Borr Drilling loses US$241.4 million in the second quarter of 2026

Borr Drilling closed the second quarter of 2026 with a net loss o fUS$241.4 million, while its operating income fell 6% compared to the previous quarter.

The offshore drilling company reported revenues o US$232.3 million between April and June, US$14.7 million less than during the first three months of the year. In the first quarter, the company had recorded a net loss of US$29 million.

Debt refinancing increases Borr Drilling’s losses

Primarily, the sharp increase in the quarterly loss was related to a charge of US$176.3 million through debt cancellation. The transaction was linked to the refinancing of senior secured bonds and convertible bonds of Borr Drilling.

During the quarter, the company refinanced virtually all of its debt by issuing US$300 million in convertible bonds and US$2.035 billion in senior secured bonds.

Borr also expanded its super senior revolving credit facility to US$250 million, with these operations, the company seeks to extend maturities, reduce its financial costs and strengthen its liquidity position.

Adjusted EBITDA falls 51% during the second quarter

On the other hand, adjusted EBITDA fell to US$43.8 million, representing a drop of US$44.7 million or 51% compared to the first quarter of 2026.

Bruno Morand, CEO of Borr Drilling, explained that the performance was affected by several operational factors. Among them, he highlighted the additional work required to prepare the Odin platform before it began its contract in the United States.

Odin generated US$22.5 million in operating expenses during the quarter, US$11.1 million more than in the previous period. In addition to this, the transition of six platforms between contracts temporarily reduced fleet revenue and increased some costs associated with their movements.

The conflict in Middle East it also put pressure on insurance and fuel expenses, together, these factors increased the platforms’ operating costs by US$7.3 million compared to the first quarter. In addition, Borr recognized US$10.8 million in credit losses related to a former West African client.

Borr Drilling maintains a high utilization of its fleet

Despite the drop in financial results, operating indicators remained high, with Borr Drilling achieving a technical utilization of 98.4% and an economic utilization of 96.4% during the quarter. However, the average number of operating platforms decreased from 22.4 units during the first quarter to 21.2 in the second.

The company indicated that most of the transitions recorded during the period have already been completed. The Idun, Gunnlod, Skald, Sif, Natt, and Prospector 5 platforms are currently operational after completing their contract changes. With the addition of Odin, Borr expects to reach an average of approximately 23 active platforms during the third quarter.

Odin prepares to begin operations in the United States

Meanwhile, Odin’s entry into service took longer than expected due to preparation work and regulatory processes. The authorizations were received in mid-July, after adjusting the deployment sequence due to the operational limitations of the hurricane season, the platform is preparing to move to its first location.

Odin will begin with a firm contract to drill two wells for an unidentified client, afterward, the rig is scheduled to move directly to work for Cantium.

Morand acknowledged that the initial requirements for introducing the unit to a new market were greater than expected. This resulted in higher costs and delayed revenue generation.

Contract portfolio reaches US$541 million

In parallel, commercial activity continues to provide future coverage for the fleet, Borr Drilling has secured 21 contractual commitments during 2026, representing approximately 4,350 working days.

The associated backlog reaches US$541 million on an equivalent daily rate basis, since its previous earnings report, the company also secured eight commitments incorporating more than 2,100 additional firm work days.

With this, contractual coverage for 2026 reaches 73% with an average daily rate close to US$134,000, for the second half of the year, coverage is around 70%.

Management expects that the increased number of active platforms and the completion of transitions will allow for a significant improvement in adjusted EBITDA during the third quarter.

Borr incorporates five jack-up platforms through a joint venture

After the end of the quarter, Borr Drilling also completed the acquisition of five high-end jack-up platforms through a 50% joint venture.

The total purchase price was US$287 million, three of the five units already have a contract, of which two are operational and the third is scheduled to begin operations during the third quarter of 2026.

Now, the company is looking to place the two remaining platforms and turn the available business opportunities into firm contracts.

The fleet expansion comes as Borr tries to recover financial performance after a second quarter marked by debt refinancing, transition costs and Odin preparations.

Source: OE Digital

Photo: Borr Drilling