Q2 2025 Borr Drilling Ltd Earnings Call

August 14, 2025

Okay.

Operator: Good day. Thank you for standing by. Welcome to the Borr Drilling Limited Q2 2025 Results Presentation, Webcast, and Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will hear a message advising your hand is raised. To withdraw your question, please press star 1 1 again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link at any time during the conference. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Mr. Patrick Schorn, CEO. Please go ahead.

Operator: Good day, and thank you for standing by. Welcome to Borr Drilling Limited's second quarter 2025 results presentation, webcast, and conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear a message about why your hand is raised. To withdraw your question, please press star one one again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link at any time during the conference. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Mr. Patrick Schorn, CEO. Please go ahead.

Good day and thank you for standing by welcome to the Board drilling limited second quarter 2025 results presentation webcast and conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during this.

Session, you will need to press star one and one on your telephone you built in here and message our dice senior hands is raised to withdraw your question. Please press star one again.

If you wish to ask a question via the webcast. Please use the Q&A box available on the webcast link at any time during the conference. Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today, Mr. Patrick Schorn C. E O. Please go ahead.

Patrick Schorn: Good morning. Thank you for participating in the Borr Drilling Q2 Earnings Call. I'm Patrick Schorn, and with me here today in Dubai are Bruno Morand, our Chief Commercial Officer, and Magnus Vaaler, our Chief Financial Officer. Next slide, please. First, covering the required disclaimers. I would like to remind all participants that some of the statements will be forward-looking. These matters involve risks and uncertainties that could cause actual results to differ materially from those projected in these statements. I therefore refer you to our latest public filings. Now, before we dive into our Q2 results, I'd like to briefly reference the recent press release announcing both our new financing package and the CEO succession plan.

Patrick Schorn: Good morning, and thank you for participating in the Borr Drilling second quarter earnings call. I am Patrick Schorn, and with me here today in Dubai are Bruno Morand, our Chief Commercial Officer, and Magnus Vaaler, our Chief Financial Officer. Next slide, please. First, covering the required disclaimers, I would like to remind all participants that some of the statements will be forward-looking. These matters involve risks and uncertainties that could cause actual results to differ materially from those projected in these statements. I therefore refer you to our latest public filings. Now, before we dive into our second quarter results, I would like to briefly reference the recent press release announcing both our new financing package and the CEO succession plan.

Good morning, and thank you for participating in the board drilling second quarter earnings call.

Patrick Schorn and with me here today in Dubai, Our Bruno Moran, our Chief commercial Officer, and Magnus father, our Chief Financial Officer.

Next slide please.

First covering the required disclaimers I would like to remind all participants that some of the statements will be forward looking these matters involve risks and uncertainties that could cause actual results to differ materially from those projected in these statements I. Therefore refer you to our latest public filings.

Now before we dive into our second quarter results I'd like to briefly referenced the recent press release announcing both our new financing package and the CEO succession plan.

Patrick Schorn: We will cover the financing package in detail during our prepared remarks, as it represents a significant step forward in strengthening our capital position and supporting our long-term strategy. I will return to the CEO succession towards the end of the call. Our second quarter results were strong, with technical utilization of 99.6% and an economic utilization of 97.8%. As anticipated, our activity rebounded in the second quarter, with 22 out of 24 rigs active. Revenue increased by $51.1 million this quarter, and EBITDA rose by $37 million to $133 million, up by 39% versus the first quarter of this year, underscoring the profitability of the revenue stream. Additionally, $106.5 million free cash flow was generated in the first six months of the year.

Patrick Schorn: We will cover the financing package in detail during our prepared remarks as it represents a significant step forward in strengthening our capital position and supporting our long-term strategy. I will return to the CEO succession towards the end of the call. Our Q2 results were strong, with technical utilization of 99.6% and an economic utilization of 97.8%. As anticipated, our activity rebounded in Q2 with 22 out of 24 rigs active. Revenue increased by $51.1 million this quarter, and EBITDA rose by $37 million to $133 million, up by 39% versus the Q1 of this year, underscoring the profitability of the revenue stream.

We will cover the financing package in detail during our prepared remarks as it represents a significant step forward in strengthening our capital position and supporting our long term strategy, our return to the CEO succession towards the end of the call.

Our second quarter results were strong with technical utilization of 99, 6% and an economic utilization of 97, 8%.

As anticipated our activity rebounded in the second quarter with 22 out of 24 rigs active.

Revenue increased by $51 1 million this quarter and EBITDA rose by 37 million to $133 million up by 39% versus the first quarter of this year underscoring the profitability of the revenue stream.

Patrick Schorn: Additionally, $106.5 million free cash flow was generated in the first six months of the year. During the quarter, we have secured significant new awards, including a multi-rig contract in Asia and a new contract for the Arabia II, which is expected to return to our active fleet in September. These contract awards and commitments improve our contract coverage to 84% at an average day rate of $145,000 for 2025, and 47% coverage at an average day rate of $139,000 for 2026. Last month, we took a decisive step to strengthen Borr Drilling's longer-term financial position through a comprehensive financing package.

Additionally, $106 5 million free cash flow was generated in the first six months of the year.

Patrick Schorn: During the quarter, we have secured significant new awards, including a multi-rig contract in Asia and a new contract for the Arabia too, which is expected to return to our active fleet in September. These contract awards and commitments improve our contract coverage to 84% at an average day rate of $145,000 for 2025 and 47% coverage at an average day rate of $139,000 for 2026. Last month, we took a decisive step to strengthen Borr Drilling's longer-term financial position through a comprehensive financing package. This initiative, which included a $102.5 million equity raise and amendments to the size and covenants of our revolving credit facilities, effectively increased our liquidity by $200 million and strengthened our balance sheet. We acted proactively to secure financing while market conditions were favorable, reinforcing our ability to execute on our long-term strategy, including disciplined growth and potential industry consolidation.

During the quarter, we have secured significant new awards, including a multi rig contract in Asia, and then you contract for the Arabia, too, which is expected to return to our active fleet in September.

These contract awards and commitments improve our contract coverage to 84% at an average day rate of 145000 for 2025 and 47% coverage at an average day rate of 139000 for 2026.

Last month, we took a decisive step to strengthen board drilling some longer term financial position through a comprehensive financing package. This initiative, which included a $102 5 million equity raise and amendments to the size and covenants of our revolving credit facilities effectively increase.

Patrick Schorn: This initiative, which included a $102.5 million equity raise and amendments to the size and governance of our revolving credit facilities, effectively increase our liquidity by $200 million and strengthens our balance sheet. We acted proactively to secure financing while market conditions were favorable, reinforcing our ability to execute on our long-term strategy, including disciplined growth and potential industry consolidation. Looking into Q3, we see a comparable level of activity as in Q2 and anticipate a similar performance. As previously indicated in our commentary on 2025 adjusted EBITDA guidance, we are comfortable with the current Bloomberg consensus estimate of approximately $470 million. We are encouraged by the Mexican government's renewed commitment to strengthening Pemex's liquidity and its restated production goal of achieving 1.8 million barrels per day.

Our liquidity by $200 million and strengthens our balance sheet.

We exited proactively to secure financing while market conditions were favorable reinforcing our ability to execute on our long term strategy, including disciplined growth and potential industry consolidation.

Patrick Schorn: Looking into the third quarter, we see a comparable level of activity as in the second quarter and anticipate a similar performance. As previously indicated in our commentary on 2025 adjusted EBITDA guidance, we are comfortable with the current Bloomberg consensus estimate of approximately $470 million. We are encouraged by the Mexican government's renewed commitments to strengthening Pemex's liquidity and its restated production goal of achieving 1.8 million barrels per day. These actions should also enhance Borr Drilling's liquidity, enabling us to leverage our proven track record of delivering best-in-class wells and uniquely positioning Borr Drilling to capture incremental drilling activity, particularly under private investment projects that are expected to play an increasingly important role in the future of Mexico's oil and gas production. I will pass the call now to Magnus for the second quarter financial commentary.

Looking into the third quarter, we see a comparable level of activity is in the second quarter and anticipate a similar performance.

As previously indicated in our commentary on 2025 adjusted EBITDA guidance, we are comfortable with the current Bloomberg consensus estimate of approximately $470 million.

We are encouraged by the Mexican government's renewed commitment to strengthening Pemex is liquidity and its restated production goal of achieving $1 8 million barrels per day.

Patrick Schorn: These actions should also enhance Borr Drilling's liquidity, enabling us to leverage our proven track record of delivering best-in-class wells and uniquely positioning Borr Drilling to capture incremental drilling activity, particularly on the private investment projects that are expected to play an increasingly important role in the future of Mexico's oil and gas production. I'll pass the call now to Magnus for the Q2 financial commentary.

These actions should also in homes or drilling liquidity, enabling us to leverage our proven track record of delivering best in class wells and uniquely positioning more drilling to capture incremental drilling activity.

<unk> under private investment projects that are expected to play an increasingly important role in the future of Mexico's oil and gas production.

I'll pass the call now to Magnus for the second quarter financial commentary.

Magnus Vaaler: Thank you, Patrick. I will now go into some more details around the results for Q2, which were positively impacted by an increase in activity and the number of rigs working in comparison to Q1. Total operating revenues were $267.7 million for Q2, an increase of $51.1 million or 24% compared to Q1. Included in this are day rate revenues increases of $36.3 million, primarily due to an increase in the number of operating days for the Vali and the Thor. Variable charter revenues increased by $12.7 million due to the startup of Arabia I's contract in Brazil and the commencement of the Galar grid and Gersemi recommencement in Mexico. Lastly, management contract revenue increased by $2.1 million, primarily due to the recommencement of the Galar.

Magnus Vaaler: Thank you, Patrick. I will now go into some more details around the results for the quarter, which were positively impacted by an increase in activity and the number of rigs working in comparison to the prior quarter. Total operating revenues were $267.7 million for the second quarter, an increase of $51.1 million or 24% compared to the first quarter. Included in this are day rate revenues increases of $36.3 million, primarily due to an increase in the number of operating days for the Vali and the Thor. Bareboat charter revenues increased by $12.7 million due to the startup of Arabia One's contract in Brazil and the commencement of the Galar Grid and Gersoni recommencement in Mexico. Lastly, management contract revenue increased by $2.1 million, primarily due to the recommencement of the Galar.

Thank you Patrick.

I will now go into some more detail around good results for the quarter, which were positively impacted by an increase in activity and the number of rigs working in comparison to the prior quarter.

Total operating revenues were 206 to $7 7 million for the second quarter, an increase of $51 1 million or 24% compared to the first quarter and.

Included in this are day rates revenues increases of $36 3 million, primarily due to an increase in the number of operating days part of Vale in the port.

Bareboat charter revenues increased by $12 7 million due to the startup of Arabia once contract in Brazil, and the commencement of the Golar grid, <unk> Recommencement and Mexico.

And lastly management contract revenue increased by $2 1 million, primarily due to the recommencement of the Golan.

Magnus Vaaler: Total operating expenses were $171.2 million for Q2, an increase of $14.4 million or 9% compared to Q1. This is also due to the Vali and the Thor rig operating expenses increase around $12.4 million. This in total gives us an operating income of $96.5 million, which is a $36.3 million or 60% increase from the prior quarter. Further below the operating income line, we saw total financial expenses decreasing by $6.3 million, mainly due to decrease in financing fees related to the Mexico settlement in Q1 2025, with no comparable in Q2, in addition to positive FX movements.

Magnus Vaaler: Total operating expenses were $171.2 million for the second quarter, an increase of $14.4 million or 9% compared to the first quarter. This is also due to the Vali and the Thor rig operating expenses increased around $12.4 million. This in total gives us an operating income of $96.5 million, which is a $36.3 million or 60% increase from the prior quarter. Further below the operating income line, we saw total financial expenses decreasing by $6.3 million, mainly due to a decrease in financing fees related to the Mexico settlements in the first quarter of 2025, with no comparable in the second quarter, in addition to positive FX movements. Income tax expenses decreased by $7.8 million, primarily due to a one-off deferred tax assets recognized during the quarter and a decrease in tax expense in Africa.

Total operating expenses were $171 2 million for the second quarter, an increase of $14 4 million or 9% compared to the first quarter.

This is also due to the volume of the door.

Rig operating expenses increase around $12 4 million.

This in total gives us an operating income of $96 5 million, which is a $36 3 million or 60% increase from the prior quarter.

Further below the operating income line, we saw total financial expenses decreasing by $6 3 million, mainly due to decrease in financing fees related to the Mexico settlements in the first quarter of 2025.

With no comparable in the second quarter. In addition to positive FX movements.

Magnus Vaaler: Income tax expenses decreased by $7.8 million, primarily due to a one-off deferred tax assets recognized during the quarter and decrease in tax expense in Africa. All of the above resulted in a net income of $35.1 million, an increase of $52 million compared to the previous quarter. Adjusted EBITDA was $133.2 million, an increase of $37.1 million or 39%. Now moving into liquidity. Our free cash position at the end of Q2 was $92.4 million. In addition, we had $150 million undrawn under our revolving credit facility, resulting in total available liquidity of $242.4 million. Cash decreased by $77.8 million in comparison to the prior quarter, explained by the following. Net cash provided by operating activities were $6.3 million.

