Company Overview - Valaris Ltd (NYSE: VAL) is a prominent provider of offshore drilling services globally, operating a fleet that includes drillships, semi-submersibles, and jackups [1] Market Presence - The company maintains a strong operational presence in key regions such as the Gulf of Mexico, off the coast of Brazil, and in the UK North Sea [1]

Group 1 - The focus has shifted from the airline industry to offshore drilling, specifically examining Valaris Limited (NYSE: VAL) [1] - Nabeel Bukhari possesses a law degree with a specialization in company and corporate law, along with self-taught financial analysis skills, providing a unique perspective on business dynamics [1] - Bukhari's insights have been published in respected platforms such as InvestorPlace and GuruFocus, and featured in notable publications like Forbes, Yahoo Finance, and MSN [1]

Valaris Limited (VAL) , an offshore drilling contractor, has secured an award for its ultra-deepwater Valaris DS-15 drillship for work offshore West Africa. The estimated duration of the contract is 250 days, with a total contract value of $135 million.The contract involves drilling five wells for an undisclosed operator and does not include any additional services. The assignment is expected to begin in the third quarter of 2026. Additionally, the contract includes priced options for up to five wells. Thes ...

Investor Presentation M a y 1 , 2 0 2 5 FOCUSED VALUE DRIVEN RESPONSIBLE Forward-Looking Statements Statements contained in this investor presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "outlook," "plan," "project, ...

Financial Performance - Total operating revenues for Q1 2025 were $620.7 million, a 18.2% increase from $525.0 million in Q1 2024[16] - Operating income for Q1 2025 was $143.0 million, compared to $29.3 million in Q1 2024, representing a significant improvement[16] - Net loss attributable to Valaris for Q1 2025 was $37.9 million, compared to a net income of $25.5 million in Q1 2024[16] - Basic and diluted earnings per share for Q1 2025 were both $(0.53), down from $0.35 in Q1 2024[16] - Net cash provided by operating activities for Q1 2025 was $155.9 million, a significant increase from $26.3 million in Q1 2024[21] - The company reported capital expenditures of $100.2 million for the three months ended March 31, 2025, compared to $151.3 million in the same period of 2024, reflecting a decrease of 33.8%[85][86] - The net gain on the sale of property for the three months ended March 31, 2025, was $27.1 million, compared to a loss of $0.1 million in the same period of 2024[91] Assets and Liabilities - Cash and cash equivalents increased to $441.4 million as of March 31, 2025, up from $368.2 million at the end of 2024[19] - Total assets decreased slightly to $4,386.8 million as of March 31, 2025, from $4,419.8 million at the end of 2024[19] - Total liabilities remained stable at $2,175.3 million as of March 31, 2025, compared to $2,175.5 million at the end of 2024[19] - Current contract assets increased to $1.5 million as of March 31, 2025, up from $1.3 million on December 31, 2024[35] - Noncurrent contract assets rose to $5.6 million as of March 31, 2025, compared to $5.5 million at the end of 2024[35] - Current contract liabilities (deferred revenue) decreased to $78.0 million from $87.2 million[35] - Noncurrent contract liabilities (deferred revenue) declined to $61.2 million from $71.4 million[35] Tax and Deferred Income - The company reported a deferred income tax expense of $169.8 million for Q1 2025, compared to $2.0 million in Q1 2024[21] - The consolidated effective tax rate for the three months ended March 31, 2025, was 15.1%, excluding the impact of discrete tax items[70] - During the three months ended March 31, 2025, the company recognized $168.8 million of deferred tax expense due to a valuation allowance on deferred tax assets[69] - The company recorded a tax benefit of approximately $65.0 million in 2024 related to the reversal of uncertain tax position liabilities from Luxembourg tax assessments[72] Operational Highlights - The geographic distribution of drilling rigs as of March 31, 2025, included 18 floaters and 27 jackups, totaling 52 for Valaris, with an additional 9 rigs for ARO[87] - The company owns 49 rigs, including 34 jackup rigs and 13 drillships, and has a 50% equity interest in ARO, which owns an additional nine rigs[95] - Total backlog as of April 30, 2025, was $4,237.6 million, up from $3,608.5 million on February 18, 2025, with floaters contributing $2,170.9 million[102] - The global marketed jackup fleet utilization was 90% as of March 31, 2025, down from 94% in early 2024, leading to downward pressure on day rates[106] - ARO's backlog increased by approximately $1.2 billion due to five-year contract extensions for several rigs[102] Market Conditions - Inflationary pressures have increased personnel costs and prices of goods and services, with expectations of continued cost rises in the near term[99] - Brent crude oil prices have declined into the $60-$70 range per barrel, impacting demand and pricing for offshore drilling services[96] - The company anticipates contract commencements for its floater fleet in mid-2026 and beyond, despite current market uncertainties[103] Shareholder Returns and Financing - The company issued $700.0 million of Second Lien Notes in April 2023, with an additional $400.0 million issued in August 2023, maturing on April 30, 2030[59] - As of March 31, 2025, the company had approximately $275.0 million available for share repurchases under the authorized program of up to $600.0 million[66][67] - The board of directors has authorized a share repurchase program of up to $600.0 million, with approximately $275.0 million available for repurchases as of March 31, 2025[175] Legal and Compliance - The company accrued $25.0 million in 2024 related to patent litigation efforts, which is included in accrued liabilities as of March 31, 2025[79] - The arbitration hearings regarding the patent litigation concluded in March 2025, with a decision expected in the second quarter of 2025[78] - The company has filed certifications of the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002[31.1][31.2] - The report includes certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by the Chief Executive Officer and Chief Financial Officer[32.1][32.2]

