Core Viewpoint - Borr Drilling Limited plans to raise $100 million through a public offering of approximately 50 million shares for general corporate purposes [1] Group 1: Offering Details - The offering will be conducted under an effective shelf registration statement filed with the SEC on April 11, 2025 [3] - The offering is expected to include two settlements: 30 million shares on July 7, 2025, and 20 million shares on August 7, 2025, contingent on a special general meeting [4] - Certain officers and directors of the Company, including Mr. Tor Olav Trøim, Mr. Patrick Schorn, and Mr. Bruno Morand, have indicated intentions to purchase shares totaling $11.3 million [5] Group 2: Underwriters - DNB Carnegie, Clarksons Securities, Citigroup, and Goldman Sachs & Co. LLC are the joint bookrunners for the offering [2]

Core Insights - Borr Drilling Limited has secured new contract commitments for four premium jack-up rigs, increasing the total number of contracted rigs to 23 out of a fleet of 24 [1] - The new contracts have a combined duration of approximately 1,300 days and are expected to generate over $129 million in revenue, enhancing revenue visibility and contract coverage [2] Contract Details - In the Middle East, the rig 'Arabia II' has received a binding Letter of Award for a contract starting in September 2025, with a firm duration of 500 days and an additional 200-day unpriced option [3] - In Southeast Asia, rigs 'Thor' and 'Gunnlod' have secured contracts with estimated durations of 240 days and 100 days respectively, both including fixed priced optional wells [4] - In Mexico, the rig 'Odin' is transitioning to a 60-day accommodation program after a temporary suspension, with options for drilling works extending the contract through Q2 2026 [5] Year-to-Date Performance - Year to date 2025, the company has secured 13 new commitments totaling 3,010 potential contract days and $366 million in potential contract revenues [6]

Fleet and Operations - The company has a modern jackup fleet with an average age of approximately 6 years[7] - The fleet utilization is at 100%[7] - The company's Q2 2023 Adjusted EBITDA margin was 45%[7] - The company's contract backlog is $1.83 billion[7] - The company's Q2 2023 technical uptime was 98.7%[37] Market Dynamics - Modern jackup rig utilization is back at 2014 levels, reaching 93.7%[13] - Over 30% of the global jackup fleet is over 30 years old, with over 150 jackups retired since 2015, averaging 38 years of age at retirement[18] - The orderbook for new jackup rigs is at a record low, representing approximately 3% of the total fleet[22] Financial Outlook - The company has 75% contract coverage for 2024 at an average dayrate of $129k/day[29] - The company has 53% contract coverage for 2025 at an average dayrate of $130k/day[29] - The company has 18% contract coverage for 2026-2028 at an average dayrate of $125k/day[29]

Group 1 - Borr Drilling Limited is an offshore drilling services company specializing in shallow water oil and gas exploration with a modern fleet of jack-up rigs [1] - The company operates globally, with a particular focus on the Latin American market [1] Group 2 - The article expresses a positive outlook on Borr Drilling Limited, highlighting its potential for growth and investment opportunities [2]

Financial Performance - Q1 2025 Adjusted EBITDA reached $96.1 million, with an Adjusted EBITDA margin of 44.4%[8] - Total operating revenues for Q1 2025 were $216.6 million, a decrease of $46.5 million or 18% compared to $263.1 million in Q4 2024[13] - Net loss for Q1 2025 was $16.9 million, compared to a net income of $26.3 million in Q4 2024, representing a 164% change[13] Fleet and Contract Coverage - The company has 24 modern rigs in its fleet, with 22 rigs currently active[8] - Contract coverage for 2025 is at 79% with an average day rate of $147,000[8] - The company anticipates increasing contract coverage to 80-85% for the full year 2025[25] Liquidity and Debt - The company's liquidity stands at $320 million, including an undrawn revolving credit facility (RCF) of $150 million[8, 9] - Debt amortization is $135 million per annum[8] Market and Outlook - The company is on track to deliver a 2025 consensus Adjusted EBITDA of $460 million[25] - The company added $221 million in backlog revenue with 9 new commitments[16] - Average day rate for year-to-date 2025 contracting stats is $141,000[16]

