Borr Drilling Limited Q4 FY2025 earnings call

• Safety milestones: Rigs Idun and Grid reached LTI free for six and three years respectively, Gunnlod and Gerd reached one year incident free, Arabia 3 received Aramco offshore dept award for best safety score. - Operational performance: Q4 technical utilization 98.8%, economic utilization 97.8%. - Fleet contract visibility: 2026 coverage in first half 80%, second half 48% including recently acquired rigs. Secured new commitments for seven rigs. - Jackup market: Believes bottom is behind, fundamentals recovering. Multiyear tenders in Middle East, better visibility in Mexico. - Acquisition: Accretive acquisition of five premium rigs from Noble, integration in progress. - Contracting in 2026: Secured five new commitments adding ~$145,000,000 to backlog. Rán, Odin, Njord, Saga, Idun, Gunnlod secured contracts. 2026 fleet coverage 64%, first half with new rigs 80%.

Fourth quarter operational revenues totaled $259,400,000. Adjusted EBITDA of $105,400,000. Full year adjusted EBITDA was $470,100,000. Total operating revenues in Q4 were $259,400,000, a decrease of $17,700,000 or 6.4% from Q3. Total operating expenses in Q4 were $192,100,000, an increase of $13,200,000 or 7.4% from Q3. Net loss of $1,000,000 in Q4. Full year 2025 net income was $45,000,000, full year adjusted EBITDA $470,100,000, a decrease of 7% compared to 2024. Cash increased by $151,900,000 in Q4, with cash from operations $34,800,000, investing activities $52,100,000, financing activities $169,200,000. Cash and cash equivalents as of Dec 31 were $379,700,000 with $234,000,000 undrawn revolving credit facilities.

• 2026 activity level contracting days to modestly exceed 2025. - Anticipate tender activity entering levels not seen since Jan 2023, ~120 rig - years in tender and pre - tender phase for next 12 months, meaningful amount to be awarded by mid - 2026. - 2027 and beyond expect market conditions to continue improving, dayrates to recover.

Q: On outlook of idle acquired rigs Sif and Freya, A: Sif likely to get contract in coming months, Freya may take longer but pipeline in second half strengthens.

Q: Thoughts on EBITDA achievability in 2026, A: Outlook improves, activity level contracting days modestly higher than 2025, better guidance in coming quarters.

Q: Sense on Middle East tenders, A: Larger tenders in progress, Aramco in submission phase, KJO in evaluation, midyear visibility to form.

Q: Fleet acquisition and potential for more acquisitions, A: Sembcorp rigs may be offered in tenders, M&A looked at opportunistically, complementary to fleet.

Q: Rate development trajectory, A: Rates sideways in some regions, Middle East awards start in second quarter, pricing dynamics progress in Q3.

Q: Contract length strategy and Aramco contracting terms, A: Mix of short and long - term contracts, Aramco tender ongoing with some flexible terms.

Q: Mexico payments and outstanding balance, A: Payments from Pemex picked up, outstanding balance ~$90 - $100,000,000 at end of Q4, improved payment terms in contract extensions.

Q: Dayrates and contracting dynamics, A: Dynamics fluid, terms solid in cycle, some regions more competitive.

Q: On rig Var finding work, A: Likely to come back later, with Middle East developments as catalyst.

Q: Rig return and requirements, A: Most rigs don't need much CapEx to return, Var may need ~$56,000,000, balance pipeline and rate.

Q: Venezuela region and impact on nearby markets, A: Trinidad busy, Suriname and Colombia have some opportunities, not a large near - term volume but interesting for larger - capability rigs.