Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today
reported first quarter 2024 results.
President and Chief Executive Officer Anton Dibowitz said, “I am
very pleased with our start to 2024 as we delivered strong safety
and operational performance during the first quarter as evidenced
by fleetwide revenue efficiency of 97%. Our financial results also
benefited from more operating days for our most recent drillship
reactivation, VALARIS DS-8. In addition, we were awarded new
contracts and extensions with associated contract backlog of more
than $520 million, including a multi-year contract offshore Angola
for VALARIS 144 at a leading-edge day rate for a benign environment
jackup.”
Dibowitz added, “We remain laser-focused on securing work for
the remaining available days across our fleet in 2024 and preparing
VALARIS DS-7 for its expected contract startup in the second
quarter. We have an industry-leading track record of executing
reactivation projects and look forward to the completion of another
successful startup."
Dibowitz concluded, “We continue executing our growth strategy
by securing new contracts at significantly higher day rates and
building our contract backlog, which has increased over each of the
past six consecutive quarters. We see strong customer demand for
work that is expected to commence in 2025 and 2026, highlighting
the longevity of this upcycle. We are focused on securing
attractive contracts that support our anticipated earnings and cash
flow growth over the next few years and intend to return all future
free cash flow to shareholders unless there is a better or more
value accretive use for it.”
Financial and Operational Highlights
- Net income of $26 million, Adjusted EBITDA of $54 million and
Adjusted EBITDAR of $84 million;
- Revenue efficiency of 97% during the quarter;
- Strong safety performance, including no Lost Time Incidents
(LTI) during the quarter;
- Awarded new contracts and extensions with associated contract
backlog of more than $520 million during the first quarter;
and
- Increased total contract backlog to more than $4.0 billion as
of April 30, 2024, representing the sixth consecutive quarter of
backlog growth and a 43% increase from twelve months ago.
First Quarter Review
Net income decreased to $26 million from $829 million in the
fourth quarter 2023. Net income included tax expense of $13 million
compared to a tax benefit of $790 million in the fourth quarter.
Adjusted EBITDA decreased to $54 million from $58 million in the
fourth quarter primarily due to idle time for several jackups that
were undergoing contract preparations and special periodic surveys
in the first quarter, partially offset by more operating days for
the floater fleet. Adjusted EBITDAR decreased to $84 million from
$96 million in the fourth quarter.
Revenues increased to $525 million from $484 million in the
fourth quarter 2023. Excluding reimbursable items, revenues
increased to $491 million from $453 million in the fourth quarter
primarily due to VALARIS DS-8, which commenced a contract in late
December following its reactivation, and higher revenue efficiency
across the floater fleet in the first quarter compared to the
fourth quarter. This was partially offset by fewer operating days
for the jackup fleet, with several rigs experiencing idle time for
contract preparations and special periodic surveys prior to the
start of their next contracts.
Contract drilling expense increased to $445 million from $402
million in the fourth quarter 2023. Excluding reimbursable items,
contract drilling expense increased to $414 million from $374
million in the fourth quarter. The increase was primarily due to
more operating days for the floater fleet and higher repair and
maintenance expense.
Depreciation expense of $27 million was in line with the fourth
quarter 2023. General and administrative expense increased to $27
million from $24 million in the fourth quarter 2023 primarily due
to higher compensation costs and professional fees.
Other income increased to $9 million from $0 million in the
fourth quarter 2023 primarily due to foreign currency exchange
gains compared to losses in the prior quarter.
Tax expense of $13 million compared to a tax benefit of $790
million in the fourth quarter 2023 primarily due to an $800 million
deferred tax benefit recognized in the fourth quarter 2023 related
to a reduction in the valuation allowance on certain deferred tax
assets.
Cash and cash equivalents and restricted cash decreased to $509
million as of March 31, 2024, from $636 million as of December 31,
2023. The decrease was primarily due to capital expenditures,
partially offset by positive operating cash flow.
Capital expenditures of $151 million declined from $463 million
in the fourth quarter 2023 due to the Company exercising options to
take delivery of newbuild drillships VALARIS DS-13 and DS-14 for an
aggregate purchase price of $337 million during the fourth
quarter.
