Borr Drilling Limited (BORR): History, Ownership, Mission, How It Works & Makes Money

When you look at Borr Drilling Limited (BORR), a pure-play jack-up contractor, do you defintely understand how a fleet of just 24 modern rigs can generate a full-year 2025 Adjusted EBITDA guidance between $455 million and $470 million? This company's success isn't just about day rates; it's about their laser focus on high utilization, which hit an economic rate of 97.4% in the third quarter of 2025, proving their operational efficiency is nearly flawless. Given their mission to provide safe, efficient, and reliable shallow-water drilling, and securing over $625 million in potential contract revenue year-to-date in 2025, are you positioned to capitalize on the strategy driving these returns?

Borr Drilling Limited (BORR) History

You want to understand the foundation of Borr Drilling Limited, and the story is one of aggressive, counter-cyclical asset acquisition. The company didn't grow organically; it was engineered to capitalize on a market crash, which is why its history is short but intense. It was founded to be a pure-play operator of modern jack-up rigs (mobile offshore drilling units used in shallow water) by snapping up distressed assets at a fraction of their build cost.

Given Company's Founding Timeline

Year established

Borr Drilling Limited was established in August 2016.

Original location

The company was formally registered in Hamilton, Bermuda, but quickly established a significant operational and commercial presence in Oslo, Norway.

Founding team members

The venture was spearheaded by Norwegian entrepreneur Tor Olav Trøim, who aimed to re-enter the offshore drilling industry by acquiring modern assets during a severe market downturn.

Initial capital/funding

The company launched with significant backing, raising approximately $155 million through an initial private placement in August 2016 to fund its ambitious acquisition strategy.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory is defined by two major, transformative moments: the aggressive fleet build-up and the subsequent, critical financial restructuring.

The initial strategy was simple: buy new, high-specification jack-up rigs at distressed prices, essentially building a new fleet for pennies on the dollar. Here's the quick math: acquiring 15 rigs from Transocean and Paragon Offshore in 2017 for roughly $1.35 billion gave Borr Drilling one of the youngest fleets in the industry, all without the cost or delay of new construction. This move gave them a huge operational advantage over competitors running older, less efficient rigs.

The second major shift was the financial restructuring between 2020 and 2022. The market downturn hit hard, but the company successfully negotiated with creditors, which allowed it to emerge with a more manageable debt load just as the offshore market began its upswing. This strategic patience is now paying off handsomely. As of the second quarter of 2025, the company reported total operating revenues of $267.7 million, a 24% increase over the prior quarter, and their contract coverage for 2025 stood at an impressive 84% at an average day rate of $145,000.

• Fleet Modernization: The company's focus is exclusively on modern jack-up rigs, which are preferred by oil and gas companies for their efficiency and safety, operating in water depths up to approximately 400 feet.
• Leadership Transition: In September 2025, the company appointed Bruno Morand as CEO, with Patrick Schorn transitioning to Executive Chair, signaling a focus on operational execution to maximize returns.
• Contract Backlog: The company's total contract revenue backlog was $1.33 billion as of June 30, 2025, providing strong revenue visibility for the coming years.

To be fair, what this estimate hides is the inherent volatility of the offshore drilling sector, but the current high utilization rate-technical utilization was 97.9% in Q3 2025-suggests they are executing well on their core business. You can dive deeper into the ownership dynamics by reading Exploring Borr Drilling Limited (BORR) Investor Profile: Who's Buying and Why?

Borr Drilling Limited (BORR) Ownership Structure

Borr Drilling Limited's ownership is heavily concentrated among institutional investors, which hold the majority of the company's equity, while company insiders maintain a significant, aligned stake. This structure, common for a publicly traded company like Borr Drilling, means strategic decisions are defintely influenced by major fund managers and executive leadership. The firm's market capitalization stood at approximately $917.65 million as of August 2025, reflecting the value of its 286.22 million common shares outstanding.

