Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today
reported fourth quarter 2024 results.
President and Chief Executive Officer Anton Dibowitz said, “We
continued to deliver solid operating and financial performance,
achieving fleetwide revenue efficiency of 96% in the fourth quarter
and 97% for the full year. We also had outstanding safety
performance in 2024 and are proud to have been recognized with
safety awards by both the IADC and the Center for Offshore Safety.
I thank every member of the Valaris team around the world for their
dedication, hard work and continued focus on operating safely and
efficiently for our customers.”
Dibowitz added, “The contracting outlook for 2026 and beyond
remains strong for high-specification assets and we are focused on
securing attractive, long-term programs for our active rigs. We
will also continue to prudently manage our fleet as demonstrated by
our recent actions to reduce costs for idle rigs and further focus
our fleet on high-specification assets.”
Dibowitz concluded, “We are steadfast in our belief that
offshore oil and gas will play an important role in providing
secure, reliable and affordable energy to the world. Valaris is
well-positioned to help meet that need and drive sustainable,
long-term value creation for our shareholders by virtue of our
high-specification fleet and excellent safety and operational track
record.”
Financial and Operational Highlights
- Delivered net income of $131 million and Adjusted EBITDA of
$142 million;
- Achieved revenue efficiency of 96% during the quarter and 97%
for the year;
- Generated $125 million of cash from operating activities and
$13 million of Free Cash Flow;
- Repurchased $25 million of shares;
- Recognized by the International Association of Drilling
Contractors ("IADC") Brazil Chapter with its 2024 Safety
Award;
- Secured approximately $120 million of contract backlog,
including a multi-year contract for jackup VALARIS Stavanger in the
North Sea; and
- Announced in the first quarter 2025 the planned retirement of
semisubmersibles VALARIS DPS-3, DPS-5 and DPS-6 and the sale of
jackup VALARIS 75 for $24 million.
Fourth Quarter Review
Net income increased to $131 million from $63 million in the
third quarter 2024, including a tax benefit of $7 million compared
to tax expense of $24 million in the third quarter. Adjusted EBITDA
decreased to $142 million from $150 million in the third quarter
primarily due to lower utilization for the floater fleet, partially
offset by more operating days for the jackup fleet.
Revenues exclusive of reimbursable items decreased to $548
million from $600 million in the third quarter primarily due to
lower utilization for the floater fleet and lower amortized
mobilization revenue, partially offset by more operating days for
the jackup fleet.
Exclusive of reimbursable items, contract drilling expenses
decreased to $381 million from $423 million in the third quarter
primarily due to lower amortized mobilization expense, lower costs
associated with rigs that were idle during the quarter and lower
repair costs.
Depreciation expense increased to $34 million from $32 million
in the third quarter 2024. General and administrative expenses
decreased to $27 million from $31 million in the third quarter 2024
primarily due to lower compensation costs and professional
fees.
Other income of $5 million compared to other expense of $8
million in the third quarter 2024. This increase was primarily due
to foreign currency exchange gains compared to losses in the third
quarter.
Tax benefit of $7 million compared to tax expense of $24 million
in the third quarter 2024. The fourth quarter tax provision
included $16 million of discrete tax benefit, which was primarily
attributable to changes in liabilities for unrecognized tax
benefits associated with tax positions taken in prior years.
Exclusive of discrete tax items, tax expense decreased to $9
million from $24 million in the third quarter.
Capital expenditures increased to $112 million from $82 million
in the third quarter 2024 primarily due to higher rig upgrade
expenditures related to contract preparations for VALARIS 144 and
DS-4.
Cash and cash equivalents and restricted cash decreased to $381
million as of December 31, 2024, from $392 million as of September
30, 2024. The decrease was primarily due to capital expenditures
and share repurchases, partially offset by cash flow from
operations.
Fourth Quarter Segment Review
Floaters
Revenues exclusive of reimbursable items decreased to $328
million from $375 million in the third quarter. The decrease was
primarily due to lower utilization for the floater fleet associated
with out of service time for VALARIS DS-15 and DS-17 to meet
regulatory requirements in Brazil and for VALARIS DS-4 to complete
upgrade work prior to the start of its contract as well as idle
time for VALARIS DS-10 and DPS-5, which completed contracts during
the third quarter.
Exclusive of reimbursable items, contract drilling expenses
decreased to $211 million from $235 million in the third quarter
primarily due to capitalization of costs for VALARIS DS-4 during
its shipyard upgrade project, lower costs for VALARIS DPS-5 and
DS-10 while the rigs were warm stacked during the fourth quarter
and lower mobilization expense.
Jackups
Revenues exclusive of reimbursable items decreased to $188
million from $193 million in the third quarter primarily due to
lower amortized mobilization revenue associated with VALARIS 247.
This was partially offset by more operating days for the jackup
fleet primarily due to VALARIS 249 returning to work after
completing leg repairs and a full quarter of operations for VALARIS
247 and 122.
Exclusive of reimbursable items, contract drilling expenses
decreased to $114 million from $137 million in the third quarter
primarily due to lower amortized mobilization expense associated
with VALARIS 247 and lower repair costs for VALARIS 249.
ARO Drilling
Revenues increased to $136 million from $114 million in the
third quarter 2024 primarily due to a full quarter of operations
for Kingdom 2, which commenced its maiden contract in the third
quarter, and more operating days for Kingdom 1 due to out of
service time in the prior quarter. Contract drilling expenses
decreased to $82 million from $94 million in the third quarter
primarily due to lower bareboat charter expense.
Other
Revenues exclusive of reimbursable items increased to $33
million from $32 million in the third quarter 2024. Exclusive of
reimbursable items, contract drilling expenses increased to $18
million from $15 million in the third quarter due to higher survey
costs for rigs leased to ARO.