Income tax expenses decreased by $7 8 million, primarily due to a one off deferred tax assets recognized during the quarter and decrease in tax expense in Africa.

Magnus Vaaler: All of the above resulted in a net income of $35.1 million, an increase of $52 million compared to the previous quarter. Adjusted EBITDA was $133.2 million, an increase of $37.1 million or 39%. Moving into liquidity, our free cash position at the end of Q2 was $92.4 million. In addition, we had $150 million undrawn under our revolving credit facility, resulting in total available liquidity of $242.4 million. Cash decreased by $77.8 million in comparison to the prior quarter, explained by the following: net cash provided by operating activities were $6.3 million. This was highly impacted by $98.3 million in cash interest payments, which we make semi-annually on our senior secured bonds. Additionally, $20.8 million of income taxes were paid in the quarter. The cash flow from operating activities in the quarter is impacted by working capital build. However, this is expected due to several reasons.

All of the above resulted in a net income of $35 1 million, an increase of $52 million compared to the previous quarter adjusted.

EBITDA was $133 2 million, an increase of $37 1 million or 39%.

Now moving into liquidity.

Our free cash position at the end of Q2 was $92 4 million.

In addition, we had $150 million undrawn under our revolving credit facility, resulting in total available liquidity of $242 4 million.

Cash decreased by $77 8 million in comparison to the prior quarter explained by the following.

Net cash provided by operating activities were $6 3 million.

Magnus Vaaler: This was highly impacted by $98.3 million in cash interest payments, which we make semiannually on our senior secured bonds. Additionally, $20.8 million of income taxes were paid in the quarter. The cash flow from operating activities in the quarter is impacted by working capital build. However, this is expected due to several reasons. First of all, we continue to see delays in collections in Mexico. However, due to recent positive developments through financing initiatives by the Mexican government, we expect this to improve in the second part of the year. Additionally, we have experienced increased accrued revenue as a natural result of the startup of new contracts for the Vali, Ran, and Arabia I, where services have been performed but not yet billed. In addition, certain rig contract rates increased compared to the previous quarter.

This was highly impacted by $98 3 million in cash interest payments, which we make semiannually on our senior secured bonds. Additionally, $28 million of income taxes were paid in the quarter.

The cash flow from operating activities in the quarter is impacted by working capital build however, this is expected due to several reasons.

Magnus Vaaler: First of all, we continue to see delays in collections in Mexico. However, due to recent positive developments through financing initiatives by the Mexican government, we expect this to improve in the second part of the year. Additionally, we have experienced increased accrued revenue as a natural result of the startup of new contracts for the Vali, Ron, and Arabia One, where services have been performed but not yet billed. In addition, certain rig contract rates increased compared to the previous quarter. Net cash used in investing activities was $13.4 million and is comprised of CapEx additions, primarily as a result of long-term maintenance costs and activation.

First of all we continue to see delays in collections in Mexico. However, due to recent positive developments through financing initiatives by the Mexican government. We expect this to improve in the second part of the year.

Additionally, we have experienced increased accrued revenue as a natural result of the startup of new contracts for an evolving Ron and Arabia, one where services have been performed but not yet built.

In addition, certain rig contract rates increase compared to the previous quarter.

Magnus Vaaler: Net cash used in investing activities was $13.4 million and is comprised of jackup additions, primarily as a result of long-term maintenance costs and activation. We still expect maintenance CapEx levels for the year around $50 million. In addition to these $50 million, a large portion of the contract preparation and activation costs for the rig Vali, we were able to capitalize and classify as CapEx, as opposed to deferring expenses as we normally do for contract startup. This is due to the rig being a new build commencing its first contract. Lastly, net cash used in financing activities were $70.7 million, which relates to the semi-annual debt repayments on our senior secured notes due in 2028 and 2030. It's also worth adding that year to date, our free cash flow generation was $106.5 million.

Net cash used in investing activities was <unk>.

$13 4 million comprised of Jackup addition.

Primarily as a result of long term maintenance cost and activation.

Magnus Vaaler: We still expect maintenance CapEx levels for the year around $50 million, and in addition to these $50 million, a large portion of the contract preparation and activation costs for the rig Vali, we were able to capitalize and classify as CapEx, as opposed to deferring expenses as we normally do for contract startups. This is due to the rig being a new build commencing its first contract. Lastly, net cash used in financing activities were $70.7 million, which relates to the semi-annual debt repayments on our senior secured notes due in 2028 and 2023. It's also worth adding that year to date, our free cash flow generation was $106.5 million.

We still expect maintenance capex levels for the year around $50 million and in addition to these 50 million a large portion of the contract preparation and activation costs for the rig Vale.

But to capitalize and classify as capex as opposed to deferring expenses as we normally do for contract startup.

This is due to the rig being a new vote commencing its first contract.

Lastly, net cash used in financing activities were $70 7 million, which relates to the semi annual debt repayments on our senior secured notes due in 2028 2013.

It's also worth adding that year to date, our free cash flow generation was $106 5 million.

Magnus Vaaler: As Patrick summarized, in July, we announced an initiative to significantly strengthen our balance sheet and increase liquidity of approximately $200 million through an equity raise of $102.5 million, an increase in revolving credit facilities of $84 million, and a reduction in the minimum liquidity covenants. With these transactions, the Q2 pro forma liquidity increases to approximately $425 million, which consists of $192 million cash and $234 million in available revolving credit facilities. This strengthened liquidity position provides a solid foundation for pursuing opportunistic transactions and supporting future growth. With this, I will pass the word over to Bruno.

Magnus Vaaler: As Patrick summarized, in July, we announced an initiative to significantly strengthen our balance sheet and increase liquidity of approximately $200 million through an equity raise of $102.5 million, and increases in revolving credit facilities of $84 million and a reduction in the minimum liquidity covenants. With these transactions, the Q2 pro forma liquidity increases to approximately $425 million, which consists of $192 million cash and $234 million in available RCF capacity. This strengthened liquidity position provides a solid foundation for pursuing opportunistic transactions and supporting future growth. With this, I will pass the word over to Bruno.

As Patrick summarized in July we announced an initiative to significantly strengthen our balance sheet and increased liquidity of approximately $200 million through an equity raise of $102 5 million and increases in revolving credit facilities of $84 million in there.

A reduction in the minimum liquidity covenants.

With this transaction the Q2 pro forma liquidity increases to approximately $425 million, which consist of $192 million cash and $234 million.

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This strengthened liquidity position provides a solid foundation for pursuing opportunistic transaction and supporting future growth.

With this I will pass the word over to Bruno.

Bruno Morand: Thank you, Magnus. Year to date, Borr Drilling has secured 14 new contract commitments, adding $318 million to our backlog. Several of these new commitments include options with the potential to significantly extend their duration and earnings visibility. Since our last report, we secured high-quality contracts backed by our market-leading operational performance. In Vietnam, we received a multi-rig award from Hong Long for a rig Gerd in Dan Ba, totaling approximately 500 days, including priced options. Both contracts are expected to commence in early Q4 in direct continuation of the rig's existing contracts, clearly demonstrating our ability to eliminate idle time and maximize asset utilization. These awards strengthen our market position in Vietnam, where we see near-term demand growth in Southeast Asia.

Bruno Morand: Thank you, Magnus. Year to date, Borr Drilling has secured 14 new contract commitments, adding $318 million to our backlog. Several of these new commitments include options with the potential to significantly extend their duration and earn its visibility. Since our last report, we have secured high-quality contracts backed by our market-leading operational performance. In Vietnam, we received a multi-rig award from Hong Long for our rig Store and Gun Vault, totaling approximately 500 days, including priced options. Both contracts are expected to commence in early Q4 in direct continuation of the rigs existing contracts, clearly demonstrating our ability to eliminate idle time and maximize asset utilization. These awards strengthen our market position in Vietnam, where we see near-term demand growth in Southeast Asia.

Thank you Michael.

Year to date bore drilling execute 14, new contract commitments, adding 318 million to our backlog.

Several of these new commitments include options with the potential to significantly extend their duration and earnings visibility.

Since our last report, we secured high quality contracts backed by our market leading operational performance.

In Vietnam, we received a multi rig award from whole loan for restoring gunboat totaling approximately 500 days, including priced options.

Both contracts are expected to commence in early Q4 in direct continuation of the rate that we can contracts clearly demonstrating our ability to eliminate idle time and maximize asset utilization.

These awards strengthen our market positioning Vietnam, where we see near term demand growth in southeast Asia.

Bruno Morand: In the Middle East, the rig Arabia Two received a 500-day contract expected to commence in early September, enabling the rig to return to the active fleet. While the standard has been awarded on a competitive basis, the rig's track record of high performance allows us to collaborate with the customer around certain performance incentives, which could result in day rate uplift of up to 10% to 15%. In Mexico, the Ron had a 100-day option exercised by ENI, keeping the rig contracted into early 2026. As part of this extension, the parties agreed to add another set of options to that contract that, if exercised, would result in full-year coverage for 2026. Lastly, in June, the OGAN received an order for suspension by Pemex.

Bruno Morand: In the Middle East, the Rig Arabia II received a 500 days contract expected to commence in early September, enabling the rig to return to the active fleet. While this tender has been awarded on a competitive basis, the rig's track record of high performance allows us to collaborate with the customer around certain performance incentives, which could result in day rate uplifts of up to 10% to 15%. In Mexico, the Ran had a 100-day option exercised by Eni, keeping the rig contracted into early 2026. As part of this extension, the parties agreed to add another set of options to that contract that, if exercised, would result in full year coverage for 2026. Lastly, in June, the Odin received a notice of suspension by Pemex.

In the Middle East the rig Arabia to receive a 500 days contract expected to commence in early September.

Nathan that rig to return to the active fleet.

While we stay there has been awarded on a competitive basis the rates track record of high performance allowed us to collaborate with the customer around certain performance incentives, which could result in day rate uplift of up to 10% to 15%.

In Mexico, the run at 100 day option exercise by Eni, keeping that rig contracted into early 'twenty six.

As part of this extension the parties agreed to add another set of options to their contract that if exercised would result in full year coverage for 2026.

And lastly in June the older received notice of suspension by Phoenix. Following these we secured a letter of intent from an independent oil company in Mexico for approximately 75 day program expected to commence in late August.

Bruno Morand: Following this, we secured a letter of intent from an independent oil company in Mexico for an approximately 75-day program expected to commence in late August. In addition to these awards, we have converted the previously announced LOAs for the Skow in Thailand and the Norve in West Africa into contracts. As you note in our fleet status report, the award associated with the Norve in West Africa has now been assigned to the Natt, which will enable us to optimize scheduling flexibility and maximize revenue days. On the back of the recent contracts, our 2025 fleet coverage has now reached a robust 84% at an average day rate of $145.

Bruno Morand: Following this, we secured a letter of intent from an independent oil company in Mexico for an approximately 75-day program expected to commence in late August. In addition to these awards, we have converted the previously announced LOAs for the Scout in Thailand and the NORVA in West Africa into contracts. As you note in our fleet status report, the award associated with the NORVA in West Africa has now been assigned to the NAT, which will enable us to optimize scheduling flexibility and maximize revenue days. On the back of the recent contracts, our 2025 fleet coverage has now reached a robust 84% at an average day rate of $145.

In addition to these awards, we have converted to the previously announced Loa's, where the skull and violent and then north and West Africa into contracts.

As you'll note in our fleet status report the award associated with the norm in West Africa has now been assigned to the nuts, which will enable us to optimize scheduling flexibility and maximize revenue base.

On the back of the recent contracts our 2025 feet coverage has now reached a robust 84% at an average day rate of 145.

Bruno Morand: This is in line with our earlier targets of achieving 80% to 85% coverage in the year, and we see potential for further improvements as we have line of sight of additional contracts for the rigs NAT and P1, which still have open capacity this year. Our 2026 coverage, including price options, now stands at 47%, a 12-point improvement since our last report. Mexico remains a significant and strategically important part of our portfolio, representing circa 20% of our available coverage in 2026. The announcements made by the Mexican government last week provide us with increased confidence in sustained rig demand and contract stability for our rigs in country. I will cover this in more detail in a few minutes.

Bruno Morand: This is in line with our earlier targets of achieving 80% to 85% coverage in the year. We see potential for further improvements as we have line of sight of additional contracts for the rigs Natt and P-one, which still has open capacity this year. Our 2026 coverage, including price options, now stand at 47%, a 12-point improvement since our last report. Mexico remains a significant and a strategically important part of our portfolio, representing circa 20% of its available coverage in 2026. The announcements made by the Mexican government last week provide us with increased confidence in sustained rig demand and contract stability for our rigs in country. I'll cover this in more detail in a few minutes.

This is in line with our earlier targets of achieving 80% to 85% coverage in the year and we see potential for further improvements as we have line of sight of additional contracts for the rigs not NP. One what you still have open capacity this year.

Our 2026 coverage, including price options now stand at 47%, a 12 point improvement since our last report.

Mexico remains a significant and strategically important part of our portfolio representing circa 20% of our available coverage in 2026.

The analysis made by the Mexican government last week provide us with increased confidence in sustained rig demand and contract stability for our rigs in country.

I'll cover these in more details in a few minutes.

