Valaris Reports Fourth Quarter 2025 Results
Key Terms
adjusted ebitda financial
backlog financial
bareboat charter financial
capital expenditures financial
managed pressure drilling technical
President and Chief Executive Officer Anton Dibowitz said, “Our fourth quarter results capped another year of strong execution by the Valaris team. We delivered revenue efficiency of
Dibowitz added, “Our strong operating performance continues to translate into significant contracting success. Since our last quarterly report, we secured nearly
Dibowitz concluded, “Earlier this month, we were pleased to announce an all-stock transaction with Transocean that delivers meaningful value to Valaris shareholders, who will benefit from associated synergies and have the opportunity to participate in the future upside potential of the combined company. We believe the outlook for the offshore drilling industry remains positive, with customers continuing to emphasize the need for sustained upstream investment to help ensure secure, reliable and affordable energy supply.”
Financial and Operational Highlights
-
Total operating revenues of
$537 million 98% -
Net income of
$717 million $680 million -
Adjusted EBITDA of
$97 million - VALARIS 115 awarded Shell's 2025 Jackup Rig of the Year
-
Secured nearly
$900 million $4.7 billion - Further high-graded fleet with sale of jackups VALARIS 102 and 145 for recycling and classified semisubmersible VALARIS DPS-1 as held for sale with the intent to recycle
-
Repurchased
$25 million $100 million
Fourth Quarter Review
Net income of
Revenues exclusive of reimbursable items decreased to
Exclusive of reimbursable items, contract drilling expenses increased to
Fourth quarter 2025 included a
Other expense of
Tax benefit of
Capital expenditures increased to
Cash and cash equivalents decreased to
Fourth Quarter Segment Review
Floaters
Revenues exclusive of reimbursable items decreased to
Exclusive of reimbursable items, contract drilling expenses increased to
Jackups
Revenues exclusive of reimbursable items decreased to
Exclusive of reimbursable items, contract drilling expenses decreased to
ARO Drilling
Revenues decreased to
Other
Revenues exclusive of reimbursable items decreased to
|
|
Three Months Ended (Unaudited) |
|||||||||||||||||||||||||||||||||||||||||||
|
Floaters |
|
Jackups |
|
ARO (1) |
|
Other |
|
Reconciling Items (1) (2) |
|
Consolidated Total |
||||||||||||||||||||||||||||||||||
(in millions, except %) |
Q4
|
Q3
|
Chg |
|
Q4
|
Q3
|
Chg |
|
Q4
|
Q3
|
Chg |
|
Q4
|
Q3
|
Chg |
|
Q4
|
Q3
|
|
Q4
|
Q3
|
Chg |
|||||||||||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Revenues (exclusive of reimbursable revenues) |
$ |
255.4 |
$ |
293.0 |
(13 |
)% |
|
$ |
208.8 |
$ |
216.7 |
(4 |
)% |
|
$ |
139.6 |
|
$ |
156.8 |
(11 |
)% |
|
$ |
38.0 |
$ |
45.9 |
(17 |
)% |
|
$ |
(139.6 |
) |
$ |
(156.8 |
) |
|
$ |
502.2 |
$ |
555.6 |
(10 |
)% |
|||
Reimbursable revenues |
|
10.5 |
|
9.9 |
6 |
% |
|
|
15.3 |
|
20.4 |
(25 |
)% |
|
|
— |
|
|
— |
— |
% |
|
|
9.4 |
|
9.8 |
(4 |
)% |
|
|
— |
|
|
— |
|
|
|
35.2 |
|
40.1 |
(12 |
)% |
|||
Total operating revenues |
|
265.9 |
|
302.9 |
(12 |
)% |
|
|
224.1 |
|
237.1 |
(5 |
)% |
|
|
139.6 |
|
|
156.8 |
(11 |
)% |
|
|
47.4 |
|
55.7 |
(15 |
)% |
|
|
(139.6 |
) |
|
(156.8 |
) |
|
|
537.4 |
|
595.7 |
(10 |
)% |
|||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Contract drilling (exclusive of depreciation and reimbursable expense) |
|
197.6 |
|
187.7 |
(5 |
)% |
|
|
120.7 |
|
124.8 |
3 |
% |
|
|
87.1 |
|
|
91.6 |
5 |
% |
|
|
20.9 |
|
16.3 |
(28 |
)% |
|
|
(46.0 |
) |
|
(52.8 |
) |
|
|
380.3 |
|
367.6 |
(3 |
)% |
|||
Reimbursable expenses |
|
9.9 |
|
9.4 |
(5 |
)% |
|
|
13.9 |
|
18.9 |
26 |
% |
|
|
— |
|
|
— |
— |
% |
|
|
9.3 |
|
9.7 |
4 |
% |
|
|
— |
|
|
— |
|
|
|
33.1 |
|
38.0 |
13 |
% |
|||
Total contract drilling (exclusive of depreciation) |
|
207.5 |
|
197.1 |
(5 |
)% |
|
|
134.6 |
|
143.7 |
6 |
% |
|
|
87.1 |
|
|
91.6 |
5 |
% |
|
|
30.2 |
|
26.0 |
(16 |
)% |
|
|
(46.0 |
) |
|
(52.8 |
) |
|
|
413.4 |
|
405.6 |
(2 |
)% |
|||
Loss on impairment |
|
15.8 |
|
— |
nm |
|
|
3.7 |
|
— |
nm |
|
|
— |
|
|
— |
— |
% |
|
|
— |
|
— |
— |
% |
|
|
— |
|
|
— |
|
|
|
19.5 |
|
— |
nm |
||||||
Depreciation |
|
16.2 |
|
15.5 |
(5 |
)% |
|
|
16.0 |
|
15.3 |
(5 |
)% |
|
|
28.3 |
|
|
28.4 |
— |
% |
|
|
4.6 |
|
3.0 |
(53 |
)% |
|
|
(24.5 |
) |
|
(25.1 |
) |
|
|
40.6 |
|
37.1 |
(9 |
)% |
|||
General and admin. |
|
— |
|
— |
— |
% |
|
|
— |
|
— |
— |
% |
|
|
10.4 |
|
|
5.5 |
(89 |
)% |
|
|
— |
|
— |
— |
% |
|
|
16.6 |
|
|
21.4 |
|
|
|
27.0 |
|
26.9 |
— |
% |
|||
Equity in earnings of ARO |
|
— |
|
— |
— |
% |
|
|
— |
|
— |
— |
% |
|
|
— |
|
|
— |
— |
% |
|
|
— |
|
— |
— |
% |
|
|
2.5 |
|
|
4.4 |
|
|
|
2.5 |
|
4.4 |
(43 |
)% |
|||
Operating income |
$ |
26.4 |
$ |
90.3 |
(71 |
)% |
|
$ |
69.8 |
$ |
78.1 |
(11 |
)% |
|
$ |
13.8 |
|
$ |
31.3 |
(56 |
)% |
|
$ |
12.6 |
$ |
26.7 |
(53 |
)% |
|
$ |
(83.2 |
) |
$ |
(95.9 |
) |
|
$ |
39.4 |
$ |
130.5 |
(70 |
)% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income (loss) |
$ |
26.4 |
$ |
90.0 |
(71 |
)% |
|
$ |
69.9 |
$ |
166.9 |
(58 |
)% |
|
$ |
(1.4 |
) |
$ |
2.4 |
(158 |
)% |
|
$ |
13.0 |
$ |
26.8 |
(51 |
)% |
|
$ |
608.9 |
|
$ |
(98.8 |
) |
|
$ |
716.8 |
$ |
187.3 |
283 |
% |
|||
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|
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Adjusted EBITDA |
$ |
58.4 |
$ |
105.8 |
(45 |
)% |
|
$ |
89.5 |
$ |
93.4 |
(4 |
)% |
|
$ |
42.1 |
|
$ |
59.7 |
(29 |
)% |
|
$ |
17.2 |
$ |
29.7 |
(42 |
)% |
|
$ |
(110.2 |
) |
$ |
(125.4 |
) |
|
$ |
97.0 |
$ |
163.2 |
(41 |
)% |
|||
|
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nm - Not meaningful |
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(1) The full operating results included above for ARO are not included within our consolidated results and thus deducted under "Reconciling Items" and replaced with our equity in earnings of ARO. |
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(2) Our onshore support costs included within contract drilling expenses are not allocated to our operating segments for purposes of measuring segment operating income (loss) and as such, these costs are included in "Reconciling Items." Further, general and administrative expense and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income (loss) and are included in "Reconciling Items." |
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FY 2026 Financial Guidance
-
Total operating revenues of
$2,125 -
Adjusted EBITDA of
$485 -
Capital expenditures of
$425 -
Upfront payments from customers related to contract-specific upgrades of approximately
$110 million
Senior Vice President and Chief Financial Officer Chris Weber said, “We expect that our financial results will improve meaningfully across the year as our currently idle drillships return to work. Two drillships are expected to return to work in the second quarter, one in the third quarter and one in the fourth quarter.”