Valaris (VAL) Q1 2025 Earnings Call May 01, 2025 10:00 AM ET Speaker0 Please note that today's event is being recorded. I would now like to turn the conference over to Nick Georges, Vice President, Treasurer, Investor Relations. Please go ahead, sir. Speaker1 Welcome everyone to the Valaris First Quarter twenty twenty five Conference Call. With me today are President and CEO, Anton Dibovitz Senior Vice President and CFO, Chris Weber Senior Vice President and CCO, Matt Lyne and other members of our executive ...

Valaris Limited (VAL) came out with a quarterly loss of $0.53 per share versus the Zacks Consensus Estimate of $1.10. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -148.18%. A quarter ago, it was expected that this company would post earnings of $1.23 per share when it actually produced earnings of $1.88, delivering a surprise of 52.85%.Over the last four quarters, the company has surpassed ...

www.valaris.com Press Release Valaris Reports First Quarter 2025 Results • Total operating revenues of $621 million, with revenue efficiency of 96%; • Net loss of $39 million, inclusive of $167 million of discrete tax expense; • Adjusted EBITDA of $181 million; • Generated $156 million of cash from operating activities and $74 million of Adjusted Free Cash Flow; • Secured approximately $1.0 billion of new contract backlog since February's fleet status report, increasing total backlog by nearly 20% to more t ...

Core Viewpoint - Valaris Limited and Jadestone Energy are advancing the Montara field offshore Australia, with the Valaris 247 jack-up rig set to commence drilling operations, which are crucial for Jadestone's capital program for 2025 [1][2]. Drilling Operation Details - The drilling operation will involve a side-track well at the Skua-11 formation, including the decommissioning of the existing SK-11 well, which will be plugged and abandoned [2]. - The side-track well will be drilled at a higher level to enhance the recovery of hydrocarbon reserves [2]. Expected Production - The Skua-11ST drilling program is projected to last 60 days, with an expected initial production rate of 3,500 barrels of oil per day [3]. - This operation is anticipated to extend the economic lifespan of the Montara field by one year [3]. Financial Impact - The drilling costs are estimated at approximately $62 million, with a payback period of 16 months, indicating a strong return on investment [4]. - The internal rate of return for this project is projected at 65%, reflecting robust financial returns [4]. Production Levels - Jadestone Energy expects that bringing the Skua-11 well back into production will increase its overall production levels to about 21,000 barrels of oil equivalent per day year-to-date, slightly exceeding expectations despite earlier downtime due to cyclones [5].

Also Read: Tesla Stock Is Stuck In Reverse – Can Model Y Refresh Shift Gears? There's also a potential for more rig suspensions in Saudi Arabia, though some rigs leased to ARO continue to operate under short-term extensions while longer-term lease agreements are negotiated. J.P. Morgan analyst Arun Jayaram reiterated the Underweight rating on Valaris Limited VAL on Monday, lowering the price forecast from $40 to $38. The analyst suggests that while the company has made significant fleet rationalization effo ...