First Quarter Segment Review
Floaters
Floater revenues increased to $324 million from $263 million in
the fourth quarter 2023. Excluding reimbursable items, revenues
increased to $310 million from $247 million in the fourth quarter.
The increase was primarily due to VALARIS DS-8, which commenced a
contract in late December following its reactivation, and higher
revenue efficiency across the floater fleet in the first quarter
compared to the fourth quarter.
Contract drilling expense increased to $253 million from $226
million in the fourth quarter 2023. Excluding reimbursable items,
contract drilling expense increased to $240 million from $211
million in the fourth quarter. The increase was primarily due to
more operating days and higher costs associated with planned
repairs and maintenance.
Jackups
Jackup revenues decreased to $152 million from $179 million in
the fourth quarter 2023. Excluding reimbursable items, revenues
decreased to $139 million from $170 million in the fourth quarter
primarily due to fewer operating days, with several rigs
experiencing idle time for contract preparations and special
periodic surveys prior to the start of their next contracts.
Contract drilling expense increased to $134 million from $123
million in the fourth quarter 2023. Excluding reimbursable items,
contract drilling expense increased to $122 million from $115
million in the fourth quarter primarily due to higher repair and
maintenance expense associated with contract preparations and
special periodic surveys.
ARO Drilling
Revenues increased to $138 million from $134 million in the
fourth quarter 2023 primarily due to a full quarter of operations
for newbuild jackup Kingdom 1, which commenced its maiden contract
during the fourth quarter. This was partially offset by fewer
operating days for the rest of the fleet due to more out of service
days for planned maintenance in the first quarter compared to the
fourth quarter. Contract drilling expense increased to $98 million
from $88 million in the fourth quarter primarily due to higher
bareboat charter expense for leased rigs and higher repair costs
associated with planned maintenance in the first quarter.
Other
Revenues increased to $48 million from $41 million in the fourth
quarter 2023 primarily due to higher revenues earned from bareboat
charter agreements with ARO and higher revenues from two rigs that
we manage on behalf of a customer in the U.S. Gulf of Mexico, which
both commenced three-year contract extensions during the first
quarter. Contract drilling expense increased to $22 million from
$18 million in the fourth quarter.
Three Months Ended
(Unaudited)
Floaters
Jackups
ARO (1)
Other
Reconciling Items (1)(2)
Consolidated Total
(in millions of $, except %)
Q1 2024
Q4 2023
Chg
Q1 2024
Q4 2023
Chg
Q1 2024
Q4 2023
Chg
Q1 2024
Q4 2023
Chg
Q1 2024
Q4 2023
Q1 2024
Q4 2023
Chg
Revenues
$
324.4
$
263.2
23
%
$
152.3
$
179.3
(15
)%
$
138.3
$
133.7
3
%
$
48.3
$
41.3
17
%
$
(138.3
)
$
(133.7
)
$
525.0
$
483.8
9
%
Operating expenses
Contract drilling
253.4
226.0
(12
)%
133.9
123.3
(9
)%
98.3
88.0
(12
)%
22.2
18.0
(23
)%
(63.0
)
(53.3
)
444.8
402.0
(11
)%
Depreciation
13.2
15.0
12
%
10.4
11.2
7
%
19.0
19.5
3
%
1.3
1.2
(8
)%
(17.1
)
(19.4
)
26.8
27.5
3
%
General and admin.
—
—
—
%
—
—
—
%
5.8
6.3
8
%
—
—
—
%
20.7
18.0
26.5
24.3
(9
)%
Equity in earnings of ARO
—
—
—
%
—
—
—
%
—
—
—
%
—
—
—
%
2.4
8.3
2.4
8.3
(71
)%
Operating income
$
57.8
$
22.2
160
%
$
8.0
$
44.8
(82
)%
$
15.2
$
19.9
(24
)%
$
24.8
$
22.1
12
%
$
(76.5
)
$
(70.7
)
$
29.3
$
38.3
(23
)%
Net income (loss)
$
64.1
$
24.3
164
%
$
8.8
$
46.1
(81
)%
$
(1.6
)
$
10.3
nm
$
24.8
$
22.1
12
%
$
(70.6
)
$
725.7
$
25.5
$
828.5
(97
)%
Adjusted EBITDA
$
71.0
$
37.2
91
%
$
18.4
$
56.0
(67
)%
$
34.2
$
39.4
(13
)%
$
26.1
$
23.2
13
%
$
(96.0
)
$
(98.3
)
$
53.7
$
57.5
(7
)%
Adjusted EBITDAR
$
101.3
$
75.7
34
%
$
18.4
$
56.0
(67
)%
$
34.2
$
39.4
(13
)%
$
26.1
$
23.2
13
%
$
(96.0
)
$
(98.3
)
$
84.0
$
96.0
(13
)%
(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."
