Borr Drilling has reported a wider first-quarter loss as delayed start-up work for the Odin jack-up rig and contract transitions weighed on earnings, while the offshore driller continued expanding its fleet and contract backlog.
The company posted a net loss of $29 million for the three months ended March 31, compared with a loss of $1 million in the fourth quarter of 2025.
Operating revenue fell 5% quarter-on-quarter to $247 million, while adjusted EBITDA declined 16% to $88.5 million.
Borr Drilling said first-quarter results were impacted by the delayed contract start-up of the Odin rig in the U.S. Gulf and an $8.4 million credit loss provision.
“Our operational performance in the first quarter of 2026 resulted in technical utilization of 99.4% and economic utilization of 97.0%.
“In the quarter, the Odin completed its mobilization from Mexico to the U.S. Gulf where operations were expected to start in February. However, start-up was delayed by additional contract preparation work and regulatory approvals,” said Bruno Morand, Borr Drilling’s Chief Executive Officer.
According to the company, the second-quarter results are also expected to be affected by the delayed Odin start-up, now expected in late June, and by rigs moving between contracts.
Borr Drilling completed the acquisition of five premium jack-up rigs from Noble Corporation in January for $360 million and separately agreed to acquire another five rigs through a new 50/50 joint venture for $287 million.
The company said its fleet would effectively expand to 34 modern rigs once the joint venture transaction closes.
Borr Drilling added that it had secured 13 contract commitments so far this year, representing more than 2,250 days and $274 million of backlog, excluding additional days obtained through the Noble acquisition.
The company also noted the full-year 2026 contract coverage had increased to 71% at an average dayrate of about $137,000.
“While the Middle East conflict has created near-term uncertainty, key tenders in the region continue to progress, with some modest delays. More broadly, in our view, recent events have strengthened the longer-term outlook for the sector providing for a higher oil price and a renewed focus on energy security. Shallow-water basins continue to represent an attractive resource, offering low-cost, short-cycle barrels that enable our customers to respond rapidly to the market backdrop.
“Due to the planning and budgeting processes of our customers, we expect that improved activity and dayrates will lag the oil price development by six to 12 months, as evidenced after the military invasion of Ukraine, when dayrates strongly increased.
“Therefore, we are increasingly confident about the Company's prospects for 2027 and 2028 as we expect the disruptions from the conflict in the Middle East to be both substantial and long lasting. With this backdrop, Borr Drilling's expanded fleet is well placed to support our customers' demand and deliver long-term shareholder value as the cycle develops,” Morand concluded.