $ (0.86) | |
Diluted loss per share (in dollars per share) | $ (1.09) | $ (0.44) | $ (1.45) | $ (0.86) | |
Issued ordinary shares at the end of the period (in shares) | 152,901,508 | 137,218,175 | 152,901,508 | 137,218,175 | 137,218,175 |
Weighted-average shares outstanding, basic (in shares) | 152,284,619 | 137,218,175 | 149,051,857 | 133,181,777 | |
Weighted-average shares outstanding, diluted (in shares) | 152,284,619 | 137,218,175 | 149,051,857 | 133,181,777 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Restricted Cash [Roll Forward] | ||
Restricted cash relating to the issuance of guarantees | $ 6.7 | $ 10 |
Restricted cash relating to debt financings | 1.1 | 1.1 |
Restricted cash relating to other | 0.3 | 0 |
Total restricted cash | 8.1 | 11.1 |
Less: amounts included in current restricted cash | (1.4) | (3.3) |
Non-current restricted cash | $ 6.7 | $ 7.8 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Current Assets [Abstract] | ||
VAT and other tax receivable | $ 9.6 | $ 8 |
Client rechargeables | 7 | 2.6 |
Deferred financing fee | 0.4 | 0.9 |
Right of use lease asset, current | 0.2 | 0.2 |
Other receivables | 4.2 | 5.2 |
Total | $ 21.4 | $ 16.9 |
Newbuildings - Schedule of Newb
Newbuildings - Schedule of Newbuidlings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
New buildings [Abstract] | |||||
Opening balance | $ 135.5 | $ 135.5 | $ 135.5 | ||
Impairment | $ (124.4) | $ 0 | (124.4) | $ 0 | 0 |
Total | $ 11.1 | $ 11.1 | $ 135.5 |
Newbuildings - Narrative (Detai
Newbuildings - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 27, 2022 USD ($) rig | Jun. 26, 2022 rig | Jun. 30, 2022 USD ($) rig | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) rig | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||||
Number of newbuild jack-up rigs for sale | rig | 3 | ||||||
Impairment of non-current assets | $ 124.4 | $ 0 | $ 124.4 | $ 0 | $ 0 | ||
Keppel Delivery Financing | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Final installment | 624 | 624 | |||||
Newbuildings | Letter of Intent | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Potential sale price | $ 320 | $ 320 | 320 | ||||
Impairment of non-current assets | $ 124.4 | ||||||
Jack-up rigs | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of jack-up rigs scheduled for delivery | rig | 5 | 5 | |||||
Number of newbuild jack-up rigs for sale | rig | 3 |
Newbuildings - Newbuildings Imp
Newbuildings - Newbuildings Impairment (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 27, 2022 USD ($) rig | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Carrying Value Of New Buildings [Roll Forward] | ||||||
Number of newbuild jack-up rigs for sale | rig | 3 | |||||
Impairment of non-current assets | $ (124.4) | $ 0 | $ (124.4) | $ 0 | $ 0 | |
Letter of Intent | ||||||
Carrying Value Of New Buildings [Roll Forward] | ||||||
Three newbuildings considered in the LOI carrying value | 132 | 132 | ||||
Estimated cost to complete and respective onerous contract, net | 312.4 | 312.4 | ||||
Total | 444.4 | 444.4 | ||||
Three newbuildings considered in the LOI fair value | 7.6 | 7.6 | ||||
Newbuildings | Letter of Intent | ||||||
Carrying Value Of New Buildings [Roll Forward] | ||||||
Potential sale price | $ 320 | $ 320 | 320 | |||
Impairment of non-current assets | $ (124.4) |
Jack-Up Rigs - Schedule of Jack
Jack-Up Rigs - Schedule of Jack-Up Rigs (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Jack Up Rigs [Roll Forward] | ||
Opening balance | $ 2,730.8 | $ 2,824.6 |
Additions | 32.3 | 23.8 |
Depreciation and amortization | (58.2) | (117.6) |
Total | $ 2,704.9 | $ 2,730.8 |
Jack-Up Rigs - Narrative (Detai
Jack-Up Rigs - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Jack Up Rigs [Abstract] | ||||
Depreciation related to property, plant and equipment | $ 0.4 | $ 0.4 | $ 0.8 | $ 0.9 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Deferred mobilization and contract preparation cost | $ 7.9 | $ 4.4 |
Deferred tax asset | $ 1.7 | $ 0.7 |
Right-of-use asset, non-current [extensible list] | Total | Total |