Weber added, “Given our strong commercial execution, approximately
Weber continued, “Approximately
Conference Call
In light of the pending business combination with Transocean Ltd., which was announced on February 9, 2026, Valaris has previously cancelled its fourth quarter 2025 conference call and does not intend to hold future earnings conference calls or provide updates to forward-looking guidance.
About Valaris Limited
Valaris Limited (NYSE: VAL) is an industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. Valaris maintains an unwavering commitment to safety, operational excellence, and customer satisfaction, with a focus on technology and innovation. Valaris Limited is a
Forward-Looking Statements
Statements contained in this press release 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. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "outlook," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding expected financial performance; expected utilization, day rates, revenues, operating expenses, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs and the attainment of requisite permits for such programs, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards, contracts and letters of intent; scheduled delivery dates for rigs; performance and expected benefits of our joint ventures, including our joint venture with Saudi Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore Drilling Company ("ARO") newbuild rigs and the timing of additional ARO newbuild orders; the availability, delivery, mobilization, contract commencement, availability, relocation or other movement of rigs and the timing thereof; rig reactivations; suitability of rigs for future contracts; divestitures of assets; general economic, market, business and industry conditions, trends and outlook; general political conditions, including political tensions, conflicts and war; cybersecurity attacks and threats; uncertainty around the use and impacts of artificial intelligence applications; impacts and effects of public health crises, pandemics and epidemics; future operations; ability to renew expiring contracts or obtain new contracts; increasing regulatory complexity; targets, progress, plans and goals related to sustainability matters; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including risks associated with the pending proposed transaction with Transocean Ltd., including, among others, the completion of the proposed transaction on the anticipated terms and timing, or at all, the risk that disruptions from the transaction will harm our business, including current plans and operations, the diversion of management's time and attention from ordinary course operations to completion of the proposed transaction and certain restrictions during the pendency of the proposed transaction that may impact our business; cancellation, suspension, renegotiation or termination of drilling contracts and programs; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; future share repurchases; actions by regulatory authorities, or other third parties; actions by our security holders; internal control risk; commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract, downtime and other risks associated with offshore rig operations; adverse weather, including hurricanes; changes in worldwide rig supply; and demand, competition and technology; supply chain and logistics challenges; consumer preferences for alternative fuels and forecasts or expectations regarding the global energy transition; increased scrutiny of our sustainability targets, initiatives and reporting and our ability to achieve such targets or initiatives; changes in customer strategy; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties, including recessions, inflation, volatility affecting financial markets and the banking system, changing tariff policies, trade disputes, and adverse changes in the level of international trade activity; terrorism, piracy and military action; risks inherent to shipyard upgrade, repair, maintenance, enhancement or rig reactivation; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; the use of artificial intelligence by us, third-party service providers or our competitors; environmental or other liabilities, risks or losses; compliance with our debt agreements and debt restrictions that may limit our liquidity and flexibility, including in any return of capital plans; cybersecurity risks and threats; and changes in foreign currency exchange rates. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the Securities and Exchange Commission's website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law.
VALARIS LIMITED AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
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Three Months Ended |
||||||||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
||||||||||
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
||||||||||
Revenues (exclusive of reimbursable revenues) |
$ |
502.2 |
|
|
$ |
555.6 |
|
|
$ |
572.3 |
|
|
$ |
577.8 |
|
|
$ |
548.0 |
|
Reimbursable revenues |
|
35.2 |
|
|
|
40.1 |
|
|
|
42.9 |
|
|
|
42.9 |
|
|
|
36.4 |
|
Total operating revenues |
|
537.4 |
|
|
|
595.7 |
|
|
|
615.2 |
|
|
|
620.7 |
|
|
|
584.4 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
||||||||||
Contract drilling expenses (exclusive of depreciation and reimbursable expenses) |
|
380.3 |
|
|
|
367.6 |
|
|
|
355.2 |
|
|
|
374.0 |
|
|
|
380.5 |
|
Reimbursable expenses |
|
33.1 |
|
|
|
38.0 |
|
|
|
40.5 |
|
|
|
41.0 |
|
|
|
34.8 |
|
Total contract drilling expenses (exclusive of depreciation) |
|
413.4 |
|
|
|
405.6 |
|
|
|
395.7 |
|
|
|
415.0 |
|
|
|
415.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on impairment |
|
19.5 |
|
|
|
— |
|
|
|
— |
|
|
|
7.8 |
|
|
|
— |
|
Depreciation |
|
40.6 |
|
|
|
37.1 |
|
|
|
35.5 |
|
|
|
33.1 |
|
|
|
33.9 |
|
General and administrative |
|
27.0 |
|
|
|
26.9 |
|
|
|
18.8 |
|
|
|
24.4 |
|
|
|
26.7 |
|
Total operating expenses |
|
500.5 |
|
|
|
469.6 |
|
|
|
450.0 |
|
|
|
480.3 |
|
|
|
475.9 |
|