As previously announced, Valaris will hold its first quarter
2024 earnings conference call at 9:00 a.m. CT (10:00 a.m. ET) on
Thursday, May 2, 2024. An updated investor presentation will be
available on the Valaris website after the call.
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,"
"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 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; 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 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; 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; 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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
OPERATING REVENUES
$
525.0
$
483.8
$
455.1
$
415.2
$
430.1
OPERATING EXPENSES
Contract drilling (exclusive of
depreciation)
444.8
402.0
390.9
373.5
377.2
Depreciation
26.8
27.5
25.8
24.5
23.3
General and administrative
26.5
24.3
24.2
26.4
24.4
Total operating expenses
498.1
453.8
440.9
424.4
424.9
EQUITY IN EARNINGS (LOSSES) OF ARO
2.4
8.3
2.4
(0.7
)
3.3
OPERATING INCOME (LOSS)
29.3
38.3
16.6
(9.9
)
8.5
OTHER INCOME (EXPENSE)
Interest income
21.0
27.2
26.6
24.6
23.0
Interest expense, net
(17.7
)
(21.7
)
(19.4
)
(16.7
)
(11.1
)
Other, net
5.8
(5.5
)
3.9
(0.8
)
0.6
9.1
—
11.1
7.1
12.5
INCOME (LOSS) BEFORE INCOME TAXES
38.4
38.3
27.7
(2.8
)
21.0
PROVISION (BENEFIT) FOR INCOME TAXES
12.9
(790.2
)
10.7
24.5
(27.6
)
NET INCOME (LOSS)
25.5
828.5
17.0
(27.3
)
48.6
NET INCOME (LOSS) ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
—
6.7
(4.1
)
(2.1
)
(1.9
)
NET INCOME (LOSS) ATTRIBUTABLE TO
VALARIS
$
25.5
$
835.2
$
12.9
$
(29.4
)
$
46.7
EARNINGS (LOSS) PER SHARE
Basic
$
0.35
$
11.47
$
0.18
$
(0.39
)
$
0.62
Diluted
$
0.35
$
11.30
$
0.17
$
(0.39
)
$
0.61
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic
72.4
72.8
73.7
74.8
75.2
Diluted
73.6
73.9
74.8
74.8
76.4
VALARIS LIMITED AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In millions)
(Unaudited)
As of
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
494.1
$
620.5
$
1,041.1
$
787.3
$
822.5
Restricted cash
15.0
15.2
16.2
18.0
21.5
Accounts receivable, net
510.9
459.3
492.4
473.4
393.4
Other current assets
177.6
177.2
178.7
168.7
158.1
Total current assets
$
1,197.6
$
1,272.2
$
1,728.4
$
1,447.4
$
1,395.5
PROPERTY AND EQUIPMENT, NET
1,732.3
1,633.8
1,159.9
1,073.7
1,015.5
LONG-TERM NOTES RECEIVABLE FROM ARO
289.3
282.3
275.2
268.0
261.0
INVESTMENT IN ARO
126.8
124.4
116.1
113.7
114.4
DEFERRED TAX ASSETS
854.8
855.1
53.8
48.5
50.5
OTHER ASSETS
153.6
154.4
151.5
137.1
114.3
$
4,354.4
$
4,322.2
$
3,484.9
$
3,088.4
$
2,951.2
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable - trade
$
394.2
$
400.1
$
376.4
$
364.2
$
324.1
Accrued liabilities and other
366.5
344.2
346.6
294.7
267.7
Total current liabilities
$
760.7
$
744.3
$
723.0
$
658.9
$
591.8
LONG-TERM DEBT
1,080.1
1,079.3
1,079.4
681.9
542.8
DEFERRED TAX LIABILITIES
31.6
29.9
17.1
16.7
16.1
OTHER LIABILITIES
451.7
471.7
465.4
464.8
448.5
TOTAL LIABILITIES
2,324.1
2,325.2
2,284.9
1,822.3
1,599.2
TOTAL EQUITY
2,030.3
1,997.0
1,200.0
1,266.1
1,352.0
$
4,354.4
$
4,322.2
$
3,484.9
$
3,088.4
$
2,951.2
VALARIS LIMITED AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
OPERATING ACTIVITIES
Net income (loss)