Financial Data and Key Metrics Changes - Total operating revenue decreased by $46.5 million quarter over quarter, resulting in adjusted EBITDA of $96.1 million for the period [5][10] - The net loss for the first quarter was $16.9 million, a decrease of $43.2 million compared to the net income in the fourth quarter [12] - Free cash position at the end of Q1 was $170 million, with total available liquidity of $320 million [12][13] Business Line Data and Key Metrics Changes - Average active rigs decreased to 16 out of a 24 rig fleet during the quarter, but operational performance remained strong with technical utilization at 99.2% and economic utilization at 97.9% [5][10] - Day rate revenues decreased by $22.6 million, primarily due to a decrease in the number of operating days for certain rigs, partially offset by an increase in operating days for others [10][11] - Bareboat charter revenue decreased by $17.9 million due to the temporary suspension of certain rigs [11] Market Data and Key Metrics Changes - The operating rig count increased to 22 in May, laying the foundation for stronger financial performance in upcoming quarters [6][18] - The 2025 fleet coverage now stands at 79% at an average day rate of $147,000, with expectations to rise to 80% to 85% in the coming months [19][25] - Jackup utilization remains steady at 92%, with modern rig market utilization just under 90% [20][21] Company Strategy and Development Direction - The company is focusing on increasing activity in 2026, with commercial efforts now increasingly directed towards that year [8][9] - The Board decided to suspend the dividend to reinforce the balance sheet and enhance long-term value creation [9][27] - The company aims to maximize the 2025 backlog while building coverage for 2026, indicating a resilient business model despite short-term uncertainties [24][27] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty in the market, the long-term fundamentals for the jackup market remain strong [24] - The company is actively monitoring macroeconomic developments and customer sentiments regarding drilling programs [37][38] - There is optimism regarding contract extension opportunities in Mexico, with expectations for Pemex to return to regular payment schedules [33][55] Other Important Information - The company received several industry awards for outstanding safety performance during the quarter [5][6] - Recent fixtures indicate that Aramco may be preparing to secure additional long-term jackup capacity [22][23] Q&A Session Summary Question: Resumption of operations for suspended rigs in Mexico - Management indicated that the resumption is due to a combination of Pemex's realization of the need for increased activity and the quality of the company's rigs [31][32] Question: Uncertain market conditions and dividend suspension - Management explained that the decision to suspend dividends is a precautionary measure due to macroeconomic uncertainties and customer caution [35][38] Question: Visibility on contract extensions and rig options - Management expressed optimism about contract extension opportunities in Mexico, with discussions ongoing with Pemex [33][34] Question: Liquidity situation and potential use of RCF - Management stated that the liquidity position is solid, with no immediate plans to draw on the RCF unless payment delays occur [55][56] Question: Backlog and termination clauses - Management confirmed that most contracts include termination for convenience clauses with payout levels that protect the backlog [80][82] Question: CapEx guidance - Management indicated expected maintenance CapEx of around $50 million for 2025, equating to approximately $2 million per rig [84]

