Q2 2025 Borr Drilling Ltd Earnings Call Transcript
Key Points
- Borr Drilling Ltd (BORR) reported strong second-quarter results with a technical utilization of 99.6% and an economic utilization of 97.8%.
- Revenue increased by $51.1 million, and EBITDA rose by $37 million to $133 million, marking a 39% increase compared to the first quarter.
- The company secured significant new contracts, including a multi-rig contract in Asia and a new contract for Arabia II, improving contract coverage to 84% for 2025.
- A comprehensive financing package, including a $102.5 million equity raise, increased liquidity by $200 million, strengthening the balance sheet.
- Borr Drilling Ltd (BORR) is well-positioned to capture incremental drilling activity in Mexico, supported by the Mexican government's commitment to strengthening Pemex's liquidity.
- Delays in collections in Mexico have impacted cash flow, although improvements are expected in the latter part of the year.
- Total operating expenses increased by $14.4 million or 9% compared to the first quarter, primarily due to increased rig operating expenses.
- The company faces challenges in the global oil and gas sector due to regional conflicts and uncertainty over global trade tariffs.
- Day rates have experienced downward pressure due to excess capacity resulting from Saudi suspensions.
- Despite positive developments, the timing of payments from Pemex remains uncertain, affecting cash flow predictability.
Good day, and thank you for standing by. Welcome to the Borr Drilling Limited second-quarter 2025 results presentation, webcast, and conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Mr. Patrick Schorn, CEO. Please go ahead.
Good morning, and thank you for participating in the Borr Drilling second-quarter earnings call. I'm Patrick Schorn. And with me here today in Dubai are Bruno Morand, our Chief Commercial Officer; and Magnus Vaaler, our Chief Financial Officer. Next slide, please.
First, covering the required disclaimers. I would like to remind all participants that some of the statements will be forward-looking. These matters involve risks and uncertainties that could cause actual results to differ materially from those projected in these statements. I therefore refer you to our latest public filings.
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