Borr Drilling (BORR) Stock Jumps After Fresh Rig Awards

Shares in Borr Drilling (NYSE:BORR) have jumped higher after the company announced that it has entered into a new contract and LOI’s (Letter Of Intent) for three of its rigs.

The company said the deal will add $21million to the total backlog with positive prospects for extra backlog on the units.

It also means that the company now has 14 rigs committed and contracted, despite there being a slump in market conditions. In its press release, the company said: “there are now clear signs of increased activity levels, supported by an oil price of around USD 40/bbl.”

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Source: TipRanks

Borr’s share price has jumped premarket after the announcement and is currently priced at $1.12, after a 25.34% climb higher. However, its share price is still down by 90.13% for the year to date after WTI crude’s enormous collapse starting in January that culminated in May futures contracts dropping way below $0.

Despite the climb today, analysts surveyed by Tipranks see an over 50% potential downside on the stock and have given it an average 12-month price target of $0.43.

• Trade Stocks With IG Markets