Financial Data and Key Metrics Changes - Total operating revenues for Q4 2025 were $259.4 million, a decrease of $17.7 million or 6.4% from Q3 2025, primarily due to a $16 million decrease in day rate revenue [8][9] - Adjusted EBITDA for Q4 2025 was $105.4 million, bringing full year adjusted EBITDA to $470.1 million, which was at the top end of the guidance range [4][9] - The company recorded a net loss of $1 million for Q4 2025, while full year net income was $45 million, representing a 7% decrease compared to 2024 [9][10] Business Line Data and Key Metrics Changes - Technical utilization for Q4 2025 was 98.8% and economic utilization was 97.8%, indicating strong operational performance [3] - The company secured new commitments for seven rigs since the last quarterly report, enhancing fleet contract visibility [4][13] Market Data and Key Metrics Changes - In the Middle East, multi-year tenders are in progress for an estimated 13 rigs, with Pemex announcing a 34% year-on-year increase in upstream CapEx [5][6] - Overall jackup market utilization remains steady at approximately 90%, with expectations for market conditions to firm as tenders are awarded [6] Company Strategy and Development Direction - The company believes the jackup market has bottomed out and anticipates gradual recovery in fundamentals as demand increases [4] - The company plans to return to the Oslo Stock Exchange through a listing on Euronext Growth, with a full uplisting to the main list expected in the first half of 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market dynamics in the second half of 2026, with expectations for a recovery in day rates and earnings visibility into 2027 [7][19] - The company highlighted the importance of filling idle space in the 2026 schedule while positioning the fleet to capitalize on improving market conditions [13][16] Other Important Information - The company completed a five-rig acquisition from Noble, which is expected to be immediately accretive to adjusted EBITDA and reduce debt per rig [19] - Cash and cash equivalents as of December 31, 2025, were $379.7 million, with total liquidity of $613.7 million [11] Q&A Session Summary Question: Outlook for idle rigs Sif and Freyja - Management is confident about securing contracts for Sif in the coming months, while Freyja may take longer to find work [22][23] Question: Achievability of EBITDA consensus of $440 million - Management indicated that while it is early for formal guidance, the outlook for 2026 suggests a pathway to achieve activity levels modestly higher than 2025 [24][25][26] Question: Middle East tender timeline - Management expects major tenders from Aramco and KOC to be awarded around mid-year, which could tighten the market [31][32] Question: Strategy for contract lengths - Management aims for a mix of short and long-term contracts, focusing on securing a baseline of backlog while being flexible with contract durations based on market conditions [47][49] Question: Payment normalization from Pemex - Management reported improved payment terms with Pemex, with expectations for continued normalization into 2026 [56][57] Question: Market dynamics and day rates - Management noted that day rates have been stable, with expectations for improvement following the awarding of tenders in the Middle East [42][45]

Financial Data and Key Metrics Changes - The company secured $2 billion worth of contracts this year, with a total contract backlog reaching $4.7 billion, the highest in a decade [6][7] - Operational performance led to an increase in the midpoint of guidance by $55 million to $585 million for the year [7] - The company reported a revenue efficiency of 96%, indicating strong operational execution [5] Business Line Data and Key Metrics Changes - The fleet consists of 48 rigs, including 13 high-specification drillships, 2 semisubmersibles, and 33 jackups, with 12 of the drillships being seventh-generation assets [4] - Day rates for seventh-generation drillships have been approximately 25% higher than the general market, with utilization rates about 10 percentage points higher [5] - The company has successfully contracted three out of four drillships with near-term availability, all at rates exceeding $400,000 per day [21] Market Data and Key Metrics Changes - The company sees a strong case for offshore drilling, particularly in deepwater, as customers increasingly turn to deepwater to meet resource needs [7] - The pipeline of opportunities remains robust, with around 30 opportunities tracked for term programs starting in the next couple of years [16] - The jackup market has maintained utilization rates above 90%, indicating a healthy demand environment [35] Company Strategy and Development Direction - The company focuses on operational excellence, successful contracting, and astute commercial strategy to deliver long-term value for shareholders [8] - The strategy includes seeking long-term contracts while also being open to shorter-term opportunities if they align with business goals [23] - The company is well-positioned in the jackup market, with a strong presence in both benign and harsh environments, particularly through its joint venture with Saudi Aramco [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the seventh-generation drillship market, expecting utilization levels to exceed 90% by the end of 2026 [19] - The company anticipates positive pricing momentum as the market tightens, driven by supply-demand dynamics [20] - Management noted that offshore developments are becoming increasingly economic at current oil prices, with many projects expected to be sanctioned in the next few years [42][43] Other Important Information - The company has a strong balance sheet and is considering shareholder returns, with flexibility enhanced by the sale of Valaris 247 for over $100 million [41] - Reactivation costs for cold-stacked rigs are estimated to remain in the range of $120 million to $125 million, with a timeline of about a year for reactivation [31][32] Q&A Session Summary Question: Overall tone from customer conversations and deepwater outlook - Management noted a positive shift in customer conversations, with an expectation of increased contracting activity as operators prepare for program startups in 2026 [15] Question: Pricing expectations for drillships - Management indicated that while pricing may see a broader range due to market dynamics, contracts secured have been above $400,000, reflecting strong operational performance [18] Question: Opportunities for the DF-12 rig - Management is optimistic about finding a long-term contract for the DF-12, particularly in Africa, where demand is expected to grow [22] Question: Outlook for jackup market - Management highlighted the strong performance of the jackup fleet, particularly through the ARO Drilling JV, with significant contract extensions secured [34] Question: Corporate M&A strategy - Management expressed openness to M&A opportunities that create value and enhance fleet quality, although they do not see an immediate need for consolidation [38] Question: Shareholder returns timeline - Management stated that capital returns will be considered once sustained cash generation is achieved, with the potential for returns in the second half of the year [40]

• Forward-Looking Statements • The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. • Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent u ...