Right-of-use lease asset, non-current | $ 1.2 | $ 1.3 |
Deferred demobilization revenue | 1 | 0 |
Prepayments | 0.5 | 0.1 |
VAT receivable | 0.4 | 0.4 |
Total | $ 12.7 | $ 6.9 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued interest | $ 105.7 | $ 15.3 |
Accrued goods and services received, not invoiced | 14.7 | 7.7 |
Accrued payroll and bonus | 3.7 | 6.2 |
Other accrued expenses | 31.7 | 31.7 |
Total | $ 155.8 | $ 60.9 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Product Information [Line Items] | ||
Other current taxes payable | $ 9 | $ 4.6 |
VAT payable | 8.2 | 6.6 |
Corporate income taxes payable | 6.3 | 4.4 |
Accrued payroll and severance | $ 0.8 | $ 0.7 |
Operating lease liability, current [extensible list] | Total | Total |
Operating lease liability, current | $ 0.2 | $ 0.7 |
Other current liabilities | 1.6 | 1.4 |
Total | 40.5 | 22.3 |
Deferred Mobilization Revenue | ||
Product Information [Line Items] | ||
Deferred mobilization/demobilization revenue | 13.7 | 3.9 |
Deferred Demobilization Revenue | ||
Product Information [Line Items] | ||
Deferred mobilization/demobilization revenue | $ 0.7 | $ 0 |
Debt - Schedule of Short-Term D
Debt - Schedule of Short-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Carrying Value Short-Term Debt | $ 1,642.7 | $ 0 |
Total | 1,603.3 | 0 |
Back end fee due to PPL on Delivery of rigs | 29.3 | 0 |
Effective interest rate adjustments on PPL Delivery financing | 13.9 | 0 |
Deferred finance charges | (3.8) | 0 |
Hayfin Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Carrying Value Short-Term Debt | 197 | 0 |
Syndicated Senior Secured Credit Facilities | ||
Debt Instrument [Line Items] | ||
Carrying Value Short-Term Debt | 272.7 | 0 |
New Bridge Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Carrying Value Short-Term Debt | 30.3 | 0 |
Convertible Bonds | ||
Debt Instrument [Line Items] | ||
Carrying Value Short-Term Debt | 350 | 0 |
Principal | 350 | 350 |
PPL Delivery Financing | ||
Debt Instrument [Line Items] | ||
Carrying Value Short-Term Debt | $ 753.3 | $ 0 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Carrying Value Long-Term Debt | $ 281.8 | $ 1,915.9 |
Total | 259.2 | 1,862.5 |
Back end fee due to PPL and Keppel on Delivery of rigs | 13.5 | 42.8 |
Effective interest rate adjustments on PPL and Keppel Delivery financing | 9.1 | 17.1 |
Deferred finance charges | 0 | (6.5) |
Hayfin Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Carrying Value Long-Term Debt | 0 | 197 |
Syndicated Senior Secured Credit Facilities | ||
Debt Instrument [Line Items] | ||
Carrying Value Long-Term Debt | 0 | 272.7 |
New Bridge Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Carrying Value Long-Term Debt | 0 | 30.3 |
Convertible Bonds | ||
Debt Instrument [Line Items] | ||
Carrying Value Long-Term Debt | 0 | 350 |
Principal | 350 | 350 |
PPL Delivery Financing | ||
Debt Instrument [Line Items] | ||
Carrying Value Long-Term Debt | 0 | 753.3 |
Keppel Delivery Financing | ||
Debt Instrument [Line Items] | ||
Carrying Value Long-Term Debt | $ 259.2 | $ 259.2 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Debt (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 0 |
2023 | 1,603.3 |
2024 | 0 |
2025 | 86.4 |
2026 | 172.8 |
Thereafter | 0 |
Total principal debt | $ 1,862.5 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Interest bearing debt | |
Debt Instrument [Line Items] | |
Average interest rate | 6.20% |
Commitment and Contingencies -
Commitment and Contingencies - Commitments and Maturity of Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Delivery installments for jack-up drilling rigs | $ 615 | $ 621 |
Back-end fees | 9 | 9 |
Total | 624 | $ 630 |
Less than 1 year | 0 | |
1-2 years | 624 | |
2-3 years | 0 | |
Thereafter | 0 | |
Total | $ 624 |
Commitments and Contingencies -
Commitments and Contingencies - Other Commercial Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Total | $ 13.4 | $ 20.8 |
Surety bonds, bank guarantees and performance bonds | ||
Other Commitments [Line Items] | ||
