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Mar 31, 2025
Borr Drilling Q1 2025 Earnings Report
Borr Drilling reported a net loss and revenue decline in Q1 2025 due to temporary rig suspensions, but operational utilization remained high.
Key Takeaways
Borr Drilling faced a challenging Q1 2025 with a net loss of $16.9 million and revenue of $216.6 million, impacted by reduced activity from temporary rig suspensions. Despite the financial setback, the company maintained high operational utilization and saw improved liquidity through significant receivable collections.
Revenue dropped to $216.6M due to temporary rig suspensions.
Net loss was $16.9M, reversing a profit in Q4 2024.
Operational performance stayed strong with 99.2% technical utilization.
Liquidity improved with $120M in receivables collected from Mexico.
Forward Guidance
Borr Drilling expects improved financial performance in Q2 2025 due to ramp-up in rig activity and increased contract coverage.
Positive Outlook
- Three rigs in Mexico resumed operations.
- New contracts started for Vali and Arabia I.
- Thor and Ran secured new contracts.
- Rig count increased to 22 out of 24.
- Liquidity strengthened with additional $35M in mobilization fees post-Q1.
Challenges Ahead
- No dividend declared to preserve balance sheet.
- Continued uncertainty in oil market and rig demand.
- High debt burden with $2.18B in principal outstanding.
- Risk of further rig suspensions or terminations.
- Ongoing supply chain challenges may delay rig deliveries.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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