EQUITY IN EARNINGS (LOSSES) OF ARO |
|
2.5 |
|
|
|
4.4 |
|
|
|
(1.1 |
) |
|
|
2.6 |
|
|
|
10.7 |
|
OPERATING INCOME |
|
39.4 |
|
|
|
130.5 |
|
|
|
164.1 |
|
|
|
143.0 |
|
|
|
119.2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
||||||||||
Interest income |
|
18.7 |
|
|
|
22.6 |
|
|
|
15.1 |
|
|
|
14.4 |
|
|
|
16.6 |
|
Interest expense, net |
|
(24.8 |
) |
|
|
(24.9 |
) |
|
|
(24.8 |
) |
|
|
(24.3 |
) |
|
|
(22.1 |
) |
Other, net |
|
3.1 |
|
|
|
87.7 |
|
|
|
(8.7 |
) |
|
|
21.2 |
|
|
|
10.1 |
|
Total other income (expense) |
|
(3.0 |
) |
|
|
85.4 |
|
|
|
(18.4 |
) |
|
|
11.3 |
|
|
|
4.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME BEFORE INCOME TAXES |
|
36.4 |
|
|
|
215.9 |
|
|
|
145.7 |
|
|
|
154.3 |
|
|
|
123.8 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES |
|
(680.4 |
) |
|
|
28.6 |
|
|
|
31.5 |
|
|
|
193.5 |
|
|
|
(6.8 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME (LOSS) |
|
716.8 |
|
|
|
187.3 |
|
|
|
114.2 |
|
|
|
(39.2 |
) |
|
|
130.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
0.7 |
|
|
|
0.8 |
|
|
|
0.9 |
|
|
|
1.3 |
|
|
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS |
$ |
717.5 |
|
|
$ |
188.1 |
|
|
$ |
115.1 |
|
|
$ |
(37.9 |
) |
|
$ |
133.7 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EARNINGS (LOSS) PER SHARE |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
10.32 |
|
|
$ |
2.66 |
|
|
$ |
1.62 |
|
|
$ |
(0.53 |
) |
|
$ |
1.88 |
|
Diluted |
$ |
10.26 |
|
|
$ |
2.65 |
|
|
$ |
1.61 |
|
|
$ |
(0.53 |
) |
|
$ |
1.88 |
|
WEIGHTED-AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
69.5 |
|
|
|
70.7 |
|
|
|
71.1 |
|
|
|
71.0 |
|
|
|
71.1 |
|
Diluted |
|
69.9 |
|
|
|
71.0 |
|
|
|
71.3 |
|
|
|
71.0 |
|
|
|
71.2 |
|
VALARIS LIMITED AND SUBSIDIARIES |
||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||
(In millions) |
||||||||||
|
||||||||||
|
As of |
|||||||||
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
|||||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|||||
ASSETS |
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
CURRENT ASSETS |
|
|
|
|
|
|||||
Cash and cash equivalents |
$ |
599.4 |
$ |
662.7 |
$ |
503.4 |
$ |
441.4 |
$ |
368.2 |
Accounts receivable, net |
|
474.8 |
|
513.7 |
|
554.2 |
|
557.7 |
|
571.2 |
Assets held-for-sale |
|
6.4 |
|
— |
|
— |
|
7.0 |
|
— |
Other current assets |
|
144.7 |
|
167.2 |
|
169.8 |
|
151.7 |
|
139.3 |
Total current assets |
|
1,225.3 |
|
1,343.6 |
|
1,227.4 |
|
1,157.8 |
|
1,078.7 |
|
|
|
|
|
|
|||||
PROPERTY AND EQUIPMENT, NET |
|
2,088.8 |
|
2,034.4 |
|
2,021.6 |
|
1,977.1 |
|
1,932.9 |
|
|
|
|
|
|
|||||
LONG-TERM NOTES RECEIVABLE FROM ARO |
|
345.0 |
|
314.7 |
|
308.5 |
|
302.3 |
|
296.2 |
|
|
|
|
|
|
|||||
INVESTMENT IN ARO |
|
121.8 |
|
119.3 |
|
114.9 |
|
116.0 |
|
113.4 |
|
|
|
|
|
|
|||||
DEFERRED TAX ASSETS |
|
1,364.2 |
|
673.9 |
|
675.5 |
|
679.0 |
|
849.5 |
|
|
|
|
|
|
|||||
OTHER ASSETS |
|
159.7 |
|
152.1 |
|
155.4 |
|
154.6 |
|
149.1 |
|
|
|
|
|
|
|||||
Total assets |
$ |
5,304.8 |
$ |
4,638.0 |
$ |
4,503.3 |
$ |
4,386.8 |
$ |
4,419.8 |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
CURRENT LIABILITIES |
|
|
|
|
|
|||||
Accounts payable - trade |
$ |
348.2 |
$ |
327.1 |
$ |
332.3 |
$ |
329.3 |
$ |
328.5 |
Accrued liabilities and other |
|
343.4 |
|
390.9 |
|
346.4 |
|
365.3 |
|
351.0 |
Total current liabilities |
|
691.6 |
|
718.0 |
|
678.7 |
|
694.6 |
|
679.5 |
|
|
|
|
|
|
|||||
LONG-TERM DEBT |
|
1,086.0 |
|
1,085.2 |
|
1,084.3 |
|
1,083.5 |
|
1,082.7 |
|
|
|
|
|
|
|||||
DEFERRED TAX LIABILITIES |
|
29.7 |
|
27.0 |
|
29.4 |
|
29.4 |
|
30.1 |
|
|
|
|
|
|
|||||
OTHER LIABILITIES |
|
325.8 |
|
357.2 |
|
377.6 |
|
367.8 |
|
383.2 |
|
|
|
|
|
|
|||||
TOTAL LIABILITIES |
|
2,133.1 |
|
2,187.4 |
|
2,170.0 |
|
2,175.3 |
|
2,175.5 |
|
|
|
|
|
|
|||||
TOTAL EQUITY |
|
3,171.7 |
|
2,450.6 |
|
2,333.3 |
|
2,211.5 |
|
2,244.3 |
|
|
|
|
|
|
|||||
Total liabilities and shareholders' equity |
$ |
5,304.8 |
$ |
4,638.0 |
$ |
4,503.3 |
$ |
4,386.8 |
$ |
4,419.8 |
VALARIS LIMITED AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In millions) |
|||||||
|
|||||||
|
Years Ended December 31, |
||||||
|
|
2025 |
|
|
|
2024 |
|
OPERATING ACTIVITIES |
|
|
|
||||
Net income |
$ |
979.1 |
|
|
$ |
369.8 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Deferred income tax expense (benefit) |
|
(515.1 |
) |
|
|
5.8 |
|
Depreciation expense |
|
146.3 |
|
|
|
122.1 |
|
Net (gain) loss on sale of property |
|
(118.6 |
) |
|
|
0.2 |
|
Loss on impairment |
|
27.3 |
|
|
|
— |
|
Share-based compensation expense |
|
25.2 |
|
|
|
27.7 |
|
Accretion of discount on notes receivable from ARO |
|
(24.7 |
) |
|
|
(40.0 |
) |
Equity in losses (earnings) of ARO |
|
(8.4 |
) |
|
|
11.0 |
|
Changes in contract liabilities |
|
(41.0 |
) |
|
|
(31.7 |
) |
Changes in deferred costs |
|
16.1 |
|
|
|
39.3 |
|
Changes in contract assets |
|
(10.3 |
) |
|
|
(1.0 |
) |
Other |
|
8.0 |
|
|
|
6.9 |
|
Changes in operating assets and liabilities |
|
78.9 |
|
|
|
(133.2 |
) |
Contributions to pension plans and other post-retirement benefits |
|
(16.6 |
) |
|
|
(21.5 |
) |
Net cash provided by operating activities |
|
546.2 |
|
|
|
355.4 |
|
|
|
|
|
||||
INVESTING ACTIVITIES |
|
|
|
||||
Additions to property and equipment |
|
(343.5 |
) |
|
|
(455.1 |
) |
Proceeds from disposition of assets |
|
137.9 |
|
|
|
2.8 |
|
Net cash used in investing activities |
|
(205.6 |
) |
|
|
(452.3 |
) |
|
|
|
|
||||
FINANCING ACTIVITIES |
|
|
|
||||
Payments for share repurchases |
|
(100.0 |
) |
|
|
(126.4 |
) |
Payments related to tax withholdings for share-based awards |
|
(3.6 |
) |
|
|
(29.9 |
) |
Debt issuance costs |
|
— |
|
|
|
(0.8 |
) |
Other |
|
— |
|
|
|
(1.2 |
) |
Net cash used in financing activities |
|
(103.6 |
) |
|
|
(158.3 |
) |
|
|
|
|
||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
237.0 |
|
|
|
(255.2 |
) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (1) |
|
380.5 |
|
|
|
635.7 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (1) |
$ |
617.5 |
|
|
$ |
380.5 |
|
| (1) |
Restricted cash balances were |
VALARIS LIMITED AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(In millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