[Management Discussion and Analysis of Financial Condition and Results of Operation](index=7&type=section&id=Management%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operation) This section provides an overview of Borr Drilling's business, recent operational and financial performance, liquidity, and capital resources for the first quarter of 2025 [Overview](index=7&type=section&id=Overview) Borr Drilling is an offshore shallow-water drilling contractor that owns, contracts, and operates a fleet of jack-up rigs for the oil and gas industry, with 24 premium jack-up rigs as of March 31, 2025 - The company's **primary business** is the ownership, contracting, and operation of jack-up rigs for shallow-water operations (up to 400 feet)[18](index=18&type=chunk) - As of March 31, 2025, Borr Drilling's fleet comprised **24 premium jack-up rigs**[18](index=18&type=chunk) [Recent Developments](index=7&type=section&id=Recent%20Developments) In the first quarter of 2025, the company executed several key operational and corporate actions, including commencing a new contract for the 'Vali' rig, receiving notice to re-mobilize three previously suspended rigs in Mexico, and cancelling a significant number of treasury shares - In March 2025, the company cancelled **19,680,391 treasury shares** related to a share lending agreement[19](index=19&type=chunk) - The **'Vali' rig** commenced its first contract in March 2025 after being delivered in August 2024[20](index=20&type=chunk) - In April 2025, the company received notice to re-mobilize the rigs **'Galar', 'Grid', and 'Gersemi'**, which had been on temporary suspension in Mexico[20](index=20&type=chunk) [Operating and Financial Review](index=7&type=section&id=Operating%20and%20Financial%20Review) For the first quarter of 2025, Borr Drilling reported a net loss of $16.9 million, a significant downturn from a net income of $14.4 million in the same period of 2024, driven by a 7% decrease in total operating revenues and a 5% increase in total operating expenses, with Adjusted EBITDA also decreasing by 18% to $96.1 million Selected Financial Information (Q1 2025 vs Q1 2024) | In $ millions | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | 216.6 | 234.0 | (17.4) | (7)% | | **Operating income** | 60.2 | 85.0 | (24.8) | (29)% | | **(Loss) / income from equity method investments** | (1.8) | 5.4 | (7.2) | (133)% | | **Total financial expenses, net** | (62.7) | (57.8) | (4.9) | 8% | | **Net (loss) / income** | (16.9) | 14.4 | (31.3) | (217)% | - Total operating revenues decreased by **$17.4 million**, mainly due to a **$24.4 million** drop in related party revenue and a **$3.7 million** decrease in bareboat charter revenue, as three rigs were on temporary suspension, partially offset by a **$6.8 million** increase in management contract revenue and a **$3.9 million** rise in dayrate revenue[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Rig operating and maintenance expenses rose by **$5.8 million**, partly because expenses for certain rigs previously recognized in equity method investments are now recognized directly by the company following contract restructuring and suspensions[28](index=28&type=chunk) Adjusted EBITDA Reconciliation (Q1 2025 vs Q1 2024) | In $ millions | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Net (loss) / income** | (16.9) | 14.4 | (31.3) | (217)% | | Depreciation of non-current assets | 35.9 | 31.8 | 4.1 | 13% | | Loss / (Income) from equity method investments | 1.8 | (5.4) | 7.2 | (133)% | | Total financial expenses, net | 62.7 | 57.8 | 4.9 | 8% | | Income tax expense | 12.6 | 18.2 | (5.6) | (31)% | | **Adjusted EBITDA** | **96.1** | **116.8** | **(20.7)** | **(18)%** | [Liquidity and Capital Resources](index=10&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $170.0 million in cash and cash equivalents, with total principal debt at $2,179.6 million, while net cash from operating activities substantially increased to $138.7 million primarily due to working capital movements including large cash settlements from Mexico operations, and the company continued its cash distributions to shareholders - As of March 31, 2025, the company had **$170.0 million** in cash and cash equivalents and total principal debt outstanding of **$2,179.6 million**[36](index=36&type=chunk)[38](index=38&type=chunk) Cash Flow Summary (Q1 2025 vs Q1 2024) | In $ millions | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 138.7 | 23.9 | 114.8 | 480% | | Net cash used in investing activities | (25.1) | (18.7) | (6.4) | 34% | | Net cash (used in) / provided by financing activities | (4.9) | 175.2 | (180.1) | (103)% | | Net increase in cash and cash equivalents | 108.7 | 180.4 | (71.7) | (40)% | - The significant increase in net cash from operating activities was primarily due to working capital movements, including approximately **$117 million** in cash settlements from Mexico operations[42](index=42&type=chunk) Recent Cash Distributions | Date of Cash Distribution Declaration | Date of Payment to Shareholder | Cash Distribution per Share ($) | | :--- | :--- | :--- | | February 19, 2025 | March 19, 2025 | $0.02 | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes Adjusted EBITDA, a non-GAAP financial measure, to enhance comparability of its underlying business performance, defined as net income adjusted for depreciation, income/loss from equity method investments, net financial