#Bermuda #Hamilton #Borr Drilling #Q2 2025

Borr Drilling Limited Reports Second Quarter 2025 Financial Results

Borr Drilling Limited (NYSE: BORR), a leading offshore drilling contractor, has announced its unaudited financial results for the six months ending June 30, 2025. The company has demonstrated remarkable growth across several key financial metrics, reflecting a robust recovery in the operational landscape.

Financial Highlights

During Q2 2025, Borr Drilling achieved total operating revenues of $267.7 million. This represents an impressive increase of $51.1 million, or 24%, compared to the previous quarter. The company also reported a net income of $35.1 million, a substantial turnaround from the net loss reported in the first quarter of 2025. The adjusted EBITDA saw a growth of 39%, reaching $133.2 million, highlighting the operational efficiency and recovery in demand for drilling services.

Year to date, Borr Drilling has been awarded 14 new contract commitments, which equates to approximately 2,584 days and a potential revenue of $318 million.

Strategic Moves and Future Outlook

In July 2025, Borr Drilling enhanced its financial position significantly, increasing liquidity by over $200 million through an equity offering totaling $102.5 million. Additionally, the company secured commitments from commercial banks that improved the terms of their revolving credit facilities, a strategic move aimed at strengthening their financial covenants and overall market position.

The appointment of Bruno Morand as CEO, effective September 1, 2025, marks a pivotal moment for the company, alongside Patrick Schorn, who will transition to the role of Executive Chair of the Board. Schorn expressed confidence in the company's trajectory, highlighting a technical utilization rate of 99.6% and an economic utilization rate of 97.8% during the quarter. He emphasized the successful operational rebound, with 22 out of 24 rigs active.

New contract awards were a significant highlight for Borr Drilling in the second quarter. The company secured a multi-rig contract in Asia and a new commitment for the Arabia II rig, which is expected to return to active status in September 2025. These new contracts enhance their contract coverage for 2025 to 84% at an average day rate of $145,000, and 47% coverage for 2026 at an average day rate of $139,000.

Financial Projections

Looking ahead to the third quarter, Borr Drilling anticipates maintaining comparable activity levels to the preceding quarter. They are comfortable with the Bloomberg consensus estimate for Adjusted EBITDA of approximately $470 million for 2025. The company is also encouraged by the Mexican government’s renewed commitment to enhancing Pemex’s liquidity and its goal of achieving significant production targets in the future.

In conclusion, Borr Drilling Limited's Q2 2025 results reflect a solid financial recovery and strong operational performance. With strategic leadership changes and new contracts secured, the company is well-positioned to capitalize on upcoming opportunities in the offshore drilling market.

Conference Call Information

A conference call and webcast presentation of these results is scheduled for 9:00 AM New York Time on August 14, 2025. Interested parties are encouraged to register in advance through the provided links.

For any queries regarding the performance or future expectations, please contact Magnus Vaaler, CFO, at +44 1224 289208.