Financial Performance - Net income for Q4 2023 increased to $829 million from $17 million in Q3 2023, including a tax benefit of $790 million[6] - Adjusted EBITDA rose to $58 million from $40 million in Q3 2023, driven by more operating days and lower reactivation expenses[6] - Revenues for Q4 2023 increased to $484 million from $455 million in Q3 2023, with operating days contributing to the growth[7] - Net income for Q4 2023 was $828.5 million, compared to a net income of $17.0 million in Q3 2023, reflecting a significant increase[24] - Net income for the year ended December 31, 2023, increased to $866.8 million, up from $181.8 million in 2022, representing a growth of 376%[28] - Net cash provided by operating activities for the year was $267.5 million, compared to $127.0 million in 2022, reflecting a 110% increase[28] - Operating income for the same period was $19.9 million, significantly higher than $8.1 million in the prior quarter[72] - EBITDA for Q4 2023 was reported at $39.4 million, up from $23.9 million in Q3 2023[72] Revenue and Contract Backlog - Revenue efficiency was reported at 93% for the quarter and 96% for the year[6] - The company secured new contracts and extensions, resulting in a contract backlog exceeding $1.4 billion during Q4 2023[4] - Total contract backlog increased to over $3.9 billion as of February 15, 2024, representing a nearly 60% increase year-over-year[6] - The contract backlog reached $3,921.4 million as of February 15, 2024, up from $3,158.1 million on November 1, 2023, indicating a 24.1% increase[45] - Total contract backlog as of February 15, 2024, was $2,138.1 million, a decrease from $2,290.7 million in the previous quarter[74] Cash Flow and Expenditures - Capital expenditures surged to $463 million from $106 million in Q3 2023, primarily due to newbuild drillships delivery[11] - Cash and cash equivalents decreased to $620.5 million as of December 31, 2023, from $1,041.1 million as of September 30, 2023[26] - Net cash used in investing activities for the year was $(665.8) million, compared to $(16.7) million in 2022, indicating a substantial increase in cash outflow[28] - The company reported a net cash provided by financing activities of $285.5 million for the year, compared to $(6.4) million in 2022, showing a significant turnaround[28] Shareholder Returns - Share repurchases totaled $50 million in Q4 2023 and $200 million for the year, with an increase in the share repurchase program authorized to $600 million[6] - Payments for share repurchases in the three months ended December 31, 2023, totaled $51.2 million, compared to $83.0 million in the previous quarter, a decrease of 38%[30] Operational Efficiency - The company anticipates continued growth in offshore drilling activity and is focused on enhancing operational efficiency and sustainability initiatives[21] - The total revenue for the company was $93.2 million in Q4 2023, compared to $72.4 million in Q3 2023, reflecting a 28.5% increase[36] - General and administrative expenses were $24.3 million in Q4 2023, slightly up from $24.2 million in Q3 2023[39] - Reactivation costs amounted to $38.5 million in Q4 2023, down from $50.9 million in Q3 2023, showing a decrease of 24.7%[41] Fleet Performance - Total fleet utilization improved to 60% in Q4 2023, compared to 57% in Q3 2023, marking a 5.3% increase[51] - Active fleet utilization reached 79% in Q4 2023, up from 75% in Q3 2023, indicating a 5.3% improvement[53] - Average daily revenue for drillships increased to $307,000 in Q4 2023, up from $288,000 in Q3 2023, representing a 6.6% increase[48] - Average daily revenue for owned rigs increased to $100,000 in Q4 2023, up from $91,000 in Q3 2023[75] - The average daily revenue for jackups was $111,000 in Q4 2023, a slight decrease from $116,000 in Q3 2023[48] Segment Performance - ARO Drilling's revenues increased to $134 million from $122 million in Q3 2023, attributed to the newbuild jackup Kingdom 1 commencing its maiden contract[16] - Adjusted EBITDA for Valaris in Q4 2023 was $57.5 million, up from $40.0 million in Q3 2023, reflecting a growth of 43.75%[86] - JACKUPS segment net income rose to $46.1 million in Q4 2023 from $34.4 million in Q3 2023[88] - Adjusted EBITDA for the FLOATERS segment was $37.2 million in Q4 2023, an increase from $28.2 million in Q3 2023[88] - Adjusted EBITDA for HD & SD Modern Jackups rose to $30.1 million in Q4 2023, compared to $13.0 million in Q4 2022, marking an increase of 131.5% year-over-year[94]

Valaris Limited (NYSE:VAL) Q3 2023 Earnings Conference Call November 7, 2023 10:00 AM ET Company Participants Darin Gibbins - Vice President, Investor Relations & Treasurer Anton Dibowitz - President & Chief Executive Officer Matt Lyne - Senior Vice President, CCO Chris Weber - Senior Vice President & Chief Financial Officer Conference Call Participants Eddie Kim - Barclays Kurt Hallead - Benchmark David Smith - Pickering Energy Partners Operator Good day, and welcome to the Valaris Third Quarter 2023 Resul ...