||||||||||||||
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
||||||||||
OPERATING ACTIVITIES |
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
716.8 |
|
$ |
187.3 |
|
$ |
114.2 |
|
$ |
(39.2 |
) |
$ |
130.6 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
||||||||||
Deferred income tax expense (benefit) |
|
(687.6 |
) |
|
(0.8 |
) |
|
3.5 |
|
|
169.8 |
|
|
(13.5 |
) |
Depreciation expense |
|
40.6 |
|
|
37.1 |
|
|
35.5 |
|
|
33.1 |
|
|
33.9 |
|
Loss on impairment |
|
19.5 |
|
|
— |
|
|
— |
|
|
7.8 |
|
|
— |
|
Share-based compensation expense |
|
6.8 |
|
|
6.8 |
|
|
6.0 |
|
|
5.6 |
|
|
5.3 |
|
Accretion of discount on notes receivable from ARO |
|
(6.2 |
) |
|
(6.2 |
) |
|
(6.2 |
) |
|
(6.1 |
) |
|
(6.2 |
) |
Equity in losses (earnings) of ARO |
|
(2.5 |
) |
|
(4.4 |
) |
|
1.1 |
|
|
(2.6 |
) |
|
(10.7 |
) |
Net gain on sale of property |
|
(1.2 |
) |
|
(89.5 |
) |
|
(0.8 |
) |
|
(27.1 |
) |
|
(0.1 |
) |
Changes in deferred costs |
|
7.0 |
|
|
4.8 |
|
|
4.5 |
|
|
(0.2 |
) |
|
6.7 |
|
Changes in contract assets |
|
(4.7 |
) |
|
(5.3 |
) |
|
0.1 |
|
|
(0.4 |
) |
|
7.2 |
|
Changes in contract liabilities |
|
(1.7 |
) |
|
(5.9 |
) |
|
(15.6 |
) |
|
(17.8 |
) |
|
(18.2 |
) |
Other |
|
1.9 |
|
|
1.7 |
|
|
2.1 |
|
|
2.3 |
|
|
1.9 |
|
Changes in operating assets and liabilities |
|
(13.0 |
) |
|
77.3 |
|
|
(21.1 |
) |
|
35.7 |
|
|
(10.4 |
) |
Contributions to pension plans and other post-retirement benefits |
|
(3.5 |
) |
|
(4.8 |
) |
|
(3.3 |
) |
|
(5.0 |
) |
|
(1.9 |
) |
Net cash provided by operating activities |
|
72.2 |
|
|
198.1 |
|
|
120.0 |
|
|
155.9 |
|
|
124.6 |
|
|
|
|
|
|
|
||||||||||
INVESTING ACTIVITIES |
|
|
|
|
|
||||||||||
Additions to property and equipment |
|
(106.3 |
) |
|
(69.8 |
) |
|
(67.2 |
) |
|
(100.2 |
) |
|
(111.7 |
) |
Proceeds from disposition of assets |
|
1.6 |
|
|
108.7 |
|
|
9.8 |
|
|
17.8 |
|
|
2.6 |
|
Net cash provided by (used in) investing activities |
|
(104.7 |
) |
|
38.9 |
|
|
(57.4 |
) |
|
(82.4 |
) |
|
(109.1 |
) |
|
|
|
|
|
|
||||||||||
FINANCING ACTIVITIES |
|
|
|
|
|
||||||||||
Payments for share repurchases |
|
(25.0 |
) |
|
(75.0 |
) |
|
— |
|
|
— |
|
|
(25.0 |
) |
Payments related to tax withholdings for share-based awards |
|
(0.5 |
) |
|
(2.7 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
(0.2 |
) |
Other |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2.0 |
) |
Net cash used in financing activities |
|
(25.5 |
) |
|
(77.7 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
(27.2 |
) |
|
|
|
|
|
|
||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
(58.0 |
) |
|
159.3 |
|
|
62.5 |
|
|
73.2 |
|
|
(11.7 |
) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (1) |
|
675.5 |
|
|
516.2 |
|
|
453.7 |
|
|
380.5 |
|
|
392.2 |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (1) |
$ |
617.5 |
|
$ |
675.5 |
|
$ |
516.2 |
|
$ |
453.7 |
|
$ |
380.5 |
|
(1) |
Restricted cash balances were |
VALARIS LIMITED AND SUBSIDIARIES |
||||||||||||||
OPERATING STATISTICS |
||||||||||||||
(In millions) |
||||||||||||||
(Unaudited) |
||||||||||||||
|
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|||||
REVENUES |
|
|
|
|
|
|
|
|
|
|||||
Floaters |
|
|
|
|
|
|
|
|
|
|||||
Drillships |
$ |
231.1 |
|
$ |
253.8 |
|
$ |
282.7 |
|
$ |
317.3 |
|
$ |
285.5 |
Semisubmersibles |
|
24.3 |
|
|
39.2 |
|
|
37.0 |
|
|
38.7 |
|
|
42.2 |
|
|
255.4 |
|
|
293.0 |
|
|
319.7 |
|
|
356.0 |
|
|
327.7 |
Reimbursable Revenues (1) |
|
10.5 |
|
|
9.9 |
|
|
7.2 |
|
|
8.9 |
|
|
15.7 |
Total Floaters |
$ |
265.9 |
|
$ |
302.9 |
|
$ |
326.9 |
|
$ |
364.9 |
|
$ |
343.4 |
|
|
|
|
|
|
|
|
|
|
|||||
Jackups |
|
|
|
|
|
|
|
|
|
|||||
Harsh Environment |
$ |
98.2 |
|
$ |
110.5 |
|
$ |
115.0 |
|
$ |
106.3 |
|
$ |
113.5 |
Benign Environment |
|
91.5 |
|
|
91.2 |
|
|
81.4 |
|
|
64.8 |
|
|
59.5 |
Legacy |
|
19.1 |
|
|
15.0 |
|
|
15.6 |
|
|
14.8 |
|
|
14.8 |
|
|
208.8 |
|
|
216.7 |
|
|
212.0 |
|
|
185.9 |
|
|
187.8 |
Reimbursable Revenues (1) |
|
15.3 |
|
|
20.4 |
|
|
26.0 |
|
|
27.7 |
|
|
15.3 |
Total Jackups |
$ |
224.1 |
|
$ |
237.1 |
|
$ |
238.0 |
|
$ |
213.6 |
|
$ |
203.1 |
|
|
|
|
|
|
|
|
|
|
|||||
Other |
|
|
|
|
|
|
|
|
|
|||||
Leased and Managed Rigs |
$ |
38.0 |
|
$ |
45.9 |
|
$ |
40.6 |
|
$ |
35.9 |
|
$ |
32.5 |
Reimbursable Revenues (1) |
|
9.4 |
|
|
9.8 |
|
|
9.7 |
|
|
6.3 |
|
|
5.4 |
Total Other |
$ |
47.4 |
|
$ |
55.7 |
|
$ |
50.3 |
|
$ |
42.2 |
|
$ |
37.9 |
|
|
|
|
|
|
|
|
|
|
|||||
Total Operating Revenues |
$ |
537.4 |
|
$ |
595.7 |
|
$ |
615.2 |
|
$ |
620.7 |
|
$ |
584.4 |
|
|
|
|
|
|
|
|
|
|
|||||
Total Reimbursable Revenues (1) |
$ |
35.2 |
|
$ |
40.1 |
|
$ |
42.9 |
|
$ |
42.9 |
|
$ |
36.4 |
|
|
|
|
|
|
|
|
|
|
|||||
Revenues Exclusive of Reimbursable Revenues |
$ |
502.2 |
|
$ |
555.6 |
|
$ |
572.3 |
|
$ |
577.8 |
|
$ |
548.0 |
| (1) | Reimbursable revenues represent reimbursements from our customers for purchases of supplies, equipment and incremental services provided at their request. |
VALARIS LIMITED AND SUBSIDIARIES |
|||||||||||||||
OPERATING STATISTICS |
|||||||||||||||
(In millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
||||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
||||||
ADJUSTED EBITDA (1) |
|
|
|
|
|
|
|
|
|
||||||
Floaters |
|
|
|
|
|
|
|
|
|
||||||
Drillships |
$ |
60.4 |
|
|
$ |
94.7 |
|
$ |
137.3 |
|
$ |
145.9 |
|
$ |
108.4 |
Semisubmersibles |
|
(2.0 |
) |
|
|
11.1 |
|
|
6.6 |
|
|
6.7 |
|
|
8.3 |
|
$ |
58.4 |
|
|
$ |
105.8 |
|
$ |
143.9 |
|
$ |
152.6 |
|
$ |
116.7 |
|
|
|
|
|
|
|
|
|
|
||||||
Jackups |
|
|
|
|
|
|
|
|
|
||||||
Harsh Environment |
$ |
38.6 |
|
|
$ |
48.8 |
|
$ |
49.4 |
|
$ |
38.6 |
|
$ |
50.0 |
Benign Environment |
|
43.2 |
|
|
|
43.0 |
|
|
36.3 |
|
|
26.6 |
|
|
19.5 |
Legacy |
|
7.7 |
|
|
|
1.6 |
|
|
3.7 |
|
|
5.3 |
|
|
6.0 |
|
$ |
89.5 |
|
|
$ |
93.4 |
|
$ |
89.4 |
|
$ |
70.5 |
|
$ |
75.5 |
|
|
|
|
|
|
|
|
|
|
||||||
Total |
$ |
147.9 |
|
|
$ |
199.2 |
|
$ |
233.3 |
|
$ |
223.1 |
|
$ |
192.2 |
|
|
|
|
|
|
|
|
|
|
||||||
Other |
|
|
|
|
|
|
|
|
|
||||||
Leased and Managed Rigs |
$ |
17.2 |
|
|
$ |
29.7 |
|
$ |
23.4 |
