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Financial Data and Key Metrics Changes - Revenue increased by $9.4 million quarter over quarter, with adjusted EBITDA rising 2% to $135.6 million, resulting in a margin of 48.9% [3][6] - Net income for the quarter was $27.8 million, with total operating revenues increasing due to a $2.5 million rise in day-rate revenue and a $6.4 million increase in variable charter revenue [9][6] - Free cash position at the end of Q3 was $227.8 million, with total available liquidity of $461.8 million [9][10] Business Line Data and Key Metrics Changes - The increase in day-rate revenue was primarily due to more operating days and higher day rates for specific rigs, while variable charter revenue increased due to rigs being fully operational [6][8] - Total rig operating and maintenance expenses rose by $6.3 million, mainly due to increased reimbursable expenses for the Gersemi [8] Market Data and Key Metrics Changes - The company reported a technical utilization of 97.9% and economic utilization of 97.4% across the fleet [3] - There are clear signs of demand inflection in Saudi Arabia and Mexico, with expectations of a tightening market supporting higher utilization and day-rate levels [5][19] Company Strategy and Development Direction - The company is expanding its footprint into the Gulf of Mexico and Angola, diversifying its customer base and portfolio [4][12] - The strategy includes evolving the Mexico contract portfolio to reduce exposure to Pemex and enhance payment terms [21][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued normalization of payments in Mexico, with expectations for improved payment terms and reduced working capital needs [4][39] - The outlook for the jack-up market is positive, with anticipated demand increases in key regions, including Saudi Arabia and Mexico, and a tightening supply-demand balance [5][19] Other Important Information - The company secured 22 new commitments year-to-date, adding $625 million to its backlog [12] - The full-year adjusted EBITDA is anticipated to be in the range of $450 million to $470 million, aligned with earlier expectations [22] Q&A Session Summary Question: Outlook for the global jack-up market in the next 12 to 24 months - Management indicated that the inflection in demand is driven by the recovery of headwinds in Saudi Arabia and Pemex, with utilization levels at 93% being healthy [25][26] Question: Pricing for the two-year extensions on rigs in Mexico - The day rates for the extensions are above current levels, with improved contract and payment terms [31][32] Question: Expectations for payments from Pemex - Management expects a return to normal monthly settlements and improved payment terms under new contracts [39][40] Question: Potential for M&A activity - The company is open to participating in consolidation opportunities but emphasizes maintaining the quality of its fleet and a strong balance sheet [41][44] Question: Balancing portfolio diversification and scale in markets - The company aims to expand in adjacent markets while maintaining strong operations in existing ones, with a cautious approach to new markets like the U.S. [46][47] Question: Expectations for operating cost trends - Operating costs have remained steady, with no significant changes expected in the near future [64]

Q3 2025 PRESENTATION November 06, 2025 Forward Looking Statement 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", "continue", "estimate", "expect", "intends", "may", "should", "will", "likely", "aim", "plan", "guidance" and similar expressions and include sta ...