Three Months Ended
(Unaudited)
Floaters
Jackups
ARO (1)
Other
Reconciling Items (1) (2)
Consolidated Total
(in millions, except %)
Q4 2024
Q3 2024
Chg
Q4 2024
Q3 2024
Chg
Q4 2024
Q3 2024
Chg
Q4 2024
Q3 2024
Chg
Q4 2024
Q3 2024
Q4 2024
Q3 2024
Chg
Operating revenues:
Revenues (exclusive of reimbursable
revenues) (3)
$
327.7
$
374.9
(13
)%
$
187.8
$
192.6
(2
)%
$
136.3
$
113.7
20
%
$
32.5
$
32.4
—
%
$
(136.3
)
$
(113.7
)
$
548.0
$
599.9
(9
)%
Reimbursable revenues (3)
15.7
14.1
11
%
15.3
21.1
(27
)%
—
—
—
%
5.4
8.0
(33
)%
—
—
36.4
43.2
(16
)%
Total operating revenues (3)
343.4
389.0
(12
)%
203.1
213.7
(5
)%
136.3
113.7
20
%
37.9
40.4
(6
)%
(136.3
)
(113.7
)
584.4
643.1
(9
)%
Operating expenses:
Contract drilling (exclusive of
depreciation and reimbursable expense) (3)
210.9
235.2
10
%
113.9
136.9
17
%
81.5
93.8
13
%
17.6
14.9
(18
)%
(43.4
)
(58.2
)
380.5
422.6
10
%
Reimbursable expenses (3)
15.8
12.5
(26
)%
13.7
19.8
31
%
—
—
—
%
5.3
7.2
26
%
—
—
34.8
39.5
12
%
Total contract drilling (exclusive of
depreciation) (3)
226.7
247.7
8
%
127.6
156.7
19
%
81.5
93.8
13
%
22.9
22.1
(4
)%
(43.4
)
(58.2
)
415.3
462.1
10
%
Loss on Impairment
—
—
—
%
—
—
—
—
28.4
nm
—
—
—
%
—
(28.4
)
—
—
—
Depreciation
16.0
14.8
(8
)%
12.3
11.4
(8
)%
29.4
21.1
(39
)%
2.8
2.9
3
%
(26.6
)
(18.5
)
33.9
31.7
(7
)%
General and admin.
—
—
—
%
—
—
—
%
7.5
4.9
(53
)%
—
—
—
%
19.2
25.7
26.7
30.6
13
%
Equity in earnings (losses) of ARO
—
—
—
%
—
—
—
%
—
—
—
%
—
—
—
%
10.7
(23.8
)
10.7
(23.8
)
nm
Operating income (loss)
$
100.7
$
126.5
(20
)%
$
63.2
$
45.6
39
%
$
17.9
$
(34.5
)
nm
$
12.2
$
15.4
(21
)%
$
(74.8
)
$
(58.1
)
$
119.2
$
94.9
26
%
Net income (loss)
$
102.4
$
126.8
(19
)%
$
64.0
$
45.7
40
%
$
15.1
$
(54.0
)
nm
$
13.2
$
16.3
(19
)%
$
(64.1
)
$
(71.9
)
$
130.6
$
62.9
108
%
Adjusted EBITDA
$
116.7
$
141.3
(17
)%
$
75.5
$
57.0
32
%
$
47.3
$
15.0
215
%
$
15.0
$
18.3
(18
)%
$
(112.1
)
$
(81.2
)
$
142.4
$
150.4
(5
)%
Adjusted EBITDAR
$
118.5
$
143.2
(17
)%
$
75.5
$
57.0
32
%
$
47.3
$
15.0
215
%
$
15.0
$
18.3
(18
)%
$
(112.1
)
$
(81.2
)
$
144.2
$
152.3
(5
)%
nm - Not meaningful
(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.
(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."
(3) Certain previously reported line items
presented in the table above (Total operating revenues and Total
contract drilling expenses (exclusive of depreciation)) were
further disaggregated to separately disclose Reimbursable revenues
and Reimbursable expenses, respectively, to align with the updated
presentation of our segment tables upon the adoption of ASU No.
2023-07, Segment Reporting (Topic 280): Improvements to Reportable
Segment Disclosures ("Update 2023-07"). The disaggregation of these
line items was presentational only and was retrospectively applied
to the prior periods presented. There were no impacts to the
overall Total operating revenues or Total contract drilling expense
(exclusive of depreciation) line items.
As previously announced, Valaris will hold its fourth quarter
2024 earnings conference call at 9:00 a.m. CT (10:00 a.m. ET) on
Thursday, February 20, 2025.
About Valaris Limited
Valaris Limited (NYSE: VAL) is the 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 Bermuda exempted
company. To learn more, visit the Valaris website at
www.valaris.com.
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, including inflation and recessions, 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, including for VALARIS
DS-13 and VALARIS DS-14; 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 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, including as a result
of reactivations and newbuilds; 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, volatility affecting the banking system and
financial markets, inflation, tariffs and adverse changes in the
level of international trade activity; terrorism, piracy and
military action; risks inherent to shipyard rig reactivation,
upgrade, repair, maintenance or enhancement; 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; the use of artificial intelligence
by us, third-party service providers or our competitors; our
ability to attract and retain skilled personnel on commercially
reasonable terms; 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
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per share
amounts)
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
OPERATING REVENUES
Revenues (exclusive of reimbursable
revenues) (1)
$
548.0
$
599.9
$
572.8
$
491.2
$
452.9
Reimbursable revenues (1)
36.4
43.2
37.3
33.8
30.9
Total operating revenues (1)
584.4
643.1
610.1
525.0
483.8
OPERATING EXPENSES
Contract drilling expenses (exclusive of
depreciation and reimbursable expenses) (1)
380.5
422.6
402.9
412.5
372.4
Reimbursable expenses (1)
34.8
39.5
35.8
32.3
29.6
Total contract drilling expenses
(exclusive of depreciation) (1)
415.3
462.1
438.7
444.8
402.0
Depreciation
33.9
31.7
29.7
26.8
27.5
General and administrative
26.7
30.6
32.5
26.5
24.3
Total operating expenses
475.9
524.4
500.9
498.1
453.8
EQUITY IN EARNINGS (LOSSES) OF ARO
10.7
(23.8
)
(0.3
)
2.4
8.3
OPERATING INCOME
119.2
94.9
108.9
29.3
38.3
OTHER INCOME (EXPENSE)
Interest income
16.6
17.5
31.0
21.0
27.2
Interest expense, net
(22.1
)
(22.4
)
(22.6
)
(17.7
)
(21.7
)
Other, net
10.1
(2.8
)
3.5
5.8
(5.5
)
Total other income (expense)
4.6
(7.7
)
11.9
9.1
—
INCOME BEFORE INCOME TAXES
123.8
87.2
120.8
38.4
38.3
PROVISION (BENEFIT) FOR INCOME TAXES
(6.8
)
24.3
(30.0
)
12.9
(790.2
)
NET INCOME
130.6
62.9
150.8
25.5
828.5
NET (INCOME) LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
3.1
1.7
(1.2
)
—
6.7
NET INCOME ATTRIBUTABLE TO VALARIS
$
133.7
$
64.6
$
149.6
$
25.5
$
835.2
EARNINGS PER SHARE
Basic
$
1.88
$
0.89
$
2.07
$
0.35
$
11.47
Diluted
$
1.88
$
0.88
$
2.03
$
0.35
$
11.30
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic
71.1
72.4
72.4
72.4
72.8
Diluted
71.2
73.2
73.7
73.6
73.9
(1)
Certain previously reported line items
presented in the Consolidated Statements of Operations (Total
operating revenues and Total contract drilling expenses (exclusive
of depreciation)) were further disaggregated to separately disclose
Reimbursable revenues and Reimbursable expenses, respectively, to
align with the updated presentation of our segment tables upon the
adoption of Update 2023-07. The disaggregation of these line items
was presentational only and was retrospectively applied to the
prior periods presented. There were no impacts to the overall Total
operating revenues or Total contract drilling expense (exclusive of
depreciation) line items.