|
$ |
19.9 |
|
$ |
15.0 |
|
|
|
|
|
|
|
|
|
|
||||||
Total |
$ |
165.1 |
|
|
$ |
228.9 |
|
$ |
256.7 |
|
$ |
243.0 |
|
$ |
207.2 |
|
|
|
|
|
|
|
|
|
|
||||||
Support costs |
|
|
|
|
|
|
|
|
|
||||||
General and administrative expense |
$ |
27.0 |
|
|
$ |
26.9 |
|
$ |
18.8 |
|
$ |
24.4 |
|
$ |
26.7 |
Onshore support costs |
|
41.1 |
|
|
|
38.8 |
|
|
37.2 |
|
|
37.3 |
|
|
38.1 |
|
$ |
68.1 |
|
|
$ |
65.7 |
|
$ |
56.0 |
|
$ |
61.7 |
|
$ |
64.8 |
|
|
|
|
|
|
|
|
|
|
||||||
Valaris Total |
$ |
97.0 |
|
|
$ |
163.2 |
|
$ |
200.7 |
|
$ |
181.3 |
|
$ |
142.4 |
(1) |
Adjusted EBITDA is earnings before interest, tax, depreciation, loss on impairment, and gain on sale of assets. Adjusted EBITDA for asset categories also excludes onshore support costs and general and administrative expense. |
VALARIS LIMITED AND SUBSIDIARIES |
||||||||||||||
OPERATING STATISTICS |
||||||||||||||
(In millions) |
||||||||||||||
(Unaudited) |
||||||||||||||
|
||||||||||||||
|
As of |
|||||||||||||
|
Feb 17,
|
|
Oct 23,
|
|
Jul 24,
|
|
Apr 30,
|
|
Feb 18,
|
|||||
CONTRACT BACKLOG (1) |
|
|
|
|
|
|
|
|
|
|||||
Floaters |
|
|
|
|
|
|
|
|
|
|||||
Drillships |
$ |
3,030.8 |
|
$ |
2,617.8 |
|
$ |
2,708.8 |
|
$ |
2,114.7 |
|
$ |
1,944.6 |
Semisubmersibles |
|
— |
|
|
7.3 |
|
|
35.4 |
|
|
56.2 |
|
|
79.4 |
|
$ |
3,030.8 |
|
$ |
2,625.1 |
|
$ |
2,744.2 |
|
$ |
2,170.9 |
|
$ |
2,024.0 |
Jackups |
|
|
|
|
|
|
|
|
|
|||||
Harsh Environment |
$ |
367.2 |
|
$ |
525.3 |
|
$ |
532.1 |
|
$ |
640.5 |
|
$ |
614.6 |
Benign Environment |
|
645.2 |
|
|
601.0 |
|
|
673.2 |
|
|
609.0 |
|
|
527.4 |
Legacy |
|
113.4 |
|
|
136.6 |
|
|
148.5 |
|
|
160.4 |
|
|
171.0 |
|
$ |
1,125.8 |
|
$ |
1,262.9 |
|
$ |
1,353.8 |
|
$ |
1,409.9 |
|
$ |
1,313.0 |
|
|
|
|
|
|
|
|
|
|
|||||
Total |
$ |
4,156.6 |
|
$ |
3,888.0 |
|
$ |
4,098.0 |
|
$ |
3,580.8 |
|
$ |
3,337.0 |
|
|
|
|
|
|
|
|
|
|
|||||
Other |
|
|
|
|
|
|
|
|
|
|||||
Leased and Managed Rigs |
$ |
515.7 |
|
$ |
562.3 |
|
$ |
616.4 |
|
$ |
656.8 |
|
$ |
271.5 |
|
|
|
|
|
|
|
|
|
|
|||||
Valaris Total |
$ |
4,672.3 |
|
$ |
4,450.3 |
|
$ |
4,714.4 |
|
$ |
4,237.6 |
|
$ |
3,608.5 |
| (1) | Our contract drilling backlog reflects commitments, represented by signed drilling contracts, and is calculated by multiplying the contracted day rate by the contract period. Contract drilling backlog may include drilling contracts subject to final investment decision ("FID") and drilling contracts which grant the customer termination rights if FID is not received with respect to projects for which the drilling rig is contracted. The contracted day rate excludes certain types of lump sum fees for rig mobilization, demobilization, contract preparation, as well as customer reimbursables and bonus opportunities. |
VALARIS LIMITED AND SUBSIDIARIES |
||||||||||||||
OPERATING STATISTICS |
||||||||||||||
(Unaudited) |
||||||||||||||
|
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|||||
AVERAGE DAILY REVENUE (1) |
|
|
|
|
|
|
|
|
|
|||||
Floaters |
|
|
|
|
|
|
|
|
|
|||||
Drillships |
$ |
434,000 |
|
$ |
425,000 |
|
$ |
410,000 |
|
$ |
418,000 |
|
$ |
405,000 |
Semisubmersibles |
|
267,000 |
|
|
229,000 |
|
|
231,000 |
|
|
232,000 |
|
|
231,000 |
|
$ |
409,000 |
|
$ |
380,000 |
|
$ |
377,000 |
|
$ |
384,000 |
|
$ |
369,000 |
Jackups |
|
|
|
|
|
|
|
|
|
|||||
Harsh Environment |
$ |
146,000 |
|
$ |
148,000 |
|
$ |
153,000 |
|
$ |
142,000 |
|
$ |
139,000 |
Benign Environment |
|
142,000 |
|
|
143,000 |
|
|
144,000 |
|
|
125,000 |
|
|
109,000 |
Legacy |
|
104,000 |
|
|
100,000 |
|
|
88,000 |
|
|
82,000 |
|
|
81,000 |
|
$ |
139,000 |
|
$ |
141,000 |
|
$ |
142,000 |
|
$ |
128,000 |
|
$ |
121,000 |
|
|
|
|
|
|
|
|
|
|
|||||
Total |
$ |
218,000 |
|
$ |
220,000 |
|
$ |
227,000 |
|
$ |
230,000 |
|
$ |
212,000 |
|
|
|
|
|
|
|
|
|
|
|||||
Other |
|
|
|
|
|
|
|
|
|
|||||
Leased and Managed Rigs |
$ |
53,000 |
|
$ |
55,000 |
|
$ |
50,000 |
|
$ |
44,000 |
|
$ |
39,000 |
|
|
|
|
|
|
|
|
|
|
|||||
Valaris Total |
$ |
177,000 |
|
$ |
176,000 |
|
$ |
181,000 |
|
$ |
182,000 |
|
$ |
167,000 |
| (1) | Average daily revenue is derived by dividing Revenues (exclusive of reimbursable revenues), excluding contract termination fees, by the aggregate number of operating days. |
VALARIS LIMITED AND SUBSIDIARIES |
||||||||||||||
OPERATING STATISTICS |
||||||||||||||
(Unaudited) |
||||||||||||||
|
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|||||
UTILIZATION - TOTAL FLEET (1) |
|
|
|
|
|
|
|
|
|
|||||
Floaters |
|
|
|
|
|
|
|
|
|
|||||
Drillships |
45 |
% |
|
48 |
% |
|
58 |
% |
|
65 |
% |
|
59 |
% |
Semisubmersibles |
50 |
% |
|
93 |
% |
|
70 |
% |
|
37 |
% |
|
40 |
% |
|
45 |
% |
|
54 |
% |
|
60 |
% |
|
57 |
% |
|
54 |
% |
Jackups |
|
|
|
|
|
|
|
|
|
|||||
Harsh Environment |
77 |
% |
|
77 |
% |
|
76 |
% |
|
71 |
% |
|
81 |
% |
Benign Environment |
51 |
% |
|
50 |
% |
|
44 |
% |
|
40 |
% |
|
40 |
% |
Legacy |
100 |
% |
|
82 |
% |
|
98 |
% |
|
100 |
% |
|
100 |
% |
|
64 |
% |
|
63 |
% |
|
61 |
% |
|
57 |
% |
|
60 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Total |
57 |
% |
|
60 |
% |
|
61 |
% |
|
57 |
% |
|
58 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Other |
|
|
|
|
|
|
|
|
|
|||||
Leased and Managed Rigs |
86 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Valaris Total |
63 |
% |
|
67 |
% |
|
68 |
% |
|
64 |
% |
|
65 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Pro Forma Jackups (2) |
68 |
% |
|
71 |
% |
|
69 |
% |
|
66 |
% |
|
68 |
% |
(1) |
Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the total fleet. Available days is defined as the maximum number of days available in the period for the total fleet, calculated by multiplying the number of rigs in each asset category by the number of days in the period, irrespective of asset status. |
|
|
(2) |
Includes all Valaris jackups including those leased to ARO Drilling. |
VALARIS LIMITED AND SUBSIDIARIES |
||||||||||||||
OPERATING STATISTICS |
||||||||||||||
(Unaudited) |
||||||||||||||
|
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|||||
UTILIZATION - ACTIVE FLEET (1) (2) |
|
|
|
|
|
|
|
|
|
|||||
Floaters |
|
|
|
|
|
|
|
|
|
|||||
