Borr Drilling Q2 Revenue Drops 6%, EBITDA Halves on Rig Transitions
BORR sits 90% above its 52-week low of $2.14.
Summary
Borr Drilling's Q2 revenue fell 6% sequentially to $232.3M as active rig count declined and six rigs transitioned between contracts. Adjusted EBITDA collapsed 51% to $43.8M, hit by higher preparation costs, Middle East insurance/fuel inflation, and credit losses from a former West African customer. The company posted a $241.4M net loss. Management expects a significant EBITDA rebound in Q3, guiding to ~23 active rigs. This follows the June completion of a major $2B+ debt refinancing that extended maturities. Post-quarter, Borr acquired five jack-up rigs, adding fleet capacity. The sharp earnings deterioration and operational disruptions are material for a $1.3B market cap driller, though the refinancing provides breathing room.
At the time of this announcement, BORR was trading at $4.07 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $2.14 to $6.66. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.