Borr Drilling (NYSE: BORR) Q2 2026 loss widens as refinancing hits earnings but backlog grows
Rhea-AI Filing Summary
Borr Drilling Limited reported second-quarter 2026 revenue of $232.3 million, down 6% from Q1 as average operating rigs declined to 21.2. Technical utilization was 98.4% and economic utilization 96.4%, reflecting strong operational performance despite transitions.
Adjusted EBITDA was $43.8 million, a 51% sequential decline, driven by higher preparation and regulatory costs for the Odin rig, six rigs transitioning between contracts, a $7.3 million increase in fuel and insurance costs partly linked to the Middle East conflict, and $10.8 million of credit losses from a former West Africa customer. A $176.3 million debt extinguishment loss pushed net loss to $241.4 million.
Borr refinanced substantially all debt through $300 million of 3.50% convertible notes due 2033 and $2,035 million of senior secured notes due 2032/2034, and upsized its super senior RCF to $250 million, ending the quarter with liquidity of $473.6 million. The company secured eight new contract commitments adding over 2,100 firm days and about $267 million in Dayrate Equivalent Backlog, lifting 2026 coverage to 73% at an average dayrate of about $134,000. Total Dayrate Equivalent Backlog was $1.04 billion at June 30, 2026 and $1.13 billion as of the report date, and Borr expects Q3 Adjusted EBITDA to improve significantly with around 23 active rigs.
Positive
- Backlog and visibility strengthened: 2026 contract coverage reached 73% at an average dayrate of about $134,000, with total Dayrate Equivalent Backlog of $1.04 billion at June 30, 2026 and $1.13 billion as of the report date.
- Major refinancing completed: Issued $300 million of 3.50% convertible notes due 2033 and $2,035 million of senior secured notes due 2032/2034, extending debt maturities, reducing financing costs and supporting liquidity of $473.6 million including the $250 million undrawn RCF.
- Fleet expansion with limited equity: A 50/50 joint venture acquired five premium jack-up rigs for $287.0 million, financed mainly by a $237 million non-recourse seller’s credit and only $25 million equity from Borr, adding contracted rigs in Mexico.
- Strong operating performance: Technical and economic utilization remained high at 98.4% and 96.4%, respectively, even as six rigs transitioned between contracts, positioning the fleet for higher activity in Q3 with an expected average of about 23 active rigs.
Negative
- Profitability sharply lower: Adjusted EBITDA fell to $43.8 million, a 51% sequential decline, mainly from Odin preparation costs, contract transitions, higher fuel and insurance expenses, and increased credit-loss provisions.
- Large net loss driven by refinancing cost: Net loss widened to $241.4 million versus $29.0 million in Q1, including a $176.3 million loss on extinguishment of prior notes and partial buyback of 2028 convertible bonds.
- Equity and cash position weakened: Total equity declined by $235.6 million to $961.6 million and cash and cash equivalents dropped by $156.1 million since year-end 2025 to $223.6 million, reflecting refinancing-related cash flows and higher interest payments.
- Rising cost and macro risk: Rig operating and maintenance expenses rose by $53.0 million year over year to $175.1 million in Q2, with management highlighting inflation, Middle East conflict impacts, and potential demand volatility as key uncertainties.
Filing Explained
As of June 30, debt was $2,529.2 million, with $250.0 million of unused revolver capacity; a July JV acquisition added five rigs and seller-credit obligations.
Borr Drilling completed its debt refinancing during Q2 and its 50/50 joint venture completed the five-rig Fontis acquisition in
The company issued
BC Ventures funded the acquisition with the seller credit and a
As of the report date, 24 of the company’s 29 wholly owned rigs were contracted or committed and five were available. The fleet report lists Odin as committed from
Key Figures
Total operating revenues Q2 2026: $232.3 million
Adjusted EBITDA Q2 2026: $43.8 million
Net loss Q2 2026: $241.4 million
+5 more
8 metrics
Total operating revenues Q2 2026
$232.3 million
Three months ended June 30, 2026; down 6% from Q1 2026
Adjusted EBITDA Q2 2026
$43.8 million
Down from $88.5 million in Q1 2026, a 51% sequential decline
Net loss Q2 2026
$241.4 million
Includes $176.3 million loss on extinguishment of debt
Total liquidity
$473.6 million
Cash and cash equivalents plus undrawn $250.0 million revolving credit facility at June 30, 2026
Total debt principal
$2,529.2 million
Outstanding as of June 30, 2026, including 2032/2034 notes and 2033 convertible notes
Dayrate Equivalent Backlog at report date
$1.13 billion
Total Dayrate Equivalent Backlog as of the date of the report
2026 contract coverage
73% at ~$134,000/day
Coverage of 2026 days at average contracted dayrate; 70% in second half 2026
Working-rig utilization Q2 2026
98.4% technical, 96.4% economic
Utilization for working rigs during the quarter
Key Terms
Adjusted EBITDA, Dayrate Equivalent Backlog, super senior revolving credit facility, seller’s credit, +2 more
6 terms
Adjusted EBITDA financial
"Second Quarter Adjusted EBITDA was $43.8 million, a decline of $44.7 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Dayrate Equivalent Backlog financial
"These new commitments cover a combined duration of more than 2,100 days and represent approximately $267 million in Dayrate Equivalent Backlog"
Dayrate equivalent backlog is the total value of a company’s firm future work converted into the number of standard billable days at the company’s typical daily rate, so it expresses upcoming contracted revenue as ‘days of work’ rather than lump-sum dollars. For investors, it makes future cash flow and utilization easier to judge—similar to knowing how many paid workdays remain on a calendar—so you can assess revenue visibility, pricing pressure, and how busy the company will be in coming months.
super senior revolving credit facility financial
"upsizing our super senior RCF to $250 million"
seller’s credit financial
"BC Ventures financed the Fontis Acquisition through (i) a $237 million non-recourse seller’s credit"
non-recourse financial
"a $237 million non-recourse seller’s credit and (ii) a $25 million cash contribution"
A non-recourse loan is a type of debt where the lender’s recovery is limited to a specific asset pledged as collateral, and the borrower cannot be personally pursued for any remaining balance if the asset’s value falls short. For investors, non-recourse financing shifts downside risk onto the lender and protects a borrower’s other assets, which can affect a company’s risk profile, borrowing costs, and potential returns — much like insurance that covers only the item left as collateral.
jack-up rigs technical
"The Company owns and operates jack-up rigs of modern and high specification designs"
A jack-up rig is a mobile offshore platform used for drilling or servicing wells that lowers extendable legs to the seabed and then raises the working platform above the water like a table on stilts. Investors care because these rigs are revenue-generating assets whose value and income depend on oil and gas demand, contract rates and utilization; think of them as specialized rental equipment whose earnings rise and fall with energy prices and project activity.
Earnings Snapshot
Revenue Q2 2026: $232.3 million · Guidance included
Three and six months ended June 30, 2026
Revenue Q2 2026
$232.3 million
-6% vs Q1 2026
Adjusted EBITDA Q2 2026
$43.8 million
-51% vs Q1 2026
Net (loss) / income H1 2026
($270.4 million)
vs $18.2 million in H1 2025
Guidance
Management expects Adjusted EBITDA for Q3 2026 to improve significantly from Q2 based on an expected average of approximately 23 active rigs.
FAQ
How did Borr Drilling (BORR) perform financially in Q2 2026 versus Q1 2026?
Borr Drilling reported Q2 2026 revenue of $232.3 million, down 6% from Q1’s $247.0 million. Adjusted EBITDA declined to $43.8 million from $88.5 million, and net loss widened to $241.4 million, mainly due to a $176.3 million debt extinguishment loss.
What is Borr Drilling (BORR)’s liquidity and debt position after Q2 2026 refinancing?
At June 30, 2026, Borr had $223.6 million in cash and $250.0 million undrawn under its super senior RCF, for total liquidity of $473.6 million. Total debt principal was $2,529.2 million, including $2,035.0 million of new senior secured notes and $300.0 million of 2033 convertible notes.
What contract coverage and backlog does Borr Drilling (BORR) have for 2026?
Borr states 2026 contract coverage of 73% at an average dayrate of about $134,000 per day, with second-half coverage at 70%. Dayrate Equivalent Backlog was $1.04 billion at June 30, 2026 and $1.13 billion as of the report date, including recent awards.
Why did Borr Drilling (BORR)’s Adjusted EBITDA fall significantly in Q2 2026?
Adjusted EBITDA dropped to $43.8 million, down $44.7 million from Q1. Management cites Odin’s $22.5 million preparation and regulatory costs, six rigs transitioning between contracts, a $7.3 million increase in fuel and insurance expenses, and $10.8 million in credit losses from a former customer.