$
25.5
$
828.5
$
17.0
$
(27.3
)
$
48.6
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation expense
26.8
27.5
25.8
24.5
23.3
Share-based compensation expense
8.0
7.8
6.8
7.0
5.7
Accretion of discount on notes receivable
from ARO
(7.0
)
(7.1
)
(7.2
)
(7.0
)
(7.0
)
Equity in losses (earnings) of ARO
(2.4
)
(8.3
)
(2.4
)
0.7
(3.3
)
Deferred income tax expense (benefit)
2.0
(788.7
)
(4.8
)
2.5
4.6
Loss (gain) on asset disposals
0.1
(0.7
)
—
(27.8
)
(0.1
)
Loss on extinguishment of debt
—
—
—
29.2
—
Changes in contract liabilities
(7.0
)
8.8
3.6
13.3
(20.8
)
Changes in deferred costs
2.2
3.2
(22.4
)
(7.4
)
0.5
Other
1.8
0.6
2.7
2.1
0.4
Changes in other operating assets and
liabilities
(21.3
)
27.3
31.0
(37.3
)
100.8
Contributions to pension plans and other
post-retirement benefits
(2.4
)
(2.2
)
(1.9
)
(1.6
)
(1.0
)
Net cash provided by (used in) operating
activities
$
26.3
$
96.7
$
48.2
$
(29.1
)
$
151.7
INVESTING ACTIVITIES
Additions to property and equipment
$
(151.3
)
$
(463.0
)
$
(105.8
)
$
(71.0
)
$
(56.3
)
Net proceeds from disposition of
assets
—
1.1
0.1
29.0
0.1
Net cash used in investing activities
$
(151.3
)
$
(461.9
)
$
(105.7
)
$
(42.0
)
$
(56.2
)
FINANCING ACTIVITIES
Payments for share repurchases
$
(1.4
)
$
(51.2
)
$
(83.0
)
$
(64.4
)
$
—
Debt issuance costs
—
(1.9
)
(5.7
)
(31.0
)
—
Payments for tax withholdings for
share-based awards
—
(0.2
)
(4.8
)
(0.4
)
—
Issuance of Second Lien Notes
—
—
403.0
700.0
—
Redemption of First Lien Notes
—
—
—
(571.8
)
—
Other
(0.2
)
(3.1
)
—
—
—
Net cash provided by (used in) financing
activities
$
(1.6
)
$
(56.4
)
$
309.5
$
32.4
$
—
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH
$
(126.6
)
$
(421.6
)
$
252.0
$
(38.7
)
$
95.5
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING OF PERIOD
635.7
1,057.3
805.3
844.0
748.5
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH, END OF PERIOD
$
509.1
$
635.7
$
1,057.3
$
805.3
$
844.0
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(In millions)
(Unaudited)
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
REVENUES
Floaters
Drillships
$
249.6
$
190.7
$
168.2
$
147.2
$
138.9
Semisubmersibles
60.2
56.3
64.1
68.5
67.1
$
309.8
$
247.0
$
232.3
$
215.7
$
206.0
Reimbursable and Other Revenues (1)
14.6
16.2
11.0
11.7
8.8
Total Floaters
$
324.4
$
263.2
$
243.3
$
227.4
$
214.8
Jackups
(2)
HD Harsh Environment
$
67.5
$
76.6
$
75.5
$
54.1
$
70.9
HD & SD Modern
56.9
79.0
68.8
67.9
70.4
SD Legacy
14.8
14.2
10.5
12.5
20.4
$
139.2
$
169.8
$
154.8
$
134.5
$
161.7
Reimbursable and Other Revenues (1)
13.1
9.5
11.1
10.1
8.1
Total Jackups
$
152.3
$
179.3
$
165.9
$
144.6
$
169.8
Other
Leased and Managed Rigs
$
42.1
$
36.0
$
40.1
$
37.4
$
39.1
Reimbursable and Other Revenues (1)
6.2
5.3
5.8
5.8
6.4
Total Other
$
48.3
$
41.3
$
45.9
$
43.2
$
45.5
Total Operating Revenues
$
525.0
$
483.8
$
455.1
$
415.2
$
430.1
Total Reimbursable and Other Revenues
(1)
$
33.9
$
31.0
$
27.9
$
27.6
$
23.3
Revenues Excluding Reimbursable and Other
Revenues
$
491.1
$
452.8
$
427.2
$
387.6
$
406.8
(1)
Reimbursable and other revenues includes
certain types of non-recurring reimbursable revenues, revenues
earned during suspension periods and revenues attributable to
amortization of contract intangibles.
