Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $643 million, an increase from $610 million in the previous quarter [49] - Adjusted EBITDA rose to $150 million from $139 million in the prior quarter, driven by strong operational performance [49][50] - Free cash flow improved to $111 million, with $100 million of shares repurchased during the quarter [10][52] Business Line Data and Key Metrics Changes - Fleet-wide revenue efficiency was 98%, marking the third consecutive quarter of at least 97% efficiency [11] - The jack-up market remains healthy with contracted rig counts and utilization stable, with marketed utilization for the global jack-up fleet at 93% [25][29] Market Data and Key Metrics Changes - Global demand for hydrocarbons continues to rise, with deepwater production expected to play a significant role [17] - Average day rates for seventh-generation drillships increased to approximately $500,000 in Q3 2024 [22] - Marketed utilization for the global jack-up fleet is currently 93%, with day rates in the North Sea in the mid-100,000s [25][29] Company Strategy and Development Direction - The company is focused on securing attractive long-term contracts and managing its fleet prudently to support earnings and cash flow growth [9][60] - There is a robust pipeline of future opportunities in 2026 and beyond, despite some customer demand being deferred [9][60] - The company is committed to returning all future free cash flow to shareholders unless better opportunities arise [10][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and duration of the current upcycle, despite some customer demand being deferred [9][60] - The company noted that while there are headwinds due to equipment availability and regulatory delays, projects are being delayed rather than canceled [20] - Management highlighted the importance of deepwater production in meeting global energy needs and the compelling economics of offshore projects [17][93] Other Important Information - The company received the Safety Leadership Award for its restricted zone analysis tool, enhancing safety in offshore operations [14] - The company has repurchased a total of $300 million in shares since the program began, with $300 million remaining under the authorization [52] Q&A Session Summary Question: Expectations on day rates trajectory - Management indicated that day rates may see some variety, with customers willing to pay solid rates for high-specification assets [64][65] Question: Customer demand deferral details - Management clarified that deferrals are primarily in deepwater projects, with delays in FPSO availability impacting timelines [66][67] Question: Cost reduction during warm stacking - Management explained that costs can be reduced to around $60,000 per day during warm stacking, with a ramp-up period of about 90 days to return to work [71][72] Question: M&A opportunities and consolidation - Management believes there is room for consolidation in the offshore drilling market but emphasized that Valaris is not compelled to pursue M&A for scale [79][80] Question: Timeline for activating sidelined assets - Management stated that the activation of sidelined assets will depend on market opportunities, with a focus on keeping the active fleet utilized [82][84]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to__________ Commission File Number 1-8097 Valaris Limited (Exact name of registrant as specified in its charter) Bermuda 98-1589854 (State or ...

Valaris Limited (VAL) came out with quarterly earnings of $0.88 per share, missing the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -35.29%. A quarter ago, it was expected that this company would post earnings of $0.96 per share when it actually produced earnings of $2.03, delivering a surprise of 111.46%. Over the last four quarters, the compa ...

Financial Performance - Net income for Q3 2024 was $63 million, down from $151 million in Q2 2024, with an adjusted EBITDA of $150 million, up from $139 million[4]. - Revenue increased to $643 million in Q3 2024 from $610 million in Q2 2024, primarily due to a full quarter of operations for VALARIS DS-7 and higher average daily revenue for the floater fleet[5]. - Free cash flow for the quarter was $111 million, with $193 million generated from operating activities, and the company repurchased $100 million of shares[3]. - Operating revenues for Q3 2024 were $643.1 million, an increase of 5.0% from $610.1 million in Q2 2024 and up 23.5% from $525.0 million in Q1 2024[24]. - Operating income for Q3 2024 was $94.9 million, down 12.0% from $108.9 million in Q2 2024 but significantly higher than $29.3 million in Q1 2024[24]. - Net income attributable to Valaris for Q3 2024 was $64.6 million, a decrease of 56.7% from $149.6 million in Q2 2024, but an increase from $25.5 million in Q1 2024[24]. - Basic earnings per share for Q3 2024 were $0.89, down from $2.07 in Q2 2024 and up from $0.35 in Q1 2024[24]. - Cash provided by operating activities was $193.0 million, significantly higher than $11.5 million in the previous quarter[31]. - The company reported a significant increase in depreciation expense to $31.7 million, compared to $29.7 million in the previous quarter[31]. - Adjusted EBITDA for the total fleet reached $198.3 million in September 2024, up from $189.0 million in June 2024, representing a 0.7% increase[35]. Operational Efficiency - The company achieved a fleetwide revenue efficiency of 98%, reflecting strong operational performance[2]. - Average daily revenue for drillships increased to $386,000 in September 2024, up from $288,000 in September 2023, representing a 34% increase[42]. - Total fleet utilization improved to 69% in September 2024, compared to 65% in September 2023, indicating a 4 percentage point increase[44]. - Active fleet utilization for floaters reached 91% in September 2024, up from 63% in September 2023, showing a significant increase of 28 percentage points[46]. - Revenue efficiency for drillships was 98% in September 2024, slightly down from 99% in June 2024, but up from 89% in September 2023[51]. Contract and Backlog - A three-year contract extension for jackup VALARIS 118 was awarded in October, adding $168 million to the contract backlog[3]. - The contract backlog as of October 30, 2024, totaled $4,104.8 million, slightly down from $4,307.5 million in July 2024, indicating a 4.7% decline[40]. - The total contract backlog for semisubmersibles was $106.0 million in October 2024, down from $122.1 million in July 2024, indicating a 13.1% decline[40]. - The total contract backlog for ARO Drilling as of October 30, 2024, is $1,581.3 million, down from $1,982.2 million in April 2024[57]. Cash and Liquidity - Cash and cash equivalents decreased to $392 million as of September 30, 2024, from $410 million at the end of Q2 2024, primarily due to share repurchases and capital expenditures[10]. - The company experienced a net cash outflow of $18.1 million in cash and cash equivalents during the quarter[31]. - Cash used in investing activities amounted to $81.8 million, compared to $110.1 million in the previous quarter, indicating a reduction in capital expenditures[31]. - Payments for share repurchases totaled $100.0 million, reflecting the company's commitment to returning value to shareholders[31]. Market Outlook - The company remains optimistic about the long-term outlook, despite some customer demand being deferred, with a robust outlook for 2026 and beyond[2]. - The company anticipates continued volatility in the offshore drilling market, influenced by commodity price fluctuations and customer demand[21]. Safety and Recognition - Valaris was recognized with the 2024 Safety Leadership Award for the development of its Restricted Zone Analysis tool, highlighting its commitment to safety[3].

