Borr Drilling Limited (BORR) SEC Filings & Earnings Calls

Contract commencement and conversion of letters of award into final contracts subject to risk.

“Risks relating to the commencement and duration of contracts, including our ability to commence contracts consistent with the timeframes described herein, risks related to contracting, including our ability to convert letters of intent, letters of award and other commitments into contracts.” · word for word

Option exercise and backlog realization risk.

“The risk that options will not be exercised, the risk that backlog will not materialize as expected.” · word for word

Contract commencement and duration risks; backlog may not materialize as expected

“Forward-looking statements caution that backlog may not materialize as expected and that contracts may not commence as scheduled.”

Transaction subject to customary closing conditions; no deal value disclosed; reliance on local partner for operations.

“The Transaction is expected to close in September 2026, subject to customary closing conditions. The sale consideration for the Transaction is based on the estimated net book value of the Company’s equity interest in Perfomex as of July 31, 2026.”

Debt refinancing risk due to upcoming maturities of secured notes and convertible bonds.

“Risk factors highlight ability to repay or refinance debt at maturity, including secured notes due 2032 and 2034, convertible bonds due 2028 and 2033.”

Geopolitical and macroeconomic risks from Middle East conflict and oil price volatility.

“Forward-looking statements mention impact of Middle East conflict and global economic uncertainty on demand and dayrates.”

Customer concentration and contract suspension risk.

“Risk of customers becoming subject to sanctions or failing to comply with contractual obligations.”

Significant net loss driven by $176.3M debt extinguishment charge; high leverage.

“Second Quarter net loss of $241.4 million compared to net loss of $29.0 million in the first quarter of 2026, primarily driven by a $176.3 million debt extinguishment charge.” · word for word

Operational disruptions from rig transitions and Odin delays impacting revenue and costs.

“Contract preparation for the Odin took longer than anticipated... resulted in higher cost and delays in revenue.” · word for word

Credit losses from a West African customer indicate counterparty risk.

“recognized $10.8 million of credit losses related to a former customer in West Africa.” · word for word

Geopolitical and tariff risks could impact demand and costs.

“the conflict in the Middle East drove incrementally higher insurance and fuel costs... implementation of tariffs and potential further tariffs.” · word for word

Seller's credit maturity and refinancing risk in 2029.

“The seller's credit matures in January 2029 and is secured by, among other things, a first priority lien on the five jack-up rigs.” · word for word

Refinancing reduces near-term debt maturity risk but increases total debt.

“Proceeds used to redeem all remaining outstanding Notes.”

Refinancing risk if new notes offering fails

“Financing Condition requires completion of at least $1.6B new notes offering”

Odin rig delay impacting Q2 results

“Odin start-up delayed to late June; Q2 results expected to be affected”

Credit loss provision of $8.4M

“credit loss provision of $8.4 million” · word for word

Middle East conflict creating near-term uncertainty

“Middle East conflict has created near-term uncertainty, key tenders in the region continue to progress, with some modest delays” · word for word

Significant debt maturities and refinancing risk

“Risks relating to our ability to meet or refinance our significant debt obligations including debt maturities” · word for word

Geopolitical risk from Middle East conflict

“Risks relating to military action and geopolitical conflicts, including the military actions in the Middle East” · word for word

Potential dilution from conversion of notes into common shares.

“Notes are convertible into common shares at $8.00 per share, representing over 40% premium to current price.”

Potential dilution from conversion of notes into common shares.

“Notes are convertible into common shares at $8.00 per share.”

Hedged holders may unwind positions, causing stock price volatility.

“Hedged holders may unwind all or part of their hedge positions by purchasing common shares and/or entering into derivative transactions.” · word for word

Potential dilution from conversion of notes into common shares

“Notes will be convertible into the Company’s common shares, cash, or a combination of shares and cash, at the Company’s election.”

Market activity from hedged holders could affect stock price

“hedged holders may unwind all or part of their hedge positions by purchasing the Company’s common shares ... could increase (or reduce the size of any decrease in) the market price of the Company’s common shares” · word for word

Geopolitical disruption in Middle East caused rig downtime; resumption underway but execution risk remains

“four rigs deployed in the Middle East experienced disruptions; Arabia III resumed, Groa and Arabia II expected in April” · word for word

Odin rig in Gulf of America experienced delays due to additional maintenance

“Odin experienced delays due to additional maintenance work required in advance of commencing its contract”

Contract awards are subject to customer operational requirements and options may not be exercised.