Bruno Morand: From a macro perspective, the oil and gas sector continues to contend with a complex global environment recently shaped by regional conflicts, uncertainty over global trade tariffs, and OPEC's accelerated rollback of its 2.2 million barrels per day voluntary cuts. Regional conflicts have continued to underwrite the fragility of the global oil and gas supply chains, with escalations in the Middle East causing Brent prices to reach highs of $75 in June and reviving discussions about the importance of pragmatic government policies, as illustrated by the Dutch government's restated commitment to develop local gas and New Zealand's reversal of its prior ban on new offshore licenses. Despite this complex environment, Brent crude prices have remained resilient, averaging approximately $68 in Q2, a level that continues to support the development of shallow water projects, which offer some of the lowest break events and faster cash flow generation to our customers.

Bruno Morand: From a macro perspective, the oil and gas sector continues to contend with a complex global environment recently shaped by regional conflicts, uncertainty over global trade tariffs, and OPEC's accelerated rollback of its 2.2 million barrels per day voluntary cuts. Regional conflicts have continued to underwrite the fragility of the global oil and gas supply chains, with escalations in the Middle East causing Brent prices to reach highs of $75 in June and reviving discussions about the importance of pragmatic government policies, as illustrated by the Dutch government's reinstated commitment to develop local gas and New Zealand's reversal of its prior ban on new offshore licenses.

From a macro perspective, the oil and gas sector continues to contend with a complex global environment recently shaped by regional conflicts.

Certainty over global trade tariffs and Opex accelerated rollback of its $2 2 million barrels per day voluntary thoughts.

Regional conflicts have continued to underwrite the fragility of the global oil and gas supply chains with Escalations in the middle east, causing Brent prices to reach highs of 75 injured and revising discussions about the importance of pragmatic government policies as illustrated by the Dutch government reinstate the commitment to develop local gas.

And use the <unk> reversal of its prior bank on the offshore licenses.

Bruno Morand: Despite this complex environment, Brent crude prices have remained resilient, averaging approximately $68 in Q2, a level that continued to support the development of shallow-water projects, which offer some of the lowest break-evens and faster cash flow generation to our customer. Looking specifically at jack-ups, global utilization has remained generally steady, with modern rig market utilization holding above 90%. Day rates have continued to experience downward pressure as the market works to absorb the excess capacity resulting from the Saudi suspensions. While more than half of the modern rig capacity from the suspension has been absorbed, we estimated that less than 10 modern units remain available and competitive in international markets. Positively, visible incremental demand in the Middle East, particularly in Kuwait and the neutral zone, points towards a significant part of this oversupply being absorbed in the near future.

Despite this complex environment, Brent crude prices have remained resilient averaging approximately <unk> 68 in Q2, a level that continue to support the development of shallow water projects, which offer some of the lowest breakeven and faster cash flow generation to our customer.

Bruno Morand: Looking specifically at jack-ups, global utilization has remained generally steady, with modern rig market utilization holding above 90%. Day rates have continued to experience downward pressure as the market works to absorb the excess capacity resulting from the Saudi suspensions. While more than half of the modern rig capacity from the suspension has been absorbed, we estimated that less than 10 modern units remain available and competitive in international markets. Positively, visible incremental demand in the Middle East, particularly in Kuwait and the neutral zone, points towards a significant part of this oversupply being absorbed in the near future. While we acknowledge that these projects have experienced delays due to supply chain constraints and complex procurement processes, recent orders of long lead items provide increased confidence that they remain on track to materialize in 2026 and 2027.

Looking specifically at Jackups Global utilization has remained generally steady with modern rig market utilization holding above 90%.

Day rates have continued to experience downward pressure as the market works to absorb the excess capacity, resulting from the sale of the suspensions.

While more than half of the modern rig capacity from the suspension has been absorbed we estimated that less than 10 modern units remain available and competitive in international markets.

Positively visible incremental demand in the middle East, particularly in Kuwait, and the neutral zone points towards a significant part of these oversupply being absorbed in the near future.

Bruno Morand: While we acknowledge that these projects have experienced delays due to supply chain constraints and complex procurement processes, recent orders of long lead items provide increased confidence that they remain on track to materialize in 2026 and 2027. Additionally, we are encouraged by recent data points relating to Aramco EPCI tender awards and nearing awards for an estimated total of $8 billion, surpassing 2024 levels. These awards cover key projects such as Zuluf and Marjan, and are understood to include several wellhead platforms. With jackup activity in Saudi already back to 2019 levels, we believe further development of these projects are supportive of long-term incremental demand in the kingdom. In Southeast Asia and West Africa, demand has continued to track positively. Since the beginning of the year, contracted jackup count in these regions has increased by 10 rigs.

While we acknowledge that these projects that experienced delays due to supply chain constraints and complex procurement processes recent orders of long lead items provide increased confidence that they remain on track to materialize in 'twenty six 'twenty seven.

Bruno Morand: Additionally, we are encouraged by recent data points relating to Aramco EPCI tender awards and year-end awards for an estimated total of $8 billion, surpassing 2024 levels. These awards cover key projects such as Zulums and Marjan, and are understood to include several wellhead platforms. With jack-up activity in Saudi already back to the 2019 level, we believe further development of these projects is supportive of long-term incremental demand in the kingdom. In Southeast Asia and West Africa, demand has continued to track positively. Since the beginning of the year, contracted jack-ups count in these regions has increased by 10 rigs. While the inflow of rigs from the Middle East to both regions has pressured rates in recent opportunities and more markedly in Southeast Asia, supply and demand in these regions are fundamentally balanced for modern units.

Additionally, we are encouraged by recent data points relating to our Rankle PCI tender awards and nearing awards for an estimated total of $8 billion, surpassing 2004 2024 levels.

These awards cover key projects, such as Hulu and margin and are understood to include several wellhead platforms.

With Jackup activity in Saudi already back to 2019 level. We believe further development of these projects are supportive of long term incremental demand in the kingdom.

In Southeast Asia, and West Africa demand has continued to trend positively.

Since the beginning of the year contracted Jackup count in these regions has increased by 10 rigs.

Bruno Morand: While the inflow of re-rigs from the Middle East to both regions has pressure rates in recent opportunities, and more markedly in Southeast Asia, supply and demand in these regions is fundamentally balanced for modern units. In Mexico, we're encouraged by the government's renewed focus on strengthening Pemex liquidity and to restate their goal of achieving 1.8 million barrels per day in production. The government has laid out a clear plan, including a $12 billion debt offering to refinance short-term obligations and another $13 billion facility to provide funding for Pemex current and future projects. Given our track records of delivering best-in-class wells, Borr is uniquely positioned to capture incremental work, especially on private investment projects, which are projected to contribute to one quarter of the country's production by 2033.

While the inflow of rigs from the Middle East to both regions has pressure racing recent opportunities and more marketing southeast Asia supply and demand in these regions is fundamentally balance for modern units.

Bruno Morand: In Mexico, we are encouraged by the government's renewed focus on strengthening Pemex liquidity and its restated goal of achieving 100 million barrels per day in production. The government has laid out a clear plan, including a $12 billion debt offering to refinance short-term obligations and another $13 billion facility to provide funding for Pemex current and future projects. Given our track record of delivering best-in-class wells, Borr Drilling is uniquely positioned to capture incremental work, especially on private investment projects, which are projected to contribute to one quarter of the country's production by 2033. The bottom line is this: stronger liquidity at Pemex is a clear positive for Borr Drilling. As supply and demand continue to rebalance, retirement activity has now resumed as owners of old assets face challenges to find suitable and economic redeployment opportunities.

In Mexico, we are encouraged by the government's renewed focus on strengthened <unk> liquidity and <unk> stated goal of achieving 1 million barrels per day in production.

The government has laid out a clear plan, including a $12 billion debt offering to refinance short term obligations and another $13 billion facility to provide funding for <unk> current and future projects.

Given our track records of delivering best in class wells or is uniquely positioned to capture incremental work, especially on private investment projects, which are projected to contribute to one quarter of the country's production by 2032 33.

Bruno Morand: The bottom line is this: stronger liquidity at Pemex is a clear positive for Borr Drilling. As supply and demand continue to rebalance, retirement activity has now resumed as owner of old assets face challenges to find suitable and economic redeployment opportunities. Far this year, according to IHS, four units have been retired, and several others are being held for sale. We expect the dynamic to accelerate, particularly in the context of ongoing industry consolidation. In short, while near-term volatility may continue, the long-term fundamentals of the jackup market remain compelling. Demand for oil and gas to support global energy needs is expected to continue to grow and support investment. Shallow water projects represent a sizable portion of global production, characterized by attractive breakeven prices, short cash flow cycles, and relatively low emissions.

The bottom line these stronger liquidity of Pemex is a clear positive for board really.

As supply and demand continued to rebalance retirement activity has now resumed as owner of assets face challenges to find suitable and economic redeployment opportunities.

Bruno Morand: So far this year, according to IHS, four units have been retired and several orders are being held for sale. We expect the dynamic to accelerate, particularly in the context of ongoing industry consolidation. In short, while near-term volatility may continue, the long-term fundamentals of the jack-up market remain compelling. Demand for oil and gas to support global energy needs is expected to continue to grow and support investment. Shallow water projects represent a sizable portion of global production, characterized by attractive break-even prices, short cash flow cycles, and relatively low emissions. With an aging global fleet and no new builds in sight, the supply of jack-up rigs should continue to provide, supporting high utilization levels and economics. We are consistently delivering our commercial strategy, maximizing the 2025 backlog and building 2026 coverage while supporting our customers through this dynamic cycle.

So far this year. According to IHS four units have been retired and several others are being held for sale.

We expect the dynamic to accelerate particularly in the context of ongoing industry consolidation.

In short while near term volatility may continue the long term fundamentals of the Jackup market remain compelling.

Demand for oil and gas to support global energy needs is expected to continue to grow and support investment.

Hello water projects represent a sizable portion of global production characterized by attractive breakeven prices sure cash flow cycles and relatively low emissions.

Bruno Morand: With an aging global fleet and no new builds in sight, the supply of jackups should continue to decline, supporting high utilization levels and economics. We are consistently delivering our commercial strategy, maximizing 2025 backlog and building 2026 coverage while supporting our customers through this dynamic cycle. With that, I'll hand the call back to Patrick.

With an aging global fleet and no new beauty site the supply with Jackups will continue to provide support and high utilization levels and economics.

We are consistently let even our commercial strategy maximizing 2025 backlog in building 2026 coverage, while support our covered our customers will be dynamic cycle.

Bruno Morand: With that, I will hand the call back to Patrick.

I'll hand, the call back to Patrick.

Patrick Schorn: Thank you, Bruno. Now I would like to discuss our CEO succession plan. Effective September 1, Bruno Morand will succeed me as Chief Executive Officer. At that time, I will transition to the role of Executive Chairman. This is the culmination of a multi-year succession plan, developing a close partnership with our Board of Directors. I am very pleased that the Board has selected Bruno to lead Borr Drilling into its next chapter. While many of you already know him, let me take a moment to highlight his background. Bruno is a 20-year veteran of the offshore drilling industry, with a strong track record in operational management, project execution, marketing, and customer relationship development. Prior to joining Borr Drilling in 2017, he held senior roles with international offshore drilling companies, giving him broad exposure to global markets and operational complexity.

Patrick Schorn: Thank you, Bruno. Now I'd like to discuss our CEO succession plan. Effective 1 September, Bruno Morand will succeed me as Chief Executive Officer. At that time, I will transition to the role of Executive Chairman. This is the culmination of a multi-year succession plan, developing close partnership with our board of directors. I'm very pleased that the board has selected Bruno to lead Borr Drilling into its next chapter. While many of you already know him, let me take a moment to highlight his background. Bruno is a 20-year veteran of the offshore drilling industry with a strong track record in operational management, project execution, marketing, and customer relationship development. Prior to joining Borr Drilling in 2017, he held senior roles with international offshore drilling companies, giving him broad exposure to global markets and operational complexity.

Thank you Bruno.

Now I'd like to discuss our CEO succession plan.

Effective September one Bruno Moron will succeed me as Chief Executive Officer.

At that time, I will transition to the role of executive Chairman.

This is the culmination of a multiyear succession plan.

Eloping close partnership with our board of directors.

I am very pleased that the board has selected Bruno to LIBOR drilling into its next chapter.

While many of you already know, let me take a moment to highlight his background.

Bruno it's a 20 year veteran of the offshore drilling industry with a strong track record and operational management project execution marketing and customer relationship development.

Prior to joining bore drilling in 2017, <unk> senior roles with international offshore drilling companies, giving him broad exposure to global markets and operational complexity.

Patrick Schorn: Since joining Borr Drilling, he has been deeply involved in managing the relationships with our key clients and strategic partners and has contributed significantly to our operational and commercial progress. His dynamic leadership, customer focus, and strategic insight position him to advance our current priorities and unlock new growth. To our shareholders, I want to underscore that this transition is not just about continuity; it is also about accelerating our momentum. Bruno brings a fresh yet experienced perspective that will be invaluable as we navigate evolving market dynamics and pursue new avenues of growth. Alongside this leadership change, I am pleased to share updates to our board composition. Firstly, our founder and current Chairman, Mr. Thorolf Troim, will remain on the board as a Director, ensuring continuity of our founding vision. Mr. Dan Raven will become our Lead Independent Director, ensuring continuity of objective and independent governance. Mr.