expenses, and income tax expense Definition of Adjusted EBITDA | Non-GAAP Measure | Closest Equivalent to GAAP Measure | Definition | | :--- | :--- | :--- | | Adjusted EBITDA | Net (loss) / income | Net (loss) / income adjusted for: depreciation of non-current assets; (loss) / income from equity method investments; total financial expenses, net; and income tax expense. | - Management believes **Adjusted EBITDA** improves period-to-period comparability and is representative of underlying performance, though it has limitations such as not reflecting cash requirements for capital expenditures, debt service, or taxes[45](index=45&type=chunk)[47](index=47&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's unaudited financial statements, including statements of operations, balance sheets, cash flows, and detailed notes for the first quarter of 2025 [Unaudited Condensed Consolidated Statements of Operations](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, the company reported total operating revenues of $216.6 million and a net loss of $16.9 million, a significant shift from the same period in 2024, which saw revenues of $234.0 million and a net income of $14.4 million, resulting in a basic and diluted loss per share of $0.07 for Q1 2025 Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | In $ millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Total operating revenues** | **216.6** | **234.0** | | Operating income | 60.2 | 85.0 | | Total financial expenses, net | (62.7) | (57.8) | | (Loss) / income before income taxes | (4.3) | 32.6 | | Income tax expense | (12.6) | (18.2) | | **Net (loss) / income** | **(16.9)** | **14.4** | | **Basic (loss) / income per share** | **(0.07)** | **0.06** | | **Diluted (loss) / income per share** | **(0.07)** | **0.06** | [Unaudited Condensed Consolidated Balance Sheets](index=15&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Borr Drilling's balance sheet showed total assets of $3,402.2 million and total liabilities of $2,427.3 million, resulting in total equity of $974.9 million, with cash and cash equivalents increasing significantly to $170.0 million from $61.6 million at year-end 2024, while total debt remained relatively stable Condensed Consolidated Balance Sheet Highlights | In $ millions | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | 170.0 | 61.6 | | Total current assets | 516.9 | 516.6 | | Jack-up drilling rigs, net | 2,806.5 | 2,823.2 | | **Total assets** | **3,402.2** | **3,419.6** | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | 412.4 | 409.6 | | Long-term debt | 1,996.6 | 1,992.5 | | **Total liabilities** | **2,427.3** | **2,426.3** | | **Total equity** | **974.9** | **993.3** | | **Total liabilities and equity** | **3,402.2** | **3,419.6** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=16&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, the company generated a robust $138.7 million in cash from operating activities, a sharp increase from $23.9 million in Q1 2024, with cash used in investing activities at $25.1 million and cash used in financing activities at $4.9 million, resulting in a net increase in cash and cash equivalents of $108.7 million, bringing the total to $171.2 million at the end of the period Condensed Consolidated Statements of Cash Flows (Q1 2025 vs Q1 2024) | In $ millions | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **138.7** | **23.9** | | Net cash used in investing activities | (25.1) | (18.7) | | Net cash (used in) / provided by financing activities | (4.9) | 175.2 | | **Net increase in cash, cash equivalents and restricted cash** | **108.7** | **180.4** | | Cash, cash equivalents and restricted cash at the end of the period | 171.2 | 283.0 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the accounting policies and financial figures presented, including the company operating as a single segment, a geographic revenue breakdown, specifics on debt instruments and maturities, related party transactions with the Mexico JV, and changes to share capital, including a significant cancellation of treasury shares - **Note 4:** The company operates as a **single reportable segment**, with major customers in Q1 2025 including **ENI S.p.A (23% of operating revenues)** and **PTT Exploration and Production (14%)**[69](index=69&type=chunk)[71](index=71&type=chunk) - **Note 6:** The company's Mexico operations were restructured, with bareboat charters with the Perfomex JV terminated and replaced with new agreements with an external party effective January and April 2024, and three rigs under these new agreements temporarily suspended in January 2025, with notice to re-mobilize received in April 2025[82](index=82&type=chunk)[85](index=85&type=chunk) - **Note 9:** Bermuda enacted a **15% Corporate Income Tax** effective January 1, 2025, with the company expecting to be in scope in 2026 but not anticipating a material short-term impact[90](index=90&type=chunk)[95](index=95&type=chunk) - **Note 17:** Total principal debt outstanding as of March 31, 2025, was **$2,179.6 million**, and the company was in compliance with all debt covenants[115](index=115&type=chunk)[119](index=119&type=chunk) - **Note 21:** In Q1 2025, the company cancelled **19,680,391 treasury shares** following its delisting from the Oslo Stock Exchange and subsequent amendments to its Share Lending Agreement[131](index=131&type=chunk)[133](index=133&type=chunk)