VALARIS LIMITED AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In millions)
As of
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
(Unaudited)
(Unaudited)
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
368.2
$
379.3
$
398.3
$
494.1
$
620.5
Restricted cash
12.3
12.9
12.0
15.0
15.2
Accounts receivable, net
571.2
555.8
631.7
510.9
459.3
Other current assets
127.0
163.5
182.6
177.6
177.2
Total current assets
$
1,078.7
$
1,111.5
$
1,224.6
$
1,197.6
$
1,272.2
PROPERTY AND EQUIPMENT, NET
1,932.9
1,842.7
1,809.4
1,732.3
1,633.8
LONG-TERM NOTES RECEIVABLE FROM ARO
296.2
265.4
259.2
289.3
282.3
INVESTMENT IN ARO
113.4
102.7
126.5
126.8
124.4
DEFERRED TAX ASSETS
849.5
837.0
841.1
854.8
855.1
OTHER ASSETS
149.1
174.1
154.8
153.6
154.4
Total assets
$
4,419.8
$
4,333.4
$
4,415.6
$
4,354.4
$
4,322.2
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable - trade
$
328.5
$
303.7
$
347.0
$
394.2
$
400.1
Accrued liabilities and other
351.0
388.6
360.6
366.5
344.2
Total current liabilities
$
679.5
$
692.3
$
707.6
$
760.7
$
744.3
LONG-TERM DEBT
1,082.7
1,081.8
1,081.0
1,080.1
1,079.3
DEFERRED TAX LIABILITIES
30.1
31.1
31.2
31.6
29.9
OTHER LIABILITIES
383.2
404.4
408.4
451.7
471.7
TOTAL LIABILITIES
2,175.5
2,209.6
2,228.2
2,324.1
2,325.2
TOTAL EQUITY
2,244.3
2,123.8
2,187.4
2,030.3
1,997.0
Total liabilities and shareholders'
equity
$
4,419.8
$
4,333.4
$
4,415.6
$
4,354.4
$
4,322.2
VALARIS LIMITED AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In millions)
Years Ended December 31,
2024
2023
OPERATING ACTIVITIES
Net income
$
369.8
$
866.8
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation expense
122.1
101.1
Accretion of discount on notes receivable
from ARO
(40.0
)
(28.3
)
Share-based compensation expense
27.7
27.3
Equity in losses (earnings) of ARO
11.0
(13.3
)
Deferred income tax expense (benefit)
5.8
(786.4
)
Net periodic pension and retiree medical
income
(2.4
)
(0.9
)
Net (gain) loss on sale of property
0.2
(28.6
)
Loss on extinguishment of debt
—
29.2
Changes in deferred costs
39.3
(26.1
)
Changes in contract liabilities
(31.7
)
4.9
Other
9.3
6.7
Changes in operating assets and
liabilities
(134.2
)
121.8
Contributions to pension plans and other
post-retirement benefits
(21.5
)
(6.7
)
Net cash provided by operating
activities
$
355.4
$
267.5
INVESTING ACTIVITIES
Additions to property and equipment
$
(455.1
)
$
(696.1
)
Net proceeds from disposition of
assets
2.8
30.3
Net cash used in investing activities
$
(452.3
)
$
(665.8
)
FINANCING ACTIVITIES
Payments for share repurchases
$
(126.4
)
$
(198.6
)
Payments for tax withholdings for
share-based awards
(29.9
)
(5.4
)
Debt issuance costs
(0.8
)
(38.6
)
Issuance of Second Lien Notes
—
1,103.0
Redemption of First Lien Notes
—
(571.8
)
Other
(1.2
)
(3.1
)
Net cash provided by (used in) financing
activities
$
(158.3
)
$
285.5
DECREASE IN CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH
$
(255.2
)
$
(112.8
)
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING OF PERIOD
635.7
748.5
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH, END OF PERIOD
$
380.5
$
635.7
VALARIS LIMITED AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
OPERATING ACTIVITIES
Net income
$
130.6
$
62.9
$
150.8
$
25.5
$
828.5
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation expense
33.9
31.7
29.7
26.8
27.5
Deferred income tax expense (benefit)
(13.5
)
3.8
13.5
2.0
(788.7
)
Equity in losses (earnings) of ARO
(10.7
)
23.8
0.3
(2.4
)
(8.3
)
Accretion of discount on notes receivable
from ARO
(6.2
)
(6.2
)
(20.6
)
(7.0
)
(7.1
)
Share-based compensation expense
5.3
7.0
7.4
8.0
7.8
Net (gain) loss on sale of property
(0.1
)
0.2
—
0.1
(0.7
)
Changes in contract liabilities
(18.2
)
11.3
(17.8
)
(7.0
)
8.8
Changes in deferred costs
6.7
33.4
(3.0
)
2.2
3.2
Other
1.9
0.8
2.4
1.8
0.6
Changes in operating assets and
liabilities
(3.2
)
37.8
(147.5
)
(21.3
)
27.3
Contributions to pension plans and other
post-retirement benefits
(1.9
)
(13.5
)
(3.7
)
(2.4
)
(2.2
)
Net cash provided by operating
activities
$
124.6
$
193.0
$
11.5
$
26.3
$
96.7
INVESTING ACTIVITIES
Additions to property and equipment
$
(111.7
)
$
(81.9
)
$
(110.2
)
$
(151.3
)
$