Patrick Schorn: Since joining Borr Drilling, he has been deeply involved in managing the relationships with our key clients and strategic partners, and has contributed significantly to our operational and commercial progress. His dynamic leadership, customer focus, and strategic insight position him to advance our current priorities, and unlock new growth. To our shareholders, I want to underscore that this transition is not just about continuity. It's also about accelerating our momentum. Bruno brings a fresh, yet experienced perspective that will be invaluable as we navigate evolving market dynamics and pursue new avenues of growth. Alongside this leadership change, I'm pleased to share updates to our board composition. Firstly, our founder and current chairman, Mr. Tor Olav Trøim, will remain on the board as a director, ensuring continuity of our founding vision. Mr. Dan Rabun will become our lead independent director, ensuring continuity of objective and independent governance. Mr.

Since joining bore drilling yes.

He has been deeply involved in managing the relationships with our key clients and strategic partners and has contributed significantly to our operational and commercial progress.

Is dynamic leadership customer focus and strategic insight positioning to advance our current priorities and unlock new growth.

To our shareholders I want to underscore that this transition is not just about continuity. It's also about accelerating our momentum.

Bruno brings a fresh yet experienced perspective that will be invaluable as we navigate evolving market dynamics and pursue new avenues of growth.

Alongside this leadership change I am pleased to share updates to our board composition.

Firstly, our founder and current chairman Mr. Frolov, Troy will remain on the board as a director and ensuring continuity of our founding vision.

Mr. Dan Raven will become our lead independent director, ensuring continuity of objective and independent governance.

Patrick Schorn: Thiago Mordehachvili, founder and Chief Investment Officer of Granular Capital Ltd., and a long-standing shareholder, will be joining our Board. Mr. Mordehachvili brings deep financial acumen and a strong shareholder perspective, which will help to further sharpen our focus on long-term value creation. These changes significantly strengthen our Board's capabilities and align with our strategic vision for long-term success. The combined experience and diverse expertise of this group will support the leadership team in driving innovation, performance, and shareholder returns. Now, as I reflect on the past 7 years, initially as a Director and subsequently as CEO, I'm incredibly proud of what we have built together. During that time, we have assembled a world-class leadership team, expanded our presence in key markets, and established Borr Drilling as the leading international jackup drilling contractor.

Patrick Schorn: Tiago Morar Chili, founder and Chief Investment Officer of Granula Capital and a longstanding shareholder, will be joining our board. Mr. Morar Chili brings deep financial acumen and a strong shareholder perspective, which will help to further sharpen our focus on long-term value creation. These changes significantly strengthen our board's capabilities and align with our strategic vision for long-term success. The combined experience and diverse expertise of this group will support the leadership team in driving innovation, performance, and shareholder returns. Now, as I reflect on the past seven years, initially as a director and subsequently as CEO, I am incredibly proud of what we have built together. During that time, we have assembled a world-class leadership team, expanded our presence in key markets, and established Borr Drilling as the leading international jack-up drilling contractor.

And Mr. Thiago Motta truly founder and Chief investment officer of granular capital and a longstanding shareholder will be joining our board.

Mr. Morton are truly brings deep financial acumen, and a strong shareholder perspective, which will help to further sharpen our focus on long term value creation.

These changes significantly strengthen our board's capabilities and aligned with our strategic vision for long term success the combined.

<unk> experienced and diverse expertise of this group, we will support the leadership team and driving innovation performance and shareholder returns.

Now as I reflect on the past seven years initial Esa director and subsequently as CEO.

Im incredibly proud of what we have built together.

During that time, we have assembled a world class leadership team expanded our presence in key markets and established bore drilling as the leading international Jackup drilling contractor.

Patrick Schorn: The strong foundation we stand on today is a direct result of the hard work and dedication of our employees, the continued support of our customers, and the confidence of our shareholders. I sincerely thank each one of them for that. Looking ahead to this next chapter, I am excited about the path ahead for Borr Drilling and am confident in our ability to deliver on our long-term vision and create value for our shareholders. Thank you. Ladies and gentlemen, we are now ready to go to Q&A.

Patrick Schorn: The strong foundation we stand on today is a direct result of the hard work and dedication of our employees, the continued support of our customers, and the confidence of our shareholders. I sincerely thank each one of them for that. Looking ahead to this next chapter, I'm excited about the path ahead for Borr Drilling. I'm confident in our ability to deliver on our long-term vision and create value for our shareholders. Thank you. Ladies and gentlemen, we are now ready to go to Q&A.

The strong foundation, we stand on today is a direct result of the hard work and dedication of our employees.

The continued support of our customers.

And the confidence of our shareholders and.

And I sincerely, thank each one of them for that.

Looking ahead to this next chapter I'm excited about the path ahead full bore drilling.

And I'm confident in our ability.

To deliver on our long term vision and create value for our shareholders. Thank you <unk>.

And gentlemen, we are now ready to go to Q&A.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one and then one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please kindly ask one question and possibly a follow-up question at a time to leave room for other participants. If you do not have any further questions, you can please rejoin the queue. If you wish to ask the question via the webcast, please type it into the question box and submit. One moment for our first question, please. It's coming from the line of Eddie Kim with Barclays. Please proceed.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one and then one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please kindly ask one question and possibly a follow-up question at a time to leave room for other participants. If you do not have any further questions, you can please rejoin the queue. If you wish to ask a question via the webcast, please type it into the question box and submit. One moment for our first question, please. It is coming from the line of Eddie Kim with Barclays. Please proceed.

Thank you Ann as a reminder to ask a question you will need to press Star One and then one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Kindly ask one question and possibly a follow up question at a time to leave room for other participants if you do not have any further questions. You can please rejoin the queue. If you wish to ask a question via the webcast. Please type it into the question box and submit.

One moment for our first question please.

It's coming from the line of Eddie Kim with Barclays. Please proceed.

Eddie Kim: Hi, good morning. Just wanted to get an update on where things stand in Mexico. It's certainly great to see the Mexican government raising debt so Pemex can hopefully pay their suppliers like yourselves. From an operational perspective, do you think the worst is sort of behind us in Mexico? You have, I believe, five jackups drilling for Pemex currently, most of which are off contract in the first half of next year. Just curious, what's your confidence level on extensions for these jackups? Looking even further ahead, how do you see maybe a Pemex rig count trending from here over the next, let's say, 12 to 18 months?

Analyst: Hi, good morning. Just wanted to get an update on where things stand in Mexico. It is certainly great to see the Mexican government raising debt so Pemex can hopefully pay their suppliers like yourselves. From an operational perspective, do you think the worst is sort of behind us in Mexico? You have, I believe, five jack-up rigs drilling for Pemex currently, most of which are off contract in the first half of next year. Just curious, what is your confidence level on extensions for these jack-up rigs? Looking even further ahead, how do you see maybe your Pemex rig count trending from here over the next, let us say, 12 to 18 months?

Hi, good morning.

Just wanted to get an update on where things stand in Mexico, It's certainly great to see the Mexican government.

Raising debts of Pemex can hopefully pay their suppliers like yourselves.

But from an operational perspective do you think the worst is sort of behind us in Mexico.

I believe five jackups drilling for Pemex currently.

Most of which are coming off contract in the first half of next year. Just curious what's your confidence level on extension studies Jackups and looking even further ahead, how do you see maybe pemex rig count trending from here.

Over over the next let's say 12 to 18 months.

Patrick Schorn: Very good, Eddie. Thanks for the question. Bruno here. Let me tackle that in small chunks here. Indeed positive, what we know is the government announced this $13 billion facility, which is clearly earmarked to support vendor payments for projects that are current and future in the Pemex portfolio. There has been a hint that in 2026 there will be a similar facility that will come to support Pemex in getting back behind their strategy. That is positive. It's hard to comment more. I think it's gonna take a little bit of time for agreements to be put in place. There's obviously banking agreements associated before revenues or revenues start to come through. There seem to be a very clear pathway for that. That is very positive, very positive for us.

Bruno Morand: Very good, Eddie. Thanks for the question. Bruno here. Let me tackle that in small chunks here. Indeed positive, what we know is the government announced this $13 billion facility, which is clearly earmarked to support vendor payments for projects that are current and future in the Pemex portfolio. There has been a hint that in 2026 there will be a similar facility that will come to support Pemex in getting back behind their strategy. That is positive. It's hard to comment more. I think it's gonna take a little bit of time for agreements to be put in place. There's obviously banking agreements associated before revenues or revenues start to come through. There seem to be a very clear pathway for that. That is very positive, very positive for us.

Bruno Morand: Very good. Eddie, thanks for the question. Bruno here. Let me tackle that in small chunks here. Indeed, positive, what we know is the government announced this $13 billion facility, which is clearly earmarked to support vendor payments for projects that are current and future in the Pemex portfolio. There has been a hint that in 2026, there will be a similar facility that will come to support Pemex in getting back behind the strategy. That is positive. It is hard to comment more. I think it is going to take a little bit of time for agreements to be put in place. There are obviously banking agreements associated before revenues start to come through. There seems to be a very clear pathway for that. That is very positive, very positive for us.

Very good thanks for the question Bruno here, So let me tackle that in small chunks here, but indeed positive.

Is the government analysis $13 billion facility, which is clearly earmarked to support vendor payments for projects that are current and future in the <unk> portfolio and there has been a hanes debt in 2026, there will be a similar facility that will come to support <unk> in getting back behind the strategy.

That is positive.

Hard to call. It more I think is going to take a little bit of time for agreements to be put in place. There is obviously banking agreements associated before revenues or revenue start to come through but there seem to be a very clear pathway for that so that is very positive very positive for us in terms of activity.

Patrick Schorn: In terms of activity, what we see in Mexico at the moment is less about Pemex desire to continue with activity, and it's more about their ability to continue to pay vendors and sustainably continue operation. I think with the funding, the desire and the work scope has been there, and that the payment should enable now some of that activity to return in quite short near term. It is indeed positive. I think it does paint a better picture in a clear environment for us in Mexico going forward. We do have ongoing discussions about new contracts for, multiyear work on our rigs, and we are quite optimistic and positive that we'll see those coming to a conclusion in very short term. We'll update you more as we move along, but I think the optimism is certainly there.

Bruno Morand: In terms of activity, what we see in Mexico at the moment is less about Pemex desire to continue with activity, and it's more about their ability to continue to pay vendors and sustainably continue operation. I think with the funding, the desire and the work scope has been there, and that the payment should enable now some of that activity to return in quite short near term. It is indeed positive. I think it does paint a better picture in a clear environment for us in Mexico going forward. We do have ongoing discussions about new contracts for, multiyear work on our rigs, and we are quite optimistic and positive that we'll see those coming to a conclusion in very short term. We'll update you more as we move along, but I think the optimism is certainly there.

Bruno Morand: In terms of activity, what we see in Mexico at the moment is less about Pemex's desire to continue with activity and is more about their ability to continue to pay vendors and sustainably continue operation. I think with the funding, the desire and the work scope has been there, and the payments should enable now some of that activity to return in quite short near term. It is indeed positive. I think it does paint a better picture and a clear environment for us in Mexico going forward. We do have ongoing discussions about new contracts for multi-year work on our rig, and we are quite optimistic and positive that we will see those coming to a conclusion in very short term. We will update you more as we move along, but I think the optimism is certainly there.

What we see in Mexico at the moment is even less about Phoenix desire to continue with activity and it's more about their ability to continue to pay vendors and sustainably continue operation I think with the funding the desire and the work scope has been there and the payments should enable now some of that activity to return in quite shortly.

Sure.

It is indeed positive I think he does paint a better picture.

Clear environment for us in Mexico going forward, we do have ongoing discussions about new contracts for multiyear work on our rigs and we are quite optimistic and positive that we will see those coming to a conclusion.

The very short term so update you more as we move along but I think the optimist is certainly there.

Eddie Kim: Great. Thank you. My follow-up is just on potential M&A. You have a lot more dry powder now than you did 3 months ago. You mentioned potentially targeting some opportunistic transactions. Could you expand on that a bit for us? Are you looking to target, you know, some larger corporate M&A? I know we had a big merger announcement recently in the sector. More targeting smaller kind of asset purchases, and are you looking to target specific regions? Curious on your thoughts on the opportunities and what you're looking for.

Analyst: Great, great. Thank you. My follow-up is just on potential M&A. You have a lot more dry powder now than you did three months ago. You mentioned potentially targeting some opportunistic transactions. Could you expand on that a bit for us? Are you looking to target maybe some larger corporate M&A? I know we had a big merger announcement recently in the sector, or more targeting smaller kind of asset purchases. Are you looking to target specific regions? Just curious on your thoughts on the opportunities and what you are looking for.

Great great. Thank you.

My follow up is just on potential M&A. So you have a lot more dry powder now than you did three months ago, you mentioned potentially targeting some opportunistic transactions could you expand on that a bit for us.

Are you looking to target maybe.

Some larger corporate M&A I know we had a.

A big.

Merger announcement recently in this sector or more targeting smaller kind of asset purchases.

Are you looking to target specific regions just curious on your thoughts on that.