How is Borr Drilling (BORR) expanding its fleet and exposure in Mexico?
Through 50/50 joint venture BC Ventures, Borr acquired five premium jack-up rigs from Fontis for $287.0 million. The deal used a $237 million non-recourse seller’s credit and $25 million cash from Borr and its partner, with three rigs already contracted in Mexico.
What utilization and activity outlook does Borr Drilling (BORR) provide for Q3 2026?
Working-rig technical utilization in Q2 2026 was 98.4% and economic utilization 96.4%. With rigs like Odin, Idun, Gunnlod, Skald, Sif, Natt and Prospector 5 on contract, Borr expects to average about 23 active rigs in Q3 and for Adjusted EBITDA to improve significantly.
What key risks and uncertainties does Borr Drilling (BORR) highlight?
Borr cites exposure to jack-up demand volatility, the Middle East conflict, inflation and supply-chain pressures, increased leverage and covenant risks, and potential contract suspensions or non-payment. The enlarged fleet, including 10 rigs added in 2026, also increases exposure to future demand shifts.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
August 11, 2026
Commission File Number 001-39007
Borr Drilling Limited
S. E. Pearman Building
2nd Floor 9 Par-la-Ville Road
Hamilton HM11
Bermuda
(Address of principal executive office)
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K on paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K on paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Exhibits
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99.1
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Press Release
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| 99.2 |
Borr Drilling Limited Q2 2026 Earnings Release |
| 99.3 |
Borr Drilling Limited Q2 2026 Fleet Status Report |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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BORR DRILLING LIMITED
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Date: August 11, 2026
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By:
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/s/ Mi Hong Yoon
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Name:
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Mi Hong Yoon
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Title:
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Director
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Exhibit 99.1
Borr Drilling Limited Announces Second Quarter 2026 Results
Hamilton, Bermuda, August 11, 2026: Borr Drilling Limited (NYSE and OSE: BORR) (“Borr”, “Borr Drilling” or the “Company”) announces unaudited results for the three and six months ended June 30, 2026.
Highlights
| • |
Second Quarter total operating revenues of $232.3 million, a decrease of $14.7 million or 6% compared to the first quarter of 2026.
|
| • |
Second Quarter net loss of $241.4 million compared to net loss of $29.0 million in the first quarter of 2026, primarily driven by a $176.3 million debt extinguishment charge related to the refinancing of our senior secured notes due 2028
and 2030 and convertible bonds due 2028.
|
| • |
Second Quarter Adjusted EBITDA of $43.8 million, a decrease of $44.7 million or 51% compared to the first quarter of 2026.
|
| • |
Refinanced substantially all existing debt through the issuance of senior secured notes due 2032 and 2034 and convertible notes due 2033, extending debt maturities and reducing financing costs.
|
| • |
Amended super senior revolving credit facility, increasing the commitments to $250.0 million, reducing the margin, extending the maturity date, and further strengthening liquidity.
|
| • |
Subsequent to quarter end, completed the acquisition of five premium jack-up rigs via new 50/50 joint venture for a total purchase price of $287 million.
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| • |
Year-to-date 2026, the Company has been awarded 21 contract commitments, representing approximately 4,350 days and $541 million of Dayrate Equivalent Backlog.
|
Chief Executive Officer Bruno Morand commented:
“Our operational performance in the second quarter of 2026 resulted in technical utilization of 98.4% and economic utilization of 96.4%. Revenue for the period was $232.3 million, as the average number of rigs
operating declined from 22.4 in Q1 to 21.2 in Q2.
Second Quarter Adjusted EBITDA was $43.8 million, a decline of $44.7 million compared with Q1. The sequential decrease was primarily driven by four factors. First, we incurred additional preparation work and
regulatory approval activities for the Odin ahead of its contract in the U.S., with $22.5 million of operating expenses during the quarter, a $11.1 million quarter-on-quarter increase. Second, six rigs were transitioning between contracts during
the quarter, leading to reduced revenue; however, this impact is now largely behind us as these rigs have now commenced their contracts. Third, the conflict in the Middle East drove incrementally higher insurance and fuel costs, with fuel costs
also impacted by the rigs transitioning contracts, which together resulted in a $7.3 million quarter-on-quarter increase in rig operating expenses. Finally, we also recognized $10.8 million of credit losses related to a former customer in West
Africa, an increase of $4.8 million compared to the prior quarter. Following this additional provision, we carry no net receivables from this customer on our balance sheet.
Contract preparation for the Odin took longer than anticipated with regulatory approvals received in mid-July. In light of operating constraints during the hurricane season, we agreed with our customers to revise the
rig’s deployment sequence to improve overall operating efficiency. The Odin is currently preparing to mobilize to its first location, where it will commence the previously announced two-well firm contract with an undisclosed customer. Upon
completion of this contract, the rig is expected to transition directly to Cantium. We are disappointed with the delays for the Odin, and the initial start-up requirements were greater than we would typically expect when entering a new market. This
resulted in higher cost and delays in revenue.
The elevated rig transition activity experienced during Q2 is now substantially complete. The Idun, Gunnlod, Skald, Sif, Natt and Prospector 5, which were transitioning into or between contracts during the quarter,
are now fully operational. Together with the commencement of the Odin contract, we expect to average approximately 23 active rigs during Q3. Based on this projected activity level, we expect Adjusted EBITDA for Q3 to improve significantly from the
second quarter.
Since the last earnings report, we have secured eight contract commitments, representing over 2,100 days of additional firm work. 2026 contract coverage is now at 73% at an average dayrate of approximately $134,000
per day with coverage in the second half of the year of 70%.
During the quarter, we successfully refinanced substantially all of our debt through the issuance of $300 million of convertible notes and $2,035 million of senior secured notes, while also upsizing our super senior
RCF to $250 million. These transactions extended our maturities, reduced financing costs, and further strengthened our liquidity.
Subsequent to quarter end, our 50/50 joint venture with our long-term Mexican well construction partner completed the purchase of five premium jack-ups from Fontis at an attractive valuation and with limited equity
committed. Currently, three of these rigs are contracted, with two of them operating and the third expected to commence operations later in Q3 2026. Our focus now is deploying the remaining rigs and converting the opportunity pipeline into
contracted work.
In closing, the Middle East conflict has reduced near-term visibility, delaying tenders, contract start dates, and the region’s recovery. This uncertainty is also affecting several other offshore markets, though not
all, making it difficult to provide a crisp outlook for our activity. What is clear, however, is that the prolonged disruption in the Strait of Hormuz has driven global inventories to exceptionally low levels. Rebuilding those inventories, even
under a moderate demand outlook, will require sustained production drilling, both onshore and offshore. We therefore expect the market to strengthen as stability returns. Our priorities are clear: deploy our expanded premium jack-up fleet, use its
scale and quality to navigate changing market conditions, and deliver value to shareholders as the cycle improves.”
Conference Call:
A conference call and webcast are scheduled for 09:00 New York time (15:00 CEST) on Wednesday, August 12, 2026.
In order to listen to the live presentation, participants may do one of the following:
a) Webcast
To access the webcast, please use the following link: https://edge.media-server.com/mmc/p/69yr7kfu
b) Conference Call
To register for the conference call, please use the following link: https://register-conf.media-server.com/register/BI9a8feba2bec24305a13e1ae81e2cf8eb
Participants will receive dial-in details on screen and via email and may choose to dial in with their unique PIN or select “Call me” and provide telephone details for the system to link them automatically.
Participants are encouraged to dial in 10 minutes before the start of the call.
About Borr Drilling Limited
Borr Drilling Limited is an international drilling contractor incorporated in Bermuda in 2016 and listed on the New York Stock Exchange since July 31, 2019 and on Euronext Oslo Børs since May 21, 2026 under the
ticker “BORR.” The Company owns and operates jack-up rigs of modern and high specification designs and provides services focused on the shallow-water segment to the offshore oil and gas industry worldwide. Please visit our website at
www.borrdrilling.com.
This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208, ir@borrdrilling.com
Exhibit 99.2
Borr Drilling Limited Announces Second Quarter 2026 Results
Hamilton, Bermuda, August 11, 2026: Borr Drilling Limited (NYSE and OSE: BORR) (“Borr”, “Borr Drilling” or the “Company”) announces unaudited results for the three and six months ended June
30, 2026.
Highlights
| • |
Second Quarter total operating revenues of $232.3 million, a decrease of $14.7 million or 6% compared to the first quarter of 2026.
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| • |
Second Quarter net loss of $241.4 million compared to net loss of $29.0 million in the first quarter of 2026, primarily driven by a $176.3 million debt extinguishment charge related to the refinancing of our senior secured notes due 2028 and
2030 and convertible bonds due 2028.