(463.0
)
Net proceeds from disposition of
assets
2.6
0.1
0.1
—
1.1
Net cash used in investing activities
$
(109.1
)
$
(81.8
)
$
(110.1
)
$
(151.3
)
$
(461.9
)
FINANCING ACTIVITIES
Payments for share repurchases
$
(25.0
)
$
(100.0
)
$
—
$
(1.4
)
$
(51.2
)
Payments for tax withholdings for
share-based awards
(0.2
)
(29.3
)
(0.2
)
(0.2
)
(0.2
)
Other
(2.0
)
—
—
—
(5.0
)
Net cash used in financing activities
$
(27.2
)
$
(129.3
)
$
(0.2
)
$
(1.6
)
$
(56.4
)
DECREASE IN CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH
$
(11.7
)
$
(18.1
)
$
(98.8
)
$
(126.6
)
$
(421.6
)
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING OF PERIOD
392.2
410.3
509.1
635.7
1,057.3
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH, END OF PERIOD
$
380.5
$
392.2
$
410.3
$
509.1
$
635.7
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
REVENUES
Floaters
Drillships
$
285.5
$
323.9
$
291.6
$
249.8
$
191.0
Semisubmersibles
42.2
51.0
78.8
60.0
56.1
$
327.7
$
374.9
$
370.4
$
309.8
$
247.1
Reimbursable Revenues (1) (2)
15.7
14.1
13.5
14.6
16.1
Total Floaters
$
343.4
$
389.0
$
383.9
$
324.4
$
263.2
Jackups
(3)
HD Harsh Environment
$
113.5
$
118.7
$
87.4
$
67.5
$
76.6
HD & SD Modern
59.5
58.4
63.8
57.0
79.0
SD Legacy
14.8
15.5
15.6
14.8
14.4
$
187.8
$
192.6
$
166.8
$
139.3
$
170.0
Reimbursable Revenues (1) (2)
15.3
21.1
19.0
13.0
9.3
Total Jackups
$
203.1
$
213.7
$
185.8
$
152.3
$
179.3
Other
Leased and Managed Rigs
$
32.5
$
32.4
$
35.6
$
42.1
$
36.1
Reimbursable Revenues (1) (2)
5.4
8.0
4.8
6.2
5.2
Total Other
$
37.9
$
40.4
$
40.4
$
48.3
$
41.3
Total Operating Revenues
$
584.4
$
643.1
$
610.1
$
525.0
$
483.8
Total Reimbursable Revenues (1) (2)
$
36.4
$
43.2
$
37.3
$
33.8
$
30.6
Revenues Exclusive of Reimbursable
Revenues
$
548.0
$
599.9
$
572.8
$
491.2
$
453.2
(1)
Reimbursable revenues represent
reimbursements from our customers for purchases of supplies,
equipment and incremental services provided at their request.
(2)
In connection with our adoption of Update
2023-07 during the fourth quarter of 2024, we updated the
presentation of Reimbursable Revenues in this table to align with
our presentation on the Consolidated Statements of Operations. This
change is presentational only and was applied retrospectively for
all periods presented. There were no changes to total segment
revenues or total operating revenues as a result of this
update.
(3)
HD = Heavy Duty; SD = Standard Duty. Heavy
duty jackups are well-suited for operations in tropical revolving
storm areas.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
ADJUSTED EBITDA (1)
Floaters
Drillships (1)
$
108.4
$
130.9
$
91.2
$
55.6
$
16.7
Semisubmersibles (1)
8.3
10.4
35.2
15.4
20.5
$
116.7
$
141.3
$
126.4
$
71.0
$
37.2
Jackups
HD Harsh Environment (1)
$
50.0
$
31.4
$
36.3
$
5.4
$
21.1
HD & SD Modern (1)
19.5
20.0
21.3
8.6
30.1
SD Legacy (1)
6.0
5.6
5.0
4.4
4.8
$
75.5
$
57.0
$
62.6
$
18.4
$
56.0
Total
$
192.2
$
198.3
$
189.0
$
89.4
$
93.2
Other
Leased and Managed Rigs (1)
$
15.0
$
18.3
$
20.8
$
26.1
$
23.2
Total
$
207.2
$
216.6
$
209.8
$
115.5
$
116.4
Support
costs
General and administrative expense
$
26.7
$
30.6
$
32.5
$
26.5
$
24.3
Onshore support costs
38.1
35.6
38.4
35.3
34.6
$
64.8
$
66.2
$
70.9
$
61.8
$
58.9
Valaris Total
$
142.4
$
150.4
$
138.9
$
53.7
$
57.5
(1)
Adjusted EBITDA is earnings before
interest, tax, depreciation and amortization. Adjusted EBITDA for
asset category also excludes onshore support costs and general and
administrative expense.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
ADJUSTED EBITDAR (1)
Active Fleet (1) (2)
$
207.6
$
213.1
$
218.1
$
126.3
$
137.5
Leased and Managed Rigs (1)
15.0
18.3
20.8
26.1
23.2
$
222.6
$
231.4
$
238.9
$
152.4
$
160.7
Stacked Fleet (1) (3)
(13.6
)
(12.9
)
(18.2
)
(6.6
)
(5.8
)
$
209.0
$
218.5
$
220.7
$
145.8
$
154.9
Support
costs
General and administrative expense
$
26.7
$
30.6
$
32.5
$
26.5
$
24.3
Onshore support costs
38.1
35.6
38.4
35.3
34.6
$
64.8
$
66.2
$
70.9
$
61.8
$
58.9
Valaris Total
$
144.2
$
152.3
$
149.8
$
84.0
$
96.0
Reactivation costs (4)
$
1.8
$
1.9
$
10.9
$
30.3
$
38.5
(1)
Adjusted EBITDAR is earnings before
interest, tax, depreciation, amortization and reactivation costs.