On the opportunities and what Youre looking for.

Patrick Schorn: Yeah, Eddie, I think, I mean, part of the answer is probably already what you said in that with the recent announcements that have been done, any bit of color that we give probably immediately identifies exact direction and candidates of where we're thinking and how we're thinking about it. Given the fact that there have been some moves and some signs of consolidation in the market already, I think it's very difficult to comment in further detail. I think that the key maybe takeaway is that we look forward to see more consolidation in the space. We believe that the time is right for it. We believe that that will go hand in hand potentially with actions that we will see happening in the deepwater space as well.

Bruno Morand: Yeah, Eddie, I think, I mean, part of the answer is probably already what you said in that with the recent announcements that have been done, any bit of color that we give probably immediately identifies exact direction and candidates of where we're thinking and how we're thinking about it. Given the fact that there have been some moves and some signs of consolidation in the market already, I think it's very difficult to comment in further detail. I think that the key maybe takeaway is that we look forward to see more consolidation in the space. We believe that the time is right for it. We believe that that will go hand in hand potentially with actions that we will see happening in the deepwater space as well.

Patrick Schorn: Yeah, Eddie, I think, part of the answer is probably already what you said in that with the recent announcements that have been done, any bit of color that we give probably immediately identifies exact direction and candidates of where we are thinking and how we are thinking about it. Given the fact that there have been some moves and some signs of consolidation in the market already, I think it is very difficult to comment in further detail. I think that the key maybe takeaway is that we look forward to seeing more consolidation in this space. We believe that the time is right for it, and we believe that that will go hand in hand potentially with actions that we will see happening in the deep water space as well.

Yes, Eddie I think main part of the answer is probably already what you said in that with the recent announcements that have been done.

Any bit of color that we gave.

Immediately identify exact.

Exact direction and candidates aware, we're thinking and how we're thinking about it so given the fact that there have been some moves and some signs of consolidation in the market already I think it is very difficult to comment in further detail I think that the.

Key may be takeaway is that we look forward to see more consolidation in this space. We believe that the time is ripe for it and we believe that that will go hand in hand potentially win.

Actions that we will see happening in the deepwater space as well.

Patrick Schorn: Out of all of that, I do think that there is going to be some interesting assets that might fall off and that might be interesting for us as well. As you maybe remember from the Paragon acquisition that we did, when we acquire, we also have no problem, provided that the valuation is right, that we cut out, in some cases, a significant amount of rigs that are not of the profile any longer that fit with our fleet. We certainly look as well at parts of the market where we could rationalize further. I think we'll have to leave it at that as additionally commentary, just because, I mean, the space where we operate in is relatively small, and some others have made moves already.

Patrick Schorn: Out of all of that, I do think that there is going to be some interesting assets that might fall and that might be interesting for us as well. As you maybe remember from the Paragon acquisition that we did, when we acquire, we also have no problem, provided that the valuation is right, that we cut up, in some cases, a significant amount of rigs that are not of the profile any longer that fit with our fleet. We certainly look as well at parts of the market where we could rationalize further. But I think we will have to leave it at that as additional commentary just because, the space where we operate in is relatively small and some others have made moves already. I think we will just have to keep our eye open here in the months to come and see how this space develops further.

Bruno Morand: Out of all of that, I do think that there is going to be some interesting assets that might fall off and that might be interesting for us as well. As you maybe remember from the Paragon acquisition that we did, when we acquire, we also have no problem, provided that the valuation is right, that we cut out, in some cases, a significant amount of rigs that are not of the profile any longer that fit with our fleet. We certainly look as well at parts of the market where we could rationalize further. I think we'll have to leave it at that as additionally commentary, just because, I mean, the space where we operate in is relatively small, and some others have made moves already.

Out of all of that I do think that there is going to be.

Some interesting assets that might fall and that might be interesting for us as well as you may remember from the Paragon acquisition that we did.

When we acquire we also have no problem provided that the valuation is right that.

That we cut off.

In some cases, a significant amount of rigs that are not of the profile any longer that fit with our fleet. So we certainly look as well at.

Parts of the market, where we could rationalize further but I think we will have to leave it at that as additionally commentary just because I mean, the space, where we operate in is relatively small and some others have made moves already so.

Patrick Schorn: I think we'll just have to keep our eye open here in the months to come and see how this space develops further.

Bruno Morand: I think we'll just have to keep our eye open here in the months to come and see how this space develops further.

I think we'll just have to keep our eye open here in the months to come and see how this space develops further.

Eddie Kim: Understood. Sounds good. Patrick, you navigated the company through some very challenging times, so job well done and I wish you the best in your next chapter.

Analyst: Understood. Sounds good. Patrick, you navigated the company through some very challenging times, so a job well done, I wish you the best in your next chapter.

Understood sounds good.

Patrick <unk>.

Did the company through some very challenging times, so a job well done and wish you the best in your next chapter.

Patrick Schorn: Thank you.

Bruno Morand: Thank you.

Thank you.

Operator: Thank you. Our next question comes from the line of Doug Becker with Capital One. Please proceed.

Thank you. Our next question comes from the line of Doug Becker with capital one. Please proceed.

Doug Becker: Thank you. Patrick, you mentioned private investment projects are expected to play an increasing role in Mexico. Just wanted some color on the current status of private projects. You know, historically it's been difficult to find agreements that are suitable for all the parties. Just a little color on what milestones should we be keeping an eye out for that might show a broader acceleration here.

Analyst: Thank you. Patrick, you mentioned private investment projects are expected to play an increasing role in Mexico. I just wanted some color on the current status of private projects. Historically, it's been difficult to find agreements that are suitable for all the parties. So just a little color in what milestones should we be keeping an eye out for that might show a broader acceleration here.

Thank you.

Patrick you mentioned private investment projects are expected to play an increasing role in Mexico.

To add some color on the current status of <unk>.

Private projects historically, its been able to find it difficult to find agreements that are suitable for all the parties were just a little color on what milestone should.

Keeping an eye out for that might show a broader acceleration here.

Patrick Schorn: Yeah. I'll ask Bruno to give a bit more color on this, Doug.

Patrick Schorn: I will ask Bruno Morand to give a bit more color on this, Doug.

Yes, I'll ask Bruce to give a bit more color on this.

Bruno Morand: Very good, thanks for the question, Doug Becker. You know, the private investment is a reality in Mexico at the moment. If you look at our fleet, one of our rigs in Mexico as we speak is operating in a field called the Baca Bloom, which is a private investment project. The way to think about it, these are basically in general fields that are already identified by Pemex and sometimes relatively mature, that are then assigned to a private investment group that has a 15-year timeline to develop these fields and get remunerated for the additional production that they can get out of these fields. It seems to be a quite attractive value proposition. It's one that incentivize performance and at the same time reduces a bit of the strain on Pemex balance sheet to fund some of these projects.

Bruno Morand: Very good. Thanks for the question, Doug. The private investment is a reality in Mexico at the moment. If you look at our fleet, one of our rigs in Mexico, as we speak, is operating in a field called the Baca Blum, which is a private investment project. The way to think about it, these are basically, in general, fields that are already identified by Pemex and sometimes relatively mature that are then assigned to a private investment group that has a 15-year timeline to develop these fields and get remunerated for the additional production that they can get out of these fields. It seems to be a quite attractive value proposition. It's one that incentivizes performance and at the same time reduces a bit of the strain on Pemex's balance sheet to fund some of these projects.

Very good thanks for the question, Doug the private investment.

Reality it makes quite a mortgage if you look at our fleet one of our leasing Mexico as we speak is operating in a field called the backup balloon, which he's a private investment project and the way to think about it these are basically.

In general themes that are already identified by Pemex, sometimes relatively mature that are then assigned to a private investment group that has a 15 year timeline to develop his views and get remunerated for the additional production that they can get out of these skus. So it seems to be a quite attractive value proposition.

It's one that incentivize performance and at the same time reduces a bit of a strain of <unk> balance sheet to fund some of these projects.

Bruno Morand: Equally important is that these projects allow the investment group to actually get paid from production and consequently minimize, as well, some of the exposure to the Pemex payment cycle. That's a quite interesting thing. In terms of scale, the one that we're participating in at the moment is the first one in the country and started very successfully. In the recent plans from Pemex that were released last week, they have now a target and ambition to see those projects represent about a quarter of the total country production by 2033 and about 450,000 barrels a day at that point in time. There's quite a significant growth expected and certainly a type of project that will value or benefit performance-oriented contractors like ourselves.

Bruno Morand: Equally important is that these projects allow the investment group to actually get paid from production and consequently minimizing as well some of the exposure to the Pemex payment cycle. That's a quite interesting thing. In terms of scale, the one that we're participating at the moment is the first one in country and started very successfully. In the recent plans from Pemex that were released last week, they have now a target and ambition to see those projects represent about a quarter of the total country production by 2033 and about 450,000 barrels a day at that point in time. There's quite a significant growth expected and certainly a type of project that will value or benefit performance-oriented contractors like ourselves.

Equally important is that these projects allow.

Investment group to actually get paid from production and consequently, minimizing as well as couple of the exposure to the Pemex payment cycle. So thats a quite interesting thing in terms of scale. The one that we are participating at the moment is the first one country.

And start the very successfully in the recent plans from <unk> that were released last week. They have now target and ambition to see those projects represent about a quarter of the total country production by 2030.

And about 450000 barrels a day at that point in time. So there is quite a significant growing growth expected and certainly a type of project that will value or benefit performance oriented contractors like ourselves.

Doug Becker: No, it definitely sounds encouraging. Maybe a quick one for Magnus. It wasn't clear to me, are you currently having conversations around the Pemex accounts receivable being paid, or is it just that the funding's coming in and obviously that bodes well?

Analyst: No, that definitely sounds encouraging. Maybe a quick one for Magnus Vaaler. It wasn't clear to me, are you currently having conversations around the Pemex accounts receivable being paid, or is it just that the funding's coming in and obviously that bodes well?

No it's definitely sounds encouraging.

Maybe a quick one for Matt.

It wasn't clear to me are you currently having conversations around the Pemex accounts receivable being paid or is it just that the fundings coming in and obviously that bodes well.

Magnus Vaaler: Yeah. Thanks, Doug. I think it is a recent signal we have received from Mexico through the announcements they have made, and they clearly stated they have $13 billion of financing program to pay their suppliers and vendors for work conducted in 2025, which makes us believe that the payments will pick up in Mexico because we have seen that they have actually actioned this financing now. Although they have talked about it for a long time, at least now we see the action.

Yes.

Magnus Vaaler: Yeah, thanks, Doug. So, I think it is a recent signal that we have received from Mexico through the announcements they have made and clearly stated they have $13 billion of financing program now to pay their suppliers and vendors for work conducted in 2025, which makes us believe that the payments will pick up in Mexico because we have seen that they have actually actioned this financing now. Although they have talked about it for a long time, at least now we see the action.

Thanks, Doug.

So I think.

It is a recent signals we have received.

From from Mexico through through the announcements they have made.

And the clarity phase of that $13 billion of financing program out to.

To pay their suppliers and vendors for work conducted in trying to 25, which.

It makes us believe in there.

And that the payments will will pick up in.

In Mexico, because we have seen that.

And that they are actually.

This financing now.

Although they are talking about it for a long time right now with CB actions.

Doug Becker: No. That's what I was getting at. No. Thank you very much.

Analyst: Yeah, and that's what I was getting at. No, thank you very much.

Yes, that's what I was getting at thank you very much.

Magnus Vaaler: Thanks.

Alright. Thanks.

Magnus Vaaler: Thanks.

Bruno Morand: Thanks, Doug.

Doug Becker: Thanks, Doug.

Operator: Thank you. One moment for our next question. That comes from Fredrik Steen with Clarksons Securities. Please proceed.

Operator: Thank you. One moment for our next question. That comes from Frederic Steen with Clarkson Securities. Please proceed.

Thank you.

One moment for our next question that comes from Fredrik Stene with Clarksons <unk> Securities. Please proceed.

Patrick Schorn: Hey, Patrick and team. Yeah, Patrick and Bruno, I guess it's fair to say, congrats to you both if we view it as a double promotion here. Looking forward to, you know, continuing discussions in the years ahead as well, although in, you know, slightly different roles for the two of you. With that said, I think Mexico has been well covered already, but just maybe to Magnus before I move to my main question, what's the amount of outstanding receivables that relates to Pemex on your balance sheet at the moment?

Fredrik Steen: Hey, Patrick and team. Yeah, Patrick and Bruno, I guess it's fair to say, congrats to you both if we view it as a double promotion here. Looking forward to, you know, continuing discussions in the years ahead as well, although in, you know, slightly different roles for the two of you. With that said, I think Mexico has been well covered already, but just maybe to Magnus before I move to my main question, what's the amount of outstanding receivables that relates to Pemex on your balance sheet at the moment?

Magnus Vaaler: Hey, Patrick and team. Patrick and Bruno Morand, I guess it is fair to say, congrats to you both if you view it as a double promotion here. Looking forward to continuing discussions in the years ahead as well, although in slightly different roles for the two of you. With that said, I think Mexico has been well covered already. Just maybe to Magnus Vaaler before I move to my main question, what is the amount of outstanding receivables that relates to Pemex on your balance sheet at the moment? Currently, we have around $60-65 million of outstanding bareboat payments from Mexico, which follows our comment in the first quarter where we received $120 million of cash receivables, which took down our receivable balance by approximately 75%, and then adding on the bareboats that we have earned in the meantime. That gets you to mid-$60 million.

