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 ...

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]

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 ...

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 ...

Valaris - Actual Results vs. Guidance 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. Last month, leading offshore driller Valaris reported Q1/2024 results handily above expectations, mostly due to improved revenue efficiency. Revenues also benefited from the drillship VALARIS-DS 8 commencing its contract with Petrobras (PBR) offshore Brazil during the quarter. Adjusted EBITDA of $54 million was also well above ...

Financial Data and Key Metrics Changes - In Q1 2024, revenue was $525 million, an increase from $484 million in the prior quarter, while adjusted EBITDA was $54 million, down from $58 million in the previous quarter [66] - Adjusted EBITDAR, which adds back reactivation expenses, was $84 million, down from $96 million in the prior quarter [66] - Cash and cash equivalents at the end of the quarter were $509 million, a decline of $127 million primarily due to capital expenditures of $151 million [41] Business Line Data and Key Metrics Changes - The jackup revenues decreased due to fewer operating days for several rigs, including Valaris 107, 123, and 247 [40] - The floater market saw an increase in average day rates, moving from approximately $450,000 in the second half of 2023 to approximately $480,000 in the first four months of 2024 [33][66] - The contracted benign environment floater count increased to 127 rigs during Q1, the highest point since late 2016, marking an increase of 26 contracted rigs since early 2021 [32] Market Data and Key Metrics Changes - The global jackup market remains tight with marketed utilization nearing 95% and the contracted rig count at its highest level in nearly a decade [26] - In Brazil, Petrobras has 31 contracted floaters, with ongoing tenders that may result in additional rigs needed to meet market demand [34] - The North Sea market has shown improvement, with strong customer interest for programs commencing in the second half of 2025 [36] Company Strategy and Development Direction - The company aims to secure new contracts at higher day rates and consistently build its backlog, which now totals more than $4 billion, marking a 43% increase over the past 12 months [57] - The focus remains on maximizing fleet profitability by keeping active rigs highly utilized and securing the best contract economics possible [23] - The company intends to return all future free cash flow to shareholders unless a better use is identified [20][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong customer demand for work expected to commence in 2025 and 2026, which will support anticipated earnings and cash flow growth [75] - The offshore drilling market is expected to see strong growth through 2026, driven by increased upstream CapEx and offshore FIDs [16] - Management noted that while there may be some near-term rate pressure due to suspended contracts in Saudi Arabia, the overall demand remains strong [84] Other Important Information - The company has reactivated five drillships over the past two years and is focused on delivering successful startups for upcoming contracts [10] - The company expects total capital expenditures for 2024 to be in the range of $420 million to $460 million, reflecting an increase due to contract preparation costs [46] Q&A Session Summary Question: Can you provide more details on the VALARIS 144 jackup contract? - The contract was signed in March 2024, and the mobilization cost is assumed to be less than $10 million [98] Question: What is the outlook for the jackup market given the suspended rigs in Saudi Arabia? - Management believes there is sufficient demand to absorb the suspended rigs without significant long-term pressure on rates [84][108] Question: What is the likelihood of securing contracts for the DS-11, DS-13, and DS-14 rigs? - Management is actively discussing opportunities for these high-specification assets and is focused on finding the right jobs that provide meaningful returns [123][142]

Include significant upfront payments from customers VALARIS Significant earnings potential and cash flow from Valaris fleet | --- | --- | --- | --- | --- | --- | |-------|----------------------|-------------------------------------------|----------|----------|----------| | | with Future Contract | Illustrative Scenario | A | B | C | | 13 | 10 | Drillship Day Rates | $400K | $450K | $500K | | 5 | 3 | Benign Semisubmersible Day Rates | $300K | $350K | $400K | | 12 | 9 | HD Harsh Environment Jackup Day Rates 2 ...

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 March 31, 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) (State or other jurisdiction of i ...

www.valaris.com Press Release Valaris Reports First Quarter 2024 Results Hamilton, Bermuda, May 1, 2024… Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today reported first quarter 2024 results. President and Chief Executive Officer Anton Dibowitz said, "I am very pleased with our start to 2024 as we delivered strong safety and operational performance during the first quarter as evidenced by fleetwide revenue efficiency of 97%. Our financial results also benefited from more operating days for our ...