Anastasia Yakovleva Valaris - Actual Results vs. Guidance Q2/2024 Q1/2024 Guidance Actual Guidance Actual 490-500 525 580-600 610 Revenue Contract Drilling Expenses 430-440 445 460-470 439 General & Administrative Expenses 27 27 30 33 Capital Expenditures 145-155 151 100-110 110 Adjusted EBITDA 30-40 54 85-105 139 Note: Valaris Limited (NYSE: VAL) has been covered by me previously, so investors should view this as an update to my earlier articles on the company. Two weeks ago, leading offshore driller Valar ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased to $139 million in Q2 2024, up from $54 million in Q1 2024, with adjusted EBITDA including one-time reactivation costs at $150 million [7][28] - Revenue was $610 million, up from $525 million in the prior quarter [28] - Contract drilling expense decreased primarily due to lower reactivation expenses and reduced repair and maintenance costs [30] Business Line Data and Key Metrics Changes - The backlog increased to over $4.3 billion, marking a 42% increase compared to the previous year and the seventh consecutive quarter of backlog growth [5][14] - Average day rates for drillships in backlog increased to $414,000 per day from $338,000 per day [14] - The contracted benign environment floater fleet utilization reached 86%, the highest in nearly a decade [16] Market Data and Key Metrics Changes - Spot Brent crude prices have largely traded above $80 per barrel, with a five-year forward price around $70 per barrel, supporting investment in long-cycle offshore projects [8][9] - Average day rates for seventh-generation drillships increased from approximately $450,000 in H2 2023 to approximately $480,000 in H1 2024 [17] - The global jackup market remains healthy with marketed utilization at 93% [11] Company Strategy and Development Direction - The company is focused on maximizing fleet profitability by securing high utilization and attractive contract economics [10] - There is a strong conviction in the strength and duration of the current upcycle, with expectations for strong customer demand for projects commencing in 2025 and 2026 [5][38] - The company intends to return all future free cash flow to shareholders unless more value-accretive opportunities arise [13][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural upcycle of the offshore drilling market, driven by increasing global demand for hydrocarbons and stable oil prices [9][38] - The company anticipates generating meaningful and sustained free cash flow in 2025 and beyond [13][37] - Management noted that the recent suspension of rigs by Saudi Aramco does not fundamentally change the market outlook, as it represents only about 1% of the global marketed jackup fleet [12][50] Other Important Information - The company had cash and cash equivalents of $410 million at the end of the quarter, with total liquidity of $785 million [31] - Capital expenditures for Q3 are expected to be between $90 million and $100 million, with full-year CapEx projected at $450 million to $480 million [35][36] Q&A Session Summary Question: Capital allocation and returning cash flows to shareholders - Management confirmed a commitment to return capital to shareholders and noted that they are generating increasing amounts of cash as legacy contracts roll onto new contracts [41] Question: Dynamics of the DS-17 contract and standby rates - Management highlighted the strong pipeline of opportunities and the high specification of the DS-17, which allowed for an attractive standby rate [43] Question: Insights on jackup suspension notices - Management clarified ongoing discussions regarding potential suspensions and emphasized that the impact on EBITDA is limited compared to the overall backlog [49][50] Question: Market dynamics and future demand for seventh-generation rigs - Management indicated a robust pipeline of opportunities and expressed confidence in the demand for high-specification rigs [54][56] Question: Expectations for M&A activity in the offshore drilling space - Management acknowledged the potential for additional M&A in the industry but emphasized that they are well-positioned with their existing fleet [58]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to__________ | --- | --- | --- | |-------------------------------------------|--------------------------------------------------------|------------- ...

Valaris Limited (VAL) came out with quarterly earnings of $2.03 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to loss of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 111.46%. A quarter ago, it was expected that this company would post earnings of $0.40 per share when it actually produced earnings of $0.35, delivering a surprise of -12.50%. Over the last four quarters, the company h ...

www.valaris.com Press Release Valaris Reports Second Quarter 2024 Results Financial and Operational Highlights Second Quarter Review Hamilton, Bermuda, July 31, 2024… Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today reported second quarter 2024 results. President and Chief Executive Officer Anton Dibowitz said, "In the second quarter, we built on our excellent start to 2024 with another quarter of strong safety and operating performance, delivering revenue efficiency of 99% without a lost time ...

Valaris Ltd. (VAL) , an offshore drilling contractor, has mobilized its 123 jack-up rig toward the Selene well in the Southern North Sea. The Valaris 123 jack-up rig is slated to drill the Selene exploration well in the license P2437, operated by the British energy major, Shell. Shell's partner, Deltic Energy, stated that the jack-up rig was mobilized on Jul 21, and is expected to reach its destination shortly. The duration of the journey will be determined by the weather conditions during its transit. The ...