Drillships |
58 |
% |
|
63 |
% |
|
76 |
% |
|
84 |
% |
|
77 |
% |
Semisubmersibles |
50 |
% |
|
93 |
% |
|
88 |
% |
|
70 |
% |
|
66 |
% |
|
57 |
% |
|
68 |
% |
|
78 |
% |
|
81 |
% |
|
74 |
% |
Jackups |
|
|
|
|
|
|
|
|
|
|||||
Harsh Environment |
94 |
% |
|
96 |
% |
|
93 |
% |
|
87 |
% |
|
99 |
% |
Benign Environment |
100 |
% |
|
99 |
% |
|
89 |
% |
|
83 |
% |
|
85 |
% |
Legacy |
100 |
% |
|
82 |
% |
|
98 |
% |
|
100 |
% |
|
100 |
% |
|
97 |
% |
|
96 |
% |
|
92 |
% |
|
87 |
% |
|
93 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Total |
80 |
% |
|
84 |
% |
|
86 |
% |
|
85 |
% |
|
85 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Other |
|
|
|
|
|
|
|
|
|
|||||
Leased and Managed Rigs |
86 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Valaris Total |
82 |
% |
|
88 |
% |
|
89 |
% |
|
88 |
% |
|
89 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Pro Forma Jackups (3) |
92 |
% |
|
97 |
% |
|
94 |
% |
|
90 |
% |
|
95 |
% |
(1) |
Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the active fleet. Available days is defined as the maximum number of days available in the period for the active fleet, calculated by multiplying the number of active rigs in each asset category by the number of days in the period. |
|
|
| (2) | Active fleet represents rigs that are not preservation stacked or held for sale and includes rigs that are in the process of being reactivated. |
|
|
| (3) | Includes all Valaris jackups including those leased to ARO Drilling. |
VALARIS LIMITED AND SUBSIDIARIES |
|||||||||
OPERATING STATISTICS |
|||||||||
(Unaudited) |
|||||||||
|
|||||||||
|
Three Months Ended |
||||||||
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
||||
OPERATING DAYS (1) |
|
|
|
|
|
||||
Floaters |
|
|
|
|
|
||||
Drillships |
533 |
579 |
689 |
759 |
704 |
||||
Semisubmersibles |
91 |
171 |
160 |
167 |
183 |
||||
|
624 |
750 |
849 |
926 |
887 |
||||
Jackups |
|
|
|
|
|
||||
Harsh Environment |
690 |
748 |
753 |
697 |
816 |
||||
Benign Environment |
643 |
638 |
566 |
519 |
548 |
||||
Legacy |
184 |
150 |
178 |
180 |
184 |
||||
|
1,517 |
1,536 |
1,497 |
1,396 |
1,548 |
||||
|
|
|
|
|
|
||||
Total |
2,141 |
2,286 |
2,346 |
2,322 |
2,435 |
||||
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
||||
Leased and Managed Rigs |
714 |
828 |
819 |
810 |
840 |
||||
|
|
|
|
|
|
||||
Valaris Total |
2,855 |
3,114 |
3,165 |
3,132 |
3,275 |
||||
| (1) | Represents the total number of days under contract in the period. Days under contract equals the total number of days that rigs have earned and recognized day rate revenue, including days associated with compensated downtime and mobilizations. When revenue is deferred and amortized over a future period, for example when we receive fees while mobilizing to commence a new contract or while being upgraded in a shipyard, the related days are excluded from days under contract. |
VALARIS LIMITED AND SUBSIDIARIES |
||||||||||||||
OPERATING STATISTICS |
||||||||||||||
(Unaudited) |
||||||||||||||
|
||||||||||||||
|
Three Months Ended |
|||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|||||
REVENUE EFFICIENCY (1) |
|
|
|
|
|
|
|
|
|
|||||
Floaters |
|
|
|
|
|
|
|
|
|
|||||
Drillships |
96 |
% |
|
91 |
% |
|
95 |
% |
|
96 |
% |
|
94 |
% |
Semisubmersibles |
100 |
% |
|
97 |
% |
|
89 |
% |
|
95 |
% |
|
100 |
% |
|
97 |
% |
|
92 |
% |
|
95 |
% |
|
96 |
% |
|
95 |
% |
Jackups |
|
|
|
|
|
|
|
|
|
|||||
Harsh Environment |
98 |
% |
|
98 |
% |
|
97 |
% |
|
94 |
% |
|
99 |
% |
Benign Environment |
100 |
% |
|
100 |
% |
|
99 |
% |
|
100 |
% |
|
99 |
% |
Legacy |
100 |
% |
|
100 |
% |
|
98 |
% |
|
100 |
% |
|
100 |
% |
|
99 |
% |
|
99 |
% |
|
98 |
% |
|
96 |
% |
|
99 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
Valaris Total |
98 |
% |
|
95 |
% |
|
96 |
% |
|
96 |
% |
|
96 |
% |
| (1) | Revenue efficiency is day rate revenue earned as a percentage of maximum potential day rate revenue. |
VALARIS LIMITED AND SUBSIDIARIES |
|||||||||
OPERATING STATISTICS |
|||||||||
(Unaudited) |
|||||||||
|
|||||||||
|
As of |
||||||||
NUMBER OF RIGS |
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
Active Fleet (1) |
|
|
|
|
|
|
|
|
|
Floaters |
|
|
|
|
|
|
|
|
|
Drillships |
10 |
|
10 |
|
10 |
|
10 |
|
10 |
Semisubmersibles |
1 |
|
2 |
|
2 |
|
2 |
|
3 |
|
11 |
|
12 |
|
12 |
|
12 |
|
13 |
Jackups |
|
|
|
|
|
|
|
|
|
Harsh Environment |
8 |
|
8 |
|
9 |
|
9 |
|
9 |
Benign Environment |
7 |
|
7 |
|
7 |
|
7 |
|
7 |
Legacy |
2 |
|
2 |
|
2 |
|
2 |
|
2 |
|
17 |
|
17 |
|
18 |
|
18 |
|
18 |
|
|
|
|
|
|
|
|
|
|
Total Active Fleet |
28 |
|
29 |
|
30 |
|
30 |
|
31 |
|
|
|
|
|
|
|
|
|
|
Stacked Fleet |
|
|
|
|
|
|
|
|
|
Floaters |
|
|
|
|
|
|
|
|
|
Drillships |
3 |
|
3 |
|
3 |
|
3 |
|
3 |
Semisubmersibles |
— |
|
— |
|
— |
|
— |
|
2 |
|
3 |
|
3 |
|
3 |
|
3 |
|
5 |
Jackups |
|
|
|
|
|
|
|
|
|
Harsh Environment |
1 |
|
2 |
|
2 |
|
2 |
|
2 |
Benign Environment |
6 |
|
7 |
|
7 |
|
7 |
|
8 |
|
7 |
|
9 |
|
9 |
|
9 |
|
10 |
|
|
|
|
|
|
|
|
|
|
Total Stacked Fleet |
10 |
|
12 |
|
12 |
|
12 |
|
15 |
|
|
|
|
|
|
|
|
|
|
Held For Sale(2) |
|
|
|
|
|
|
|
|
|
Semisubmersibles |
1 |
|
— |
|
— |
|
3 |
|
— |
|
|
|
|
|
|
|
|
|
|
Leased Rigs (3) |
|
|
|
|
|
|
|
|
|
Jackups |
|
|
|
|
|
|
|
|
|
Harsh Environment |
1 |
|
1 |
|
1 |
|
1 |
|
1 |
Benign Environment |
6 |
|
6 |
|
6 |
|
6 |
|
6 |
Total Leased Rigs |
7 |
|
7 |
|
7 |
|
7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
Valaris Total |
46 |
|
48 |
|
49 |
|
52 |
|
53 |
|
|
|
|
|
|
|
|
|
|
Managed Rigs (3) |
2 |
|
2 |
|
2 |
|
2 |
|
2 |
(1) |
Active fleet represents rigs that are not preservation stacked or held for sale and includes rigs that are in the process of being reactivated. |
|
|
| (2) | Represents VALARIS DPS-1, which was classified as held for sale during the fourth quarter of 2025, as well as VALARIS DPS-3, VALARIS DPS-5 and VALARIS DPS-6, which were classified as held for sale during the first quarter of 2025 and were subsequently sold in April 2025. |
|
|
| (3) | Leased rigs and managed rigs included in Other reporting segment. |
ARO DRILLING |
||||||||||||||||||
CONDENSED INCOME STATEMENT INFORMATION |