(2)
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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
ADJUSTED EBITDA (1)
Floaters
Drillships
$
55.6
$
16.7
$
2.8
$
0.3
$
12.2
Semisubmersibles
15.4
20.5
25.4
30.8
28.0
$
71.0
$
37.2
$
28.2
$
31.1
$
40.2
Jackups
HD Harsh Environment
$
5.4
$
21.1
$
20.9
$
6.1
$
3.0
HD & SD Modern
8.6
30.1
20.4
11.6
9.4
SD Legacy
4.4
4.8
2.9
3.4
8.4
$
18.4
$
56.0
$
44.2
$
21.1
$
20.8
Total
$
89.4
$
93.2
$
72.4
$
52.2
$
61.0
Other
Leased and Managed Rigs
$
26.1
$
23.2
$
27.2
$
24.9
$
25.4
Total
$
115.5
$
116.4
$
99.6
$
77.1
$
86.4
Support
costs
General and administrative expense
$
26.5
$
24.3
$
24.2
$
26.4
$
24.4
Onshore support costs
35.3
34.6
35.4
35.4
33.5
$
61.8
$
58.9
$
59.6
$
61.8
$
57.9
Total
$
53.7
$
57.5
$
40.0
$
15.3
$
28.5
(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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
ADJUSTED EBITDAR (1)
Active Fleet (2)
$ 126.3
$ 137.5
$ 129.3
$ 104.5
$ 100.4
Leased and Managed Rigs
26.1
23.2
27.2
24.9
25.4
$ 152.4
$ 160.7
$ 156.5
$ 129.4
$ 125.8
Stacked Fleet (3)
(6.6)
(5.8)
(6.0)
(8.2)
(13.1)
$ 145.8
$ 154.9
$ 150.5
$ 121.2
$ 112.7
Support costs
General and administrative expense
$ 26.5
$ 24.3
$ 24.2
$ 26.4
$ 24.4
Onshore support costs
35.3
34.6
35.4
35.4
33.5
$ 61.8
$ 58.9
$ 59.6
$ 61.8
$ 57.9
Total
$ 84.0
$ 96.0
$ 90.9
$ 59.4
$ 54.8
Reactivation costs (4)
$ 30.3
$ 38.5
$ 50.9
$ 44.1
$ 26.3
(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 and includes 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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
ADJUSTED EBITDAR (1)
Floaters
Drillships
$
85.9
$
55.2
$
53.7
$
44.4
$
38.2
Semisubmersibles
15.4
20.5
25.4
30.9
28.2
$
101.3
$
75.7
$
79.1
$
75.3
$
66.4
Jackups
HD Harsh Environment
$
5.4
$
21.1
$
20.9
$
6.1
$
3.1
HD & SD Modern
8.6
30.1
20.4
11.5
9.4
SD Legacy
4.4
4.8
2.9
3.4
8.4
$
18.4
$
56.0
$
44.2
$
21.0
$
20.9
Total
$
119.7
$
131.7
$
123.3
$
96.3
$
87.3
Other
Leased and Managed Rigs
$
26.1
$
23.2
$
27.2
$
24.9
$
25.4
Total
$
145.8
$
154.9
$
150.5
$
121.2
$
112.7
Support
costs
General and administrative expense
$
26.5
$
24.3
$
24.2
$
26.4
$
24.4
Onshore support costs
35.3
34.6
35.4
35.4
33.5
$
61.8
$
58.9
$
59.6
$
61.8
$
57.9
Total
$
84.0
$
96.0
$
90.9
$
59.4
$
54.8
(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
Apr 30, 2024
Feb 15, 2024
Nov 1, 2023
Aug 1, 2023
May 1, 2023
CONTRACT BACKLOG (1)
Floaters
Drillships
$
2,223.9
$
2,307.6
$
1,726.5
$
1,684.9
$
1,499.0
Semisubmersibles
180.7
224.1
259.5
272.4
270.2
$
2,404.6
$
2,531.7
$
1,986.0
$
1,957.3
$
1,769.2
Jackups
