Valaris Reports Third Quarter 2025 Results

Core Insights - Valaris Limited reported strong financial results for the third quarter of 2025, with a net income of $187 million, up from $114 million in the previous quarter, driven by a gain on asset sales [3][14] - The company secured a contract for the VALARIS DS-12 drillship with bp offshore Egypt, ensuring all four active drillships with near-term availability are contracted for work starting next year [2][14] - Despite commodity price uncertainties, demand for offshore drilling services is expected to grow, with a solid pipeline of deepwater opportunities for Valaris' high-specification fleet [2] Financial Performance - Net income increased to $187 million from $114 million in Q2 2025, including a $90 million gain on asset sales compared to $1 million in the previous quarter [3][14] - Adjusted EBITDA was reported at $163 million, down from $201 million in Q2 2025 [3] - Total revenues, excluding reimbursable items, decreased to $556 million from $572 million, primarily due to fewer operating days for the floater fleet [4][14] Operational Highlights - Contract drilling expenses rose to $368 million from $355 million in Q2 2025, with the previous quarter benefiting from a $17 million accrual reversal related to arbitration outcomes [5][14] - General and administrative expenses increased to $27 million from $19 million, influenced by a $7 million benefit in Q2 from the arbitration outcome [6] - Cash and cash equivalents increased to $676 million as of September 30, 2025, from $516 million at the end of Q2 2025, attributed to cash flow from operations and asset sales [8] Segment Performance - Floaters segment revenues decreased to $293 million from $320 million, mainly due to the completion of contracts for VALARIS DS-15 and DS-18 [9][14] - Jackups segment revenues increased to $217 million from $212 million, driven by more operating days for several rigs [11] - ARO Drilling revenues rose to $157 million from $140 million, supported by higher day rates and more operating days [12] Awards and Recognition - Valaris was recognized with the 2025 Safety Leadership Award by the Center for Offshore Safety, marking the third consecutive year the company received this honor [14]