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, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: +44 (0) 20 7659 4660 Securities registered pursuant to Section 12(b) of the Act: ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2023 was $15 million, down from $28 million in the prior quarter, while adjusted EBITDA adding back one-time reactivation costs was $59 million, up from $55 million in the prior quarter [25] - Revenues decreased to $390 million from $408 million, primarily due to fewer operating days for the jackup fleet and lower mobilization and demobilization revenues [25][26] - Contract drilling expense decreased to $348 million from $356 million, primarily due to lower costs for idle rigs and lower repair and maintenance costs [27] Business Line Data and Key Metrics Changes - Jackup revenues decreased due to fewer operating days and lower mobilization revenues, particularly for Valaris 249, which completed its contract [26] - Floater revenues increased due to more operating days and a higher average day rate, primarily related to Valaris DS-12 [26] - Reactivation expense increased to $44 million from $26 million, driven by the commencement of a reactivation project for Valaris DS-8 [27] Market Data and Key Metrics Changes - Spot Brent crude prices moved above $80 per barrel, with five-year forward prices remaining above $65 per barrel, supporting offshore project investments [6][7] - Active utilization for sixth and seventh generation drillships has exceeded 90% for over 12 months, indicating strong demand [7] - The number of contracted jackups recently surpassed 400 for the first time since mid-2015, with active utilization above 90% [11] Company Strategy and Development Direction - The company intends to exercise purchase options for newbuild drillships VALARIS DS-13 and DS-14, viewing them as compelling investment opportunities [18][22] - The fleet strategy focuses on maintaining a critical mass of rigs in priority basins to benefit from economies of scale [16] - The company aims to return all future free cash flow to shareholders unless better investment opportunities arise [21][44] Management's Comments on Operating Environment and Future Outlook - The outlook for the offshore drilling market remains positive, with increasing demand and constrained supply tightening the market [22] - Management noted that the ultra-deepwater market is experiencing a strong upcycle, with increased contract durations and day rates [11][22] - The harsh environment jackup market in the North Sea is expected to remain challenging through 2024 [12][15] Other Important Information - The company announced an increase in its share repurchase authorization to $300 million, with a target of repurchasing $200 million by year-end 2023 [20][44] - ARO Drilling, a joint venture with Saudi Aramco, is expected to deliver newbuild rigs by the end of 2023, marking a significant growth milestone [19] Q&A Session All Questions and Answers Question: Regarding the purchase options on DS-13 and DS-14 - Management confirmed the intention to exercise the purchase options, emphasizing the need for attractive contracts before reactivating these rigs [46][47] Question: Thoughts on M&A opportunities - Management stated that while they are open to M&A opportunities, they are currently focused on organic growth and maximizing the potential of their existing high-spec fleet [48][49] Question: Characterization of leading-edge rates for jackups - Management noted that leading-edge rates for jackups are geographically diverse, with strong rates observed in regions outside the North Sea [52][53] Question: Future of leased rigs to ARO - Management expressed confidence in the long-term sustainability of the Saudi market and the potential for attractive opportunities for leased rigs [54] Question: Insights on pricing strategy for drillships - Management indicated that the pricing strategy will balance long-term contracts with opportunistic contracts at leading-edge rates, reflecting the tightening supply-demand balance [57][60]

Financial Performance - Operating revenues for Q2 2023 were $415.2 million, a slight increase of 0.5% compared to $413.3 million in Q2 2022[19]. - Net loss for Q2 2023 was $27.3 million, compared to a net income of $112.8 million in Q2 2022, representing a significant decline[20]. - The company reported an operating loss of $9.9 million for Q2 2023, an improvement from the operating loss of $15.6 million in Q2 2022[19]. - The company reported a basic loss per share of $0.39 for Q2 2023, compared to earnings per share of $1.49 in Q2 2022[19]. - Revenues for the three months ended June 30, 2023, totaled $415.2 million, with operating income (loss) reported at $(9.9) million[96]. - For the six months ended June 30, 2023, total revenues were $845.3 million, with an operating income (loss) of $(1.4) million[100]. - Revenues for the six months ended June 30, 2023, increased to $845.3 million, up 16% from $731.7 million in the same period of 2022[131]. Cash Flow and Liquidity - Cash and cash equivalents increased to $787.3 million as of June 30, 2023, up from $724.1 million at the end of 2022[23]. - The company generated $122.6 million in net cash