Borr Drilling Limited - Contracting and Collections Update

Rhea-AI Summary

Borr Drilling (NYSE: BORR) announced contract extensions for three premium jack-up rigs and reported recent collections from Mexico. Galar and Gersemi received two-year firm extensions commencing in direct continuation of existing Mexico contracts, each with two one-year unpriced options and improved commercial and payment terms. Njord was extended through April 2026. The stated contract value of the extensions is approximately $213 million (excluding options). The company also received approximately $19 million in payments from Pemex and said discussions continue on longer-term extensions for contracts expiring in Q2 2026.

Positive

• $213 million contract value for announced extensions
• Two rigs (Galar, Gersemi) awarded 2-year firm extensions
• Each Galar/Gersemi extension includes two 1-year unpriced options
• $19 million cash collected from Pemex operations
• Njord contract extended through April 2026

Negative

• Extension value excludes options and therefore may rise
• Contracts for some rigs still expire in Q2 2026, creating coverage uncertainty
• Future payments depend on Pemex normalization and ongoing discussions

HAMILTON, Bermuda, Oct. 27, 2025 /PRNewswire/ -- Borr Drilling Limited (NYSE: BORR) (the "Company") today announced contract extensions for three of its premium jack-up rigs and provided an update on collections in Mexico.

The rigs Galar and Gersemi have each been awarded two-year firm contract extensions that will commence in direct continuation of their existing contracts in Mexico. The extensions also include two one-year unpriced options and improved commercial and payment terms. In addition, the rig Njord has received a contract extension through April 2026.

The contract value of the extensions is approximately $213 million¹, excluding options. The Company remains in active discussions with its customer in Mexico regarding long-term extensions for contracts that expire in the second quarter of 2026.

Additionally, the Company recently received payments of approximately $19 million for its operations with Pemex. These collections, coupled with recent initiatives in Mexico to strengthen Pemex finances, support the Company's confidence in the continued normalization of payment activity moving forward.

Forward-Looking Statements

This press release and related discussions include forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements do not reflect historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will", "likely", "aim", "plan", "guidance" and similar expressions and include statements regarding contract commitments including contract days and potential revenues from such commitments, contract coverage and dayrates, timing of commencement and duration of contracts and options and extensions, contract terms and ability of rigs to meet incentives, expected duration of option terms, potential settlement of receivables by clients, and other non-historical statements. Such forward-looking statements are subject to risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein, including risks related to actual performance of our rigs under contracts, whether options are exercised, risks relating to our ability to convert LOIs and LOAs into contracts and the terms of such contracts, and other risks relating to the contracts discussed herein and performance thereunder and other risks and uncertainties described in the section entitled "Risk Factors" in our most recent annual report on Form 20-F and other filings with the Securities and Exchange Commission. Such risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein. These forward-looking statements are made only as of the date of this release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

¹The Company provides the rigs to its customer on a fixed-rate bareboat charter; however, the contract value in this release is adjusted to a gross dayrate-equivalent basis.

Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208

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SOURCE Borr Drilling Limited

FAQ

What contract extensions did Borr Drilling (BORR) announce on October 27, 2025?

Borr announced two-year firm extensions for Galar and Gersemi with two one-year unpriced options, and extended Njord through April 2026.

How much are the contract extensions for BORR worth?

The announced extensions have an approximate contract value of $213 million, excluding options.

Did Borr Drilling report any recent collections from Pemex?

Yes, the company reported receipt of approximately $19 million in payments related to its Pemex operations.

Do the Galar and Gersemi extensions include options in BORR's October 27, 2025 update?

Yes, each extension includes two one-year unpriced options in addition to the two-year firm terms.

What is the status of longer-term contract discussions for BORR rigs in Mexico?

The company said it remains in active discussions with its customer regarding long-term extensions for contracts that expire in Q2 2026.