||||||||||||||||||
(In millions) |
||||||||||||||||||
(Unaudited) |
||||||||||||||||||
|
||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|||||||||
Revenues |
$ |
139.6 |
|
|
$ |
156.8 |
|
$ |
139.9 |
|
|
$ |
134.7 |
|
|
$ |
136.3 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|||||||||
Contract drilling (exclusive of depreciation) |
|
87.1 |
|
|
|
91.6 |
|
|
96.4 |
|
|
|
85.6 |
|
|
|
81.5 |
|
Depreciation |
|
28.3 |
|
|
|
28.4 |
|
|
28.7 |
|
|
|
29.5 |
|
|
|
29.4 |
|
General and administrative |
|
10.4 |
|
|
|
5.5 |
|
|
6.6 |
|
|
|
6.3 |
|
|
|
7.5 |
|
Operating income |
|
13.8 |
|
|
|
31.3 |
|
|
8.2 |
|
|
|
13.3 |
|
|
|
17.9 |
|
Other expense, net |
|
14.5 |
|
|
|
14.3 |
|
|
15.5 |
|
|
|
15.2 |
|
|
|
13.7 |
|
Provision (benefit) for income taxes |
|
0.7 |
|
|
|
14.6 |
|
|
1.3 |
|
|
|
(0.9 |
) |
|
|
(10.9 |
) |
Net income (loss) |
$ |
(1.4 |
) |
|
$ |
2.4 |
|
$ |
(8.6 |
) |
|
$ |
(1.0 |
) |
|
$ |
15.1 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ |
42.1 |
|
|
$ |
59.7 |
|
$ |
36.9 |
|
|
$ |
42.8 |
|
|
$ |
47.3 |
|
|
||||||||||||||||||
ARO Drilling condensed income statement information presented above represents |
||||||||||||||||||
ARO DRILLING |
||||||||||||||
OPERATING STATISTICS |
||||||||||||||
(Unaudited) |
||||||||||||||
|
||||||||||||||
|
As of |
|||||||||||||
(In millions) |
Feb 17,
|
|
Oct 23,
|
|
Jul 24,
|
|
Apr 30,
|
|
Feb 18,
|
|||||
CONTRACT BACKLOG (1) |
|
|
|
|
|
|
|
|
|
|||||
Owned Rigs |
$ |
778.0 |
|
$ |
879.9 |
|
$ |
970.1 |
|
$ |
1,054.4 |
|
$ |
1,124.9 |
Leased Rigs |
|
1,233.3 |
|
|
1,284.7 |
|
|
1,379.2 |
|
|
1,440.9 |
|
|
298.0 |
Total |
$ |
2,011.3 |
|
$ |
2,164.6 |
|
$ |
2,349.3 |
|
$ |
2,495.3 |
|
$ |
1,422.9 |
| (1) | Contract drilling backlog reflects commitments, represented by signed drilling contracts, and is calculated by multiplying the contracted day rate by the contract period. The contracted day rate excludes certain types of lump sum fees for rig mobilization, demobilization, contract preparation, as well as customer reimbursables and bonus opportunities. |
|
Three Months Ended |
||||||||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
||||||||||
AVERAGE DAILY REVENUE (1) |
|
|
|
|
|
|
|
|
|
||||||||||
Owned Rigs |
$ |
112,000 |
|
|
$ |
112,000 |
|
|
$ |
107,000 |
|
|
$ |
111,000 |
|
|
$ |
112,000 |
|
Leased Rigs (2) |
|
116,000 |
|
|
|
126,000 |
|
|
|
122,000 |
|
|
|
102,000 |
|
|
|
100,000 |
|
Total |
$ |
113,000 |
|
|
$ |
118,000 |
|
|
$ |
113,000 |
|
|
$ |
108,000 |
|
|
$ |
109,000 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
UTILIZATION (3) |
|
|
|
|
|
|
|
|
|
||||||||||
Owned Rigs |
|
94 |
% |
|
|
96 |
% |
|
|
93 |
% |
|
|
92 |
% |
|
|
89 |
% |
Leased Rigs (2) |
|
71 |
% |
|
|
83 |
% |
|
|
76 |
% |
|
|
80 |
% |
|
|
77 |
% |
Total |
|
84 |
% |
|
|
90 |
% |
|
|
85 |
% |
|
|
87 |
% |
|
|
84 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
REVENUE EFFICIENCY (4) |
|
|
|
|
|
|
|
|
|
||||||||||
Owned Rigs |
|
97 |
% |
|
|
100 |
% |
|
|
95 |
% |
|
|
97 |
% |
|
|
94 |
% |
Leased Rigs (2) |
|
89 |
% |
|
|
92 |
% |
|
|
83 |
% |
|
|
80 |
% |
|
|
77 |
% |
Total |
|
94 |
% |
|
|
96 |
% |
|
|
90 |
% |
|
|
90 |
% |
|
|
87 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
NUMBER OF RIGS (AT QUARTER END) |
|
|
|
|
|
|
|
|
|
||||||||||
Owned Rigs |
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
Leased Rigs (2) |
|
7 |
|
|
|
7 |
|
|
|
7 |
|
|
|
7 |
|
|
|
7 |
|
Total |
|
16 |
|
|
|
16 |
|
|
|
16 |
|
|
|
16 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
OPERATING DAYS (5) |
|
|
|
|
|
|
|
|
|
||||||||||
Owned Rigs |
|
778 |
|
|
|
792 |
|
|
|
761 |
|
|
|
748 |
|
|
|
739 |
|
Leased Rigs (2) |
|
455 |
|
|
|
532 |
|
|
|
481 |
|
|
|
503 |
|
|
|
509 |
|
Total |
|
1,233 |
|
|
|
1,324 |
|
|
|
1,242 |
|
|
|
1,251 |
|
|
|
1,248 |
|
(1) |
Average daily revenue is derived by dividing Revenues (exclusive of reimbursable revenues), excluding contract termination fees, by the aggregate number of operating days. |
| (2) | All ARO leased rigs are leased from Valaris. |
| (3) | Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the rig fleet. |
| (4) | Revenue efficiency is day rate revenue earned as a percentage of maximum potential day rate revenue. |
| (5) | Represents the total number of days under contract in the period. Days under contract equals the total number of days that rigs have earned and recognized day rate revenue, including days associated with compensated downtime and mobilizations. When revenue is deferred and amortized over a future period, for example when we receive fees while mobilizing to commence a new contract or while being upgraded in a shipyard, the related days are excluded from days under contract. |
Non-GAAP Financial Measures (Unaudited)
To supplement Valaris’ condensed consolidated financial statements presented on a GAAP basis, this press release provides investors with Adjusted EBITDA, which is a non-GAAP measure.
Valaris defines "Adjusted EBITDA" as net income (loss) before income tax expense, interest expense, other (income) expense, depreciation expense, loss on impairment, (gain) loss on sale of property, and equity in (earnings) losses of ARO. Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.
Valaris defines "ARO Adjusted EBITDA" as ARO's net income (loss) before income tax expense, other expense, net, and depreciation expense. ARO Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of ARO's core operating performance and to evaluate ARO's long-term financial performance against that of ARO's peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of ARO's core operating performance and makes it easier to compare ARO's results with those of other companies within ARO's industry. ARO Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. ARO Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.
The Company is not able to provide a reconciliation of the Company's forward-looking Adjusted EBITDA, to the most directly comparable GAAP measure without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation, including forward-looking tax expense and other income (expense).
Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
A reconciliation of net income as reported to Adjusted EBITDA is included in the tables below (in millions):
|
Three Months Ended |
||||||
|
Dec 31,
|
|
Sep 30,
|
||||
|
|
|
|
||||
VALARIS |
|
|
|
||||
Net income |
$ |
716.8 |
|
|
$ |
187.3 |
|
Add (subtract): |
|
|
|
||||
Income tax expense (benefit) |
|
(680.4 |
) |
|
|
28.6 |
|
Interest expense, net |
|
24.8 |
|
|
|
24.9 |
|
Gain on sale of property |
|
(1.2 |
) |
|
|
(89.5 |
) |
Other income |
|
(20.6 |
) |
|
|
(20.8 |
) |
Operating income |
|
39.4 |
|
|
|
130.5 |
|
Add (subtract): |
|
|
|
||||
Depreciation |
|
40.6 |
|
|
|
37.1 |
|
Loss on impairment |
|
19.5 |
|
|
|
— |
|
Equity in earnings of ARO |
|
(2.5 |
) |
|
|
(4.4 |
) |
Adjusted EBITDA |
$ |
97.0 |
|
|
$ |
163.2 |
|
A reconciliation of net income (loss) as reported to ARO Adjusted EBITDA is included in the tables below (in millions):
|
Three Months Ended |
||||||
|
Dec 31,
|
|
Sep 30,
|
||||
|
|
|
|
||||
ARO |
|
|
|
||||
Net income (loss) |
$ |
(1.4 |
) |
|
$ |
2.4 |
|
Add: |
|
|
|
||||
Income tax expense |
|
0.7 |
|
|
|
14.6 |
|
Other expense, net |
|
14.5 |
|
|
|
14.3 |
|
Operating income |
|
13.8 |
|
|
|
31.3 |
|
|
|
|
|
||||
Add: |
|
|
|
||||
Depreciation |
|
28.3 |
|
|
|
28.4 |
|
Adjusted EBITDA |
$ |
42.1 |
|
|
$ |
59.7 |
|
Reconciliation of Net Income to Adjusted EBITDA
(In millions) |
Three Months Ended |
||||||
|
Dec 31,
|
|
Sep 30,
|
||||
FLOATERS |
|
|
|
||||
Net income |
$ |
26.4 |
|
|
$ |
90.0 |
|
Add: |
|
|
|
||||
Other expense |
|
— |
|
|
|
0.3 |
|
Operating income |
$ |
26.4 |
|
|
$ |
90.3 |
|
Add: |
|
|
|
||||
Depreciation |
|
16.2 |
|
|
|
15.5 |
|
Loss on impairment |
|
15.8 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
58.4 |
|
|
$ |
105.8 |
|
|
|
|
|
||||
JACKUPS |
|
|
|
||||
Net income |
$ |
69.9 |
|
|
$ |
166.9 |
|
Subtract: |
|
|
|
||||
Gain on sale of property |
|
— |
|
|
|
(88.4 |
) |
Other income |
|
(0.1 |
) |
|
|
(0.4 |
) |
Operating income |
$ |
69.8 |
|
|
$ |
78.1 |
|
Add: |
|
|
|
||||
Depreciation |
|
16.0 |
|
|
|
15.3 |
|
Loss on impairment |
|
3.7 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
89.5 |
|
|
$ |
93.4 |
|
|
|
|
|
||||
OTHER |
|
|
|
||||
Net income |
$ |
13.0 |
|
|
$ |
26.8 |
|
Subtract: |
|
|
|
||||
Other income |
|
(0.4 |
) |
|
|
(0.1 |
) |
Operating income |
$ |
12.6 |
|
|
$ |
26.7 |
|
Add: |
|
|
|
||||
Depreciation |
|
4.6 |
|
|
|
3.0 |
|
Adjusted EBITDA |
$ |
17.2 |
|
|
$ |
29.7 |
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(In millions) |
Three Months Ended |
|||||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
Dec 31,
|
||||||||
DRILLSHIPS |
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
45.5 |
|
|
$ |
80.3 |
|
$ |
123.4 |
|
$ |
132.2 |
|
$ |
95.4 |
|
Add (subtract): |
|
|
|
|
|
|
|
|
||||||||
Other (income) expense |
|
— |
|
|
|
0.3 |
|
|
0.5 |
|
|
0.7 |
|
|
(1.7 |
) |
Operating income |
|
45.5 |
|
|
|
80.6 |
|
|
123.9 |
|
|
132.9 |
|
|
93.7 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Depreciation |
|
14.9 |
|
|
|
14.1 |
|
|
13.4 |
|
|
13.0 |
|
|
14.7 |
|
Adjusted EBITDA (1) |
$ |
60.4 |
|
|
$ |
94.7 |
|
$ |
137.3 |
|
$ |
145.9 |
|
$ |
108.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
SEMISUBMERSIBLES
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(19.1 |
) |
|
$ |
9.7 |
|
$ |
5.4 |
|
$ |
(2.3 |
) |
$ |
7.0 |
|
Operating income (loss) |
|
(19.1 |
) |
|
|
9.7 |
|
|
5.4 |
|
|
(2.3 |
) |
|
7.0 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Depreciation |
|
1.3 |
|
|
|
1.4 |
|
|
1.2 |
|
|
1.2 |
|
|
1.3 |
|
Loss on impairment |
|
15.8 |
|
|
|
— |
|
|
— |
|
|
7.8 |
|
|
— |
|
Adjusted EBITDA (1) |
$ |
(2.0 |
) |
|
$ |
11.1 |
|
$ |
6.6 |
|
$ |
6.7 |
|
$ |
8.3 |
|
| (1) | Adjusted EBITDA for asset categories excludes onshore support costs and general and administrative expenses. |
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(In millions) |
Three Months Ended |
|||||||||||||||||
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
Dec 31,
|
||||||||||
HARSH ENVIRONMENT JACKUPS |
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
29.3 |
|
|
$ |
130.5 |
|
|
$ |
42.2 |
|
|
$ |
31.6 |
|
$ |
43.5 |
|
Subtract: |
|
|
|
|
|
|
|
|
||||||||||
Gain on sale of property |
|
— |
|
|
|
(88.4 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
Other income |
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
(0.3 |
) |
Operating income |
|
29.2 |
|
|
|
41.7 |
|
|
|
42.1 |
|
|
|
31.5 |
|
|
43.2 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
7.7 |
|
|
|
7.1 |
|
|
|
7.3 |
|
|
|
7.1 |
|
|
6.8 |
|
Loss on impairment |
|
1.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Adjusted EBITDA (1) |
$ |
38.6 |
|
|
$ |
48.8 |
|
|
$ |
49.4 |
|
|
$ |
38.6 |
|
$ |
50.0 |
|
|
|
|
|
|
|
|
|
|
||||||||||
BENIGN ENVIRONMENT JACKUPS |
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
35.5 |
|
|
$ |
37.4 |
|
|
$ |
31.7 |
|
|
$ |
47.3 |
|
$ |
16.9 |
|
Subtract: |
|
|
|
|
|
|
|
|
||||||||||
Gain on sale of property |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(23.0 |
) |
|
— |
|
Other income |
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
(0.8 |
) |
|
(0.5 |
) |
Operating income |
|
35.5 |
|
|
|
37.4 |
|
|
|
31.5 |
|
|
|
23.5 |
|
|
16.4 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
5.7 |
|
|
|
5.6 |
|
|
|
4.8 |
|
|
|
3.1 |
|
|
3.1 |
|
Loss on impairment |
|
2.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Adjusted EBITDA (1) |
$ |
43.2 |
|
|
$ |
43.0 |
|
|
$ |
36.3 |
|
|
$ |
26.6 |
|
$ |
19.5 |
|
|
|
|
|
|
|
|
|
|
||||||||||
LEGACY JACKUPS |
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
5.1 |
|
|
$ |
(1.0 |
) |
|
$ |
1.2 |
|
|
$ |
2.8 |
|
$ |
3.6 |
|
Operating income (loss) |
|
5.1 |
|
|
|
(1.0 |
) |
|
|
1.2 |
|
|
|
2.8 |
|
|
3.6 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
2.6 |
|
|
|
2.6 |
|
|
|
2.5 |
|
|
|
2.5 |
|
|
2.4 |
|
Adjusted EBITDA (1) |
$ |
7.7 |
|
|
$ |
1.6 |
|
|
$ |
3.7 |
|
|
$ |
5.3 |
|
$ |
6.0 |
|
| (1) | Adjusted EBITDA for asset categories excludes onshore support costs and general and administrative expenses. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218978659/en/
Investor & Media Contacts:
Nick Georgas
Vice President - Treasurer and Investor Relations
+1-713-979-4632
Tim Richardson
Director - Investor Relations
+1-713-979-4619
Source: Valaris Limited