Adjusted EBITDAR for active fleet, leased and managed rigs and
stacked fleet also excludes onshore support costs and general and
administrative expense.
(2)
Active fleet represents rigs that are not
preservation stacked, including rigs that are in the process of
being reactivated.
(3)
Stacked fleet represents the combined
total of all preservation and stacking costs.
(4)
Reactivation costs, all of which are
attributed to Valaris' active fleet, are excluded from adjusted
EBITDAR.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
ADJUSTED EBITDAR (1)
Floaters
Drillships (1)
$
110.2
$
132.8
$
102.1
$
85.9
$
55.2
Semisubmersibles (1)
8.3
10.4
35.2
15.4
20.5
$
118.5
$
143.2
$
137.3
$
101.3
$
75.7
Jackups
HD Harsh Environment (1)
$
50.0
$
31.4
$
36.3
$
5.4
$
21.1
HD & SD Modern (1)
19.5
20.0
21.3
8.6
30.1
SD Legacy (1)
6.0
5.6
5.0
4.4
4.8
$
75.5
$
57.0
$
62.6
$
18.4
$
56.0
Total
$
194.0
$
200.2
$
199.9
$
119.7
$
131.7
Other
Leased and Managed Rigs (1)
$
15.0
$
18.3
$
20.8
$
26.1
$
23.2
Total
$
209.0
$
218.5
$
220.7
$
145.8
$
154.9
Support
costs
General and administrative expense
$
26.7
$
30.6
$
32.5
$
26.5
$
24.3
Onshore support costs
38.1
35.6
38.4
35.3
34.6
$
64.8
$
66.2
$
70.9
$
61.8
$
58.9
Valaris Total
$
144.2
$
152.3
$
149.8
$
84.0
$
96.0
(1)
Adjusted EBITDAR is earnings before
interest, tax, depreciation, amortization and reactivation costs.
Adjusted EBITDAR for asset category also excludes onshore support
costs and general and administrative expense.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)
As of
Feb 18, 2025
Oct 30, 2024
Jul 29, 2024
Apr 30, 2024
Feb 15, 2024
CONTRACT BACKLOG (1)
Floaters
Drillships
$
1,944.6
$
2,289.7
$
2,508.3
$
2,223.9
$
2,307.6
Semisubmersibles
79.4
106.0
122.1
180.7
224.1
$
2,024.0
$
2,395.7
$
2,630.4
$
2,404.6
$
2,531.7
Jackups
HD Harsh Environment
$
614.6
$
635.1
$
665.0
$
607.0
$
646.8
HD & SD Modern
527.4
585.2
438.9
449.1
347.1
SD Legacy
171.0
178.4
189.0
128.8
173.5
$
1,313.0
$
1,398.7
$
1,292.9
$
1,184.9
$
1,167.4
Total
$
3,337.0
$
3,794.4
$
3,923.3
$
3,589.5
$
3,699.1
Other
Leased and Managed Rigs
$
271.5
$
310.4
$
384.2
$
427.7
$
222.3
Valaris Total
$
3,608.5
$
4,104.8
$
4,307.5
$
4,017.2
$
3,921.4
(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, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
AVERAGE DAILY REVENUE (1)
Floaters
Drillships
$
405,000
$
386,000
$
358,000
$
328,000
$
307,000
Semisubmersibles
231,000
247,000
289,000
261,000
229,000
$
369,000
$
359,000
$
340,000
$
312,000
$
285,000
Jackups
HD Harsh Environment
$
139,000
$
163,000
$
134,000
$
123,000
$
111,000
HD & SD Modern
109,000
111,000
115,000
103,000
119,000
SD Legacy
81,000
84,000
85,000
81,000
79,000
$
121,000
$
133,000
$
120,000
$
108,000
$
111,000
Total
$
212,000
$
228,000
$
217,000
$
197,000
$
174,000
Other
Leased and Managed Rigs
$
39,000
$
32,000
$
37,000
$
45,000
$
39,000
Valaris Total
$
167,000
$
171,000
$
167,000
$
153,000
$
136,000
(1)
Average daily revenue is derived by
dividing Revenues (exclusive of reimbursable revenues) by the
aggregate number of operating days.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
UTILIZATION - TOTAL FLEET (1)
Floaters
Drillships
59
%
70
%
69
%
64
%
60
%
Semisubmersibles
40
%
45
%
60
%
51
%
53
%
54
%
63
%
66
%
61
%
58
%
Jackups
HD Harsh Environment
81
%
72
%
65
%
55
%
68
%
HD & SD Modern
40
%
44
%
45
%
44
%
52
%
SD Legacy
100
%
100
%
100
%
100
%
97
%
60
%
60
%
58
%
53
%
62
%
Total
58
%
61
%
61
%
56
%
60
%
Other
Leased and Managed Rigs
100
%
100
%
100
%
100
%
100
%
Valaris Total
65
%
69
%
69
%
64
%
68
%
Pro Forma Jackups (2)
68
%
71
%
68
%
64
%
70
%
(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.
(2)
Includes all Valaris jackups including
those leased to ARO Drilling.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
UTILIZATION - ACTIVE FLEET (1)
(2)
Floaters
Drillships
77
%
91
%
90
%
84
%
68
%
Semisubmersibles
66
%
75
%
100
%
85
%
89
%
74
%
87
%
92
%
84
%
72
%
Jackups
HD Harsh Environment
99
%
88
%
80
%
67
%
83
%
HD & SD Modern
85
%
82
%
81
%
69
%
80
%
SD Legacy
100
%
100
%
100
%
100
%
97
%
93
%
87
%
82
%
71
%
83
%
Total
85
%
87
%
86
%
76
%
79
%
Other
Leased and Managed Rigs
100
%
100
%
100
%
100
%
100
%
Valaris Total
89
%
90
%
90
%
82
%
84
%
Pro Forma Jackups (3)
95
%
91
%
88
%
80
%
88
%
(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.
