Valaris(US:VAL)2024-02-21 16:00Financial 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]