Borr Drilling Limited

Good day and thank you for standing by. Welcome to the Board Drilling Limited Q4 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, please press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. For the benefit of all participants on the call, please limit yourself to one question and a follow-up so that everyone is given an opportunity to ask questions. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker, Mr. Bruno Morin, CEO. Please go ahead.

Bruno Morin Good morning, and thank you for participating in Board Drilling's fourth quarter earnings call. I'm Bruno Morin. And with me here today in Dubai is Magnus Waller, our Chief Financial Officer. 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. For today's call, I'll start with a review of Q4 and highlight key developments since the quarter end. Magnus will then review our quarterly and full-year financial results. I'll follow with a deeper look into the commercial execution, and we'll conclude with some comments on the business outlook. Let's get started. Before going to the results, I'd like to take a moment to recognize our teams around the world. During the fourth quarter, several of our rigs achieved noteworthy safety milestones. That includes the rig's idling grid, reaching six and three years LTI-free, respectively, and the rig's gun load and GERD reaching one year incident free. Additionally, we're proud to highlight that our rig Arabia III has received an award from Aramco's offshore department for the rig with the best safety score in 2025. These achievements underscore the team's commitment to safety, and I would like to take this opportunity to thank each member of board drilling family for their efforts. Now to the results. Our operational performance in the fourth quarter was solid. with technical utilization of 98.8% and an economic utilization of 97.8%. Fourth quarter operational revenues totaled $259.4 million. Adjusted EBITDA of $105.4 million came in line with our expectations, bringing full year adjusted EBITDA to $470.1 million at the top end of the guidance range. This performance underscored the resilience of our organization which navigated several headwinds in 2025 while delivering strong operational and financial execution. Our fleet contract visibility continues to improve as we reduce remaining open days. Recent awards and extensions have increased 2026 coverage to 80% in the first half and 48% in the second half, including the recently acquired rigs. Since our last quarterly report, we secured new commitments for seven rigs and expect further coverage gains in the coming months as we progress negotiations on multiple active leads. We believe the jack-up market bottom is behind us now, and we see fundamentals recovering gradually as demand increases. Most notably, in the Middle East, multi-year tenders are in progress for an estimated 13 rigs. In Mexico, we're seeing better visibility of payments and a more positive operating outlook. These improvements are being supported by financial measures introduced by the government, while at the same time, PMAX announced plans for a 34% year-on-year increase in upstream complex and reaffirmed its mandate to raise production. Overall, model jack-up market utilization remains steady at approximately 90%. As standards are awarded and available supplies absorbed, we expect market conditions to firm. Against this backdrop, we're pleased to have expanded our fleet to the accretive acquisition of five premium rigs from Noble. These rigs are highly complementary to our existing portfolio and well suit the capacity to pursue near-term opportunities. Integration is in progress and ahead of expectation. Looking ahead, market dynamics are setting the stage for improvements in the second half of 2026 and a recovering day rate and earnings visibility into 2027. But before I add color to this, I'll hand the call to Magnus to discuss our financial results.

Thank you, Bruno. I will now go into some details of the financials of the fourth quarter. Total operating revenues was $259.4 million, a decrease of $17.7 million, or 6.4% from Q3. This is mainly explained by 16 million decrease in day rate revenue, primarily due to rigs transitioning into contracts with lower day rates. The activity level in terms of total number of operating days stays even over the two quarters. A decrease in variable charter revenue explains a further 3.1 million decrease, primarily due to the grids and the contract and its planned transfer to a contract in Angola. These decreases are offset by 1.4 million increase in O&M revenue. Total operating expenses for the fourth quarter were 192.1 million, an increase of 13.2 million, or 7.4%, compared to the third quarter. The increase in cost was primarily due to 11.6 million increase in rig operating and maintenance expenses attributable to increase in personnel costs, accelerated amortization of deferred costs for the rig yield, and reimbursable expenses. For the quarter, we recorded a net loss of 1 million and adjusted EBITDA of 105.2 million. Looking at full year 2025, net income was 45 million and full year adjusted EBITDA came in at 470.1 million, a decrease of 7% compared to 2024. Moving into cash, cash increased by 151.9 million in comparison to the prior quarter and is primarily driven by the following. 34.8 million cash from operations, which is after 94.7 million of interest payments and 8.8 million of cash taxes paid. We spent 52.1 million in investing activities consisting of 36 million deposits for the five-rig acquisition and 15.9 million additions to jack-up rigs. And lastly, cash from financing activities was 169.2 million, consisting of 159.3 million net proceeds from the fund issuance, 80.3 million net proceeds from share issuance, net of issuance costs, offset by 70.8 million repayment of debt in the quarter. The company's cash and cash equivalents as of December 31st were 379.7 million. In addition, we had 234 million of undrawn revolving credit facilities, resulting in total liquidity of 613.7 million. It's worth noting after year end, we completed the five-rig acquisition from Noble and paid 174 million in cash consideration in January. The remaining consideration was settled by way of 150 million set of credits. We are very pleased with the five-week acquisition and the accompanying capital market transactions we concluded in December. We completed an offering of an additional $165 million of bonds during 2030, issued as part. In addition, we completed an equity offering, raising growth proceeds of $84 million for the same purpose. Both transactions saw very high investor interest and were significantly oversubscribed. In December, we also made the first steps to return to the Oslo Stock Exchange through a listing on the Euronext growth. The decision was made after seeing high investor interest from the Norwegian and European investor base, in addition to strong following by Norwegian sell-side analysts. We are planning on a full uplisting to the main list on the Oslo Stock Exchange in the first half of 2026. Then I'll pass the word back to Bruce.