Operating revenues for the Bermuda-based firm slipped to $232.3 million, down 6% sequentially as the average number of active rigs fell to 21.2. Adjusted EBITDA dropped by 51% to $43.8 million, pressured by higher insurance and fuel costs linked to Middle East instability, alongside significant credit losses from a former West African client. Operational expenses also climbed due to intensive preparation requirements for the Odin rig, which faced regulatory delays before entering the U.S. market.
Despite the quarterly volatility, CEO Bruno Morand emphasized that the transition phase for six of the company's rigs is now complete. With these units fully operational, management projects an increase to 23 active rigs in the third quarter. The company has also bolstered its balance sheet by securing new senior secured notes due through 2034 and expanding its revolving credit facility to $250 million. Looking beyond the quarter, Borr Drilling expanded its footprint by acquiring five premium jack-up rigs through a new joint venture, signaling a focus on scaling its fleet to capture long-term demand as global oil inventories remain tight.
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