Borr Drilling's Current Status

Borr Drilling Limited is a publicly traded offshore shallow-water drilling contractor, listed on the New York Stock Exchange (NYSE: BORR). The company's dual listing ended in late 2024 when it delisted from the Oslo Stock Exchange (OSE), focusing its main public presence in the US market. This public status subjects the company to rigorous reporting requirements by the Securities and Exchange Commission (SEC), offering investors a transparent view of its financials and operations. For instance, as of March 31, 2025, the company reported having $170.0 million in cash and cash equivalents, against a total principal debt outstanding of $2,179.6 million.

Borr Drilling's Ownership Breakdown

The company's ownership is dominated by large institutional funds, which control roughly four-fifths of the stock. This level of institutional control suggests a high degree of professional oversight and potentially less volatility than stocks with a larger retail base. Here's the quick math on the breakdown as of November 2025.

If you want to dive deeper into the funds and individuals driving this, you can check out Exploring Borr Drilling Limited (BORR) Investor Profile: Who's Buying and Why?

Borr Drilling's Leadership

The company's leadership saw a key transition in 2025, ensuring continuity while bringing a fresh perspective to the CEO role. The strategic direction is now set by a team with deep industry experience, which is critical in the cyclical offshore drilling sector.

• Bruno Morand: Chief Executive Officer (CEO), effective September 1, 2025. He was previously the Chief Commercial Officer.
• Patrick Schorn: Executive Chairman of the Board, effective September 1, 2025, transitioning from his prior role as CEO.
• Tor Olav Trøim: Director of the Board. As a founder and former Chairman, he remains a key figure and significant insider shareholder.
• Dan Rabun: Lead Independent Director, a move designed to strengthen independent oversight on behalf of shareholders.
• Jason Crowe: Senior Vice President Commercial, effective September 1, 2025.

This leadership structure balances operational focus under the new CEO with strategic oversight from the Executive Chairman and the founder. It's a smart way to manage a seamless transition.

Borr Drilling Limited (BORR) Mission and Values

Borr Drilling Limited's purpose extends beyond financial returns; it is grounded in delivering safe, efficient, and reliable drilling services by operating the industry's youngest fleet of jack-up rigs. This commitment centers on operational excellence and a defintely strong focus on sustainability, defining the company's cultural DNA.

Borr Drilling's Core Purpose

The company's core purpose is to be the preferred shallow-water drilling contractor globally, which it backs up with measurable performance. For instance, in the second quarter of 2025, Borr Drilling reported a technical utilization rate of 99.6% for its working rigs, a clear sign of their commitment to operational reliability.

Official mission statement

The mission statement is a clear operational mandate: to provide safe, efficient, and reliable drilling services to the oil and gas industry. This means maintaining a modern fleet of jack-up rigs and a highly skilled workforce, but also delivering cost-effective solutions while focusing on sustainability and innovation.

• Deliver safe, efficient, and reliable drilling services.
• Maintain a modern, high-specification jack-up rig fleet.
• Focus on sustainability and innovative solutions.

Vision statement

Borr Drilling's vision is ambitious but specific: to be the leading offshore drilling company, focusing exclusively on the jack-up segment. They aim to operate the youngest, most modern, and highly capable fleet in the industry. As of 2025, the fleet consists of 24 premium jack-up rigs, which is a key part of this vision.

Here's the quick math: with 85% of their 2025 available rig time already covered by contracts at an average day rate of $145,000, the vision of high utilization and market leadership is translating into tangible results. That's a strong position to be in.

Borr Drilling's Core Values

The company's culture is built on five core values that drive day-to-day decisions, from the rig floor to the executive suite. These values shape how they interact with clients, employees, and the environment.

• Safety: Prioritizing the well-being of all employees and stakeholders.
• Integrity: Upholding the highest ethical standards and transparency.
• Excellence: Striving for superior operational performance and service delivery.
• Innovation: Encouraging new solutions for efficiency and sustainability.
• Collaboration: Promoting teamwork across all levels and with external partners.

Borr Drilling slogan/tagline

The company's external identity is captured in its tagline, which speaks to its disruptive entry and operational model in the jack-up market.

• Built To Make a Difference.