from operating activities for the first half of 2023, a turnaround from a cash outflow of $114.0 million in the same period of 2022[24]. - The company expects to fund its short-term liquidity needs from cash and cash equivalents, cash flows from operations, and borrowings under the Credit Agreement, with $375.0 million available for borrowings as of July 26, 2023[172]. - As of June 30, 2023, letters of credit outstanding totaled $100.4 million, with collateral deposits amounting to $16.2 million[89]. Debt and Financing - Long-term debt rose to $681.9 million as of June 30, 2023, compared to $542.4 million at the end of 2022, indicating increased leverage[23]. - The company issued $700.0 million in Second Lien Notes during the first half of 2023, reflecting a strategy to strengthen its capital structure[24]. - The total principal amount of the Second Lien Notes issued was $700.0 million, with net proceeds of $681.4 million after deducting expenses[70]. - The company redeemed its First Lien Notes for an aggregate redemption price of $571.8 million on May 3, 2023, resulting in a loss of $29.2 million recognized in the financial statements[69]. - The company has a senior secured revolving credit facility with commitments allowing borrowings of up to $375.0 million, which can be increased by an additional $200.0 million under certain conditions[76]. - The Company has the option to redeem up to 40.0% of the aggregate principal amount of the Second Lien Notes prior to April 30, 2026, at a redemption price of 108.375% of the principal amount[72]. Shareholder Equity and Repurchase - Valaris shareholders' equity decreased to $1,254.1 million as of June 30, 2023, down from $1,289.9 million at the end of 2022[23]. - The board of directors authorized a share repurchase program, increasing the amount from $100.0 million to $300.0 million in April 2023, with 1.1 million shares repurchased for $65.0 million at an average price of $58.82 during the three and six months ended June 30, 2023[84]. - The total shareholders' equity increased from $1,097.9 million on December 31, 2022, to $1,110.3 million on June 30, 2023[82]. Operational Highlights - The company completed the reactivation of the VALARIS DS-17 drillship, which is expected to commence a contract in the third quarter of 2023[121]. - The total fleet consisted of 51 rigs as of June 30, 2023, with 40 rigs classified as active[137]. - The company owns a total of 51 rigs, including 11 drillships and 35 jackup rigs, while ARO owns an additional 7 rigs[111]. - The company plans to purchase 20 newbuild jackup rigs over an approximate 10-year period, with the first two expected to be delivered in 2023[44]. Revenue Sources and Trends - Consolidated revenues from the U.S. Gulf of Mexico for the three months ended June 30, 2023, were $77.3 million, a decrease from $125.8 million in the same period of 2022[108]. - The geographic concentration of revenues shows that the U.S. Gulf of Mexico contributed $153.3 million for the six months ended June 30, 2023, compared to $176.4 million in the same period of 2022[109]. - ARO's revenues for the three months ended June 30, 2023, were $117.8 million, slightly up from $116.4 million in the same period of 2022[46]. - The company recognized revenues related to Lease Agreements of $16.8 million and $35.6 million for the three and six months ended June 30, 2023, respectively, compared to $14.6 million and $28.8 million for the same periods in 2022, indicating a year-over-year increase of 15% and 23%[50]. Expenses and Cost Management - Total operating expenses decreased to $424.4 million in Q2 2023 from $437.6 million in Q2 2022, a reduction of approximately 3%[19]. - Operating expenses totaled $849.3 million, a 5% increase from $810.2 million in the prior year, driven by a $57.6 million rise in contract drilling expenses[131]. - General and administrative expenses rose by 34% to $50.8 million, primarily due to higher compensation and professional fees[134]. - Contract drilling expenses increased by $92.8 million due to rigs commencing contracts after reactivation[132]. Tax and Regulatory Matters - For the three months ended June 30, 2023, the income tax expense was $18.3 million, while for the six months it was $34.4 million, excluding discrete tax items[86]. - The company received an income tax refund of $45.9 million during the first quarter of 2023 related to the U.S. Coronavirus Aid, Relief, and Economic Security Act[106]. - The Australian tax authorities issued tax assessments totaling approximately A$101.0 million ($67.3 million) for the years 2011 through 2016, with a $17.9 million liability for unrecognized tax benefits as of June 30, 2023[191]. Risks and Challenges - The company is involved in an administrative proceeding in Brazil, facing a claim for approximately BRL 601 million (approximately $127.0 million) related to overbilling to Petrobras[91]. - The company is exposed to foreign currency exchange risk due to revenues and expenses denominated in currencies other than the U.S. dollar[198]. - A hypothetical 1% decrease in LIBOR would reduce interest income by $4.0 million for the year ended December 31, 2023, based on a principal amount of $402.7 million[197].

