Why Is Borr Drilling Stock Down Over 5% Today?

Borr Drilling Limited BORR shares are falling on Thursday.

The company said it had received a notice of temporary suspension of operations for its rig “Arabia I,” operating in Saudi Arabia. 

The temporary suspension will be for up to 12 months and is expected to commence in the second quarter. 

The company intends to seek alternative engagement for the rig while on suspension.

Borr Drilling closed last year with 22 delivered rigs contracted. 

Over the course of 2023, the company said it has also secured several new contracts, adding $728 million at an implied rate of approximately $161,000 per day, which stood at $1.75 billion at year-end.

According to a press release dated February 22, the company said that firm contracts and priced options already cover 87% of available capacity in 2024 and expects to further increase in the coming months.

According to Benzinga Pro, BORR stock has lost over 23% in the past year.

Price Action: BORR shares are trading lower by 5.75% to $5.900 on the last check Thursday.