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| • |
Second Quarter Adjusted EBITDA1 of $43.8 million, a decrease of $44.7 million or 51% compared to the first quarter of 2026.
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| • |
Refinanced substantially all existing debt through the issuance of senior secured notes due 2032 and 2034 and convertible notes due 2033, extending debt maturities and reducing financing costs.
|
| • |
Amended super senior revolving credit facility, increasing the commitments to $250.0 million, reducing the margin, extending the maturity date, and further strengthening liquidity.
|
| • |
Subsequent to quarter end, completed the acquisition of five premium jack-up rigs via new 50/50 joint venture for a total purchase price of $287 million.
|
| • |
Year-to-date 2026, the Company has been awarded 21 contract commitments, representing approximately 4,350 days and $541 million of Dayrate Equivalent Backlog2.
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Chief Executive Officer Bruno Morand commented:
“Our operational performance in the second quarter of 2026 resulted in technical utilization of 98.4% and economic utilization of 96.4%. Revenue for the period was $232.3 million, as the
average number of rigs operating declined from 22.4 in Q1 to 21.2 in Q2.
Second Quarter Adjusted EBITDA was $43.8 million, a decline of $44.7 million compared
with Q1. The sequential decrease was primarily driven by four factors. First, we incurred additional preparation work and regulatory approval activities for the Odin ahead of its contract in the
U.S., with $22.5 million of operating expenses during the quarter, a $11.1 million quarter-on-quarter increase. Second, six rigs were transitioning between
contracts during the quarter, leading to reduced revenue; however, this impact is now largely behind us as these rigs have now commenced their contracts. Third, the conflict in the Middle East drove incrementally higher insurance and fuel
costs, with fuel costs also impacted by the rigs transitioning contracts, which together resulted in a $7.3 million quarter-on-quarter increase in rig operating expenses. Finally, we also recognized $10.8
million of credit losses related to a former customer in West Africa, an increase of $4.8 million compared to the prior quarter. Following this additional provision, we carry no net receivables from this customer on our balance sheet.
Contract preparation for the Odin took longer than anticipated with regulatory approvals received in mid-July. In light of operating constraints during the hurricane season, we agreed with our customers to
revise the rig’s deployment sequence to improve overall operating efficiency. The Odin is currently preparing to mobilize to its first location, where it will commence the previously announced two-well firm contract with an undisclosed
customer. Upon completion of this contract, the rig is expected to transition directly to Cantium. We are disappointed with the delays for the Odin, and the initial start-up requirements were greater than we would typically expect when
entering a new market. This resulted in higher cost and delays in revenue.
1 The Company presents Adjusted EBITDA, which is a financial
measure calculated on a basis other than in accordance with accounting principles generally accepted in the United States (U.S. GAAP). We define Adjusted EBITDA as net loss, adjusted for: depreciation of non-current assets; other
non-operating income; loss from equity method investments; total financial expenses, net; and income tax expense. We believe that Adjusted EBITDA improves the comparability of period-to-period results and is representative of our
underlying performance, although Adjusted EBITDA has significant limitations, including not reflecting our cash requirements for capital or deferred costs, rig reactivation costs, newbuild rig activation costs, contractual commitments,
taxes, working capital or debt service. Non-GAAP financial measures may not be comparable to similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a
substitute for analysis of our operating results as reported under U.S. GAAP. For a reconciliation of Adjusted EBITDA to Net (loss) / income, please see the last page of this report.
2 The Company defines “Dayrate Equivalent
Backlog” as the maximum potential contract drilling dayrate revenue that can be earned from a drilling contract based on the contracted operating dayrate. Dayrate Equivalent Backlog includes (i) firm commitments for contract drilling
services represented by definitive agreements, including binding letters of award and letters of intent, (ii) bareboat charter revenue adjusted to a dayrate-equivalent basis and (iii) revenue resulting from mobilization and
demobilization fees, and includes such backlog from joint venture operations.
The elevated rig transition activity experienced during Q2 is now substantially complete. The Idun, Gunnlod, Skald, Sif, Natt and Prospector 5, which were
transitioning into or between contracts during the quarter, are now fully operational. Together with the commencement of the Odin contract, we expect to average approximately 23 active rigs during Q3. Based
on this projected activity level, we expect Adjusted EBITDA for Q3 to improve significantly from the second quarter.
Since the last earnings report, we have secured eight contract commitments, representing over 2,100 days of additional firm work. 2026 contract coverage is now at
73% at an average dayrate of approximately $134,000 per day with coverage in the second half of the year of 70%.
During the quarter, we successfully refinanced substantially all of our debt through the issuance of $300 million of convertible notes and $2,035 million of senior secured notes, while also upsizing our super
senior RCF to $250 million. These transactions extended our maturities, reduced financing costs, and further strengthened our liquidity.
Subsequent to quarter end, our 50/50 joint venture with our long-term Mexican well construction partner completed the purchase of five premium jack-ups from Fontis at an attractive valuation and with limited
equity committed. Currently, three of these rigs are contracted, with two of them operating and the third expected to commence operations later in Q3 2026. Our focus now is deploying the remaining rigs and converting the opportunity
pipeline into contracted work.
In closing, the Middle East conflict has reduced near-term visibility, delaying tenders, contract start dates, and the region’s recovery. This uncertainty is also affecting several other
offshore markets, though not all, making it difficult to provide a crisp outlook for our activity. What is clear, however, is that the prolonged disruption in the Strait of Hormuz has driven global inventories to exceptionally low levels.
Rebuilding those inventories, even under a moderate demand outlook, will require sustained production drilling, both onshore and offshore. We therefore expect the market to strengthen as stability returns. Our priorities are clear: deploy
our expanded premium jack-up fleet, use its scale and quality to navigate changing market conditions, and deliver value to shareholders as the cycle improves.”
Management Discussion and Analysis
The discussion below compares the unaudited results for the second quarter of 2026 to the unaudited results of the first quarter of 2026.
|
(In $ million)
|
Q2 2026
|
Q1 2026
|
Change ($)
|
Change (%)
|
|||||||||||||
|
Total operating revenues
|
232.3
|
247.0
|
(14.7
|
)
|
(6
|
)%
|
|||||||||||
|
Total operating expenses
|
(232.1
|
)
|
(201.0
|
)
|
(31.1
|
)
|
(15
|
)%
|
|||||||||
|
Operating income
|
0.3
|
46.0
|
(45.7
|
)
|
(99
|
)%
|
|||||||||||
|
Other non-operating income
|
6.0
|
—
|
6.0
|
100
|
%
|
||||||||||||
|
Total financial expenses, net
|
(236.5
|
)
|
(62.7
|
)
|
(173.8
|
)
|
(277
|
)%
|
|||||||||
|
Net loss
|
(241.4
|
)
|
(29.0
|
)
|
(212.4
|
)
|
nm
|
3 | |||||||||
|
Adjusted EBITDA
|
43.8
|
88.5
|
(44.7
|
)
|
(51
|
)%
|
|||||||||||
|
Cash and cash equivalents
|
223.6
|
246.0
|
(22.4
|
)
|
(9
|
)%
|
|||||||||||
|
Total equity
|
961.6
|
1,197.2
|
(235.6
|
)
|
(20
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)%
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|||||||||||
Three months ended June 30, 2026 compared to three months ended March 31, 2026
Total operating revenues were $232.3 million for the second quarter of 2026, a decrease of $14.7 million or 6% compared to the first quarter of 2026. Total operating revenues for Q2 consisted
of $187.7 million in dayrate revenue, $32.9 million in bareboat charter revenue and $11.7 million in management contract revenue.
The overall decrease in total operating revenue was primarily a result of the $21.8 million decrease in dayrate revenue, partially offset by the $6.3 million increase in bareboat charter
revenue, in comparison to the prior quarter. The decrease in dayrate revenue was primarily due to the decrease in the number of operating days and the average dayrates for the Idun, Gunnlod and Skald, a decrease in recognition of
mobilization and demobilization revenue for the Vali as the amortization period ended in March 2026, and a decrease in the number of operating days for the Groa. These decreases were offset by an increase in recognition of mobilization and
demobilization revenue for the Grid. The increase in bareboat charter revenue was primarily due to an increase in the number of operating days.
3 Not meaningful
Total operating expenses for the second quarter of 2026 were $232.1 million, an increase of $31.1 million compared to the first quarter of 2026, primarily due to a $30.4 million increase in
rig operating and maintenance expenses. The increase in rig operating and maintenance expenses were primarily attributable to the Odin, which incurred $22.5 million of costs during the quarter, an increase of $11.1 million compared to the
prior quarter, primarily related to preparations for its upcoming contract in the U.S., including significant repair and maintenance activities. In addition, the increase is due to costs associated with a higher number of operating days for
the Grid, including amortization of deferred costs, an increase in expenses related to the five rigs acquired in January 2026, and an increase in the provision for credit losses.