(2)
Active fleet represents rigs that are not
preservation stacked, including 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, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
AVAILABLE DAYS - TOTAL FLEET
(1)
Floaters
Drillships
1,196
1,196
1,183
1,183
1,032
Semisubmersibles
460
460
455
455
460
1,656
1,656
1,638
1,638
1,492
Jackups
HD Harsh Environment
1,012
1,012
1,001
1,001
1,012
HD & SD Modern
1,368
1,196
1,225
1,258
1,288
SD Legacy
184
184
182
182
184
2,564
2,392
2,408
2,441
2,484
Total
4,220
4,048
4,046
4,079
3,976
Other
Leased and Managed Rigs
840
1,012
959
926
920
Valaris Total
5,060
5,060
5,005
5,005
4,896
(1)
Represents 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.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
AVAILABLE DAYS - ACTIVE FLEET
(1)
Floaters
Drillships
920
920
910
910
920
Semisubmersibles
276
276
273
273
276
1,196
1,196
1,183
1,183
1,196
Jackups
HD Harsh Environment
828
828
819
819
828
HD & SD Modern
644
644
683
803
828
SD Legacy
184
184
182
182
184
1,656
1,656
1,684
1,804
1,840
Total
2,852
2,852
2,867
2,987
3,036
Other
Leased and Managed Rigs
840
1,012
959
926
920
Valaris Total
3,692
3,864
3,826
3,913
3,956
(1)
Represents the maximum number of days
available in the period for the active fleet, calculated by
multiplying the number of rigs in each asset category by the number
of days in the period, for active rigs only. Active rigs are
defined as rigs that are not preservation stacked.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
OPERATING DAYS (1)
Floaters
Drillships
704
834
815
761
622
Semisubmersibles
183
206
273
231
245
887
1,040
1,088
992
867
Jackups
HD Harsh Environment
816
731
655
549
691
HD & SD Modern
548
528
552
555
665
SD Legacy
184
184
182
182
178
1,548
1,443
1,389
1,286
1,534
Total
2,435
2,483
2,477
2,278
2,401
Other
Leased and Managed Rigs
840
1,012
959
926
920
Valaris Total
3,275
3,495
3,436
3,204
3,321
(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 early contract terminations,
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, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
REVENUE EFFICIENCY (1)
Floaters
Drillships
94
%
98
%
99
%
94
%
88
%
Semisubmersibles
100
%
100
%
100
%
99
%
94
%
95
%
98
%
99
%
95
%
90
%
Jackups
HD Harsh Environment
99
%
93
%
99
%
100
%
99
%
HD & SD Modern
99
%
100
%
100
%
99
%
97
%
SD Legacy
100
%
100
%
100
%
100
%
97
%
99
%
96
%
99
%
99
%
98
%
Valaris Total
96
%
98
%
99
%
97
%
93
%
(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, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
Active Fleet (1)
Floaters
Drillships
10
10
10
10
10
Semisubmersibles
3
3
3
3
3
13
13
13
13
13
Jackups
HD Harsh Environment
9
9
9
9
9
HD & SD Modern
7
7
7
8
9
SD Legacy
2
2
2
2
2
18
18
18
19
20
Total Active Fleet
31
31
31
32
33
Stacked Fleet
Floaters
Drillships
3
3
3
3
3
Semisubmersibles
2
2
2
2
2
5
5
5
5
5
Jackups
HD Harsh Environment
2
2
2
2
2
HD & SD Modern
8
6
6
5
5
10
8
8
7
7
Total Stacked Fleet
15
13
13
12
12
Leased Rigs (2)
Jackups
HD Harsh Environment
1
1
1
1
1
HD & SD Modern
6
8
8
8
7
Total Leased Rigs
7
9
9
9
8
Valaris Total
53
53
53
53
53
Managed Rigs (2)
2
2
2
2
2
(1)
Active fleet represents rigs that are not
preservation stacked, including rigs that are in the process of
being reactivated.
(2)
Leased rigs and managed rigs included in
Other reporting segment.
ARO DRILLING
CONDENSED BALANCE SHEET
INFORMATION
(In millions)
(Unaudited)
As of
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
Cash
$
50.0
$
129.3
$
131.7
$
69.5
$
92.9
Other current assets
127.7
129.4
157.8
198.3
184.0
Non-current assets
1,291.1
1,223.3
1,214.4
1,094.2
1,081.0
Total assets
$
1,468.8
$
1,482.0
$
1,503.9
$
1,362.0
$
1,357.9
Current liabilities
$
146.6
$
200.7
$
173.2
$
135.0
$
136.0
Non-current liabilities
1,202.7
1,176.9
1,172.2
1,057.6
1,056.8
Total liabilities
$
1,349.3
$
1,377.6
$
1,345.4
$
1,192.6
$
1,192.8
Shareholders' equity
$
119.5
$
104.4
$
158.5
$
169.4
$
165.1
Total liabilities and shareholders'
equity
$
1,468.8
$
1,482.0
$
1,503.9
$
1,362.0
$
1,357.9
ARO DRILLING
CONDENSED INCOME STATEMENT
INFORMATION
(In millions)
(Unaudited)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
Revenues
$
136.3
$
113.7
$
124.2
$
138.3
$
133.7
Operating expenses
Contract drilling (exclusive of
depreciation)
81.5
93.8
94.1
98.3
88.0
Loss on impairment
—
28.4
—
—
—
Depreciation
29.4
21.1
19.7
19.0
19.5
General and administrative
7.5
4.9
5.5
5.8
6.3
Operating income (loss)
$
17.9
$
(34.5
)
$
4.9
$
15.2
$
19.9
Other expense, net
13.7
15.3
13.4
13.1
3.6
Provision (benefit) for income taxes
(10.9
)
4.2
(1.8
)
3.7
6.0
Net income (loss)
$
15.1
$
(54.0
)
$
(6.7
)
$
(1.6
)
$
10.3
ARO Adjusted EBITDA
$
47.3
$
15.0
$
24.6
$
34.2
$
39.4
ARO Drilling condensed balance sheet and income statement
information presented above represents 100% of ARO. Valaris has a
50% ownership interest in ARO.
