Borr Drilling Ltd. Form 6-K Summary
Business Context and Reporting Period
This report covers the unaudited interim financial results for Borr Drilling Limited for the nine months ended September 30, 2025. Borr is an offshore shallow-water drilling contractor operating a fleet of 24 premium jack-up rigs. The company is listed on the NYSE and delisted from the Oslo Stock Exchange in December 2024.
Key Financial Metrics
| Metric ($ millions) | 9 Months 2025 | 9 Months 2024 |
|---|---|---|
| Total Operating Revenues | 761.4 | 747.5 |
| Operating Income | 254.7 | 273.2 |
| Net Income | 46.0 | 55.8 |
| Adjusted EBITDA | 364.9 | 368.7 |
| Net Cash from Operating Activities | 217.1 | 88.3 |
| Cash and Cash Equivalents (End of Period) | 227.8 | 61.6 |
| Total Debt Outstanding (Principal) | 2,112.3 | 2,044.9 |
Liquidity: As of September 30, 2025, the company held $227.8 million in cash and cash equivalents. The company maintains a $200.0 million Super Senior Revolving Credit Facility (undrawn) and a new $34.0 million Senior Secured Revolving Facility (undrawn).
Material Changes vs. Prior Period
- Revenue: Increased 2% to $761.4 million, driven by a $58.3 million increase in dayrate revenue due to higher average dayrates and more rigs in operation. This was partially offset by a $35.0 million decrease in related party revenue following the restructuring of Mexico operations.
- Profitability: Net income decreased 18% to $46.0 million. Operating income declined 7% to $254.7 million due to higher rig operating expenses ($18.1 million increase) and depreciation ($14.7 million increase), alongside a shift from income to a loss in equity method investments.
- Equity Issuance: In July and August 2025, the company completed a public offering of 50 million shares at $2.05 per share, raising gross proceeds of $102.5 million.
- Debt Structure: The company amended its Super Senior Revolving Credit Facility to $200.0 million and entered a new $34.0 million Senior Secured Revolving Facility in September 2025.
Outlook, Risks, and Unusual Items
- Contract Terminations: In October 2025 (subsequent to the reporting period), the company terminated contracts for rigs "Odin" and "Hild" in Mexico due to international sanctions affecting a counterparty. This is expected to reduce revenue backlog by approximately $20 million.
- Operational Updates: Rigs "Galar," "Grid," and "Gersemi" resumed operations in May 2025 after temporary suspension in Mexico. The new rig "Vali" commenced its first contract in March 2025.
- Management Changes: Bruno Morand succeeded Patrick Schorn as CEO effective September 1, 2025. Mr. Schorn became Executive Chair.
- Taxation: The company expects to be subject to Bermuda's new 15% Corporate Income Tax and the OECD 15% global minimum tax (Pillar Two) starting in 2026.
- Risks: Key risks include customer payment delays, contract suspensions/terminations, liquidity constraints, and geopolitical instability (e.g., sanctions, military actions in Ukraine and the Middle East).
Investor Verification Checklist
- Verify the impact of the October 2025 contract terminations (Odin and Hild) on future revenue guidance and backlog.
- Confirm the status of the $20 million revenue backlog reduction and the timeline for re-contracting the affected rigs.
- Review the company's compliance with financial covenants under the amended Super Senior and new Senior Secured Revolving Facilities.
- Assess the potential financial impact of the 15% Bermuda corporate tax and OECD Pillar Two rules effective in 2026.
- Monitor the utilization of the $234 million in total undrawn revolving credit facilities ($200M + $34M) given the recent equity raise.