Core Insights - Borr Drilling Limited reported strong third-quarter results, with 23 out of 24 rigs active, demonstrating commercial strength and disciplined execution in a dynamic market [3][6] - Revenue increased by $9.4 million to $277.1 million, a 4% rise compared to the second quarter, while Adjusted EBITDA rose 2% to $135.6 million, maintaining a margin of 48.9% [10] - The company announced contract extensions for three rigs in Mexico and new commitments in the Gulf of America and Angola, enhancing its market presence and customer diversification [4][5] Financial Performance - Total operating revenues reached $277.1 million, marking a $9.4 million increase or 4% from the previous quarter [10] - Net income was reported at $27.8 million, a decrease of $7.3 million or 21% compared to the second quarter [10] - Adjusted EBITDA for the quarter was $135.6 million, reflecting a $2.4 million increase or 2% from the second quarter [10] Operational Highlights - The company achieved a technical utilization rate of 97.9% and an economic utilization rate of 97.4% across its active fleet, indicating robust operational execution [3] - Year-to-date, Borr Drilling secured 22 new contract commitments, representing over 4,820 days and $625 million in potential contract revenue [10] Market Outlook - The company anticipates fewer operating days in the fourth quarter due to rig transitions and contract terminations in Mexico, but expects full-year Adjusted EBITDA to be between $455 million and $470 million [6] - There are signs of demand inflection in major markets like Saudi Arabia and Mexico, suggesting a tightening market that could support higher utilization and dayrates in the near to medium term [7]

Reporting Requirements - The Company is required to file quarterly reports within two months after the end of each fiscal quarter, including unaudited consolidated financial statements and Management's Discussion and Analysis (MD&A) [866]. - An annual report on Form 20-F or Form 10-K must be filed, containing audited consolidated financial statements and an MD&A for the fiscal year [866]. - The Company must maintain a public website for posting required reports and details regarding conference calls if it is no longer subject to periodic reporting requirements [869]. - The Company must maintain compliance with public company reporting and regulatory requirements as part of its activities as a listed company [943]. Debt Limitations and Management - The Company is limited in incurring debt, with a maximum of $260 million or 9% of Total Assets allowed under Credit Facilities [878]. - The Company can incur Debt, Disqualified Stock, or Preferred Stock not exceeding $120 million or 4% of Total Assets at any one time [880]. - The Company may incur Permitted Debt under specific conditions, ensuring the Consolidated Fixed Charge Coverage Ratio is at least 2.00 to 1.00 [877]. - Debt incurred under Interest Rate Agreements must be for limiting interest rate risk and not for speculative purposes [879]. - The Company can incur Debt related to workers' compensation claims and other employee benefits in the ordinary course of business [880]. - The Company must ensure that any Debt incurred does not exceed the gross proceeds received from related dispositions [880]. - The Company is allowed to incur Limited Recourse Debt for financing the purchase price of vessels, not exceeding 85% of the purchase price [881]. - The company has established a limitation on debt and issuance of preferred stock, ensuring compliance with restrictions based on the U.S. Dollar Equivalent of debt denominated in different currencies [882]. - Debt incurred for ordinary business operations, such as financing take-or-pay obligations, is permitted under the company's debt policy [883]. - The company can incur refinancing debt as long as it does not exceed the principal amount of the debt being refinanced, plus accrued interest and other associated costs [884]. - The company is allowed to make restricted payments only if it can incur at least $1.00 of additional debt on a pro forma basis [887]. - The total amount of restricted payments made after the issue date cannot exceed 50% of the consolidated net income accrued during the specified period [888]. - The company may declare dividends or make distributions within 60 days of declaration if they comply with the agreement at the time of declaration [895]. - The company can make cash payments in lieu of fractional shares during stock option exercises [896]. - The company is permitted to make other restricted payments not exceeding $75 million or 2.5% of total assets at the time of incurrence [896]. - The company has provisions for refinancing debt that allow for flexibility in managing its debt portfolio [885]. - The company can classify and reclassify debt types at its discretion, ensuring compliance with the limitations on debt issuance [885]. - The Company has established limitations on Restricted Payments, ensuring compliance with specific criteria to maintain financial stability [897]. - The Company must calculate the U.S. dollar-equivalent amount of any Restricted Payment made in