ARO DRILLING
OPERATING STATISTICS
(Unaudited)
As of
(In millions)
Feb 18, 2025
Oct 30, 2024
Jul 29, 2024
Apr 30, 2024
Feb 15, 2024
CONTRACT BACKLOG (1)
Owned Rigs
$
1,124.9
$
1,236.9
$
1,322.9
$
1,398.9
$
1,475.4
Leased Rigs (2)
298.0
344.4
510.4
583.3
662.7
Total
$
1,422.9
$
1,581.3
$
1,833.3
$
1,982.2
$
2,138.1
(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.
(2)
Leased rigs backlog as of July 29, 2024,
included approximately $113 million related to the drilling
contracts for VALARIS 147 and VALARIS 148, which previously
received suspension notices from Saudi Aramco. The contracts were
subsequently terminated and are no longer included in leased rigs
backlog as of October 30, 2024.
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
AVERAGE DAILY REVENUE (1)
Owned Rigs
$
112,000
$
109,000
$
104,000
$
105,000
$
100,000
Leased Rigs (2)
100,000
98,000
101,000
99,000
97,000
Total
$
109,000
$
103,000
$
102,000
$
102,000
$
98,000
UTILIZATION (3)
Owned Rigs
89
%
62
%
77
%
91
%
96
%
Leased Rigs (2)
77
%
71
%
86
%
93
%
94
%
Total
84
%
66
%
82
%
92
%
95
%
REVENUE EFFICIENCY (4)
Owned Rigs
94
%
70
%
90
%
98
%
94
%
Leased Rigs (2)
77
%
70
%
91
%
99
%
98
%
Total
87
%
70
%
91
%
98
%
96
%
NUMBER OF RIGS (AT QUARTER END)
Owned Rigs
9
9
9
8
8
Leased Rigs (2)
7
9
9
9
8
Total
16
18
18
17
16
AVAILABLE DAYS (5)
Owned Rigs
828
828
728
728
695
Leased Rigs (2)
658
828
765
744
736
Total
1,486
1,656
1,493
1,472
1,431
OPERATING DAYS (6)
Owned Rigs
739
510
561
664
668
Leased Rigs (2)
509
590
657
692
691
Total
1,248
1,100
1,218
1,356
1,359
(1)
Average daily revenue is derived by
dividing Revenues (exclusive of reimbursable revenues), 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 maximum number of days
available in the period for the rig fleet, calculated by
multiplying the number of rigs in each asset category by the number
of days in the period, irrespective of asset status.
(6)
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 early contract terminations,
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, Adjusted EBITDAR and Free Cash
Flow, which are non-GAAP measures.
Valaris defines "Adjusted EBITDA" as net income (loss) before
income tax expense, interest expense, other (income) expense,
depreciation expense, amortization, 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 "Adjusted EBITDAR" as Adjusted EBITDA before
reactivation costs. Adjusted EBITDAR is a non-GAAP measure that our
management uses to assess the performance of our fleet excluding
one-time rig reactivation costs. We believe that this measure is
useful to investors and analysts in allowing for greater
transparency of our core operating performance. Adjusted EBITDAR
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
EBITDAR 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, depreciation expense
and loss on impairment. 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, as discussed on its
fourth quarter 2024 earnings conference call, 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).
Valaris defines "Free Cash Flow" as net cash provided by
operating activities less capital expenditures. Free Cash Flow is a
non-GAAP measure that our management uses to assess the cash
generation of our fleet after paying operating expenses and capital
expenditures to maintain and upgrade our assets. We believe that
this measure is useful to investors and analysts in allowing for
greater transparency of the cash generation of our business.
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, 2024
Sep 30, 2024
VALARIS
Net income
$
130.6
$
62.9
Add (subtract):
Income tax expense (benefit)
(6.8
)
24.3
Interest expense
22.1
22.4
Other income
(26.7
)
(14.7
)
Operating income
119.2
94.9
Add (subtract):
Depreciation expense
33.9
31.7
Equity in (earnings) losses of ARO
(10.7
)
23.8
Adjusted EBITDA
$
142.4
$
150.4
A reconciliation of net loss as reported to ARO Adjusted EBITDA
is included in the tables below (in millions):
Three Months Ended
Dec 31, 2024
Sep 30, 2024
ARO
Net income (loss)
$
15.1
$
(54.0
)
Add (subtract):
Income tax expense (benefit)
(10.9
)
4.2
Other expense, net
13.7
15.3
Operating income (loss)
$
17.9
$
(34.5
)
Add:
Depreciation expense
29.4
21.1
Loss on impairment
—
28.4
ARO Adjusted EBITDA
$
47.3
$
15.0
Reconciliation of Net Income to Adjusted EBITDA and Adjusted
EBITDAR
(In millions)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
FLOATERS
Net income
$
102.4
$
126.8
Subtract:
Other income
(1.7
)
(0.3
)
Operating income
$
100.7
$
126.5
Add:
