Valaris(VAL)2024-10-31 15:10Financial Performance - Net income for the three months ended September 30, 2024, was $62.9 million, compared to $17.0 million for the same period in 2023, representing a 269% increase[13] - For the nine months ended September 30, 2024, net income was $239.2 million, significantly up from $38.3 million in 2023, marking a 524% increase[13] - Comprehensive income attributable to Valaris for the three months ended September 30, 2024, was $64.7 million, compared to $12.9 million in 2023, an increase of 400%[13] - The company reported net cash provided by operating activities of $230.8 million for the nine months ended September 30, 2024, compared to $170.8 million for the same period in 2023, an increase of 35%[19] - The Company reported basic earnings per share of $64.6 million for the three months ended September 30, 2024, compared to $12.9 million for the same period in 2023[67] - Operating income for Q3 2024 was $94.9 million, compared to $16.6 million for Q3 2023, reflecting improved performance across segments[100] - Operating income for the nine months ended September 30, 2024, was $233.1 million, compared to $15.2 million in the same period of 2023, reflecting a significant improvement[102][103] Assets and Liabilities - Total current liabilities decreased to $692.3 million as of September 30, 2024, down from $744.3 million at the end of 2023, a reduction of approximately 7.4%[15] - Cash and cash equivalents decreased to $379.3 million as of September 30, 2024, from $620.5 million at the end of 2023, a decline of 39%[16] - Total liabilities decreased to $2,209.6 million as of September 30, 2024, compared to $2,325.2 million at the end of 2023, a decrease of approximately 5%[15] - Retained earnings increased to $1,265.2 million as of September 30, 2024, from $1,025.5 million at the end of 2023, an increase of 23.4%[17] - Total Valaris shareholders' equity rose to $2,114.9 million as of September 30, 2024, compared to $1,987.6 million at the end of 2023, an increase of 6.4%[17] - Other liabilities decreased to $404.4 million as of September 30, 2024, from $471.7 million at December 31, 2023[108] Revenue and Expenses - For Q3 2024, consolidated total revenues were $643.1 million, with segment revenues of $389.0 million from Floaters, $213.7 million from Jackups, and $113.7 million from ARO[99] - Revenues for the nine months ended September 30, 2024, totaled $1,778.2 million, a 37% increase from $1,300.4 million in the same period of 2023[102][103] - Contract drilling expenses (exclusive of depreciation) increased to $1,345.6 million in 2024 from $1,141.6 million in 2023, indicating a rise of approximately 18%[102][103] - The company reported a loss on impairment of $28.4 million for the nine months ended September 30, 2024[102] ARO Performance - ARO's revenues for the three months ended September 30, 2024, were $113.7 million, compared to $121.5 million for the same period in 2023[46] - ARO reported a net loss of $54.0 million for the three months ended September 30, 2024, compared to a net loss of $1.3 million for the same period in 2023[46] - The equity in losses of ARO for the three months ended September 30, 2024, was $(23.8) million, compared to $2.4 million for the same period in 2023[50] - ARO is expected to purchase 20 newbuild jackup rigs over an approximate 10-year period, with the first two already delivered and operational[43] Shareholder Activities - During Q3 2024, the company repurchased 1.8 million shares at an aggregate cost of approximately $100.0 million, averaging $57.02 per share[82] - The company had approximately $300.0 million available for share repurchases under the authorized Share Repurchase Program[81] - For the nine months ended September 30, 2023, the company repurchased 2.3 million shares at an aggregate cost of approximately $150.0 million, averaging $66.24 per share[82] Tax and Regulatory Matters - The company utilized a discrete effective tax rate method for calculating income taxes for the three and nine months ended September 30, 2024[83] - Discrete income tax expense for Q3 2024 was $0.5 million, with a tax benefit of $70.0 million for the nine months ended September 30, 2024, primarily due to changes in unrecognized tax benefits and prior period tax matters[84] - Luxembourg tax assessments resulted in a revised aggregate tax assessment of approximately €60.0 million (about $65.0 million), with a tax benefit of approximately $65.0 million recognized in Q2 2024 after a favorable decision from tax authorities[87] - The Organization for Economic Co-operation and Development introduced a new global minimum tax of 15% effective January 1, 2024, with no significant impact on financial statements for the three and nine months ended September 30, 2024[88] Geographic Revenue Distribution - Consolidated revenues for Brazil reached $380.5 million for the nine months ended September 30, 2024, compared to $117.4 million for the same period in 2023[116] - The U.S. Gulf of Mexico generated $273.7 million in revenues for the nine months ended September 30, 2024, an increase from $253.3 million in the prior year[116] - The United Kingdom contributed $273.1 million in revenues for the nine months ended September 30, 2024, compared to $192.6 million in the same period of 2023[116] - Australia reported revenues of $195.8 million for the nine months ended September 30, 2024, up from $148.3 million in the previous year[116] - Angola's revenues were $141.3 million for the nine months ended September 30, 2024, compared to $160.1 million in the same period of 2023[116] - Other countries collectively generated $513.8 million in revenues for the nine months ended September 30, 2024, compared to $428.7 million in the prior year[116] - The geographic concentration indicates that Brazil, U.S. Gulf of Mexico, and the United Kingdom are significant contributors to the overall revenue, each exceeding 10% of total revenues[116]