#Bermuda #Hamilton #Borr Drilling #Safety Awards #Q1 2025

Borr Drilling Limited Reports First Quarter 2025 Financial Results

HAMILTON, Bermuda, May 21, 2025 — Borr Drilling Limited has released its unaudited financial results for the first quarter of 2025, reflecting a mixture of operational challenges and achievements. The company reported total operating revenues amounting to $216.6 million, which represents a decrease of $46.5 million compared to the previous quarter. Furthermore, a net loss of $(16.9) million was recorded, a stark contrast to the net income achieved in the fourth quarter of 2024. Adjusted EBITDA came in at $96.1 million, down by $40.6 million from the preceding quarter.

Key Operational Highlights

Despite the drop in financial metrics, Borr Drilling secured nine new contract commitments early in 2025, accounting for around 1,550 days and a projected revenue of $221 million from these contracts. This positive development indicates the company's potential for recovery and growth in the upcoming quarters.

CEO Patrick Schorn addressed the results, mentioning that the first quarter outcomes met expectations, noting temporary rig suspensions and preparations for imminent contracts. He confirmed that during this period, 16 out of the company's 24 rigs remained active, underscoring the robust operational performance with technical utilization reaching 99.2% and economic utilization at 97.9%. Such figures demonstrate the company's commitment to efficiency and strong operational practices.

On the safety front, Borr Drilling celebrated several awards reinforcing its dedication to safety in operations. Notably, the Groa rig earned Qatar Energy’s HSE Award for 2024, while Prospector 1 received the 2024 Best Safety Performance Award from the IADC North Sea Chapter. Additionally, in Thailand, Borr Drilling was recognized with PTTEP's CEO SSHE Excellence Award for a second consecutive year. These accolades are a testament to the professionalism and commitment of the crews, indicative of Borr's safety-first approach.

Looking Ahead: Optimism for Q2 2025

As the company moves into the second quarter, optimistic signs are emerging. The operational count of active rigs has reportedly risen to 22 as projects ramp up. Three rigs that were on temporary suspension in Mexico have resumed operations, and additional contracts for the Vali and Arabia I rigs have commenced. Recent contract awards for the Gerd, Norve, Thor, Ran, and Skald have led to an impressive 79% contract coverage for 2025, with an average day rate of $147,000.

Borr Drilling's strong liquidity position also saw improvement during the first quarter, aided by the collection of approximately $120 million in outstanding receivables from Mexico. More positive developments followed with an additional $35 million in mobilization fees received post the quarter's end.

Despite existing market uncertainties, the Board's decision to withhold dividends was made with a focus on strengthening the balance sheet and creating long-term value. This strategic choice aligns with the company’s commitment to sustain positive financial health while navigating market fluctuations. Although specific Adjusted EBITDA guidance for 2025 is not available, confidence remains in achieving the current Bloomberg consensus estimate of approximately $460 million.

Continued efforts are being made to secure additional opportunities for 2025, with a strategic focus increasingly turning towards 2026 to prepare for expanding operational needs. Given the enhanced activity expected in the second quarter and the potential for future rig demand within Mexico, Borr Drilling appears well-positioned for a recovery.

A conference call is scheduled for 3 PM CEST on May 22, 2025, allowing stakeholders and interested parties the opportunity to engage with the company to discuss these results in more depth.

For those interested in further details of the company’s performance and initiatives, they can access the conference call via the provided links or keep an eye on the company's official channels for ongoing updates.