Borr Drilling Financial Dip as Expected
May 21, 2025
Borr Drilling reported a total operating revenue of $216.6 million for the first quarter, a decrease of $46.5 million compared to the fourth quarter of 2024.
The net loss of $16.9 million was a decrease of $43.2 million compared to the net income in the fourth quarter of 2024.
CEO, Patrick Schorn commented: "Our first-quarter results were largely as expected and impacted by temporary rig suspensions and preparations for upcoming contracts. During the quarter, we averaged 16 active rigs out of our 24-rig fleet. Despite the lower activity level, operational performance remained robust, with technical utilization at 99.2% and economic utilization at 97.9% for our active rigs — a reflection of the continued strength and efficiency of our operations.”
Several of the company’s rigs received industry and customer recognition for outstanding safety performance. The Groa was awarded Qatar Energy’s HSE Award for 2024, and Prospector 1 received the 2024 Best Safety Performance Award from the IADC North Sea Chapter. In Thailand, Borr Drilling received PTTEP’s CEO SSHE Excellence Award for the second consecutive year. “These achievements are a testament to the commitment and professionalism of our crews, and I congratulate and thank the entire team for their efforts,” said Schorn.
“Looking at the second quarter, we are seeing a meaningful ramp-up of activity. Three suspended rigs in Mexico have resumed operations, while the Vali and Arabia I have both commenced their contracts. In addition, the Thor and Ran have secured new contracts starting this quarter. As a result, our operating rig count has now increased to 22 — laying the foundation for stronger financial performance in the quarters ahead. Our liquidity position improved during the quarter, supported by the collection of approximately $120 million in outstanding receivables from Mexico and $10 million in mobilization fees for Vali. Following the quarter end, we received an additional $35 million in mobilization fees related to Vali and Arabia I.
“Recent contract awards for the Gerd, Norve, Thor, Ran, and Skald have brought our 2025 contract coverage to 79% at an average day rate of $147,000, which includes approximately 4.5% coverage related to the suspension period in Mexico. This compares to approximately 91% coverage in 2024 at average day rate of $136,000. While we continue to pursue several opportunities in 2025, our commercial efforts are now increasingly focused on 2026. Our rigs in Mexico represent a significant portion of our available days in 2026 and beyond. The combination of increased activity in Q2 and the advancement of private investment projects in Mexico are positive for future rig demand and extensions across our fleet in-country.”
