Borr Drilling (BORR) Q1 2026 Earnings Transcript

Operationally, we delivered technical utilization of 99.4% and economic utilization of 97% in the first quarter. Revenue for the period was $247 million and adjusted EBITDA of $88.5 million, primarily impacted by the delayed start-up of the Odin $8.4 million credit loss provision. During the quarter, the Odin completed its mobilization from Mexico where operations had initially been expected to start in February. However, the start-up was [Technical Difficulty] due to disruption during transit, additional contract preparation work and approvals. While these delays are unfortunate, to bring Odin into the U.S. was based on the long-term opportunity outlook in that market. I remain confident positioned with capabilities available to operators in the U.S.

Gulf, and we believe the rig will remain well placed to serve the region. Looking ahead, we expect second quarter results to continue to be affected by the delayed startup of the Odin now anticipated to commence in late June as well as rigs transition. During the quarter, rising tensions and hostilities in the Middle East created disruptions, but with limited financial impact. Most importantly, all of our personnel remain safe. I would like to thank our teams for their professionalism and flexibility that they have shown through this period. As announced in April, following temporary suspensions, all affected rigs were called back to work. After resuming operations, the Groa and the Forseti has now completed their contract in Qatar.

The Forseti remains on the bareboat charter with the former owner into December 2026. Our contracting strategy remains focused on increasing near-term coverage or balancing dayrates and contract tenor. Since our last earnings report, we ve secured 8 contract commitments, representing more than 1,100 days of firm work. Full year 2026 coverage has increased to 71% at an average day rate of approximately $137,000, while second half 2026 coverage now stands at 65% as compared to 48% in the prior earnings report. We also announced the acquisition of 5 premium jack-up rigs on Paratus for $287 million through a new 50-50 joint venture with our long-standing Mexican well construction partners.