During the second quarter of 2026, the Company recognized $10.8 million of credit losses related to a former customer in West Africa, an increase of $4.8 million compared to the prior quarter.
Following the additional provision recognized during the quarter, the receivable from this customer was fully provided for, resulting in net zero receivable balance on the Company’s balance sheet as at June 30, 2026.
Total operating expenses during the second quarter of 2026 also included a $5.1 million increase in fuel costs due to higher fuel prices and rigs transitioning between contracts and a $2.2
million increase in insurance costs related to the ongoing conflict in the Middle East.
Included in total operating revenues for the second quarter of 2026 is $16.4 million in reimbursable revenues, and included in total operating expenses is $10.1 million in reimbursable
expenses.
Other non-operating income for the second quarter of 2026 of $6.0 million relates to compensation received to remove certain operating restrictions associated with the sale of a rig in a prior
period, with no comparable income in the first quarter of 2026.
Total financial expenses, net, for the second quarter of 2026 were $236.5 million, an increase of $173.8 million compared to the first quarter of 2026. The overall increase was primarily due
to a $176.3 million loss on the extinguishment of the senior secured notes due 2028 and 2030 (the “Original Notes”) and the partial extinguishment of our convertible bonds due 2028 (the “2028 Convertible Bonds”). The total loss on debt
extinguishment consists of $123.7 million in redemption premium payments and $52.6 million from the derecognition of the unamortized portion of debt premiums, discounts and deferred finance charges, associated with the respective
extinguished facilities.
Net loss for the second quarter of 2026 was $241.4 million, an increase in loss of $212.4 million compared to $29.0 million net loss for the first quarter of 2026.
Adjusted EBITDA for the second quarter of 2026 was $43.8 million, a decrease of $44.7 million compared to the first quarter of 2026.
Liquidity and Cash Flows
The Company’s cash and cash equivalents as of June 30, 2026 were $223.6 million, compared to $246.0 million as of March 31, 2026. In addition, the Company had $250.0 million of undrawn and
available borrowings under its revolving credit facility, resulting in total liquidity of $473.6 million at the end of the quarter.
Net cash used in operating activities for the second quarter of 2026 was $21.8 million. This includes $115.8 million of cash interest payments and $15.1 million of income taxes paid.
Net cash used in investing activities for the second quarter of 2026 was $2.3 million related to $8.3 million additions to jack-up drilling rigs, primarily related to long-term maintenance
costs and capital additions for drilling equipment, partially offset by $6.0 million of proceeds received for the release of operating restrictions for a rig sold in a prior period.
Net cash provided by financing activities for the second quarter of 2026 was $1.8 million as a result of $2,291.3 million in debt proceeds, net of issuance costs, including $1,999.3 million
related to the New Notes (as defined below) and $292.0 million related to the issuance of the 2033 Convertible Notes (as defined below), and $3.6 million of proceeds from employees exercising share options. This was offset by $2,293.1
million cash used for the extinguishment of debt, including $2,070.4 million related to the Original Notes and $222.7 million related to the partial extinguishment of the 2028 Convertible Bonds.
Financing and Corporate Developments
Fontis Acquisition
In July 2026, subsequent to quarter-end, BC Ventures Limited (“BC Ventures”), a 50/50 joint venture between the Company and its long-term well construction partner in Mexico, completed the
previously announced acquisition of five premium jack-up rigs from Fontis Finance Ltd. for a total purchase price of $287.0 million (the “Fontis Acquisition”). Under the Fontis Acquisition, BC Ventures acquired the rig-owning entities of
two Friede & Goldman JU-2000E design rigs (Oberon and Titania FE) and three LeTourneau Super 116-C design rigs (Courageous, Defender, and Intrepid). These five rigs are currently located in Mexico. BC Ventures financed the Fontis
Acquisition through (i) a $237 million non-recourse seller’s credit and (ii) a $25 million cash contribution from each of the Company and its local partner. The seller’s credit, which matures in January 2029, is an obligation of BC Ventures
and its subsidiaries and is secured by, among other things, a first priority lien on the five acquired jack-up rigs.
Debt
In April 2026, the Company issued, at par, $300.0 million aggregate principal amount of 3.50% convertible notes due 2033 (the “2033 Convertible Notes”). In connection with this issuance, the
Company repurchased and cancelled $195.2 million aggregate principal amount of the 2028 Convertible Bonds.
In June 2026, certain subsidiaries of the Company issued, at par, $2,035.0 million aggregate principal amount of senior secured notes in two series, consisting of (i) $1,100.0 million
aggregate principal amount of 8.750% senior secured notes due in 2032 (the “2032 Notes”) and (ii) $935.0 million aggregate principal amount of 9.000% senior secured notes due in 2034 (the “2034 Notes”, and together with the 2032 Notes, the
“New Notes”). Interest on the New Notes is payable semi-annually, beginning January 2027. The New Notes amortize at a rate equal to 5.00% of the original principal amount per annum, payable semi-annually at a price equal to 102.5%,
beginning July 2027. The proceeds from the issuance of the New Notes in June 2026 were primarily used to redeem or repurchase the Original Notes in full.
In June 2026, the Company entered into an amendment and restatement agreement for its super-senior secured revolving credit facility (the “SSRCF”) to, among other things, increase the
commitments to $250.0 million, reduce the margin to 3.00% per annum (subject to certain adjustments) and extend the maturity date to the earlier of (i) June 11, 2031 and (ii) six months prior to the final maturity date of the 2032 Notes. In
June 2026, in connection with the amendment and restatement of the SSRCF, the Company cancelled its $34.0 million senior secured revolving credit facility.
As of June 30, 2026, the Company had debt outstanding in principal amount of $2,529.2 million, consisting of (i) $1,100.0 million aggregate principal amount of the 2032 Notes, (ii) $935.0
million aggregate principal amount of the 2034 Notes, (iii) $300.0 million aggregate principal amount of the 2033 Convertible Notes, (iv) $44.2 million aggregate principal amount of the 2028 Convertible Bonds, and (v) a $150.0 million
seller’s credit due 2032.
As of June 30, 2026, the Company had undrawn and available borrowings of $250 million under the SSRCF.
Equity
The Company’s issued share capital as of June 30, 2026 was $31.6 million divided into 315,400,000 shares with a par value of $0.10 per share. The Company’s outstanding shares as of June 30,
2026 was 308,512,741, and the number of authorized shares is 365,000,000.
On May 21, 2026, the Company up-listed its shares from the Euronext Growth Oslo to the main market on the Euronext Oslo Børs (“OSE”) under the ticker “BORR”. The Company’s primary listing
continues to be on the New York Stock Exchange.
Fleet, Operations and Contracts
The Company’s wholly owned fleet consists of 29 modern jack-up rigs, all built after 2008, in addition to five jointly owned modern jack-up rigs since July 2026.
As of the date of this report, 24 of our 29 rigs are either contracted or committed: six in Southeast Asia, four in the Middle East & North Africa, five in West Africa, two in Europe and
seven in the Americas.
Since the publication of our first quarter 2026 report, the Company has secured eight new contract commitments and extensions for the rigs Galar, Gerd, Gersemi, Gunnlod, Idun, Mist and
Prospector 1.
In Southeast Asia, the Idun received two separate awards. First, a one-well contract with an undisclosed operator in Vietnam, which commenced in July 2026 and has an estimated duration of 60
days. Additionally, in Vietnam, the Idun received a one-well commitment from HLHV JOC, with an estimated duration of 30 days, to commence in direct continuation of the aforementioned contract.
The Mist received a binding letter of award from Sarawak Shell Berhad in Malaysia. The campaign is expected to commence in October 2026 and has an estimated duration of 45 days.
Additionally, in Southeast Asia, the Gunnlod secured a contract with PVEP-NCS in Vietnam. The six-well firm campaign is expected to commence in August 2026 and has an estimated duration of
eight months, keeping the rig committed until April 2027. The contract also includes two one-well unpriced options with an aggregate duration of approximately 110 days.
In West Africa, the Gerd received a one-well extension with Foxtrot in Ivory Coast. The well has an anticipated duration of 45 days, keeping the rig committed through March 2027.
In Europe, the Prospector 1 received a two-well contract extension from ONE-Dyas. The extension has an estimated duration of approximately seven months, keeping the rig committed until April
2027. In addition, ONE-Dyas has three one-well options available, with an estimated aggregate duration of 210 days.
In the Americas, the Galar and Gersemi have received two-year extensions, keeping each rig committed through May 2030.
These new commitments cover a combined duration of more than 2,100 days and represent approximately $267 million in Dayrate Equivalent Backlog.