Depreciation
16.0
14.8
Adjusted EBITDA
$
116.7
$
141.3
Add:
Reactivation costs
1.8
1.9
Adjusted EBITDAR
$
118.5
$
143.2
JACKUPS
Net income
$
64.0
$
45.7
Subtract:
Other income
(0.8
)
(0.1
)
Operating income
$
63.2
$
45.6
Add:
Depreciation
12.3
11.4
Adjusted EBITDA
$
75.5
$
57.0
Adjusted EBITDAR
$
75.5
$
57.0
OTHER
Net income
$
13.2
$
16.3
Add (subtract):
Other income
(1.0
)
(0.9
)
Operating income
$
12.2
$
15.4
Add:
Depreciation
2.8
2.9
Adjusted EBITDA
$
15.0
$
18.3
Adjusted EBITDAR
$
15.0
$
18.3
Reconciliation of Net Income (Loss) to Adjusted
EBITDAR
(In millions)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
ACTIVE FLEET (1)
Net income
$
181.6
$
186.8
$
186.6
$
80.8
$
78.7
Subtract:
Other income
(2.4
)
(0.4
)
(2.8
)
(7.0
)
(3.3
)
Operating income
$
179.2
$
186.4
$
183.8
$
73.8
$
75.4
Add (subtract):
Reactivation costs
1.8
1.9
10.9
30.3
38.5
Depreciation
26.6
24.8
23.5
22.2
23.5
Other
—
—
(0.1
)
—
0.1
Adjusted EBITDAR (2)
$
207.6
$
213.1
$
218.1
$
126.3
$
137.5
LEASED AND MANAGED RIGS
Net income
$
13.2
$
16.3
$
18.3
$
24.8
$
22.1
Subtract:
Other income
(1.0
)
(0.9
)
—
—
—
Operating income
$
12.2
$
15.4
$
18.3
$
24.8
$
22.1
Add (subtract):
Depreciation
2.8
2.9
2.5
1.3
1.2
Other
—
—
—
—
(0.1
)
Adjusted EBITDAR (2)
$
15.0
$
18.3
$
20.8
$
26.1
$
23.2
STACKED FLEET
Net loss
$
(15.2
)
$
(14.3
)
$
(19.7
)
$
(7.9
)
$
(8.3
)
Subtract:
Other income
(0.1
)
—
—
(0.1
)
(0.1
)
Operating loss
$
(15.3
)
$
(14.3
)
$
(19.7
)
$
(8.0
)
$
(8.4
)
Add (subtract):
Depreciation
1.7
1.4
1.5
1.4
2.7
Other
—
—
—
—
(0.1
)
Adjusted EBITDAR (2)
$
(13.6
)
$
(12.9
)
$
(18.2
)
$
(6.6
)
$
(5.8
)
TOTAL FLEET
Net income
$
179.6
$
188.8
$
185.2
$
97.7
$
92.5
Subtract:
Other income
(3.5
)
(1.3
)
(2.8
)
(7.1
)
(3.4
)
Operating income
$
176.1
$
187.5
$
182.4
$
90.6
$
89.1
Add (subtract):
Reactivation costs
1.8
1.9
10.9
30.3
38.5
Depreciation
31.1
29.1
27.5
24.9
27.4
Other
—
—
(0.1
)
—
(0.1
)
Adjusted EBITDAR (2)
$
209.0
$
218.5
$
220.7
$
145.8
$
154.9
(1)
Active fleet represents rigs that are not
preservation stacked, including rigs that are in the process of
being reactivated.
(2)
Adjusted EBITDAR for active fleet, leased
and managed rigs and stacked fleet excludes onshore support costs
and general and administrative expense.
Reconciliation of Net Income to Adjusted EBITDA
(In millions)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
DRILLSHIPS
Net income
$
95.4
$
117.3
$
79.6
$
49.4
$
4.7
Subtract:
Other income
(1.7
)
(0.3
)
(1.5
)
(6.2
)
(2.0
)
Operating income
$
93.7
$
117.0
$
78.1
$
43.2
$
2.7
Add (subtract):
Depreciation
14.7
13.9
13.2
12.4
14.0
Other
—
—
(0.1
)
—
—
Adjusted EBITDA (1)
$
108.4
$
130.9
$
91.2
$
55.6
$
16.7
SEMISUBMERSIBLES
Net income
$
7.0
$
9.5
$
34.5
$
14.7
$
19.6
Subtract:
Other income
—
—
(0.2
)
(0.1
)
(0.1
)
Operating income
$
7.0
$
9.5
$
34.3
$
14.6
$
19.5
Add:
Depreciation
1.3
0.9
0.9
0.8
1.0
Adjusted EBITDA (1)
$
8.3
$
10.4
$
35.2
$
15.4
$
20.5
(1)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
Reconciliation of Net Income to Adjusted EBITDA
(In millions)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
HD HARSH ENVIRONMENT JACKUPS
Net income
$
43.5
$
24.8
$
31.0
$
0.4
$
15.4
Add (subtract):
Other (income) expense
(0.3
)
0.2
(0.3
)
(0.3
)
(0.1
)
Operating income
$
43.2
$
25.0
$
30.7
$
0.1
$
15.3
Add:
Depreciation
6.8
6.4
5.6
5.3
5.8
Adjusted EBITDA (1)
$
50.0
$
31.4
$
36.3
$
5.4
$
21.1
HD & SD MODERN JACKUPS
Net income
$
16.9
$
17.6
$
19.2
$
6.4
$
28.2
Subtract:
Other income
(0.5
)
(0.2
)
(0.8
)
(0.6
)
(1.2
)
Operating income
$
16.4
$
17.4
$
18.4
$
5.8
$
27.0
Add:
Depreciation
3.1
2.6
2.9
2.8
3.0
Other
—
—
—
—
0.1
Adjusted EBITDA (1)
$
19.5
$
20.0
$
21.3
$
8.6
$
30.1
SD LEGACY JACKUPS
Net income
$
3.6
$
3.3
$
2.6
$
2.0
$
2.5
Add (subtract):
Other (income) expense
—
(0.1
)
—
0.1
—
Operating income
$
3.6
$
3.2
$
2.6
$
2.1
$
2.5
Add (subtract):
Depreciation
2.4
2.4
2.4
2.3
2.4
Other
—
—
—
—
(0.1
)
Adjusted EBITDA (1)
$
6.0
$
5.6
$
5.0
$
4.4
$
4.8
(1)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
Reconciliation of Cash from Operating Activities to Free Cash
Flow
(In millions)
Three Months Ended
Dec 31, 2024
Sep 30, 2024
Net cash provided by operating
activities
$
124.6
$
193.0
Additions to property and equipment
(111.7
)
(81.9
)
Free cash flow
$
12.9
$
111.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250218778648/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
Valaris (NYSE:VAL)
Historical Stock Chart
From Jan 2025 to Feb 2025
Valaris (NYSE:VAL)
Historical Stock Chart
From Feb 2024 to Feb 2025
