Borr Drilling Ltd, the Bermudian-based oilfield services company, has reported a net loss of $58.1 million for the first quarter.

That result follows a loss of $46.7 million in the fourth quarter of 2020, and an overall loss last year of $305.2 million.

Borr had total operating revenues of $48.4 million in the first quarter, and an adjusted EBITDA loss of $10.6 million.

The company said total operating revenues include a reduction of related party revenues of $9.2 million recorded in the first quarter of 2021 relating to prior periods, following an amendment of its Mexican JV agreements regulating the treatment of standby rates charged for its rigs operating in the JVs.

Without this reduction for prior periods, Borr said the adjusted EBITDA would have been a loss of $1.4 million for the quarter.

The company said it completed an equity offering raising $46 million on January 22.

Also in January, the company said it finalised the terms and executed agreements with certain of its creditors for the previously announced liquidity improvement plan.

Borr said the company and its drilling JVs have been awarded 17 new contracts, extensions, exercised options and LOAs/LOIs since the start of 2021, representing 5,352 days of potential backlog and $458 million in potential revenue.

Patrick Schorn, chief executive officer of Borr, said: "We are encouraged by the signs of a recovering shallow water rig market so far in 2021.

“The number of Borr operating rigs stood at 13 at the end of the first quarter, up by five units from trough levels experienced in 2020.

“Tendering and contracting activity remain strong. Since the beginning of this year, Borr has secured new contracts and confirmed optional periods with a total revenue potential of approximately $162 million, excluding unexercised option periods.

“Additionally, the company and its drilling JVs have secured LOIs and LOAs that once converted into contracts will add a total revenue potential of approximately $296 million.

“We are optimistic about the market opportunities going forward, and expect to see several of our currently warm stacked rigs coming back into operation at accretive rates.”

He added: “Part of our liquidity improvement plan outlined in our Q4 2020 report has been to pursue initiatives to improve cash distributions from our JV operations in Mexico.

“Year-to-date, Borr has received $15 million in cash from its JVs which is a considerable improvement compared to previous periods. The IWS JVs have added roughly 125,000 BOPD to Pemex's production and we continue to receive very positive feedback from the customer regarding service quality and performance.

“In addition, we are pleased to announce that according to the latest activity plans in the IWS JVs, we expect that our five rigs in the country will continue providing services for the project until the end of 2022."