Year to date 2026, the Company has been awarded 21 contract commitments, representing approximately 4,350 days and $541 million of Dayrate Equivalent Backlog4.
The Company’s total Dayrate Equivalent Backlog4 was $1.04 billion as of June 30, 2026 and is $1.13 billion as
of the date of this report.
For more details on our rig contracting, please refer to our Fleet Status Report issued in connection with this report.
The technical utilization for our working rigs was 98.4% in the second quarter of 2026, and the economic utilization was 96.4%.
Market
According to Petrodata by S&P Global, the marketed utilization for jack-up rigs globally stood at 87.4% at June 30, 2026, a decrease of 0.5 percentage points from March 31, 2026. The
marketed utilization for the modern jack-up fleet (rigs built after 2000) was 90.1% at June 30, 2026, and currently stands at 91.7%.
4 The Company defines “Dayrate Equivalent Backlog” as the maximum potential contract
drilling dayrate revenue that can be earned from a drilling contract based on the contracted operating dayrate. Dayrate Equivalent Backlog includes (i) firm commitments for contract drilling services represented by definitive
agreements, including binding letters of award and letters of intent, (ii) bareboat charter revenue adjusted to a dayrate-equivalent basis and (iii) revenue resulting from mobilization and demobilization fees, and includes such backlog
from joint venture operations.
As of the date of this report, 11 newbuild rigs remain under construction and they account for 2.5% of the global marketed jack-up fleet. However, we expect that few of these rigs will join
the marketed fleet in the near future due to many of these being in the early stages of construction and the ongoing supply chain challenges.
Risks and uncertainties 5
Borr Drilling is exposed to a number of risks related to the Company’s financial position, operations and the industry in which it operates.
Uncertainty persists in the market and oil benchmark prices are expected to remain volatile in light of, among other factors, the implementation of tariffs and potential further tariffs,
oversupply and the current global economic uncertainty and geopolitical events affecting supply and demand including the conflict in the Middle East. Geopolitical unrest and any expansion or increase of trade tensions, may result in oil
supply disruptions and cause further volatility in commodity prices. We remain subject to risks relating to the volatility of our industry and the risk that demand and dayrates could decline further.
Demand for jack-up rigs may not remain at current levels, and may decline. In 2025, we received notices of temporary suspensions for certain rigs, and while most of the suspended rigs have
since recommenced operations, any future suspensions or decline in demand for services of jack-up rigs could have a negative effect on the Company. The acquisition of the five rigs from Noble Corporation in January 2026 and the further five
rigs acquired in July 2026 through our 50/50 joint venture has increased the size of our owned and jointly-owned fleet and the risks we face including the risk of a decline in demand. In addition, our business is subject to supply chain
constraints and inflationary pressure, which impact the cost base in our industry, including personnel costs, and the prices of goods and services required to operate rigs.
We are subject to risks relating to our indebtedness, including risks relating to our ability to meet the financial covenants in our revolving credit facilities, risks relating to covenant
limitations and the interest and other payments due on our secured notes and convertible bonds, including amortization requirements under our New Notes and other risks relating to our significant levels of indebtedness, including the risk
that we may not be able to refinance our debt as it matures.
Conference call
A conference call and webcast is scheduled for 09:00 New York time (15:00 CEST) on Wednesday, August 12, 2026 and participants are encouraged to dial in 10 minutes before the
start of the call. Further details can be found in the Investor Relations section on the Company’s website, www.borrdrilling.com.
Forward looking statements
This announcement 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”, “priority”, “continue”, “estimate”, “expect”, “intends”, “may”, “should”, “will”, “likely”, “aim”, “plan”, “guidance”,
“outlook”, the negative of such terms, and similar expressions and include statements regarding industry trends and market outlook, the expected impact of new accounting pronouncements, expectations about Adjusted EBITDA in Q3, expectations
about rig mobilizations, contracting and the start date of rig contracts, the duration of rig contracts and options, supply/demand expectations, statements about the state of the jack-up rig and oil industry, our expectations about
increased activity and dayrates, including associated oil price developments and associated timing, and our expectations about the impact of the Middle East conflict, Dayrate Equivalent Backlog, contractual commitments, contract coverage,
expected number of rigs in operation, tender activity and expected contracting, customer activity and contracting opportunities, market conditions, our expectation that the market will strengthen as stability returns, statements about the
global jack-up fleet, including the number of rigs contracted and available and expected trends in the global fleet, including expected new deliveries and the number of rigs under construction and expectations as to when such rigs will join
the global fleet, statements about the five-rig acquisition in the Fontis Acquisition, and statements made under “Market” and “Risk and uncertainties” above, and other non-historical statements.
5 This Risks and uncertainties section is not a complete discussion of the
risks the Company faces. See “Risk Factors” in the Company’s most recent Annual Report Form 20-F; this discussion does not and does not purport to update that section of the annual report.
These forward-looking statements are based upon current estimates, expectations, beliefs and various assumptions, many of which are based, by their nature, uncertain information and are
subject to significant known and unknown risks, contingencies and other important factors which are difficult or impossible to predict and are beyond our control. Such risks, uncertainties, contingencies and other factors could cause our
actual financial results, level of activity, performance, financial position, liquidity or achievements to differ materially from those expressed or implied by these forward-looking statements, including risks relating to our business and
industry, including relating to industry conditions, the risk that our actual results of operations in current or future periods differ materially from expected trends in results discussed herein, the timing of payments to us and the risk
of delays in payments or receivables to our joint ventures and payments from our joint ventures to us, the risk that our customers do not make required payments to us or otherwise comply with their contractual obligations, including the
risk that we may not be able to recover amounts due from our customers or that customers may not be able to continue to comply with contracts with us, the risk of customers becoming subject to sanctions, risks relating to geopolitical
events and inflation, risks relating to global economic uncertainty and energy commodity prices, risks relating to contracting, including our ability to convert commitments, LOIs and LOAs into contracts, the risk of contract suspension or
termination, the risk that options will not be exercised, the risk that backlog will not materialize as expected, risks relating to the operations of our rigs, risks relating to dayrates and duration of contracts and the terms of contracts
and the risk that we may not enter into contracts or that contracts are not performed as expected, risks relating to contracting our most recently acquired rigs and other available rigs including the five rigs acquired from Noble
Corporation and the five rigs acquired through a joint venture in respect of the Fontis Acquisition, and other risks related to such acquisitions, risks relating to market trends, including tender activity, risks relating to customer demand
and contracting activity and suspension or termination of operations, including as a result of customers becoming subject to sanctions, risks relating to our liquidity and cash flows, risks relating to our indebtedness including risks
relating to our ability to repay or refinance our debt at maturity, including our secured notes maturing in 2032 and 2034, our convertible bonds due 2028 and due 2033, our seller’s credit with Noble Corporation due 2032 and debt under our
revolving credit facilities and risks relating to our other payment obligations on these debt instruments including interest, amortization, risks relating to our ability to comply with covenants under our revolving credit facilities and
other debt instruments and obtain any necessary waivers and the risk of cross defaults, risks relating to our ability to pay cash distributions and repurchase shares including the risk that we may not have available liquidity or
distributable reserves or the ability under our debt instruments to pay such cash distributions or repurchase shares and the risk that we may not complete our share repurchase program in full, and risks relating to the amount and timing of
any cash distributions we declare, risks relating to future debt financings including the risk that future financings may not be completed when required and risks relating to the terms of any refinancing, including risks related to dilution
from any future offering of shares or convertible bonds, risks related to climate change, including climate-change or greenhouse gas related legislation or regulations and the impact on our business from physical climate-change related to
changes in weather patterns, and the potential impact of new regulations relating to climate change and the potential impact on the demand for oil and gas, risks relating to military actions and their impact on our business and industry,
and other risks factors set forth under “Risk Factors” in our most recent annual report on Form 20-F and other filings with and submissions to the U.S. Securities and Exchange Commission.
These forward-looking statements are made only as of the date of this document. We undertake no (and expressly disclaim any) obligation to update any forward-looking statements after the date
of this report or to conform such statements to actual results or revised expectations, except as required by law.
About Borr Drilling Limited
Borr Drilling Limited is an international drilling contractor incorporated in Bermuda in 2016 and listed on the New York Stock Exchange since July 31, 2019 and on Euronext Oslo Børs since May
21, 2026 under the ticker “BORR”. The Company owns and operates jack-up rigs of modern and high specification designs and provides services focused on the shallow water segment to the offshore oil and gas industry worldwide. Please visit
our website at: www.borrdrilling.com.
