Valaris(VAL)2024-10-31 17:31Financial Data and Key Metrics Changes - Revenue for Q3 2024 was 610 million in the previous quarter [49] - Adjusted EBITDA rose to 139 million in the prior quarter, driven by strong operational performance [49][50] - Free cash flow improved to 100 million of shares repurchased during the quarter [10][52] Business Line Data and Key Metrics Changes - Fleet-wide revenue efficiency was 98%, marking the third consecutive quarter of at least 97% efficiency [11] - The jack-up market remains healthy with contracted rig counts and utilization stable, with marketed utilization for the global jack-up fleet at 93% [25][29] Market Data and Key Metrics Changes - Global demand for hydrocarbons continues to rise, with deepwater production expected to play a significant role [17] - Average day rates for seventh-generation drillships increased to approximately 300 million in shares since the program began, with 300 million remaining under the authorization [52] Q&A Session Summary Question: Expectations on day rates trajectory - Management indicated that day rates may see some variety, with customers willing to pay solid rates for high-specification assets [64][65] Question: Customer demand deferral details - Management clarified that deferrals are primarily in deepwater projects, with delays in FPSO availability impacting timelines [66][67] Question: Cost reduction during warm stacking - Management explained that costs can be reduced to around 60,000 per day during warm stacking, with a ramp-up period of about 90 days to return to work [71][72] Question: M&A opportunities and consolidation - Management believes there is room for consolidation in the offshore drilling market but emphasized that Valaris is not compelled to pursue M&A for scale [79][80] Question: Timeline for activating sidelined assets - Management stated that the activation of sidelined assets will depend on market opportunities, with a focus on keeping the active fleet utilized [82][84]