Borr Drilling Limited Q3 FY2025 earnings call

• 23 out of 24 rigs active, commercial team executed contracts despite volatile market. Revenue up $9.4M QoQ, adjusted EBITDA $135.6M (+2%) with 48.9% margin. • Operational utilization industry-leading: technical 97.9%, economic 97.4%. • In October, 3 contract extensions in Mexico; collections restarted in Sept-Oct ($19M received). • New commitments in Gulf of America and Angola; strengthened customer base. • Free cash position at end of Q3 $227.8M, total available liquidity $461.8M.

Revenue increased by $9.4 million quarter-over-quarter. Adjusted EBITDA rose 2% to $135.6 million with a margin of 48.9%. Total operating revenues saw increases in day rate revenue ($2.5M) and bareboat charter revenue ($6.4M). Rig operating and maintenance expenses increased by $6.3M. Technical utilization was 97.9% and economic utilization 97.4% across the fleet. Year-to-date, 22 new commitments added $625M to backlog.

• Anticipate 2025 full-year adjusted EBITDA in range $455M-$470M. • Confidence in market normalization in key regions like Saudi and Mexico; jack-up market past trough with inflection in demand. • 2026 full-year coverage including price options at 62%, 15-point improvement since last report.

• International sanctions in October affected a counterparty in Mexico, requiring termination notices. • Past payment timing challenges in Mexico with Pemex; though collections restarted, still managing receivables. • Macro uncertainties impacting global market dynamics.

Q: How do you view the next 12-24 months in the global jack-up market?

A: Inflection due to headwinds reversing; utilization at 93% is healthy. Tenders in Middle East concluding will drive rigs back. Market in 70s range possible by 2027.

Q: Thoughts on pricing for Galar and Gersemi extensions in Mexico?

A: Day rates a notch above current, with improved contract and payment terms to ensure collections.

Q: Expectations for recapturing Pemex receivables?

A: Pemex and Mexican government have $12B setup to refinance, payments received in Oct, expecting more in Nov-Dec, returning to normality.