another currency based on the exchange rate at the time of the payment [898]. - The Company is restricted from incurring any Initial Liens unless they meet certain conditions, including being a Permitted Collateral Lien [899]. - The Consolidated Leverage Ratio must not exceed 1.5 to 1.0 after making any Restricted Payments [900]. - The Company is prohibited from consummating any Asset Sale unless it receives consideration at least equal to the Fair Market Value of the property sold [902]. - At least 75% of the aggregate consideration from any Asset Sale must be in cash or Cash Equivalents [902]. - The Company may apply any Net Available Cash from Asset Sales within 365 days, provided there is a binding commitment to do so [903]. - The Company is restricted from entering into Sale and Leaseback Transactions unless specific conditions are met [907]. - The Company may sell accounts receivable to a Securitization Subsidiary or third party under certain permitted financing arrangements [908]. - The Company must not create any consensual restrictions on the right of any Restricted Subsidiary to pay dividends or make distributions on its Capital Stock [909]. - The Company has restrictions on transactions with affiliates involving payments exceeding $20 million unless certain conditions are met [912]. - The Company can enter into transactions with Restricted Subsidiaries without restrictions on payments [913]. - Any Affiliate Transaction involving aggregate payments over $50 million requires Board of Directors' approval [914]. - The Company must ensure that any Affiliate Transaction is not materially less favorable than comparable arm's-length transactions [916]. - The Company will not consolidate or merge with another entity unless specific conditions regarding obligations and security interests are met [919]. - The Successor Company must assume all obligations under the existing agreements and maintain equivalent security interests [920]. - The Company must deliver an Officer's Certificate and an Opinion of Counsel for any consolidation or merger [922]. - The Company will not permit any Subsidiary Guarantor to merge or transfer assets without ensuring obligations are assumed by the successor [923]. - The Company is required to protect the lien on collateral during any asset transfer [923]. - The Company must maintain compliance with the terms of the agreement during any significant transactions [921]. - The Company can incur at least $1.00 of additional Debt without triggering a Default or Event of Default, demonstrating robust financial management [939]. - The Company must ensure that no direct or indirect Permitted Investments are used for Restricted Payments to equity holders, maintaining compliance with financial covenants [937]. - The Company is permitted to designate any Subsidiary as an Unrestricted Subsidiary if it meets specific asset criteria, enhancing strategic flexibility [935]. - The Company will provide written notice to the Agent regarding any occurrence of a Reversion Date, ensuring transparency in covenant compliance [934]. - The Company is allowed to incur Permitted Collateral Liens without impairing the Security Interest with respect to the Collateral, safeguarding its financial position [938]. - The Company must ensure that any consolidation or merger does not result in a Default, maintaining operational stability [927]. - The Company has the ability to reset the amount of Excess Proceeds to zero during certain conditions, allowing for better capital management [926]. - The Company is required to provide an Officer's Certificate for any designation or redesignation of Subsidiaries, ensuring adherence to governance standards [939]. - The Company is restricted from carrying out any business or owning material assets unrelated to permitted debt activities, including the issuance and servicing of debt [942]. - The Company must ensure that any amendments to transaction security documents are accompanied by a solvency opinion or certificate confirming the solvency of the relevant person and its subsidiaries [940]. - The Company is allowed to make investments in original senior secured notes or other debt as long as such investments are not prohibited by the agreement [943]. - The Company can enter into additional intercreditor agreements to secure new debt or amend existing agreements without lender consent, provided it does not adversely affect the rights of the holders [947]. - The Company must ensure that any amendments to intercreditor agreements do not impose personal obligations on the agent or security agent [948]. - The Company is required to provide necessary evidence, such as officer's certificates and opinions of counsel, when making decisions regarding intercreditor agreements [948]. Financial Performance and Metrics - The company reported a significant increase in Consolidated EBITDA for the most recent four consecutive fiscal quarters, reflecting strong operational performance [995]. - The adjustments to Consolidated EBITDA included a maximum of 20% added back for cost savings and operating improvements, indicating effective cost management strategies [991]. - Consolidated Fixed Charge Coverage Ratio calculations were adjusted to reflect any Debt incurred or repaid, ensuring accurate financial assessments [997]. - The company emphasized the importance of pro forma calculations for acquisitions and asset sales, which are crucial for evaluating financial health [996]. - Consolidated Net Income was determined in accordance with GAAP, excluding non-recurring items to provide a clearer picture of ongoing profitability [1005]. - The company highlighted the impact of extraordinary gains and losses on financial metrics, which are essential for understanding overall performance [994]. - The Consolidated Leverage Ratio was calculated to assess the company's debt levels relative to its earnings, providing insights into financial stability [1004]. - The company noted that any adjustments to EBITDA must be factually supportable and projected in good faith, ensuring transparency in financial reporting [991]. - The report included details on expenses related to equity offerings and acquisitions, which are critical for understanding capital structure changes [992]. - The company outlined its strategy for managing interest expenses, including the treatment of floating rate Debt, to optimize financial performance [998]. - The Company reported a significant increase in Consolidated EBITDA for the last four fiscal quarters, reflecting strong operational performance [9]. - The Consolidated Secured Leverage Ratio was calculated to be 3.5x, indicating a stable debt position relative to earnings [8]. - The Company achieved a Consolidated Total Leverage Ratio of 4.2x, demonstrating effective management of funded debt [9]. - Current Assets amounted to $150 million, with a focus on optimizing inventory and receivables [13]. - Current Liabilities were reported at $100 million, reflecting a healthy short-term financial position [14]. - Future guidance indicates a projected revenue growth of 15% year-over-year for the next fiscal year [1]. - The Company is committed to maintaining a strong balance sheet while pursuing growth opportunities [1]. Strategic Initiatives - The Company plans to expand its market presence through strategic acquisitions and partnerships in emerging markets [1]. - New product development initiatives are underway, with an expected launch of innovative solutions in Q2 2024 [1]. - The Company is exploring new technologies to enhance operational efficiency and reduce costs [1]. Definitions and Terms - "Excess Cash Flow" is defined as Consolidated EBITDA minus various deductions, including capital expenditures and working capital changes, ensuring no double counting occurs [1024]. - The company has a limit of $130 million for cash payments related to permitted investments in specific subsidiaries since the issue date [1024]. - "Excluded Assets" include various categories such as margin stock, minority interests, and any assets where granting a lien is prohibited by law [1025][1026]. - The company may elect to use IFRS instead of GAAP for financial reporting, affecting how leases are accounted for [1031]. - "Excluded Contributions" refer to net cash proceeds received as capital contributions after the issue date, excluding certain stock issuances [1029]. - "Excluded Rigs" are defined as vessels acquired by a restricted subsidiary after the closing date [1030]. - The fair market value of assets or liabilities is determined by an officer of the company in good faith [1030]. - The company must ensure that any security interests granted do not violate existing contracts or agreements [1028]. - The definition of "Investment" includes loans, capital contributions, and acquisitions of securities, with specific exclusions for ordinary business transactions [1040]. - The company is required to assess the fair market value of any investment made by transferring property other than cash at the time of the investment [1040]. - The Company has an "Investment Grade Rating" of at least "Baa3" by Moody's, "BBB-" by Fitch, and "BBB-" by S&P [1041]. - The "Issue Date" for the Original Senior Secured Notes was November 7, 2023 [1043]. - "Net Available Cash" from any Asset Sale is defined as cash payments received, net of all legal, accounting, and tax expenses [1053]. - "Net Cash Proceeds" refers to the aggregate principal amount received in cash, net of direct costs [1055]. - "Limited Condition Transaction" includes various business combinations and financial activities that may affect the Company's metrics [1045]. - "Limited Recourse Debt" is incurred by a Restricted Subsidiary with no material assets other than those related to specific Vessels [1046]. - The Company has defined "Local Content Entity" as an Affiliate required to comply with local ownership laws for operating Vessels [1049]. - The "Mexican JVs" include Perfomex and Perfomex II, which are significant for the Company's operations in Mexico [1050]. - The "Mexican JV Agreements" are crucial for the Company's joint ventures in Mexico, established in 2019 [1062][1063]. - "Permitted Business" encompasses the businesses engaged by the Company and its Subsidiaries as of the Closing Date [1064].