Responsibility Statement
We confirm that, to the best of our knowledge, the interim consolidated financial statements for the first half year of 2026, which have been prepared in accordance with accounting principles generally
accepted in the United States (U.S. GAAP) give a true and fair view of the Company’s consolidated assets, liabilities, financial position and results of its operations. To the best of our knowledge, the interim report for the first half
year of 2026 includes a fair review of important events that have occurred during the period and their impact on the interim consolidated financial statements, the principal risks and uncertainties for the remaining half of 2026, and major
related party transactions.
August 11, 2026
The Board of Directors
Borr Drilling Limited
Hamilton, Bermuda
Patrick Schorn (Executive Chairperson)
Daniel Rabun (Lead Independent Director)
Tor Olav Trøim (Director)
Alexandra Kate Blankenship (Director)
Jeffrey Currie (Director)
Neil Glass (Director)
Thiago Mordehachvili (Director)
Mi Hong Yoon (Director)
Questions should be directed to:
Magnus Vaaler: CFO, +44 1224 289208
UNAUDITED NON GAAP MEASURES AND RECONCILIATION
A reconciliation of net loss attributable to shareholders to Adjusted EBITDA is as follows:
|
(in US$ millions)
|
Q2 2026
|
Q1 2026
|
|||||||
|
Net loss attributable to shareholders
|
(241.4
|
)
|
(29.0
|
)
|
|||||
|
Depreciation of non-current assets
|
43.5
|
42.5
|
|||||||
|
Other non-operating income
|
(6.0
|
)
|
—
|
||||||
|
Loss from equity method investments
|
0.3
|
1.2
|
|||||||
|
Interest income
|
(1.7
|
)
|
(1.7
|
)
|
|||||
|
Interest expense
|
236.4
|
63.2
|
|||||||
|
Foreign exchange loss, net
|
0.7
|
0.6
|
|||||||
|
Other financial expenses
|
1.1
|
0.6
|
|||||||
|
Income tax expense
|
10.9
|
11.1
|
|||||||
|
Adjusted EBITDA
|
43.8
|
88.5
|
BORR DRILLING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
For the three months ended
|
For the six months ended
|
||||||||||||||||
|
(In $ millions, except per share data)
|
June 30, 2026
|
June 30, 2025
|
June 30, 2026
|
June 30, 2025
|
|||||||||||||
|
Operating revenues
|
|||||||||||||||||
|
Dayrate revenue
|
187.7
|
238.5
|
397.2
|
440.7
|
|||||||||||||
|
Bareboat charter revenue
|
32.9
|
20.3
|
59.5
|
27.9
|
|||||||||||||
|
Management contract revenue
|
11.7
|
8.9
|
22.6
|
15.7
|
|||||||||||||
|
Total operating revenues
|
232.3
|
267.7
|
479.3
|
484.3
|
|||||||||||||
|
Gain on disposals
|
0.1
|
—
|
0.1
|
0.4
|
|||||||||||||
|
Operating expenses
|
|||||||||||||||||
|
Rig operating and maintenance expenses
|
(175.1
|
)
|
(122.2
|
)
|
(319.8
|
)
|
(232.0
|
)
|
|||||||||
|
Depreciation of non-current assets
|
(43.5
|
)
|
(36.7
|
)
|
(86.0
|
)
|
(72.6
|
)
|
|||||||||
|
General and administrative expenses
|
(13.5
|
)
|
(12.3
|
)
|
(27.3
|
)
|
(23.4
|
)
|
|||||||||
|
Total operating expenses
|
(232.1
|
)
|
(171.2
|
)
|
(433.1
|
)
|
(328.0
|
)
|
|||||||||
|
Operating income
|
0.3
|
96.5
|
46.3
|
156.7
|
|||||||||||||
|
Other non-operating income
|
6.0
|
—
|
6.0
|
—
|
|||||||||||||
|
Loss from equity method investments
|
(0.3
|
)
|
(0.2
|
)
|
(1.5
|
)
|
(2.0
|
)
|
|||||||||
|
Financial income (expenses), net
|
|||||||||||||||||
|
Interest income
|
1.7
|
0.5
|
3.4
|
1.1
|
|||||||||||||
|
Interest expense
|
(236.4
|
)
|
(57.2
|
)
|
(299.6
|
)
|
(115.3
|
)
|
|||||||||
|
Other financial (expenses) / income, net
|
(1.8
|
)
|
0.3
|
(3.0
|
)
|
(4.9
|
)
|
||||||||||
|
Total financial expenses, net
|
(236.5
|
)
|
(56.4
|
)
|
(299.2
|
)
|
(119.1
|
)
|
|||||||||
|
(Loss) / income before income taxes
|
(230.5
|
)
|
39.9
|
(248.4
|
)
|
35.6
|
|||||||||||
|
Income tax expense
|
(10.9
|
)
|
(4.8
|
)
|
(22.0
|
)
|
(17.4
|
)
|
|||||||||
|
Net (loss) / income attributable to shareholders
|
(241.4
|
)
|
35.1
|
(270.4
|
)
|
18.2
|
|||||||||||
|
Total comprehensive (loss) / income attributable to shareholders
|
(241.4
|
)
|
35.1
|
(270.4
|
)
|
18.2
|
|||||||||||
|
Basic (loss) / income per share
|
(0.79
|
)
|
0.15
|
(0.88
|
)
|
0.08
|
|||||||||||
|
Diluted (loss) / income per share
|
(0.79
|
)
|
0.14
|
(0.88
|
)
|
0.08
|
|||||||||||
|
Weighted-average shares outstanding - basic
|
307,391,018
|
238,907,129
|
307,653,974
|
241,134,285
|
|||||||||||||
|
Weighted-average shares outstanding - diluted
|
307,391,018
|
273,877,730
|
307,653,974
|
242,362,500
|
|||||||||||||
BORR DRILLING LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
June 30, 2026
|
December 31, 2025
|
||||||||
|
(In $ millions, except per share data)
|
Unaudited
|
Audited
|
|||||||
|
ASSETS
|
|||||||||
|
Current assets
|
|||||||||
|
Cash and cash equivalents
|
223.6
|
379.7
|
|||||||
|
Restricted cash
|
1.0
|
1.0
|
|||||||
|
Trade receivables, net
|
192.5
|
191.8
|
|||||||
|
Prepaid expenses
|
12.8
|
8.3
|
|||||||
|
Deferred costs
|
27.5
|
29.3
|
|||||||
|
Accrued revenue
|
108.2
|
132.9
|
|||||||
|
Due from related parties
|
3.9
|
2.3
|
|||||||
|
Other current assets
|
27.3
|
23.1
|
|||||||
|
Total current assets
|
596.8
|
768.4
|
|||||||
|
Non-current assets
|
|||||||||
|
Property, plant and equipment
|
1.8
|
2.0
|
|||||||
|
Jack-up drilling rigs, net
|
3,036.5
|
2,742.7
|
|||||||
|
Equity method investments
|
10.3
|
11.8
|
|||||||
|
Other non-current assets
|
50.9
|
100.7
|
|||||||
|
Total non-current assets
|
3,099.5
|
2,857.2
|
|||||||
|
Total assets
|
3,696.3
|
3,625.6
|
|||||||
|
LIABILITIES AND EQUITY
|
|||||||||
|
Current liabilities
|
|||||||||
|
Trade payables
|
61.6
|
33.8
|
|||||||
|
Accrued expenses
|
89.1
|
76.0
|
|||||||
|
Short-term accrued interest
|
21.0
|
31.2
|
|||||||
|
Short-term debt
|
—
|
129.3
|
|||||||
|
Short-term deferred revenue
|
21.6
|
24.2
|
|||||||
|
Other current liabilities
|
42.4
|
56.2
|
|||||||
|
Total current liabilities
|
235.7
|
350.7
|
|||||||
|
Non-current liabilities
|
|||||||||
|
Long-term debt
|
2,485.3
|
2,021.0
|
|||||||
|
Long-term deferred revenue
|
12.2
|
29.5
|
|||||||
|
Other non-current liabilities
|
1.5
|
1.8
|
|||||||
|
Total non-current liabilities
|
2,499.0
|
2,052.3
|
|||||||
|
Total liabilities
|
2,734.7
|
2,403.0
|
|||||||
|
Shareholders’ Equity
|
|||||||||
|
Common shares of par value $0.10 per share: authorized 365,000,000 (2025: 365,000,000) shares, issued 315,400,000 (2025: 315,400,000) shares and outstanding
308,512,741 (2025: 307,215,419) shares
|
31.6
|
31.6
|
|||||||
|
Treasury shares
|
(6.4
|
)
|
(18.1
|
)
|
|||||
|
Additional paid in capital
|
519.6
|
521.9
|
|||||||
|
Contributed surplus
|
1,919.0
|
1,919.0
|
|||||||
|
Accumulated deficit
|
(1,502.2
|
)
|
(1,231.8
|
)
|
|||||
|
Total equity
|
961.6
|
1,222.6
|
|||||||
|
Total liabilities and equity
|
3,696.3
