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HAMILTON, Bermuda - Borr Drilling Limited (NYSE:BORR), an offshore drilling contractor with $989 million in revenue over the last twelve months, announced Monday it has secured two-year contract extensions for two of its premium jack-up rigs operating in Mexico, along with a shorter extension for a third rig, collectively valued at approximately $213 million. According to InvestingPro data, the company has demonstrated strong operational performance with a 55% gross profit margin.
The jack-up rigs Galar and Gersemi will continue their operations in Mexico with two-year firm extensions that include improved commercial and payment terms, as well as two one-year unpriced options. Additionally, the company’s Njord rig received an extension through April 2026.
Borr Drilling also reported receiving approximately $19 million in payments from Pemex, Mexico’s state-owned petroleum company. The company indicated these collections, combined with recent initiatives to strengthen Pemex finances, support its confidence in the normalization of payment activity.
The offshore drilling contractor remains in discussions with its Mexican customer regarding potential long-term extensions for contracts set to expire in the second quarter of 2026.
Borr Drilling provides its rigs to customers on a fixed-rate bareboat charter basis, though the company noted the contract value was adjusted to a gross dayrate-equivalent basis in its press release statement.
The company, which specializes in operating premium jack-up rigs for shallow water drilling operations, is headquartered in Bermuda and listed on the New York Stock Exchange.
In other recent news, Borr Drilling Ltd reported its second-quarter earnings for 2025, surpassing market expectations with an earnings per share (EPS) of $0.14, which was 32.95% higher than the forecasted $0.1053. The company’s revenue also exceeded predictions, reaching $267.7 million compared to the anticipated $262.88 million. Additionally, Borr Drilling announced the termination of two drilling contracts in Mexico due to international sanctions affecting an unnamed counterparty. The contracts involved the Odin and Hild rigs, which had firm commitments until November 2025 and March 2026, respectively. These developments reflect significant changes for Borr Drilling as it navigates the current economic and geopolitical landscape. The earnings results and contract terminations are crucial for investors to consider in light of the company’s future performance.
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