v3.25.2
Contracts with Customers
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Contracts with Customers
Note 5 - Contracts with Customers
Contract Assets and Liabilities
When the right to consideration becomes unconditional based on the contractual billing schedule, accrued revenue is recognized. At the point that accrued revenue is billed, trade accounts receivable are recognized. Payment terms on invoice amounts are typically 30 days.
Deferred mobilization, demobilization and contract preparation revenue includes revenues received for rig mobilization as well as preparation and upgrade activities, in addition to demobilization revenues expected to be received upon contract commencement and other lump-sum revenues relating to the firm periods of our contracts. These revenues are allocated to the overall performance obligation and recognized on a straight-line basis over the initial firm term of the contracts.
The following presents our contract assets and liabilities from our contracts with customers:
June 30, 2025December 31, 2024
(In $ millions)
Accrued revenue (1)
137.6 107.7 
Current contract assets137.6 107.7 
Non-current accrued revenue (2)
12.8 1.5 
Non-current contract assets
12.8 1.5 
Total contract assets
150.4 109.2 
Current deferred mobilization, demobilization and other revenue
(42.8)(27.1)
Current contract liabilities
(42.8)(27.1)
Non-current deferred mobilization, demobilization and other revenue (37.4)(21.0)
Non-current contract liabilities
(37.4)(21.0)
Total contract liabilities
(80.2)(48.1)
(1) Accrued revenue includes $16.0 million ($20.4 million as of December 31, 2024) related to the current portion of blended rate revenue and $9.0 million ($1.0 million as of December 31, 2024) pertaining to the current portion of deferred demobilization revenue.
(2) Non-current accrued revenue includes $10.4 million ($1.5 million as of December 31, 2024) pertaining to the non-current portion of deferred demobilization revenue, $1.8 million (nil as December 31, 2024) related to the non-current portion of blended rate revenue, and $0.6 million (nil as December 31, 2024) pertaining to customer retentions related to one of our contracts, which will be received upon contract completion. Non-current accrued revenue is included in "Other non-current assets" in our Unaudited Condensed Consolidated Balance Sheets (see Note 14 - Other Non-Current Assets).
Total movement in our contract assets and contract liabilities balances during the six months ended June 30, 2025 are as follows:
(In $ millions)
Contract assetsContract liabilities
Balance as of December 31, 2024109.2 48.1 
Performance obligations satisfied during the reporting period
133.0 — 
Amortization of revenue
— (22.1)
Unbilled demobilization revenue
16.9 — 
Unbilled variable rate revenue(2.6)— 
Performance obligations to be satisfied over time
— 16.9 
Unbilled mobilization revenue0.6 — 
Cash received, excluding amounts recognized as revenue— 37.3 
Invoices issued against the contract asset balance
(106.7)— 
Balance as of June 30, 2025
150.4 80.2 
Timing of Revenue
The Company derives its revenue from contracts with customers for the transfer of goods and services, from various activities performed both at a point in time and over time, under the output method.
Three months ended June 30, 2025Three months ended June 30, 2024Six months ended June 30, 2025Six months ended June 30, 2024
(In $ millions)
Over time256.6 264.4 467.6 492.7 
Point in time11.1 7.5 16.7 13.2 
Total267.7 271.9 484.3 505.9 
Revenue on existing contracts, where performance obligations are unsatisfied or partially unsatisfied at the balance sheet date, is expected to be recognized as follows as at June 30, 2025:
For the periods ending June 30,
(In $ millions)
2026202720282029 onwards
Dayrate revenue
700.5 239.0 111.4 54.5 
Other revenue (1)
43.3 20.6 14.8 7.6 
Total743.8 259.6 126.2 62.1 
(1) Other revenue represents lump sum revenue associated with contract preparation and mobilization and is recognized ratably over the initial firm term of the associated contract in "Dayrate revenue" in the Unaudited Condensed Consolidated Statements of Operations.
Contract Costs
Deferred mobilization and contract preparation costs relate to costs incurred to prepare a rig for contract and delivery or to mobilize a rig to the drilling location. We defer pre‑operating costs, such as contract preparation and mobilization costs, and recognize such costs on a straight‑line basis, over the estimated firm period of the drilling contract. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization period.
June 30, 2025December 31, 2024
(In $ millions)
Current deferred mobilization and contract preparation costs 33.7 40.6 
Non-current deferred mobilization and contract preparation costs (1)
37.2 39.5 
Total deferred mobilization and contract preparation asset 70.9 80.1 
(1) Non-current deferred mobilization and contract preparation costs are included in "Other non-current assets" in our Unaudited Condensed Consolidated Balance Sheets (see Note 14 - Other Non-Current Assets).
Deferred mobilization and contract preparation costs decreased by $9.2 million during the six months ended June 30, 2025 to $70.9 million, from $80.1 million as of December 31, 2024 as a result of additional deferred costs of $15.5 million primarily relating to the contract preparations of the rigs "Arabia I", "Thor" and "Gerd", offset by amortization of $24.7 million during the six months ended June 30, 2025.