Total | $ 13.4 | $ 20.8 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commercial Commitments Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Total | $ 13.4 | $ 20.8 |
Surety bonds, bank guarantees and performance bonds | ||
Other Commitments [Line Items] | ||
Less than 1 year | 3.8 | |
1–3 years | 9.6 | |
Total | $ 13.4 | $ 20.8 |
Commitments and Contingencies_3
Commitments and Contingencies - Assets Pledged as Collateral (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Book value of jackup rigs pledged as collateral for long-term debt facilities | $ 2,704.9 | $ 2,730.8 |
Related Party Transactions - Tr
Related Party Transactions - Transactions with Significant Influence Entities (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Aug. 04, 2021 | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) rig | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||||||
Related party revenue | $ 17.6 | $ 5.4 | $ 36.3 | $ 6.4 | ||
Funding provided to (received from) shareholder loan | 0 | 1.6 | 0 | (1.5) | ||
Trade receivables | 67.1 | $ 67.1 | $ 48.6 | |||
Perfomex | ||||||
Related Party Transaction [Line Items] | ||||||
Number of rigs | rig | 3 | |||||
Perfomex II | ||||||
Related Party Transaction [Line Items] | ||||||
Number of rigs | rig | 2 | |||||
Perfomex | ||||||
Related Party Transaction [Line Items] | ||||||
Additional ownership percentage acquired | 2% | |||||
Funding provided to (received from) shareholder loan | 0 | 0.8 | $ 0 | (2.5) | ||
Trade receivables | 40.7 | 40.7 | 40.8 | |||
Perfomex | Management Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Related party revenue | 0 | 1.9 | 0 | 4.1 | ||
Perfomex | Bareboat Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Related party revenue | 9.5 | 2.2 | 20.2 | (1.6) | ||
Perfomex II | ||||||
Related Party Transaction [Line Items] | ||||||
Additional ownership percentage acquired | 2% | |||||
Funding provided to (received from) shareholder loan | 0 | 0.8 | 0 | 1 | ||
Trade receivables | 26.4 | 26.4 | $ 7.8 | |||
Perfomex II | Management Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Related party revenue | 0 | 1.2 | 0 | 2.3 | ||
Perfomex II | Bareboat Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Related party revenue | $ 8.1 | $ 0.1 | $ 16.1 | $ 1.6 | ||
Opex | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage sold | 49% | |||||
Akal | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage sold | 49% |
Related Party Transactions - _2
Related Party Transactions - Transactions with Other Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
General and administrative expenses | $ (9.6) | $ (7.8) | $ (18.8) | $ (19.5) |
Affiliated entity | Magni Partners Limited | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expenses | $ (0.1) | $ 0 | $ (0.5) | $ (0.4) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Restricted cash | $ 1.4 | $ 3.3 |
Non-current restricted cash | $ 6.7 | 7.8 |
Convertible Bonds | ||
Liabilities | ||
Debt instrument, interest rate | 3.875% | |
Fair value | ||
Liabilities | ||
Short-term debt | $ 1,632.6 | 0 |
Fair value | Fair value, inputs, level 1 | ||
Assets | ||
Cash and cash equivalents | 29.7 | 34.9 |
Restricted cash | 1.4 | 3.3 |
Trade receivables | 33.4 | 28.5 |
Other current assets (excluding deferred costs) | 21 | 14.1 |
Due from related parties | 67.1 | 48.6 |
Non-current restricted cash | 6.7 | 7.8 |
Liabilities | ||
Trade payables | 45.3 | 34.7 |
Accruals and other current liabilities | 196.3 | 83.2 |
Fair value | Fair value, inputs, level 2 | ||
Liabilities | ||
Short-term debt | 1,588.9 | 0 |
Long-term debt | 272.7 | 1,728.6 |
Carrying value | ||
Assets | ||
Cash and cash equivalents | 29.7 | 34.9 |
Restricted cash | 1.4 | 3.3 |
Trade receivables | 33.4 | 28.5 |
Other current assets (excluding deferred costs) | 21 | 14.1 |
Due from related parties | 67.1 | 48.6 |
Non-current restricted cash | 6.7 | 7.8 |
Liabilities | ||
Trade payables | 45.3 | 34.7 |
Accruals and other current liabilities | 196.3 | 83.2 |
Long-term debt | $ 272.7 | $ 1,915.9 |
Common Shares - Share Capital (
