Key Takeaways:
- Revenue fell 5 percent quarter-on-quarter to $247.0 million amid operational delays.
- Net loss widened to $29.0 million from a $1.0 million loss in Q4 2025.
- The company acquired or agreed to acquire 10 rigs, expanding its fleet to 34.
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Borr Drilling posts wider $29 million loss on rig delay
Borr Drilling Limited (NYSE: BORR) reported a net loss of $29.0 million for the first quarter of 2026, a significant widening from the prior quarter, as revenues dipped 5 percent and a key rig activation was delayed.
"Our operational performance in the first quarter of 2026 resulted in technical utilization of 99.4% and economic utilization of 97.0%," Chief Executive Officer Bruno Morand said, noting results were "primarily impacted by the late contract start-up of the Odin, in addition to a credit loss provision of $8.4 million."
The offshore drilling contractor’s total operating revenues were $247.0 million, a decrease from $259.4 million in the fourth quarter of 2025. Adjusted EBITDA fell 16 percent sequentially to $88.5 million.
The results show near-term operational hurdles overshadowing an aggressive fleet expansion. The company warned the delayed start of the Odin rig, now expected in late June after a move to the U.S. Gulf, will continue to affect second-quarter results.
Despite the quarterly loss, Borr has been actively expanding. The company completed its acquisition of five premium jack-up rigs from Noble Corporation for $360 million in January and entered into a joint venture to acquire five more for $287 million. Upon closing, Borr's fleet will expand to 34 modern rigs.
Contracting activity remains a bright spot. Year-to-date, Borr has secured 13 new commitments worth more than $274 million in backlog. The company reported its full-year 2026 contract coverage now stands at 71 percent at an average dayrate of approximately $137,000.
Subsequent to the quarter, Borr completed a $300 million convertible note offering due 2033, using the proceeds to repurchase existing bonds due 2028, extending its debt maturity profile.
The wider loss and operational delay present a challenge to the growth narrative built on its recent rig acquisitions. Investors will watch the upcoming Q2 results for the financial impact of the Odin rig's commencement and progress on integrating its expanded 34-rig fleet.
This article is for informational purposes only and does not constitute investment advice.