|
3,625.6
|
|||||||
BORR DRILLING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For the three months ended
|
For the six months ended
|
||||||||||||||||
|
(In $ millions)
|
June 30, 2026
|
June 30, 2025
|
June 30, 2026
|
June 30, 2025
|
|||||||||||||
|
Cash flows from operating activities
|
|||||||||||||||||
|
Net (loss) / income
|
(241.4
|
)
|
35.1
|
(270.4
|
)
|
18.2
|
|||||||||||
|
Adjustments to reconcile net (loss) / income to net cash provided by
operating activities:
|
|||||||||||||||||
|
Non-cash share-based compensation expense
|
2.2
|
2.6
|
4.8
|
6.0
|
|||||||||||||
|
Provision for credit losses
|
11.5
|
—
|
19.9
|
—
|
|||||||||||||
|
Depreciation of non-current assets
|
43.5
|
36.7
|
86.0
|
72.6
|
|||||||||||||
|
Other non-operating income
|
(6.0
|
)
|
—
|
(6.0
|
)
|
—
|
|||||||||||
|
Amortization of deferred costs
|
11.7
|
14.5
|
22.1
|
24.7
|
|||||||||||||
|
Amortization of deferred revenue
|
(11.2
|
)
|
(14.3
|
)
|
(24.3
|
)
|
(22.1
|
)
|
|||||||||
|
Loss on debt extinguishment
|
176.3
|
—
|
176.3
|
—
|
|||||||||||||
|
Amortization of debt discount
|
1.1
|
1.7
|
2.8
|
3.4
|
|||||||||||||
|
Amortization of debt premium
|
(0.4
|
)
|
(0.7
|
)
|
(1.1
|
)
|
(1.4
|
)
|
|||||||||
|
Amortization of deferred finance charges
|
2.4
|
3.2
|
6.4
|
6.4
|
|||||||||||||
|
Non-cash financing fee
|
—
|
0.2
|
—
|
4.4
|
|||||||||||||
|
Loss from equity method investments
|
0.3
|
0.2
|
1.5
|
2.0
|
|||||||||||||
|
Deferred income tax
|
(1.2
|
)
|
(5.5
|
)
|
(1.0
|
)
|
(6.0
|
)
|
|||||||||
|
Change in assets and liabilities:
|
|||||||||||||||||
|
Amounts due from related parties
|
(2.7
|
)
|
0.9
|
(1.6
|
)
|
75.3
|
|||||||||||
|
Trade payables and accrued expenses
|
27.0
|
8.0
|
45.7
|
(14.6
|
)
|
||||||||||||
|
Accrued interest
|
(58.8
|
)
|
(45.3
|
)
|
(6.6
|
)
|
2.5
|
||||||||||
|
Other current and non-current assets
|
33.3
|
(60.7
|
)
|
(18.9
|
)
|
(42.2
|
)
|
||||||||||
|
Other current and non-current liabilities
|
(9.4
|
)
|
29.7
|
(9.3
|
)
|
15.8
|
|||||||||||
|
Net cash (used in) / provided by operating activities
|
(21.8
|
)
|
6.3
|
26.3
|
145.0
|
||||||||||||
|
Cash flows from investing activities
|
|||||||||||||||||
|
Purchase of property, plant and equipment
|
—
|
—
|
(0.3
|
)
|
(0.1
|
)
|
|||||||||||
|
Proceeds from other non-operating activities
|
6.0
|
—
|
6.0
|
—
|
|||||||||||||
|
Additions to jack-up drilling rigs
|
(8.3
|
)
|
(13.4
|
)
|
(190.9
|
)
|
(38.4
|
)
|
|||||||||
|
Net cash used in investing activities
|
(2.3
|
)
|
(13.4
|
)
|
(185.2
|
)
|
(38.5
|
)
|
|||||||||
|
Cash flows from financing activities
|
|||||||||||||||||
|
Repayment of debt
|
(2,293.1
|
)
|
(70.7
|
)
|
(2,293.1
|
)
|
(70.7
|
)
|
|||||||||
|
Cash distributions paid
|
—
|
—
|
—
|
(4.7
|
)
|
||||||||||||
|
Debt proceeds, net of issuance costs
|
2,291.3
|
—
|
2,291.3
|
—
|
|||||||||||||
|
Purchase of treasury shares
|
—
|
—
|
—
|
(0.2
|
)
|
||||||||||||
|
Proceeds from exercise of share options
|
3.6
|
—
|
4.6
|
—
|
|||||||||||||
|
Net cash provided by / (used in) financing activities
|
1.8
|
(70.7
|
)
|
2.8
|
(75.6
|
)
|
|||||||||||
|
Net (decrease) / increase in cash and cash equivalents and restricted cash
|
(22.3
|
)
|
(77.8
|
)
|
(156.1
|
)
|
30.9
|
||||||||||
|
Cash and cash equivalents and restricted cash at the beginning of the period
|
246.9
|
171.2
|
380.7
|
62.5
|
|||||||||||||
|
Cash and cash equivalents and restricted cash at the end of the period
|
224.6
|
93.4
|
224.6
|
93.4
|
|||||||||||||
BORR DRILLING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For the three months ended
|
For the six months ended
|
||||||||||||||||
|
(In $ millions)
|
June 30, 2026
|
June 30, 2025
|
June 30, 2026
|
June 30, 2025
|
|||||||||||||
|
Supplementary disclosure of cash flow information
|
|||||||||||||||||
|
Interest paid
|
(115.8
|
)
|
(98.3
|
)
|
(121.8
|
)
|
(104.4
|
)
|
|||||||||
|
Income taxes paid
|
(15.1
|
)
|
(20.8
|
)
|
(21.8
|
)
|
(37.7
|
)
|
|||||||||
|
Non-cash additions to jack-up drilling rigs financed by long-term debt
|
—
|
—
|
150.0
|
—
|
|||||||||||||
|
Non-cash offset of other current and non-current assets and jack-up rigs
|
1.2
|
(8.5
|
)
|
2.8
|
(9.1
|
)
|
|||||||||||
|
June 30, 2026
|
December 31, 2025
|
||||||||
|
Cash and cash equivalents
|
223.6
|
379.7
|
|||||||
|
Restricted cash
|
1.0
|
1.0
|
|||||||
|
Total cash and cash equivalents and restricted cash
|
224.6
|
380.7
|
|||||||
Exhibit 99.3
|
Borr Drilling
Fleet Status Report - 11 August 2026
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
|
New Contracts / Extensions / Amendments
|
||||
|
Idun
|
|
|||
|
• Contract: July 2026 to September 2026, Undisclosed (Vietnam)
|
||||
|
Gunnlod
|
||||
|
• Contract: August 2026 to April 2027, PVEP-NCS (Vietnam)
|
||||
|
Prospector 1
|
|
|||
|
• Contract Extension: September 2026 to April 2027, One-DYAS (Netherlands)
|
||||
|
Idun
|
||||
|
• Contract: September 2026 to October 2026, HLHV JOC (Vietnam)
|
||||
|
Gerd
|
|
|||
|
• Contract Extension: February 2027 to March 2027, Foxtrot (Ivory Coast)
|
||||
| Galar | ||||
|
• Contract extension: May 2028 to May 2030, PEMEX (Mexico)
|
||||
| Gersemi | ||||
|
• Contract extension: May 2028 to May 2030, PEMEX (Mexico)
|
||||
|
Letters of Award
|
||||
|
Mist
|
|
|||
|
• Binding LOA: October 2026 to November 2026, Sarawak Shell (Malaysia)
|
||||
|
Other Developments
|
||||
|
Skald
|
|
|||
|
• Commenced operations with Vestigo Petroleum in Malaysia in late May 2026
|
||||
|
Prospector 5
|
||||
|
• Concluded operations with Eni in Congo in late May 2026 and commenced operations with BW Energy in Gabon in early July 2026
|
||||
|
Joro
|
|
|||
|
• Concluded operations with Siemens Energy in Germany in late May 2026 and subsequently warm stacked in the United Kingdom
|
||||
|
Sif
|
||||
|
• Commenced operations with Petronas in Suriname in mid-July 2026
|
||||
|
Idun
|
|
|||
|
• Commenced operations with an undisclosed operator in Vietnam in mid-July 2026
|
||||
|
Thor
|
||||
|
• Concluded operations with HLHV JOC in Vietnam in late July and commenced operations with PVEP-Cuulong in direct continuation
|
||||
|
Odin
|
|
|||
|
• Commenced mobilization activities to undisclosed operator’s first designated location offshore Texas in mid-August 2026
|
||||
|
Borr Drilling
Fleet Status Report - 11 August 2026
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig Name
|
Rig Design
|
Rig Water
Depth (ft)
|
Year
Built
|
Customer / Status
|
Contract Start
|
Contract End
|
Location
|
Comments
|
||||||||
|
Contracted Rigs
|
||||||||||||||||
| |
||||||||||||||||
|
Arabia I
|
KFELS B Class
|
400 ft
|
2020
|
Petrobras 3
|
April - 2025
|
April - 2029
