Borr Drilling Limited Announces First Quarter 2026 Results

21 May 2026 01:41 CEST

Hamilton, Bermuda, May 20, 2026: Borr Drilling Limited (NYSE: BORR) ("Borr",
"Borr Drilling" or the "Company") announces unaudited results for the three
months ended March 31, 2026.

Highlights

· First Quarter total operating revenues of $247.0 million, a decrease of
$12.4 million or 5% compared to the fourth quarter of 2025
· First Quarter net loss of $29.0 million compared to net loss of $1.0 million
in the fourth quarter of 2025
· First Quarter Adjusted EBITDA of $88.5 million, a decrease of $16.7 million
or 16% compared to the fourth quarter of 2025
· Completed the acquisition of five premium jack-up rigs from Noble
Corporation in January 2026 for a total purchase price of $360 million
· Entered into agreements to acquire five premium jack-up rigs via new 50/50
joint venture for a total purchase price of $287 million
· Subsequent to quarter-end, completed an offering of $300 million aggregate
principal amount of senior unsecured convertible notes due 2033, with proceeds
primarily used to repurchase existing convertible bonds due 2028
· Year-to-date 2026, the Company has been awarded 13 contract commitments,
representing more than 2,250 days and $274 million of Dayrate Equivalent
Backlog. In addition, the Company recognized contract commitments of a further
772 days upon completing its acquisition from Noble Corporation.

Chief Executive Officer Bruno Morand commented:

"Our operational performance in the first quarter of 2026 resulted in technical
utilization of 99.4% and economic utilization of 97.0%. Revenue for the period
was $247.0 million, while first-quarter Adjusted EBITDA was $88.5 million,
primarily impacted by the late contract start-up of the Odin, in addition to a
credit loss provision of $8.4 million.

In the quarter, the Odin completed its mobilization from Mexico to the U.S. Gulf
where operations were expected to start in February. However, start-up was
delayed by additional contract preparation work and regulatory approvals.
Looking ahead, we expect second quarter results to continue to be affected by
the delayed start-up of the Odin, now anticipated to commence late June, as well
as rigs transitioning between contracts.

Our contracting strategy continues to focus on covering near-term uncontracted
days, balancing dayrates with contract tenor. Since our last earnings report, we
have secured eight contract commitments, representing over 1,100 days of
additional firm work. Our full-year 2026 contract coverage increased to 71% at
an average dayrate of approximately $137,000 and coverage in the second half of
the year now stands at 65%, as compared to 48% in our prior earnings report.

In the first quarter, we entered into an agreement for the acquisition of five
premium jack-up rigs through a new joint venture in Mexico with an attractive
valuation and financing structure. Upon closing, our fleet will in effect expand
to 34 modern rigs. In April, we strengthened our capital structure through a
$300 million convertible note offering, used to largely repurchase our existing
2028 convertible bonds. This transaction extended our maturity profile, lowered
our financing cost, and increased the conversion price.

While the Middle East conflict has created near-term uncertainty, key tenders in
the region continue to progress, with some modest delays. More broadly, in our
view, recent events have strengthened the longer-term outlook for the sector
providing for a higher oil price and a renewed focus on energy security. Shallow
-water basins continue to represent an attractive resource, offering low-cost,
short-cycle barrels that enable our customers to respond rapidly to the market
backdrop. Due to the planning and budgeting processes of our customers, we
expect that improved activity and dayrates will lag the oil price development by
6 to 12 months, as evidenced after the military invasion of Ukraine, when
dayrates strongly increased. Therefore, we are increasingly confident about the
Company's prospects for 2027 and 2028 as we expect the disruptions from the
conflict in the Middle East to be both substantial and long lasting. With this
backdrop, Borr Drilling's expanded fleet is well placed to support our
customers' demand and deliver long-term shareholder value as the cycle
develops."

Conference Call

A conference call and webcast are scheduled for 09:00 New York time (15:00 CEST)
on Thursday, May 21, 2026.

In order to listen to the live presentation, participants may do one of the
following:

a)    Webcast

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Participants are encouraged to dial in 10 minutes before the start of the call.

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

More information:
Access the news on Oslo Bors NewsWeb site

674049_Borr_Drilling_Limited_Q1_2026_Earnings_Release.pdf
674049_Borr_Drilling_Limited_Q1_2026_Fleet_Status_Report.pdf