Common Shares - Share Capital (Details) - $ / shares | Jun. 30, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 14, 2021 | Jun. 30, 2021 |
Equity [Abstract] | |||||
Ordinary shares, par value (in dollars per share) | $ 0.1 | $ 0.10 | $ 0.10 | $ 0.05 | |
Stock authorized during period [Abstract] | |||||
Authorized shares (in shares) | 180,000,000 | 180,000,000 | |||
Shares issued: | |||||
Common stock, shares issued (in shares) | 152,901,508 | 137,218,175 | 137,218,175 | ||
Treasury shares (in shares) | 406,333 | 406,333 | |||
Outstanding (in shares) | 152,495,175 | 136,811,842 |
Common Shares - Issued and Outs
Common Shares - Issued and Outstanding Share Capital (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jan. 31, 2022 | Jan. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 14, 2021 | Jul. 31, 2021 | |
Class of Stock [Line Items] | |||||||||||
Gross proceeds | $ 3,700,000 | $ 35,200,000 | $ 46,000,000 | ||||||||
Issued and fully paid share capital | $ 15,400,000 | $ 15,400,000 | $ 13,800,000 | ||||||||
Common stock, shares issued (in shares) | 152,901,508 | 137,218,175 | 152,901,508 | 137,218,175 | 137,218,175 | ||||||
Ordinary shares, par value (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.1 | $ 0.1 | $ 0.10 | $ 0.05 | |||||
Gross proceeds from share issuance | $ 3,600,000 | $ 0 | $ 37,700,000 | $ 44,800,000 | |||||||
At-The-Market Offering | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share issuance costs | $ 100,000 | ||||||||||
Amount authorized for issuance | $ 40,000,000 | ||||||||||
Number of shares sold in transaction (in shares) | 2,350,000 | ||||||||||
Gross proceeds from share issuance | $ 8,900,000 | ||||||||||
At-The-Market Offering | Clarksons | |||||||||||
Class of Stock [Line Items] | |||||||||||
Net proceeds from share issuance | $ 8,800,000 | ||||||||||
Depositary share | |||||||||||
Class of Stock [Line Items] | |||||||||||
Gross proceeds | $ 1,300,000 | $ 30,000,000 | |||||||||
Issue of common shares (in shares) | 13,333,333 | ||||||||||
Price per share (in US dollars per share) | $ 2.25 | $ 2.25 | |||||||||
Share issuance costs | $ 1,100,000 | ||||||||||
Issued and fully paid share capital | $ 151,000,000 | $ 151,000,000 | |||||||||
Common stock, shares issued (in shares) | 150,551,508 | 150,551,508 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event $ / shares in Units, $ in Millions | Mar. 01, 2026 $ / shares | Mar. 01, 2025 $ / shares | Mar. 01, 2024 $ / shares | Aug. 11, 2022 shares | Aug. 10, 2022 USD ($) | Aug. 16, 2022 shares |
Share-based payment arrangement, option | ||||||
Subsequent Event [Line Items] | ||||||
Granted during the year (in shares) | shares | 4,000,000 | |||||
Shares per share option (in shares) | 1 | |||||
Vesting period | 3 years 6 months | |||||
Share-based payment arrangement, option | Share-based payment arrangement, tranche one | ||||||
Subsequent Event [Line Items] | ||||||
Granted during the year (in dollars per share) | $ / shares | $ 4 | |||||
Share-based payment award, vesting rights, percentage | 33.33% | |||||
Share-based payment arrangement, option | Share-based payment arrangement, tranche two | ||||||
Subsequent Event [Line Items] | ||||||
Granted during the year (in dollars per share) | $ / shares | $ 4.75 | |||||
Share-based payment award, vesting rights, percentage | 33.33% | |||||
Share-based payment arrangement, option | Share-based payment arrangement, tranche three | ||||||
Subsequent Event [Line Items] | ||||||
Granted during the year (in dollars per share) | $ / shares | $ 5.50 | |||||
Share-based payment award, vesting rights, percentage | 33.33% | |||||
Performance shares | Chief Executive Officer | ||||||
Subsequent Event [Line Items] | ||||||
Granted during the period, other than share options (in shares) | shares | 500,000 | |||||
Common shares | Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Sale of stock, public offering | $ | $ 250 | |||||
Stock authorized during period (in shares) | shares | 40,000,000 | |||||
Additional underwriters option | Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Sale of stock, public offering | $ | $ 25 |