Borr Drilling reported lower revenue and adjusted earnings for the second quarter of 2026 as rig transitions, higher operating costs and delays getting the Odin to work weighed on results.
The jack-up drilling contractor reported Q2 operating revenue of $232.3 million, down 6% from $247 million in the first quarter. Adjusted EBITDA fell 51% sequentially to $43.8 million.
Borr posted a net loss of $241.4 million, compared with a $29 million loss in Q1, largely reflecting a $176.3 million debt extinguishment charge associated with refinancing its existing debt.
CEO Bruno Morand said six rigs transitioned between contracts during the quarter, reducing revenue, while preparation and regulatory approval work for Odin added costs. Middle East conflict also increased insurance and fuel expenses.
Operationally, technical utilization remained strong at 98.4%, with economic utilization of 96.4%.
Borr expects performance to improve in Q3 as Idun, Gunnlod, Skald, Sif, Natt and Prospector 5 are now operating. Including the expected startup of Odin, Borr forecasts approximately 23 active rigs on average during the third quarter.
Year-to-date, Borr has secured 21 contract commitments representing approximately 4,350 days and $541 million of dayrate-equivalent backlog. Its 2026 contract coverage stands at 73%, at an average dayrate of approximately $134,000.
Following quarter-end, Borr also expanded its fleet exposure through a 50/50 joint venture that acquired five premium jack-ups from Fontis for $287 million.