This simple statement reflects their strategy of using a modern, standardized fleet to challenge older, less efficient competitors. You can see how this strategy impacts their bottom line when you look at their projected full-year 2025 Adjusted EBITDA of approximately $450 million to $470 million. To be fair, this is a competitive market, and a clear mission helps them focus their capital. Exploring Borr Drilling Limited (BORR) Investor Profile: Who's Buying and Why?

Borr Drilling Limited (BORR) How It Works

Borr Drilling operates as a pure-play offshore drilling contractor, generating revenue by chartering its fleet of modern, high-specification jack-up rigs to global oil and gas companies for shallow-water drilling campaigns. The company's business model is simple: secure long-term contracts at premium day rates and maintain near-perfect operational uptime, which drives its strong cash flow profile.

Borr Drilling Limited's Product/Service Portfolio

Borr Drilling Limited's Operational Framework

The core of Borr Drilling's value creation lies in its disciplined operational model, which is entirely focused on maximizing the utilization and profitability of its young fleet. This is how the company translates its assets into financial results, aiming for the high end of its full-year 2025 Adjusted EBITDA guidance range of $455 million to $470 million. They run a tight ship, defintely.

• Fleet Deployment and Utilization: They keep rigs active, with 23 of 24 rigs operating in Q3 2025, resulting in a high economic utilization of 97.4%. This is crucial because a non-working rig earns nothing.
• Contracting Strategy: The company secures contracts at competitive day rates, with 2026 coverage already at 62% at an average dayrate of $140,000, including priced options. They focus on multi-year commitments to provide revenue visibility.
• Revenue Generation: Revenue is primarily derived from dayrates charged for the rig's use, supplemented by mobilization/demobilization fees for moving rigs, and reimbursement of specific client expenses. Year-to-date 2025, they were awarded new contract commitments representing over $625 million of potential contract revenue.
• Rig Maintenance and Efficiency: A rigorous maintenance schedule is key to achieving high technical utilization (97.9% in Q3 2025). The uniform design of their modern fleet also cuts down on administrative and operational complexity.

For more on the foundational principles guiding these operations, you can read about the Mission Statement, Vision, & Core Values of Borr Drilling Limited (BORR).

Borr Drilling Limited's Strategic Advantages

In a cyclical industry like offshore drilling, having a clear edge is vital. Borr Drilling's strategy is a pure-play bet on the shallow-water jack-up market, leveraging a few distinct advantages to outperform peers.

• Modern, Homogenous Fleet: Their fleet is one of the newest in the industry, with an average age of approximately 7-8 years. Newer rigs mean less maintenance downtime, lower operating costs, and greater capabilities, which clients prefer and are willing to pay a premium for.
• Operational Excellence Platform: A proven track record of high operational uptime and safety allows Borr Drilling to consistently secure day rates ahead of market averages. This execution focus is their defining competitive advantage.
• Geographic and Customer Diversification: Operating in all key jack-up markets-including the Middle East, Southeast Asia, and West Africa-reduces reliance on any single region or National Oil Company (NOC). This global footprint, combined with a specialized legal and tax framework, helps them win premium contracts in challenging international markets.

Here's the quick math: higher utilization on a modern, high-dayrate rig fleet directly translates to Q3 2025 operating revenues of $277.1 million. What this estimate hides is the risk from market volatility, but the strong contract backlog mitigates that near-term.

Borr Drilling Limited (BORR) How It Makes Money

Borr Drilling Limited makes its money by providing high-specification, modern jack-up drilling rigs and associated services to oil and gas companies globally under contract. Essentially, you are paid a daily fee-a dayrate-for the use of your rig and crew to drill or maintain offshore wells.

Borr Drilling Limited's Revenue Breakdown

For the third quarter of 2025, Borr Drilling reported total operating revenues of $277.1 million, with the vast majority coming from direct drilling contracts. This breakdown shows where the cash flow is generated, which is defintely a key point for any investor.

Here's the quick math: Dayrate Revenue was $241.0 million in Q3 2025, which is the core business. Bareboat Charter revenue, where you lease the rig without providing the crew, was $26.7 million, and Management Contract revenue was $9.4 million. All three streams showed quarter-over-quarter increases, which signals a strengthening market.

