Borr Drilling Limited - Contracting Updates

Rhea-AI Summary

Borr Drilling Limited (NYSE: BORR) has announced new contract commitments for four of its premium jack-up rigs, bringing its total contracted fleet to 23 out of 24 rigs. The new contracts represent approximately 1,300 days of work with an estimated revenue of over $129 million.

The company has secured multiple regional contracts: In the Middle East, the 'Arabia II' received a 500-day contract starting September 2025 with a 200-day option. In Southeast Asia, the 'Thor' and 'Gunnlod' rigs secured contracts for 240 days and 100 days respectively, starting in late 2025. In Mexico, the 'Odin' rig received a 60-day accommodation program with additional drilling options through Q2 2026.

Year-to-date 2025, Borr Drilling has secured 13 new commitments totaling 3,010 potential contract days and $366 million in potential revenues. The company's contract coverage stands at 84% for 2025 with an average dayrate of $144,000, and 45% for 2026 at an average dayrate of $141,000.

Positive

• Secured contracts for 23 out of 24 rigs in fleet, representing 96% utilization
• New contracts worth over $129 million in estimated revenue
• 84% contract coverage for 2025 at strong average dayrate of $144,000
• Year-to-date secured $366 million in potential contract revenues
• Diversified regional presence with contracts in Middle East, Southeast Asia, and Mexico

Negative

• One rig 'Odin' received 30-day temporary suspension from PEMEX
• Contract coverage drops to 45% for 2026
• Lower average dayrate of $141,000 for 2026 compared to 2025

Insights

Offshore Drilling Industry Analyst

Borr secures $129M in new contracts for 4 rigs, bringing fleet utilization to 96% with improved revenue visibility through 2026.

Borr Drilling's latest contract announcements represent a significant strengthening of its market position in the jack-up segment. The company has secured commitments for four additional premium jack-up rigs, bringing its contracted fleet to 23 out of 24 rigs – an impressive 96% utilization rate that exceeds industry averages. These new awards add approximately 1,300 contract days with estimated revenue exceeding $129 million.

The contract developments improve Borr's forward visibility substantially, with coverage increasing to 84% for 2025 at an average dayrate of $144,000 and 45% for 2026 at $141,000. These rates reflect continued strength in the premium jack-up market despite some regional variations.

Particularly noteworthy is Borr's strategic pivot in Mexico, where 4 of 7 rigs are now committed to independent operators rather than PEMEX, demonstrating adaptability amid changing market conditions. The temporary suspension of the Odin rig followed by securing alternative work highlights management's operational agility.

Year-to-date performance is equally impressive, with 13 new commitments secured in 2025, representing 3,010 potential contract days and $366 million in potential revenues including firm terms and priced options. This contract momentum indicates strong demand for Borr's premium jack-up fleet across multiple regions and suggests continued dayrate stability in the premium jack-up segment.

HAMILTON, Bermuda, July 2, 2025 /PRNewswire/ -- Borr Drilling Limited (NYSE: BORR) is pleased to announce new contract commitments for four of its premium jack-up rigs, bringing the total number of contracted rigs to 23 out of its fleet of 24.

The new awards have a combined duration of approximately 1,300 days, including fixed priced options, and an estimated contract revenue of more than $129 million¹. In line with our strategy to optimize near term fleet utilization, these new commitments provide strengthened revenue visibility and increase our contract coverage to 84%² at an average dayrate of $144,000 for 2025 and 45%² at an average dayrate of $141,000 for 2026.

In the Middle East, the 'Arabia II', which is currently warm stacked, has secured a binding Letter of Award from an undisclosed customer. The contract will commence in September 2025 and is anticipated to have a firm duration of 500 days, plus a 200-day unpriced option. This contract includes an additional performance-based incentive that rewards superior performance which this modern and technically capable rig can deliver. 

In Southeast Asia, the rigs 'Thor' and 'Gunnlod' have received a binding Letter of Award from an undisclosed customer. The Thor will undertake a well-based program with an estimated duration of 240 days starting in October 2025, while the Gunnlod is set to commence a 100-day program in September 2025, following the completion of its current contract. Both agreements include one fixed priced optional well, each estimated at 80 days.

In Mexico, the rig 'Odin' has received a notice of a 30-day temporary suspension from PEMEX effective early June. Following this, alternative deployment options have been explored, and we have secured a Letter of Intent from an independent oil company in Mexico for a 60-day accommodation program expected to commence in July. The agreement includes priced options for drilling works that could keep the rig contracted through Q2 2026. Following this award, 4 of our 7 rigs in Mexico are now committed to independent customers.

Year to date 2025, the Company has secured 13 new commitments, equating to a total of 3,010 potential contract days and $366 million in potential contract revenues¹, including firm term and priced options.

Forward looking statements

This press release 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 statements regarding contract commitments including contract days and potential revenues from such commitments, contract coverage and day rates, timing of commencement and duration of contracts and options and extensions, contract terms and ability of rigs to meet incentives, expected duration of option terms and other non-historical statements. Such forward looking statements are subject to risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein, including risks related to actual performance of our rigs under contracts, whether options are exercised, risks relating to our ability to convert LOIs and LOAs into contracts and the terms of such contracts, and other risks relating to the contracts discussed herein and performance thereunder and other risks and uncertainties described in the section entitled "Risk Factors" in our most recent annual report on Form 20-F and other filings with the Securities and Exchange Commission. Such risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward -looking statements included herein. These forward-looking statements are made only as of the date of this release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

¹ Includes contracts, LOAs and LOIs.

² Coverage % represented by the number of contracted days and priced options divided by the total days available on a full year basis; includes ~4.5% coverage related to suspension periods in Mexico in 2025; Average dayrate is derived from potential contract revenue divided by potential contract days

CONTACT:

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

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SOURCE Borr Drilling Limited

FAQ

What is Borr Drilling's (NYSE:BORR) current fleet utilization rate in 2025?

Borr Drilling has secured contracts for 23 out of its 24 premium jack-up rigs, representing a 96% fleet utilization rate.

How much potential revenue has Borr Drilling (NYSE:BORR) secured in new contracts for 2025?

Year-to-date 2025, Borr Drilling has secured 13 new commitments worth $366 million in potential contract revenues, including firm terms and priced options.

What is Borr Drilling's (NYSE:BORR) contract coverage and average dayrate for 2025?

Borr Drilling has 84% contract coverage for 2025 at an average dayrate of $144,000.

How many new contract days has Borr Drilling (NYSE:BORR) secured in its latest announcement?

The new contracts announced represent approximately 1,300 days of combined duration, including fixed-priced options.

What regions is Borr Drilling (NYSE:BORR) operating in according to the latest contracts?

Borr Drilling has secured new contracts in the Middle East, Southeast Asia, and Mexico, demonstrating geographical diversification.