Hey, Patrick.

<unk> and <unk>.

Yes, Patrick on Bruno I guess, it's fair to say.

Congrats to you both if we view it as a double.

Promotion there so we're looking forward to continuing discussions in the years.

And as well although in AR.

Slightly different roles for fourth material.

With that said.

I wanted I think Mexico has been well covered already but just maybe to Magnus before I move to my main question.

What's the amount of outstanding receivables that relates to.

Pemex.

On your balance sheet at the moment.

Magnus Vaaler: Yeah. Currently we have around $65 million of...

Magnus Vaaler: Yeah. Currently we have around $65 million of...Outstanding variable payments from Mexico, which follows our comment in Q1 where we received $120 million of cash receivables, which took down our receivable balance by approximately 75%. Adding on the variables that we have earned in the meantime. That gets you to mid $60 million.

Yes.

Currently we have.

Around.

16 $65 million of.

Bruno Morand: Outstanding variable payments from Mexico, which follows our comment in Q1 where we received $120 million of cash receivables, which took down our receivable balance by approximately 75%. Adding on the variables that we have earned in the meantime. That gets you to mid $60 million.

Outstanding Bareboat payments from Mexico, which follow ups are commenting in the first quarter. When we received our may become familiar.

Our cash receivables, which took down our receivable balance by approximately 75% and then adding on the bareboat step out burned in the meantime, so that gets you to maybe fixed fee.

Yes.

Magnus Vaaler: Okay, that is very helpful. Thanks. With Mexico out of the way, I wanted to talk about the market in general and through that, focusing a bit on Saudi. I think you said in the prepared remarks that you feel quite comfortable that there is some incremental demand in the Middle East in other countries than Saudi, but that at some point, Saudi will also add incrementally to its rig count. There has been some, I think, market reports over the last week that Saudi has contacted, I think, all their eight rig owners that have supplied offshore rigs for them to inquire about rig availability on suspended rigs. I just wanted to hear if you have any commentary around that because there is not that much that is needed on the demand side to potentially accelerate rates a bit. Anything helps on that front?

Fredrik Steen: Okay. No, that's very helpful. Thanks. Then with Mexico out of the way, I wanted to talk about quarter market in general and through that, focusing a bit on Saudi. I think you said in the prepared remarks that you feel, you know, quite comfortable that there's some incremental demand in the Middle East, in other countries than Saudi, but that at some point, Saudi will also, you know, add incrementally to its rig count. There's been some, I think, market reports over the last week that Saudi has contacted, I think all their 8 rig owners that have supplied offshore rigs, for them to inquire about rig availability on suspended rigs.

Okay.

Thanks.

Then too.

With Mexico out of the way.

I want to talk about.

The market in general on through that focusing a bit on.

Saudi.

I think you said in the prepared remarks subject feel quite comfortable that there is some incremental demand in the middle East.

In other countries and sold them up at some point so that will also add incrementally to its rig count.

There's been some I think.

Market reports over the last week.

So the house compacted.

I think all of our eight rig owners that have supplied offshore rigs for them to inquire about rigor and ability on.

Suspended rigs.

Fredrik Steen: Just wanted to, you know, hear if, you have any commentary around that because, there's not that much, you know, that's needed on the demand side to potentially accelerate rates a bit. You know, anything helps on that front.

Just wanted to hear.

Do you have any commentary around that because.

There's not that much.

As needed on the demand side to potentially accelerate a bit so any anything else on that front.

Bruno Morand: Yeah. Indeed, indeed, Fredrik. You heard the commentaries and they reflect what we've seen as well. I think at operational level, we have had previous discussions with Aramco about updating them the status of the rigs that operated with them earlier and what it would take to have them back. I must say, these conversations so far have been very much on an operational level and not in a contractual basis. Obviously, we've said before that we expected Aramco to eventually come back to the market. Aramco is a very strong engineering company. At one point in time when they designed that they needed another 40 rigs, certainly wasn't by a mistake in a calculation. They know that demand is there.

Bruno Morand: Indeed, Frederic. You have heard the commentaries, and they reflect what we have seen as well. I think at an operational level, we have had previous discussions with Aramco about updating them, the status of the jack-up rigs that operated with them earlier, and what it would take to have them back. I must say that these conversations so far have been very much on an operational level and not on a contractual basis. Obviously, we have said before that we expected Aramco to eventually come back to the market. Aramco is a very strong engineering company. At one point in time, when they designed that they needed another 40 jack-up rigs, it certainly was not by a mistake in a calculation. They know that that demand is there. I think that they encountered some issues with timing, maybe related to capital constraints in the kingdom.

Yeah, Indeed, indeed Frederic.

So you heard the commentary and they reflect what we've seen as well I think at operational level.

Have had previous discussions we're alone global update in the status of the rigs are operated with them earlier in.

What it would take to have them back, but I must say that these conversations so far have been very much on an operational level and not in a in a contractual basis. Obviously, we've said before that we expected around <unk> to eventually come back to the market <unk> is a very strong engineering company at one point in time when.

The design that they needed another 40 weeks.

Certainly wasn't mistaken a calculation they know that the demand is there and I think that they encountered some issues with dining may be related to.

Bruno Morand: I think that they encountered some issues with timing maybe related to capital constraints in the kingdom. When we said before in several occasions that we expected that demand to eventually come back, it's fair to say that estimating Aramco's actions and timeline is far from an easy thing. I think we're not gonna be the ones trying to put a prediction on what happens. Indeed, I think the talks about the status of the rigs as well as the positive new flows on the EPCI side in terms of award, starts to give us a bit of a brighter picture for the kingdom. We are aware of reports talking about Aramco potentially look to bring rigs in Q1 next year. That's not something we have particularly heard from Aramco. We'll have to watch.

Capital constrained in the Kingdom, and we said before in several occasions that we expected that demand to eventually come back.

Bruno Morand: We said before on several occasions that we expected that demand to eventually come back. It is fair to say that estimating Aramco's actions and timeline is far from an easy thing. I think we are not going to be the ones trying to put a prediction on what happens. Indeed, I think the talks about the status of the jack-up rigs, as well as the positive new flows on the EPCI side in terms of awards, start to give us a bit of a brighter picture for the kingdom. We are aware of reports talking about Aramco potentially bringing jack-up rigs in Q1 next year. That is not something we had particularly heard from Aramco. We will have to watch. I think the moment seems to be coming closer and closer to the time that Aramco could be leading jack-up rigs.

It's fair to say that estimating around cost actions and timeline is far from an easy phase and I think we're not going to be the ones trying to put a prediction on <unk>.

But indeed I think the talks about this.

Although the rigs as well as the positive new flows on the <unk> side in terms of award starts to give us a bit of a brighter picture for for the Kingdom. We are aware reports talking about around coal potentially bring rates in the first quarter next year, that's not something we have particularly hurt from a ronco.

We'll have to watch I think the moment it seems to be coming closer and closer to the time that our uncle could be heating rigs and as you said I think any movements from around core at this stage with an oversupply. There is not a significant will be very welcome and support them to the market. So we will have to see what happens in the coming weeks and months.

Bruno Morand: I think the moment seems to be coming closer and closer to the time that Aramco could be needing rigs. As you said, I think any movements from Aramco at this stage with an oversupply that is not that significant, will be very welcome and supportive to the market. We'll have to see what happens in the coming weeks and months.

Bruno Morand: As you said, I think any movements from Aramco at this stage with an oversupply that is not that significant will be very welcome and supportive to the market. We will have to see what happens in the coming weeks and months.

Fredrik Steen: Yeah, no. Thank you. That's, that's very good color. Just bit more broadly on your 2026 coverage, including options, now you're close to 50% at rates that, you know, I would get to be higher than where the market is today. As you're working, and Mexico is definitely a part of this, of course, but as you're working with your coverage for 2026, how are you know, prioritizing utilization versus pushing day rates in the environment that you're in at the moment?

Magnus Vaaler: Yeah, thank you. That's very good color. Just a bit more broadly on your 2026 coverage, including options, now you're close to 50% at rates that I would be higher than where the market is today. As you're working, and Mexico is definitely a part of this, of course, but as you're working with your coverage for 2026, how are you prioritizing utilization versus pushing day rates in the environment that you're in at the moment?

Yes. Thank you.

Very good color.

Just a bit more broadly on your 2026 coverage.

<unk> options now you're close to 50.

Great.

To be higher than where the market is today.

I see you are working in Mexico is definitely a part of it of course, but.

As Youre working with your coverage for 2020.

Six how are you prioritizing.

Utilization versus pushing day rates and the environment.

Youre seeing at the moment.

Bruno Morand: Yeah, nothing changed in terms of our strategy, Freddie. We are still looking at optimizing the utilization of our assets. We know that a rig idle has a significant impact to our economics, and it is important that we optimize the earnings potential of these rigs, and utilization remains king in our current environment. We do have a fair bit of rollovers as we walk into 2026. So irrespective of the improvement sentiment about the market being in an upwards or in a potential, sorry, an upward trend, I think we are well in a position to capture an upside as it comes, but we will focus at the moment in making sure that we have the best possible utilization for our fleet.

Bruno Morand: Yeah. Nothing changed in terms of our strategy, Freddie. We're still looking at optimizing the utilization of our assets. We know that a rig idle has a significant impact to our economics, and it's important that we optimize the earnings potential of these rigs and utilization remains king in a current environment. We do have a fair bit of rollovers as we walk into 2026. Irrespective of the improvement sentiment about the market, being in an upwards or in a potentially starting an upwards trend, I think we're well positioned to capture an upside as it comes, but we'll focus at the moment in making sure that we have the best possible utilization for our fleet.

Nothing changed in terms of our strategy is ready and we are still we're still looking at Optum.

Optimizing the utilization of our assets, we know that our rig Idaho has a significant move back to our economics and it's important that we optimize the earnings potential of these rigs and utilization remains king in the current environment, we do have.

A fair bit of rollovers as we walk into 2026, so irrespective of the improvement sentiment about the market.

Being in it.

Upwards or potentially starting an upward trend I think we are well positioned to capture.

<unk> side as it comes but we'll focus at the moment and making sure that we have the best possible utilization for our fleet.

Fredrik Steen: All right. Just one super quick follow-up on some rig specifics. You know, you said that the Knut will now take the place of the Norne for the work starting in late 2026. The Norne has options at that point. Should we interpret the rig swap as that there's a high likelihood that those Norne options will be executed, or is there some other factors to consider? Thanks.

Magnus Vaaler: All right. Just one super quick follow-up on some rig specifics. You said that the NAT will now take the place of the Norba for the work starting in late 2026. The Norba has options at that point. Should we interpret the rig swap as that there is a high likelihood that those Norba options will be executed, or is there some other factors to consider? Thanks.

Alright.

One Super quick follow up on some rigs specifics for you.

You said that.

<unk> will now take the place of the Motiva.

For work starting in late 2026.

The modem options at that point should we interpret the rig swap buses, there's a high likelihood that those options will be.

Executed or is there some other.

Factors to consider.

Bruno Morand: Well, there is that, Freddie. I think that the work that we've been doing on the Norne has a good potential for the option to be exercised. We said before that we think quite a few of our options has a potential to be exercised. Now what equally is important as well is that the customer that has that rig contract on the Knut now has indicated a desire to potentially move that work earlier, subject to a few constraints and long lead items. Obviously having that work moved to the Knut allows us to potentially bring that forward if the customer is able to achieve an accelerated schedule.

Bruno Morand: There is that, Freddie. I think that the work that we have been doing on the Norba has a good potential for the options to be exercised, and we said that we think quite a few of our options have a potential to be exercised. What equally is important as well, the customer that has that rig contract on the NAT now has indicated a desire to potentially move that work earlier, subject to a few constraints and long lead items. Having that work moved to the NAT allows us to potentially bring that forward if the customer is able to achieve an accelerated schedule. That obviously would be very beneficial for the customer in terms of earlier production, but equally very beneficial for us in terms of improving our coverage for the year.

Well there is that I think that the work that we've been doing on <unk>.

The good potential for the options will be exercised and we said before that we think quite a few of our options.

A potential to be exercised.

Now.

What equally easy important as well that the customer that.

Has that re contract on the not now has indicated a desire to potentially move that work earlier subject to a few constraints.

Long lead items, so obviously, having that work moves to the not allows us to potentially bring that forward. If the customer is able to achieve an accelerated schedule and that obviously would be very beneficial for the customer in terms of earlier production, but equally very beneficial for us in terms of improving our coverage for the year.

Bruno Morand: That obviously would be very beneficial for the customer in terms of earlier production, but equally very beneficial for us in terms of improving our coverage for the year.

Magnus Vaaler: All right. That is very clear. I say thank you to you all and congrats again, Bruno Morand, in particular, on the new role.

Alright, Thats very clear.

Greg Brody: That's very clear. I, you know, say thank you to you all and, congrats again, Bruno, to you in particular on the role, new role.