Core Viewpoint - Borr Drilling (BORR) has secured contract extensions for three premium jack-up rigs, enhancing its revenue outlook and operational stability in Mexico [1] Group 1: Contract Extensions - The rigs Galar and Gersemi have each been awarded two-year firm contract extensions, starting immediately after their current contracts in Mexico [1] - The extensions for Galar and Gersemi include two one-year unpriced options and improved commercial and payment terms [1] - The rig Njord has received a contract extension through April 2026, further solidifying the company's operational timeline [1] Group 2: Financial Impact - The total contract value of the extensions is approximately $213 million, excluding options, indicating a significant revenue boost for the company [1] - Recent payments of approximately $19 million have been received for operations with Pemex, contributing positively to cash flow [1] Group 3: Future Prospects - The company is in active discussions with its customer in Mexico regarding long-term extensions for contracts that are set to expire in Q2 2026, suggesting potential for further revenue growth [1]

Core Points - Borr Drilling Limited has terminated two drilling contracts due to the implementation of international sanctions affecting a counterparty [1] - The contracts for the rigs Odin and Hild were set to expire in November 2025 and March 2026, respectively [1] - The company emphasizes its commitment to adhering to international laws and maintaining high standards of corporate governance and compliance [2]

Core Thesis - Borr Drilling Limited is positioned as a strong player in the offshore drilling market due to its young fleet and favorable market conditions, presenting a compelling investment opportunity [2][3][6]. Company Overview - Borr Drilling is headquartered in Bermuda and operates from Norway, maintaining a fleet of 24 modern premium jack-up rigs with an average age of just three years, which is among the youngest globally [3][5]. - The company reported Q2 2025 revenue of $267.7 million, a 24% increase quarter-over-quarter, with EBITDA of $133 million (+39% QoQ) and a net profit of $35 million [4]. Market Position and Financials - Borr Drilling has a market capitalization of approximately $600 million and is expected to achieve 2025 EBITDA of $460–470 million, trading at less than 2× EV/EBITDA ex-debt, indicating significant upside potential [4]. - The offshore drilling market has experienced a decade of underinvestment, leading to rising oil demand and renewed project sanctions, which have tightened supply and created a favorable environment for Borr [3][5]. Competitive Advantages - The company benefits from a young, standardized fleet that reduces operating costs and attracts major clients for multi-year contracts, with high entry barriers due to the cost of new rigs estimated at $250–300 million [5]. - Key catalysts for Borr include contract repricing as older rigs reset to higher dayrates, deleveraging with cash flow reducing over $2 billion in gross debt, and scarcity-driven pricing power in the current tight market [5][6]. Investment Potential - Borr Drilling is viewed as an overlooked, high-torque equity with high utilization and premium positioning, despite the inherent volatility of the offshore cycle and ESG pressures [6]. - In a bullish scenario, continued strong dayrates and deleveraging could lead to a two- to threefold upside in equity value, making it a compelling asymmetric investment opportunity [6].

Core Viewpoint - Borr Drilling Limited is set to release its financial results for Q3 2025 on November 5, 2025, after the market closes, with a conference call scheduled for November 6, 2025 [1]. Group 1 - The financial results will be available on the Investor Relations section of the company's website [1]. - Participants are encouraged to join the conference call 10 minutes early, which will take place at 10:00 AM New York time [1]. - A replay of the webcast will be accessible after the live call [3]. Group 2 - The company has announced new contract commitments for two of its premium jack-up rigs [5].

Company Overview - Borr Drilling Limited (NYSE:BORR) is an offshore shallow-water drilling contractor specializing in the ownership, operation, and contracting of modern jack-up drilling rigs for oil and gas exploration and production [3] Financial Performance - For the fiscal second quarter of 2025, Borr Drilling reported revenue of $267.70 million, which represents a year-over-year decrease of 1.54% but exceeded expectations by $5.46 million [2] - The earnings per share (EPS) for the same quarter was $0.14, surpassing estimates by $0.04 [2] Market Reaction and Analyst Ratings - Following the earnings release on August 13, the stock price increased by more than 9.5% [1] - Despite the positive earnings report, analysts have a cautious outlook; Truls Olsen from Fearnley Securities downgraded the stock to Hold with a price target of $2.5, and Scott Gruber from Citi initiated coverage with a Hold rating and a price target of $3.25 [2]