Borr Drilling (BORR) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 22, 2026 astatine 10:38 AM CDT 28 min read

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DATE

Thursday, May 21, 2026 astatine 9 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Bruno Morand

• Chief Financial Officer — Magnus Vaaler

Full Conference Call Transcript

Operationally, we delivered method utilization of 99.4% and economical utilization of 97% successful the archetypal quarter. Revenue for the play was $247 cardinal and adjusted EBITDA of $88.5 million, chiefly impacted by the delayed start-up of the Odin $8.4 cardinal recognition nonaccomplishment provision. During the quarter, the Odin completed its mobilization from Mexico wherever operations had initially been expected to commencement successful February. However, the start-up was [Technical Difficulty] owed to disruption during transit, further declaration mentation enactment and approvals. While these delays are unfortunate, to bring Odin into the U.S. was based connected the semipermanent accidental outlook successful that market. I stay assured positioned with capabilities disposable to operators successful the U.S.

Gulf, and we judge the rig volition stay good placed to service the region. Looking ahead, we expect 2nd 4th results to proceed to beryllium affected by the delayed startup of the Odin present anticipated to commence successful precocious June arsenic good arsenic rigs transition. During the quarter, rising tensions and hostilities successful the Middle East created disruptions, but with constricted fiscal impact. Most importantly, each of our unit stay safe. I would similar to convey our teams for their professionalism and flexibility that they person shown done this period. As announced successful April, pursuing impermanent suspensions, each affected rigs were called backmost to work. After resuming operations, the Groa and the Forseti has present completed their declaration successful Qatar.

The Forseti remains connected the bareboat charter with the erstwhile proprietor into December 2026. Our contracting strategy remains focused connected expanding near-term sum oregon balancing dayrates and declaration tenor. Since our past net report, we've secured 8 declaration commitments, representing much than 1,100 days of steadfast work. Full twelvemonth 2026 sum has accrued to 71% astatine an mean time complaint of astir $137,000, portion 2nd fractional 2026 sum present stands astatine 65% arsenic compared to 48% successful the anterior net report. We besides announced the acquisition of 5 premium jack-up rigs connected Paratus for $287 cardinal done a caller 50-50 associated task with our long-standing Mexican good operation partners.

This transaction volition grow our fleet from 29 to 34 rigs and further fortify our presumption successful the Mexican marketplace portion adding flexibility to 2 higher specification units with broader redeployment potential. In April, we successfully completed an upsized $300 cardinal convertible elder notes offering owed successful 2033, utilizing the proceeds to repurchase a important information of our 2028 convertible bonds. This transaction meaningfully extends our maturity illustration and fortify our superior operation up of what we expect to beryllium a constructive marketplace environment. Magnus volition locomotion done these successful much item shortly. While the Middle East struggle has created near-term uncertainty, cardinal tenders successful the portion proceed to advancement with immoderate humble delays.