Fredrik Steen: That's very clear. I, you know, say thank you to you all and, congrats again, Bruno, to you in particular on the role, new role.

So do you think your Toyota.

Congrats again bring nothing in particular.

The real and euro.

Bruno Morand: Thanks, Rodrigo.

Bruno Morand: Thanks, Frederic.

Thanks Roger.

Operator: Thank you. Our next question comes from the line of Dan Katz with Morgan Stanley. Please proceed.

Operator: Thank you. Our next question comes from the line of Dan Kutz with Morgan Stanley. Please proceed.

Thank you. Our next question comes from the line of Dan Kutz with Morgan Stanley. Please proceed.

Dan Katz: Hey, thank you. Congrats, Bruno Morand and Patrick Schorn. Best of luck in the new roles. Wanted to ask about a couple of, I guess, a bit more emerging opportunities in the shallow water space, or at least areas that, you know, historically hadn't been thought of as growth areas. The first is on gas activity. Are there any more rigs that are doing work in gas plays currently? I think, Bruno, you'd mentioned a couple of positive developments, one of which was the Dutch government looking to develop more local gas, and mentioned New Zealand as well. I'm not sure if that was a gas or oil opportunity or both.

Dan Boyd: Hey, thank you. Congrats, Bruno Morand and Patrick Schorn. Best of luck in the new roles. Wanted to ask about a couple of, I guess, a bit more emerging opportunities in the shallow water space, or at least areas that, you know, historically hadn't been thought of as growth areas. The first is on gas activity. Are there any more rigs that are doing work in gas plays currently? I think, Bruno, you'd mentioned a couple of positive developments, one of which was the Dutch government looking to develop more local gas, and mentioned New Zealand as well. I'm not sure if that was a gas or oil opportunity or both.

Analyst: Hey, thank you and congrats, Bruno Morand and Patrick Schorn. Best of luck in the new roles. I wanted to ask about a couple of, I guess, a bit more emerging opportunities in the shallow water space, or at least areas that, you know, historically haven't been thought of as growth areas. The first is on gas activity. Are there any more jack-up rigs that are doing work in gas plays currently? I think, Bruno Morand, you mentioned a couple of positive developments, one of which was the Dutch government looking to develop more local gas, and you mentioned New Zealand as well. I am not sure if that was a gas or oil opportunity or both, but just basically trying to get a sense of any work Borr Drilling Limited is doing now in gas basins and any customer conversations or opportunities you see for gas work moving forward.

Hey, Thanks Ewen.

Congrats on pumps.

Since the launch in the new roles.

So I wanted to ask about.

A couple of I guess.

A bit more emerging opportunities in the shallow water space or at least hearing isn't it.

Historically haven't been thought of as is.

<unk>.

The first is.

Gas activity so.

Are there any rigs that are doing work in <unk>.

Gas plays currently and I think Bruno you'd mentioned.

A couple of positive developments, one of which was the Dutch government is looking to develop more local gas in.

You mentioned, New Zealand as well I'm not sure if that was for gas or oil opportunity or both but.

Dan Katz: just basically trying to get a sense of any work you're doing now in gas basins and any customer conversations or opportunities you see, for gas work moving forward. Thank you.

Dan Boyd: just basically trying to get a sense of any work you're doing now in gas basins and any customer conversations or opportunities you see, for gas work moving forward. Thank you.

Basically we're trying to get a sense of.

Any work Youre doing now in gas basins, and and any customer conversations or opportunities you see.

For gas work moving forward. Thank you.

Analyst: Thank you.

Bruno Morand: Very good, Dan. Indeed, we do have a sizable portion of our fleet that has been working in gas. I think if you think specifically about larger pockets, we have done significant amount of work with Eni in Congo that is largely focused on LNG in a very interesting project. We, at some point in time, had three rigs operating with Eni in that project. Then we do have other projects around the globe that involve gas, including the North Sea in the Netherlands, and specifically, as I mentioned, which has a restated commitment to support the local gas development. We have been working very closely with OIEDs in the North Sea on a very interesting development, one of the largest gas fields to be developed in North Sea in recent years.

Bruno Morand: Very good, Dan. Indeed, we do have a sizable portion of our fleet that has been working in gas. I think if you think specifically about larger pockets, we have done a significant amount of work with ENI in Congo that is largely focused on LNG and a very interesting project. We, at some point in time, had three rigs operating with ENI in that project. We do have other projects around the globe that involve gas, including the North Sea in the Netherlands, specifically, as I mentioned, which has a reinstated commitment to support the local gas development. We have been working very closely with ONGC in the North Sea on a very interesting development, one of the largest gas fields to be developed in the North Sea in recent years.

Very good then.

We do have a sizable portion of our fleet that has been working gas I think if you think specifically about larger pockets. We have done significant amount of work with Eni in Congo that is largely focused on LNG and a very interesting interesting project at some point in time.

<unk> had three rigs operating with Eni net project and then we do have other projects around the globe that involve gas, including the north sea in the Netherlands, specifically as a measure which has a restated commitment to support the local gas development, we have been working very closely with us.

In the North sea on a very interesting development in one of the largest gas fields to be developed in north sea in recent years.

Bruno Morand: While the new Skow is positive, the project has faced some challenges on permitting timeline. We do expect that to be back in a schedule very, very soon. Gas is part of what we do around the globe. Our rigs are very capable and suitable for that. It is a decent chunk of our portfolio.

Bruno Morand: While the new flow is positive, the project has faced some challenges on the permitting timeline, but we do expect that to be back in a schedule very, very soon. Gas is part of what we do around the globe. Our rigs are very capable and suitable for that, and it is a decent chunk of our portfolio.

While the new slow east positive. The project has faced some challenges on the permitting timeline, but we do expect that to be back in a schedule very very soon so gas is part of what we do around the globe, our rigs are very capable and suitable for that and.

<unk>.

Junk of our portfolio.

Dan Katz: Great. That's really helpful. Thank you for that. Next one probably for Bruno as well. It's more on the type of work that the Borr fleet or that the shallow water fleet globally more broadly is doing and any kind of trends that you're seeing there. Basically it's, you know, as kind of global oil and gas basins mature, you're hearing a lot more service companies talking about mature field work or, you know, more greenfield versus brownfield. Yeah, I was just wondering if you could share any thoughts on what you're seeing in terms of trends in, you know, development versus the kind of more mature focused infill and-

Dan Boyd: Great. That's really helpful. Thank you for that. Next one probably for Bruno as well. It's more on the type of work that the Borr fleet or that the shallow water fleet globally more broadly is doing and any kind of trends that you're seeing there. Basically it's, you know, as kind of global oil and gas basins mature, you're hearing a lot more service companies talking about mature field work or, you know, more greenfield versus brownfield. Yeah, I was just wondering if you could share any thoughts on what you're seeing in terms of trends in, you know, development versus the kind of more mature focused infill and-

Analyst: Great. That's really helpful. Thank you for that. The next one probably for Bruno Morand as well. It's more on the type of work that the Borr Drilling Limited fleet or that the shallow water fleet globally more broadly is doing and any kind of trends that you're seeing there. Basically, it's, you know, as kind of the global oil and gas basins mature, you're hearing a lot more service companies talking about mature field work or, you know, more greenfield versus brownfield. I was just wondering if you could share any thoughts on what you're seeing in terms of trends in development versus that kind of more mature focused infill and extension type work. Thanks.

Great that's really helpful.

Thank you for that and then.

Next one probably for Bruno as well it's more on the.

The type of work.

<unk> fleet.

The shallow water fleet globally more broadly is doing and any kind of trends that youre seeing there, but basically it's.

As is kind of global oil and gas basins mature you are hearing a lot more service companies talking about.

Mature field work or more greenfield versus brownfield, but yes, I was just wondering.

You could share any thoughts on what youre seeing in terms of trends and.

Development.

Is that kind of more mature.

Bruno Morand: Yeah.

Dan Katz: -retention, type work. Thanks.

Dan Boyd: -retention, type work. Thanks.

Yes.

Pipe work thanks.

Bruno Morand: Yeah, fair, Dan. It is fair to say that a large chunk or the largest lion's share of the work that we do is development work, so basically in discovered and somewhat matured fields. I think that that is going to stay. I think that is one of the beauties of the shallow water market is that a lot of these projects have infrastructure in place. Even if you are doing some near-field developments, we can bring barrels to the pipeline relatively quick. We have seen, though, an increase in uptake in investment for exploration projects in some areas more so than others. If you think about Asia, we do see now more and more coming to the pipeline in terms of future exploration work in places such as, for example, Malaysia.

Bruno Morand: Yeah. Fair. It's fair to say that, a large chunk or the largest lion's share of the work that we do is development work, so basically in discovered and somewhat mature fields. I think that that's gonna stay. I think that's one of the beauties of the shallow water market, is that a lot of these projects have infrastructure in place. Even if you're doing some near field developments, we can bring barrels to the pipeline relatively quick. We have seen though, an increase and uptake in investment for exploration projects in some areas more so than others. If you think about Asia, we do see now more and more coming to the pipeline in terms of future exploration work in places such as, for example, Malaysia.

And it's fair to say that.

<unk> chunk or the largest the lion's share of the work that we do ease development work, so basically in discovered and somewhat mature fields and I think thats going to stay I think thats one of the beauties of the shallow water market is that a lot of these projects have infrastructure in place and even if you're doing some near few developments we can bring.

Barrels due to the pipeline relatively quick we have seen though in.

An increase in uptick in investment for exploration projects in some areas more so than others. So if you think about Asia, we do see now more and more coming to the pipeline in terms of future exploration work in places such as for example, Malaysia and.

Bruno Morand: Equally in West Africa, it has been a quite significant part of our portfolio, whether it's complete green field, developments or whether it's near field new exploration programs as we've seen, for instance, with BWE in West Africa. We are participating in both. We do think that in the, in the coming years, more investment in exploration will be required. There has been very subdued investment in exploration in the last couple of years. We are placed, to basically develop work both in exploration and development work.

Bruno Morand: Equally, in West Africa, it has been a quite significant part of our portfolio, whether it is complete greenfield developments or whether it is near-field new exploration programs as we have seen, for instance, with BWE in West Africa. We are participating in both. We do think that in the coming years, more investment in exploration will be required. There has been very subdued investment in exploration in the last couple of years. We are placed to basically develop work both in exploration and development work.

And equally in West Africa. It has been a quite significant part of our portfolio whether east complete Greenfield.

Developments or whether he's near future new exploration programs as we've seen for instance, with VW me in West Africa. So we participate in both.

We do think that in the coming years more investment in exploration will be required there has been very subdued investment in exploration of last couple of years.

But we are pleased to.

To basically develop work both in exploration and development work.

Dan Katz: Great. Really helpful. Congrats again to you both. I'll turn it back.

Dan Boyd: Great. Really helpful. Congrats again to you both. I'll turn it back.

Analyst: Great. Really helpful. And congrats again to you both. I will turn it back.

Great.

Really helpful and congrats again to you both.

I'll turn it back.

Bruno Morand: Thank you so much.

Bruno Morand: Thanks so much.

Thanks, so much.

Operator: Thank you. Our next question comes from Greg Brody with Bank of America. Please proceed.

Thank you. Our next question comes from Gregg Brody with Bank of America. Please proceed.

Greg Brody: Hey, guys. Just a few, sort of subtle questions as a lot was covered. You alluded to that the net has some opportunity to move up some work. As the way the contract stands today, there's a decent amount of white space between the conclusion of the current contract. How do you think about the use of that rig and the options there? You mentioned that the opportunity to have it go to work early. Curious how much early and then are there other opportunities?

Gregg Brody: Hey, guys. Just a few, sort of subtle questions as a lot was covered. You alluded to that the net has some opportunity to move up some work. As the way the contract stands today, there's a decent amount of white space between the conclusion of the current contract. How do you think about the use of that rig and the options there? You mentioned that the opportunity to have it go to work early. Curious how much early and then are there other opportunities?

Analyst: Hey, guys. Just a few sort of subtle questions as a lot was covered. You alluded to that the NAT has some opportunity to move up some work, but as the way the contract stands today, there is a decent amount of white space between the conclusion of the current contract. How do you think about the use of that rig and the options there? You mentioned the opportunity to have it go to work early. Curious, how much early and are there other opportunities?

Hey, guys.

A few.

Sort of subtle questions a lot was covered.

You alluded to that and that has some opportunity to move some work.

But there is as the way the contract terms today, there is theres a decent amount of white space.

The.

The current contract how do you think about that.

The use of that rig and the options there.

You mentioned the opportunity to go to work early curious how much early on.

Are there other opportunities.

Bruno Morand: Very good. We are working on a set of opportunities, not one only, but a set of opportunities, Greg. We have been working on both a project that could have a commencement this year, optimizing our coverage for this year, as well as some projects in the region for the earlier part of 2026. If we're successful on these, and we've been inching closer and closer, that would provide a very nice bridge over to the work that we already have assigned for the rig. We'll have to see as things materialize in the coming weeks. I feel optimistic that we'll be able to have most of that wide space, if not all of it, contracted for the rig and a nice utilization for that rig in West Africa.