Valaris Limited (NYSE:VAL) Q1 2023 Earnings Conference Call May 2, 2023 10:00 AM ET Company Participants Darin Gibbins - Vice President of Investor Relations & Treasurer Anton Dibowitz - President & Chief Executive Officer Chris Weber - Senior Vice President & Chief Financial Officer Conference Call Participants Kurt Hallead - Benchmark Eddie Kim - Barclays David Smith - Pickering Energy Partners Darin Gibbins Welcome, everyone, to the Valaris First Quarter 2023 Conference Call. With me today: are President ...

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, 2023 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 ...

Valaris Limited (NYSE:VAL) Q4 2022 Earnings Conference Call February 21, 2023 10:00 AM ET Company Participants Darin Gibbins - Vice President of Investor Relations & Treasurer Anton Dibowitz - President & Chief Executive Officer Chris Weber - Senior Vice President & Chief Financial Officer Matt Lyne - SVP and Chief Commercial Officer Conference Call Participants Greg Lewis - BTIG David Smith - Pickering Energy Advisors Fredrik Stene - Clarksons Platou Securities Eddie Kim - Barclays Kurt Hallead - Benchmark ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased to $76 million from $29 million in the previous quarter, and adjusted EBITDAR rose to $94 million from $54 million [14][47] - Revenues were $437 million compared to $413 million in the prior quarter, with revenues excluding reimbursable items increasing to $415 million from $385 million [48] - Contract drilling expense decreased to $337 million from $362 million in the prior quarter, with a further decrease in reactivation costs to $18 million from $24 million [50][51] Business Line Data and Key Metrics Changes - Floater revenues increased due to the reactivation of rigs, with VALARIS DS-4 and DS-9 starting contracts early in the third quarter [49] - Jackup revenues increased due to more operating days and higher average day rates, with average day rates for benign environment jackup fixtures signed in the third quarter up nearly $100,000 per day [26][48] Market Data and Key Metrics Changes - Utilization for active drill ships sustained at around 90% for the past 12 months, leading to improvements in day rates, with average day rates for drill ship fixtures around $400,000 per day [20] - Jackup rig years awarded are more than double the previous 12 months, with active utilization for jackups reaching approximately 90% [25][26] Company Strategy and Development Direction - The company aims to maintain a disciplined fleet management strategy, focusing on high utilization of the active fleet and reactivation of stacked rigs for opportunities with meaningful returns [30][32] - The company is strategically positioned in key markets, particularly in Brazil, to benefit from increased demand for floaters [22][24] Management's Comments on Operating Environment and Future Outlook - The management expressed a highly constructive outlook for the offshore drilling market, driven by a lack of investment in new production sources and geopolitical instability [15][16] - Despite macroeconomic uncertainties, the management remains optimistic about increased contracting and tendering activity across both floaters and jackups [43] Other Important Information - The company executed a sales agreement for a 40-year-old jackup for $28.5 million, expected to close in March 2023, which will provide capital for more attractive investment opportunities [36][68] - The company authorized a $100 million share repurchase program to enhance capital allocation flexibility [70] Q&A Session Summary Question: Market dynamics and contract durations - Management noted that while day rates have increased significantly, customers remain cautious about committing to long-term contracts due to past experiences with over-committing [76][78] Question: Supply side and reactivation economics - Management acknowledged attractive economics for reactivating rigs but emphasized the need for discipline in selecting opportunities to avoid cannibalizing the current fleet [82][86] Question: Short-term investments and rig sale - Short-term investments were described as time deposits for yield enhancement, and the rig sale was confirmed as an arm's-length transaction, reflecting the strengthened jackup market [88][89] Question: Norwegian jackup market and relocation strategy - Management indicated a lack of near-term demand in Norway, prompting the relocation of rigs to the UK for better opportunities [91][92] Question: Training facility and employee recruitment - The company is focused on training entry-level employees to prepare them for offshore work, addressing the industry's need for skilled labor [100][103]