Business Economics

The economics of Borr Drilling are driven by two simple but powerful levers: the dayrate and the utilization rate (how often the rigs are actually working). The company operates a fleet of 24 modern jack-up rigs, which are highly sought after for shallow-water drilling.

• Pricing Power: The average contracted dayrate for Borr Drilling's 2025 coverage stood at approximately $145,000 per day, reflecting firming prices in the offshore market. This is a critical metric, and any movement here directly impacts the top line.
• Utilization: In Q3 2025, the economic utilization across the active fleet was a robust 97.4%, meaning almost all available rig time was generating revenue. High utilization like this is a direct measure of operational efficiency and market demand.
• Contract Backlog: As of September 30, 2025, the total contract revenue backlog stood at $1.11 billion. This visibility into future revenue is what stabilizes cash flow and supports long-term financing decisions.

The entire business hinges on keeping those rigs working at the highest possible dayrate. You can see how this all connects by Exploring Borr Drilling Limited (BORR) Investor Profile: Who's Buying and Why?

Borr Drilling Limited's Financial Performance

The Q3 2025 results show a company that is successfully translating high utilization and strong dayrates into profitability, even with the inherent volatility of the energy sector. This is a business built on capital-intensive assets, so cash flow and earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) are the key numbers to watch.

• Adjusted EBITDA: For Q3 2025, Adjusted EBITDA was $135.6 million, representing an impressive margin of 48.9%. This high margin confirms the underlying profitability of the contract revenue.
• Net Income: The company reported a net income of $27.8 million for Q3 2025. While this was a sequential decline from Q2 2025, it still shows solid bottom-line performance.
• 2025 Outlook: Management reiterated its full-year 2025 Adjusted EBITDA guidance in the range of $455 million to $470 million. This range gives you a clear expectation for the company's financial health as the year closes.
• Liquidity: Borr Drilling ended Q3 2025 with strong liquidity, reporting cash and cash equivalents of $227.8 million, plus another $234.0 million in undrawn revolving credit facilities. That's a total liquidity position of $461.8 million.

What this estimate hides is the potential for contract terminations, like the recent impact in Mexico, which can affect the backlog by around $20 million. Still, the overall trend is toward a tightening market that supports higher dayrates.

Borr Drilling Limited (BORR) Market Position & Future Outlook

Borr Drilling is capitalizing on the tightening shallow-water drilling market, using its premium, young fleet to drive strong utilization and dayrates. The company's focus on operational excellence supports its full-year 2025 Adjusted EBITDA guidance of $455 million to $470 million, positioning it for continued deleveraging and growth.

Competitive Landscape

In the global jack-up rig market, Borr Drilling competes primarily on the quality and age of its assets, not sheer fleet size. While the company operates a smaller fleet than some peers, its focus on modern, high-specification rigs gives it an edge in securing premium contracts.

Here's the quick math: These percentages are a proxy based on the company's jack-up fleet count relative to the approximately 512 units in the global jack-up fleet at the end of 2024. What this estimate hides is the dominance of state-owned entities like China Oilfield Services (COSL), which manages a larger overall fleet but is less of a direct competitor in Borr Drilling's core international markets.

Opportunities & Challenges

The near-term outlook is shaped by a favorable demand environment but is still navigating geopolitical and customer-specific payment risks.

Industry Position

Borr Drilling holds a premium position in the shallow-water drilling sector due to its pure-play focus on high-specification jack-up rigs, all of which were built after 2010.

• Maintain high operational efficiency: The active fleet demonstrated a technical utilization of 97.9% in the third quarter of 2025.
• Secure long-term contracts: Year-to-date 2025, the company secured 22 new contract commitments, representing over 4,820 days and approximately $625 million in potential contract revenue.
• Strengthen financial flexibility: A financing package increased available liquidity by more than $200 million in 2025, strengthening the balance sheet for growth.

The company's platform-built on operational excellence and a modern fleet-is its defining competitive advantage, positioning it uniquely to benefit as the jack-up market tightens. For a deeper look at the company's core principles, you should review the Mission Statement, Vision, & Core Values of Borr Drilling Limited (BORR).