Bruno Morand: Very good. We are working on a set of opportunities, not one only, but a set of opportunities, Greg. We have been working on both a project that could have a commencement this year, optimizing our coverage for this year, as well as some projects in the region for the earlier part of 2026. If we are successful on these, and we have been inching closer and closer, that would provide a very nice bridge over to the work that we already have assigned for the rig. We will have to see as things materialize in the coming weeks. I feel optimistic that we will be able to have most of that white space, if not all of it, contracted for the rig and a nice utilization for that rig in West Africa.

Very good and we are working on.

Set of opportunities not one only but a set of opportunities Greg and we have been working on both.

Projects that could have a commencement this year optimizing our coverage for this year as well as some projects in the region for the earlier part of 2026. So if we're successful in these and we'd be inching closer and closer that would provide a very nice bridge over to the work that we already have.

<unk> for the rig, but we'll have to see as things materializing in coming weeks ICU optimistic that we'll be able to have most of that white space, if not all of it contract for that rig and a nice utilization for that rig in West Africa.

Analyst: You mentioned the exploration uptake. One of your peers has alluded to the fact that some of that may be trying to take advantage of short-term availability of rigs to go after some concepts. Do you see those opportunities potentially in lower day rates just to put more rigs to work in the interim, or do you feel like the day rates are holding up for those opportunities?

Greg Brody: One of you mentioned the exploration uptick. One of your peers has alluded to the fact that some of that may be trying to take advantage of short-term availability of rigs to go after some concepts. Do you see those opportunities potentially and lower day rates just to put more rigs to work in the interim? Do you feel like the day rates are holding up for those opportunities?

Gregg Brody: One of you mentioned the exploration uptick. One of your peers has alluded to the fact that some of that may be trying to take advantage of short-term availability of rigs to go after some concepts. Do you see those opportunities potentially and lower day rates just to put more rigs to work in the interim? Do you feel like the day rates are holding up for those opportunities?

And I'm wondering you mentioned the exploration uptick one of your one of your peers.

The fact that some of that maybe you're trying to take advantage of short term available rigs to go after some concepts.

Do you see those opportunities potentially.

Lower day rates just to put more rigs to work in the interim.

Or do you feel like the day rates are holding up for those opportunities.

Bruno Morand: Yeah. And indeed, I think the theme in the industry has been obviously protecting coverage and that has led, as I mentioned in early notes, to more aggressive behaviors in different regions, more markedly than others. If I think about the NAC specifically that we were talking about in West Africa, it's important to note that in West Africa, what we have experienced over the quarters is that a lot of the customers are extremely focused on getting rigs that are in the region and particularly have a very strong reputation for operational delivery.

Bruno Morand: Yeah, and indeed, I think that the theme in the industry has been obviously protecting coverage, and that has led, as I mentioned in an early note, to more aggressive behaviors in different regions, more markedly than others. If I think about the NAT specifically that we were talking about in West Africa, it is important to note that in West Africa, what we have experienced over the quarters is that a lot of the customers are extremely focused on getting rigs that are in the region and particularly have a very strong reputation for operational delivery. We oftentimes are looking at programs that are slightly shorter in nature. I think our customers understand that predictable results, good operational efficiency stacks up higher than costing and the risk that sometimes comes with taking a less known name or maybe a rig outside of the region.

Yes.

Indeed, I think the theme of English <unk> has been obviously protecting coverage and that has led to as I mentioned in early notes to more aggressive behaviors in different regions more marketing than others.

I think about the not specifically that we were talking about in West Africa. It's important to note that in West Africa, what we have experienced over the quarters is that a lot of the customers are extremely focused on getting rigs that arent in the region and particularly have a very strong reputation for operational delivery. We oftentimes are looking at programs that.

Bruno Morand: We oftentimes are looking at programs that are slightly shorter in nature, and I think our customers understand that predictable results, good operational efficiency stacks up higher than costing and the risk that sometimes comes with taking a less known name or maybe a rig outside of the region. We will continue to balance that. I feel confident that for now, the rate structure that we see in West Africa is pretty well maintained.

Slightly shorter in nature, and I think our customers understand that.

Predictable results good operational efficiency.

Stacks up higher than coffee and the raise that sometimes comes with thinking.

Less known name or maybe a rig outside of the region. So we will continue to balance that I feel confident that for now the rate structure that we see in West Africa is pretty well maintained.

Bruno Morand: So we will continue to balance that. I feel confident that for now, the rate structure that we see in West Africa is pretty well maintained.

Greg Brody: All right. Just to, just turning to Mexico, I know there are a lot of questions asked there. I, and I appreciate that all the capital raise and the, and the facilities set up, and their goals of Mexico are to encourage oil production and growth. Has the government communicated to you directly on sort of timing around paying, resuming payables or, excuse me, receivables, anything like that, or is this, or is this more you looking at the general policy statements and actions?

Gregg Brody: All right. Just to, just turning to Mexico, I know there are a lot of questions asked there. I, and I appreciate that all the capital raise and the, and the facilities set up, and their goals of Mexico are to encourage oil production and growth. Has the government communicated to you directly on sort of timing around paying, resuming payables or, excuse me, receivables, anything like that, or is this, or is this more you looking at the general policy statements and actions?

Analyst: Got it. Just sharing the Mexico, I know there are a lot of questions asked there. I appreciate that all these all the capital arrays and the facility they set up and their goals of Mexico are to encourage oil production and growth. Has the government communicated to you directly on sort of timing around resuming payables, excuse me, receivables, anything like that, or is this more you looking at the general policy statements and actions?

Got it.

Just trying to Mexico, I know, there's a lot of questions out there.

I appreciate that all of these mechanisms are the capital raise in our facility that setup.

In the Gulf of Mexico are too.

Encourage oil production growth.

Whats your government communicated to you directly.

Sort of timing around paying resuming payables.

Just on receivables.

Anything like that or is this more as you've looked cancer general policy statements and actions.

Bruno Morand: Yeah. No, we have not discussed anything directly with the government. Obviously, keeping in mind that our work in Mexico is not directly through Pemex, it's through a local conglomerate that we have been partners with. Therefore, I wouldn't expect that communication to have come directly to us. What we know is that they have been talking to local banks and institutions to start putting things in place, and the government themselves have indicated that they expect payments to be starting now in Q3. We'll have to watch. Obviously, they've been working on a quite comprehensive solution for Mexico. We know that the regulatory and the bureaucratic state of the country sometimes force these things to take a bit more time than what we hope for.

Bruno Morand: Yeah, no, we have not discussed anything directly with the government. Obviously, keeping in mind that our work in Mexico is not directly through Pemex, it is through a local conglomerate that we have been partners with. Therefore, I wouldn't expect that communication to have come directly to us. What we know is that they have been talking to local banks and institutions to start putting things in place. The government themselves have indicated that they expect payments to be starting now in Q3. We will have to watch. Obviously, they have been working on a quite comprehensive solution for Mexico. We know that the regulatory and the bureaucratic state of the country sometimes force these things to take a bit more time than what we hoped for. Nonetheless, the indications are positive that the flow of money should be sooner rather than later.

Yeah, No we have not discussed anything directly with the government of the keeping in mind that our working Mexico is not directly through <unk> through a local conglomerate that we have been partners with and therefore, I Wouldnt expect that communications, who have come directly to us what we know is that.

They have been talking to local banks and institutions to start putting things in place in the Gulf and that themselves have indicated that they expect payments to be starting now in Q3. So we'll have to watch obviously.

They've been working on a quite comprehensive solution for Mexico, we know that the regulatory and bureaucratic state or the country. Sometimes force. These things will take a bit more time than what we hoped for but nonetheless, the indications are positive that.

Bruno Morand: Nonetheless, the indications are positive that the flow of money should be sooner rather than later.

The flow of money should be sooner rather than later.

Analyst: The equity raises create a lot of optionality for you. I am curious if you think about that capital raise to potentially address some debt opportunistically. Is that a possibility?

Greg Brody: Just the last one, obviously, the equity raises create a lot of optionality for you. I'm curious if you think about that capital raise to potentially address some debt opportunistically, is that a possibility?

Gregg Brody: Just the last one, obviously, the equity raises create a lot of optionality for you. I'm curious if you think about that capital raise to potentially address some debt opportunistically, is that a possibility?

And then just the last one obviously the equity raises create optionality for you.

I'm curious if you think about that capital.

Reis to potentially address some debt.

Understood.

Is that a possibility.

Magnus Vaaler: Yeah, I think we will obviously see how our liquidity will evolve throughout the year, especially with Mexico in mind and no Pemex day rates going into 2026 and how we fill up our coverage. But it's definitely something that we have as a tool in our capital allocation box and that we will consider. Recently, the debt had been trading below par, and that was obviously very attractive for us to look at buying back bonds. After the capital raise in the recent weeks, the bonds are back at par, which we obviously view as positive. I think it's also good for us to have this strength of good liquidity on the balance sheet. It puts us in a position of strength where we can act on other strategic opportunities that might come up. We've been talking about potential acquisitions or M&As.

Magnus Vaaler: I think we will obviously see how our liquidity will evolve throughout the year, especially with Mexico in mind and North Sea day rates going into 2026 and how we fill up our coverage. It's definitely something that we have as a tool in our capital allocation box and that we will consider. Recently the debt has been trading below par and obviously very attractive for us to look at buying back loans after the capital raise in the recent weeks that the bonds are back at par, which we obviously view as positive. I think it's also good for us to have this strength of good liquidity on the balance sheet.

Yes.

I think we will obviously see how that will evolve throughout the year, especially with the Mexico and mine them.

No wonder day rates going into.

And to try to 'twenty six.

We fill up our coverage, but it is definitely something that we have as a tool in our capital allocation books and that we will consider.

<unk> recently that have been trading below par and then obviously very attractive for us too.

To look at buying back.

Thanks.

After the capital raise.

Recent weeks.

Weeks that the bonds are back at par, which grows in the U S is positive I think it is also good for us to have this.

Strength up.

Good liquidity on the balance sheet, which puts us in a position of strength, where we can act on other strategic opportunities.

Magnus Vaaler: It puts us in a position of strength where we can act on other strategic opportunities that might come up. We've been talking about potential acquisitions or M&As. I think it's just we see it's valuable to have a strong position with our balance sheet as we have it today.

Opportunities that might come up we've been talking about.

Potential.

Acquisitions or M&A.

Magnus Vaaler: I think it's just we see it's valuable to have a strong position with our balance sheet as we have it today.

I think it's just.

Sure.

It would be.

Yes.

It's valuable to have.

Our strong position with our balance sheet as we have it today.

Greg Brody: Makes sense. Thanks for the time, guys.

Gregg Brody: Makes sense. Thanks for the time, guys.

Analyst: Makes sense. Thanks for the time, guys.

Makes sense, thanks for the time guys.

Magnus Vaaler: Thank you.

Bruno Morand: Thank you.

Operator: Thank you. This concludes the Q&A session. I will pass it back to Patrick Schorn for closing remarks.

Yeah.

Operator: Thank you. This concludes the Q&A session. I will pass it back to Patrick Schorn for closing remarks.

And this concludes the Q&A session.

I'll pass it back to Patrick for closing remarks.

Bruno Morand: Thank you, operator. A few comments in conclusion. We delivered a strong Q2 adjusted EBITDA of $133.2 million and expect a similar activity and performance for Q3. In July, we have proactively strengthened the balance sheet and are now well-positioned to execute on our long-term strategy. For the full year 2025, we're on track to deliver the consensus estimate of approximately $470 million in adjusted EBITDA. Bruno Morand will be the CEO effective 1 September, and I wish him all the best in doing that. Ladies and gentlemen, thank you very much.

Patrick Schorn: Thank you, operator. A few comments in conclusion. We delivered a strong Q2 adjusted EBITDA of $133.2 million and expect a similar activity and performance for Q3. In July, we have proactively strengthened the balance sheet and are now well-positioned to execute on our long-term strategy. For the full year 2025, we're on track to deliver the consensus estimate of approximately $470 million in adjusted EBITDA. Bruno Morand will be the CEO effective 1 September, and I wish him all the best in doing that. Ladies and gentlemen, thank you very much.

Patrick Schorn: Thank you, operator. A few comments in conclusion. We delivered a strong Q2 adjusted EBITDA of $133.2 million and expect a similar activity and performance for the third quarter. In July, we have proactively strengthened the balance sheet and are now well-positioned to execute on our long-term strategy. For the full year 2025, we are on track to deliver the consensus estimate of approximately $470 million in adjusted EBITDA. Bruno Morand will be the CEO effective September 1, and I wish him all the best in doing that. Ladies and gentlemen, thank you very much.

Thank you operator, so a few comments in conclusion.

We delivered a strong Q2, adjusted EBITDA of $133 2 million and expect a similar activity and performance for the third quarter.

In July we have proactively strength of the balance sheet and are now well positioned to execute on our long term strategy.

For the full year 2025, we are on track to deliver the consensus estimate of approximately $470 million and adjusted EBITDA.

And Bruno Moron will be the CEO effective September one.

And I wish him all the best in doing that ladies and gentlemen, thank you very much.

Operator: This concludes our conference. Thank you for participating. You may now disconnect.

And this concludes our conference. Thank you for participating you may now disconnect.

[music].

Okay.

Q2 2025 Borr Drilling Ltd Earnings Call

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