“subject to the customer’s operational requirements ... options that may extend the work” · word for word

High leverage and refinancing risk

“We have significant debt maturities in the coming years. As of December 31, 2025, all of our debt, totaling $2,210.0 million in principal amount, has scheduled final maturity dates between 2028 and 2030.” · word for word

Sanctions-related contract termination

“In October 2025, we announced that we had issued termination notices for two drilling contracts for two jack-up rigs following the recent implementation of international sanctions affecting a counterparty.” · word for word

Regulatory and compliance costs

“Compliance with, and breach of, the complex laws and regulations (including applicable economic sanctions) governing international drilling trade could be costly, expose us to liability and adversely affect our operations.” · word for word

Transaction subject to merger control approvals and customary closing conditions; may not close as expected.

“subject to customary closing conditions, including merger control approvals” · word for word

Geopolitical risk in Arabian Gulf impacting operations

“recent hostilities in the Arabian Gulf, where the Company has four jack-up rigs deployed” · word for word

Standard forward-looking statements; no specific new risks.

“Forward-looking statements and risk factors; no specific new risks.”

Sanctions-related contract terminations impacting revenue and day rates.

“Declining sequentially due to the impact of sanctions-related contract terminations and rigs transitioning to new contracts at lower average day rates.” · word for word

High leverage from debt-funded acquisition and equity dilution from share offering.

“Completed offering of additional $165 million principal amount of 10.375% senior secured notes due 2030. Completed equity offering of 21 million shares.” · word for word

Forward-looking statements caution that contracts may not materialize; reliance on oil and gas prices and international operations.

“Forward Looking Statements: 'letters of intent/award or advanced negotiations may not result in an actual drilling contract... risks relating to oil and gas prices; and risks associated with international operations generally.'”

Dilution from equity offering; execution risk on rig acquisition and debt financing.

“21 million common shares at $4.00 per share; acquisition of five premium jack-up rigs”

Increased leverage from additional debt issuance may strain cash flows if rig market weakens.

“Additional Notes will have the same terms and conditions as the existing senior secured notes due 2030” · word for word

Execution risk in acquiring and integrating five premium jack-up rigs.

“acquisition of five premium jack-up rigs ... subject to customary closing conditions” · word for word

Dilution risk from equity offering; reliance on additional debt and seller financing for acquisition.

“proceeds from the Equity Offering, together with proceeds from a concurrent debt offering, seller financing and, if necessary, available cash” · word for word

Dilution risk from equity offering; reliance on additional debt and seller financing for acquisition.

“proceeds from the Equity Offering, together with proceeds from a debt offering, seller financing and, if necessary, available cash” · word for word

Financing risk: acquisition relies on debt offering, seller credit, and equity raise; closing conditions include completion of Senior Secured Notes financing.

“financed by (i) an offering of an additional $150 million of the Company’s existing 10.375% Senior Secured Notes due 2030; (ii) a $150 million seller’s credit due in 2032; and (iii) an $85 million equity raise” · word for word

Risks include customer non-compliance, sanctions, geopolitical events, inflation, and debt refinancing.

“risks relating to our customers do not comply with their contractual obligations, the risk of customers becoming subject to sanctions, risks relating to geopolitical events and inflation”

Sanctions-induced contract terminations in Mexico

“Recent impact of sanctions-induced contract terminations in Mexico” · word for word

Near-term volatility from rig transitions

“Q4 2025 expected to reflect fewer operating days due to rig transitions”

High leverage and debt obligations; credit facility amendments may indicate liquidity management.

“Amendments to credit facilities; convertible notes due 2028 and 2030.”

Industry risks: oil and gas demand, sanctions, geopolitical risks.

“Forward-looking statements highlight risks including sanctions, customer demand, and geopolitical events.”

Customer concentration in Mexico (Pemex); collections have been slow historically.

“The Company remains in active discussions with its customer in Mexico regarding long-term extensions” · word for word

Contract terminations due to sanctions create revenue loss and potential idle rig costs; customer concentration in Mexico remains a risk.

“terminated two of its drilling contracts following the recent implementation of international sanctions affecting a counterparty” · word for word