|
Brazil
|
Operating with option to extend
|
||||||||
|
Arabia II
|
KFELS B Class
|
400 ft
|
2019
|
Bunduq
|
September - 2025
|
January - 2027
|
United Arab Emirates
|
Operating with option to extend
|
||||||||
|
Arabia III 1
|
KFELS Super A Class
|
400 ft
|
2013
|
Saudi Aramco
|
September - 2023
|
September - 2028
|
Saudi Arabia
|
Operating with option to extend
|
||||||||
|
Bestla 1
|
Gusto MSC CJ50
|
350 ft
|
2008
|
Eni 4
|
December - 2025
|
December - 2026
|
Netherlands
|
Operating with option to extend
|
||||||||
|
Forseti 1
|
|
F&G JU-3000N
|
400 ft
|
2013
|
Noble Corp 4
|
December - 2025
|
December - 2026
|
United Arab Emirates
|
Committed under BBC
|
|||||||
|
Galar
|
PPL Pacific Class 400
|
400 ft
|
2017
|
PEMEX 2
|
April - 2024
|
May - 2030
|
Mexico
|
Operating
|
||||||||
|
Gerd
|
PPL Pacific Class 400
|
400 ft
|
2018
|
Foxtrot International
|
February - 2026
|
March - 2027
|
Ivory Coast
|
Operating
|
||||||||
|
Gersemi
|
PPL Pacific Class 400
|
400 ft
|
2018
|
PEMEX 2
|
January - 2024
|
May - 2030
|
Mexico
|
Operating
|
||||||||
|
Grid
|
PPL Pacific Class 400
|
400 ft
|
2018
|
Halliburton
|
March - 2026
|
November - 2026
|
Angola
|
Operating with option to extend
|
||||||||
|
Gunnlod
|
PPL Pacific Class 400
|
400 ft
|
2018
|
TLJOC
|
May - 2026
|
August - 2026
|
Vietnam
|
Operating
|
||||||||
|
PVEP-NCS
|
August - 2026
|
April - 2027
|
Vietnam
|
Committed with option to extend
|
||||||||||||
|
Idun
|
KFELS Super B Bigfoot Class
|
350 ft
|
2013
|
Undisclosed
|
July - 2026
|
September - 2026
|
Vietnam
|
Operating
|
||||||||
|
HLHV JOC
|
September - 2026
|
October - 2026
|
Vietnam
|
Committed
|
||||||||||||
|
Mist
|
KFELS Super B Bigfoot Class
|
350 ft
|
2013
|
Valeura Energy
|
December - 2023
|
August - 2026
|
Thailand
|
Operating
|
||||||||
|
Sarawak Shell
|
October - 2026
|
November - 2026
|
Malaysia
|
LOA
|
||||||||||||
|
Natt
|
PPL Pacific Class 400
|
400 ft
|
2018
|
SNEPCO
|
April - 2026
|
March - 2027
|
Nigeria
|
Operating with option to extend
|
||||||||
|
Njord
|
PPL Pacific Class 400
|
400 ft
|
2019
|
PEMEX 2
|
May - 2026
|
April - 2028
|
Mexico
|
Operating with option to extend
|
||||||||
|
Norve
|
PPL Pacific Class 400
|
400 ft
|
2011
|
Vaalco Energy
|
November - 2025
|
September - 2026
|
Gabon
|
Operating
|
||||||||
|
Odin
|
KFELS Super B Bigfoot Class
|
350 ft
|
2013
|
Undisclosed
|
August - 2026
|
December - 2026
|
United States of America
|
Committed with option to extend
|
||||||||
|
Cantium
|
February - 2027
|
July - 2027
|
United States of America
|
Committed with option to extend
|
||||||||||||
|
Prospector 1 1
|
F&G, JU2000E
|
400 ft
|
2013
|
ONE-Dyas
|
December - 2025
|
April - 2027
|
Netherlands
|
Operating with option to extend
|
||||||||
|
Prospector 5 1
|
F&G, JU2000E
|
400 ft
|
2014
|
BW Energy
|
July - 2026
|
July - 2027
|
Gabon
|
Operating with option to extend
|
||||||||
|
Ran 1
|
KFELS Super A Class
|
400 ft
|
2013
|
Eni
|
May - 2025
|
September - 2026
|
Mexico
|
Operating
|
||||||||
|
Saga
|
KFELS Super B Bigfoot Class
|
400 ft
|
2018
|
Brunei Shell Petroleum
|
November - 2022
|
April - 2027
|
Brunei
|
Operating with option to extend
|
||||||||
|
Sif 1
|
F&G, JU-3000N
|
400 ft
|
2013
|
Petronas
|
July - 2026
|
October - 2026
|
Suriname
|
Operating
|
||||||||
|
Skald
|
KFELS Super B Bigfoot Class
|
400 ft
|
2018
|
Vestigo Petroleum
|
May - 2026
|
November - 2026
|
Malaysia
|
Operating with option to extend
|
||||||||
|
Thor
|
KFELS Super B Bigfoot Class
|
400 ft
|
2019
|
PVEP-Cuulong
|
July - 2026
|
November - 2026
|
Vietnam
|
Operating
|
||||||||
|
Undisclosed
|
November - 2026
|
April - 2027
|
Vietnam
|
Committed
|
||||||||||||
|
Vali
|
KFELS Super B Bigfoot Class
|
400 ft
|
2024
|
Mellitah Oil and Gas
|
March - 2025
|
October - 2026
|
Libya
|
Operating with option to extend
|
||||||||
|
Available Rigs
|
||||||||||||||||
|
Freyja 1
|
F&G, JU-3000N
|
400 ft
|
2014
|
Singapore
|
Warm Stacked
|
|||||||||||
|
Groa
|
PPL Pacific Class 400
|
400 ft
|
2018
|
United Arab Emirates
|
Warm Stacked
|
|||||||||||
|
Hild
|
KFELS Super B Class
|
400 ft
|
2020
|
Mexico
|
Warm Stacked
|
|||||||||||
|
Joro 1
|
Gusto MSC CJ50
|
350 ft
|
2008
|
United Kingdom
|
Warm Stacked
|
|||||||||||
|
Var
|
KFELS Super B Bigfoot Class
|
400 ft
|
2024
|
Singapore
|
Warm Stacked
|
|||||||||||
1 - HD/HE Capability
2 - Rigs provided by Borr Drilling through a bareboat charter arrangement and services provided by our Mexican Joint Venture or by Borr Drilling, with ultimate customer being PEMEX
3 - Rig provided by Borr Drilling through a charter arrangement, with ultimate customer being Petrobras
4 - Rigs bareboat chartered to Noble Corporation affiliates
2 - Rigs provided by Borr Drilling through a bareboat charter arrangement and services provided by our Mexican Joint Venture or by Borr Drilling, with ultimate customer being PEMEX
3 - Rig provided by Borr Drilling through a charter arrangement, with ultimate customer being Petrobras
4 - Rigs bareboat chartered to Noble Corporation affiliates
|
Operating / Committed
|
Available
|
Cold Stacked
|
||||||||||||
|
Total Fleet
|
29
|
24
|
5
|
0
|
||||||||||
|
Borr Drilling
Fleet Status Report - 11 August 2026
|
| |
|||||
| |
|||||
|
Additional information regarding this Fleet Status Report
|
|||||
| This summary contains information on letters of intent/award and advanced negotiations. Letters of intent/award or advanced negotiations may not result in an actual drilling contract. | |||||
| Forward Looking Statements: The statements described in this status report that are not historical facts are “Forward Looking Statements”. Forward Looking Statements reflect management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. No assurance can be given that the expectations expressed in these Forward-Looking Statements will prove to be correct. Actual results could differ materially from expectations expressed in, or implied by, the Forward-Looking Statements if one or more of the underlying assumptions or expectations proves to be inaccurate or is unrealised. These include, but are not limited to, changes to commencement dates, contract duration, earned day rates, locations and other contractual terms; risks relating to the delivery of drilling rigs under construction; sale and purchase of drilling units; oil and gas prices; and risks associated with international operations generally. No Forward-Looking Statement contained in herein or expressed elsewhere should be relied upon as predicting future events. We undertake no obligation to update or revise any Forward-Looking Statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. |
|||||