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Borr Drilling to sell 3 rigs for $9M

Bermuda-based Borr Drilling Ltd. entered into an agreement during the second quarter to sell three standard jack-up rigs for $9 million.

The rigs were sold for purposes related to nondrilling activities, according to the company's second quarter earnings release.

In May, the company received $6 million during the transfer of ownership of rigs Baug and C20051.

Borr Drilling will be paid the remaining $3 million within the first quarter of 2020 during the transfer of ownership of the Eir rig, subject to conditions.

The company has sold 30 rigs since 2018, and its fleet now stands at 27.

Borr Drilling reported a net loss of $103.2 million for the second quarter, down from a net loss of $7.4 million a year ago.

Operating revenues for the quarter reached $86.6 million, topping $51.1 million in the prior-year period. The better revenue was due to the commencement of contracts for five rigs, but it was partially offset by the lack of earnings from one rig and another ending its contract.

The results also include a $31.5 million mark to market loss related to forward contracts it acquired in Rowan/Ensco, which was renamed Valaris PLC.

The company secured a backlog of approximately $300 million since the start of 2019.

Borr Drilling said it expects strong growth in the coming quarters with eight commenced contracts.