Company Information - Borr Drilling Limited (NYSE: BORR) plans to release its financial results for the first quarter of 2025 after the close of the New York Stock Exchange on May 21, 2025 [1] - A conference call and webcast is scheduled for 9:00 AM New York Time (15:00 CET) on May 22, 2025, with participants encouraged to dial in 10 minutes before the start [1] Access Information - The earnings report, webcast, and accompanying presentation will be available from the Investor Relations section on the company's website [2] - Participants can access the webcast through a provided link or register for the conference call to receive dial-in details [2] Replay Information - After the call, participants can stream the replay of the call using a specified link [3] - Questions regarding the event can be directed to Magnus Vaaler, CFO, at a provided contact number [3]

Core Viewpoint - Borr Drilling Limited has announced new contract commitments for three premium jack-up rigs and provided updates on its fleet operations, indicating a positive outlook for revenue and utilization in the upcoming quarters [1][8]. Contracting Updates - The "Thor" rig has received a binding Letter of Award from Vietsovpetro in Vietnam for three wells, with a duration of 75 days, starting in April 2025, and extending its contract through September 2025 [3]. - The "Gerd" rig secured a one-year contract from Foxtrot in Ivory Coast, set to begin in late Q4 2025 [4]. - The "Norve" rig has received a Letter of Award for an 11-month campaign from an undisclosed operator, expected to start in the second half of 2026, pending Final Investment Decision in Q2 2025 [4]. Fleet Developments - In Mexico, the company has received re-mobilization requests for the "Galar," "Grid," and "Gersemi" rigs, with operations expected to resume in Q2 2025 after being suspended [5]. - The "Arabia I" and newbuild "Vali" rigs have commenced earning day rate revenues under long-term contracts with Petrobras in Brazil and Mellitah Oil and Gas in Libya, respectively, leading to approximately $48 million in lump-sum mobilization revenues [6]. Financial Implications - The new awards for the "Thor," "Gerd," and "Norve" rigs are expected to have a combined duration of 774 days and generate estimated contract revenues of around $120 million, excluding mobilization and demobilization fees [8]. - With the resumption of operations for six previously idle rigs, the company anticipates significant improvements in utilization, revenue, and EBITDA starting in Q2 2025 and beyond [8].

Core Points - Borr Drilling Limited filed its Annual Report on Form 20-F for the year ended December 31, 2024 [1] - The 2024 Annual Report is available for download from the SEC's website and the company's website [1] Company Information - The filing date of the 2024 Annual Report is March 25, 2025 [1] - Contact information for inquiries is provided, including the CFO's name and phone number [2]