HD Harsh Environment
$
607.0
$
646.8
$
327.9
$
307.4
$
277.7
HD & SD Modern
449.1
347.1
406.8
366.8
317.7
SD Legacy
128.8
173.5
186.9
118.4
119.7
$
1,184.9
$
1,167.4
$
921.6
$
792.6
$
715.1
Total
$
3,589.5
$
3,699.1
$
2,907.6
$
2,749.9
$
2,484.3
Other
Leased and Managed Rigs
$
427.7
$
222.3
$
250.5
$
291.4
$
318.9
Total
$
4,017.2
$
3,921.4
$
3,158.1
$
3,041.3
$
2,803.2
(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 includes drilling contracts
subject to 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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
AVERAGE DAILY REVENUE (1)
Floaters
Drillships
$
328,000
$
307,000
$
288,000
$
253,000
$
239,000
Semisubmersibles
261,000
229,000
257,000
252,000
259,000
$
312,000
$
285,000
$
279,000
$
252,000
$
245,000
Jackups
HD Harsh Environment
$
123,000
$
111,000
$
116,000
$
100,000
$
126,000
HD & SD Modern
103,000
119,000
105,000
102,000
98,000
SD Legacy
81,000
79,000
83,000
81,000
76,000
$
108,000
$
111,000
$
108,000
$
99,000
$
104,000
Total
$
197,000
$
174,000
$
171,000
$
158,000
$
154,000
Other
Leased and Managed Rigs
$
45,000
$
39,000
$
44,000
$
41,000
$
44,000
Total
$
153,000
$
136,000
$
134,000
$
124,000
$
124,000
(1)
Average daily revenue is derived by
dividing contract drilling revenues, adjusted to exclude certain
types of non-recurring reimbursable revenues, revenues earned
during suspension periods and revenues attributable to amortization
of drilling contract intangibles, by the aggregate number of
operating days.
VALARIS LIMITED AND
SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
UTILIZATION - TOTAL FLEET (1)
Floaters
Drillships
64
%
60
%
58
%
58
%
59
%
Semisubmersibles
51
%
53
%
54
%
60
%
57
%
61
%
58
%
57
%
59
%
58
%
Jackups
HD Harsh Environment
55
%
68
%
64
%
55
%
57
%
HD & SD Modern
44
%
52
%
51
%
52
%
57
%
SD Legacy
100
%
97
%
69
%
78
%
99
%
53
%
62
%
58
%
55
%
62
%
Total
56
%
60
%
57
%
56
%
60
%
Other
Leased and Managed Rigs
100
%
100
%
100
%
100
%
100
%
Total
64
%
68
%
65
%
65
%
68
%
Pro Forma Jackups (2)
64
%
69
%
66
%
65
%
69
%
(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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
UTILIZATION - ACTIVE FLEET (1)
(2)
Floaters
Drillships
84
%
68
%
63
%
71
%
77
%
Semisubmersibles
85
%
89
%
90
%
100
%
96
%
84
%
72
%
70
%
78
%
82
%
Jackups
HD Harsh Environment
67
%
83
%
79
%
67
%
67
%
HD & SD Modern
69
%
80
%
79
%
81
%
89
%
SD Legacy
100
%
97
%
68
%
78
%
99
%
71
%
83
%
78
%
74
%
81
%
Total
76
%
79
%
75
%
76
%
81
%
Other
Leased and Managed Rigs
100
%
100
%
100
%
100
%
100
%
Total
82
%
84
%
81
%
82
%
86
%
Pro Forma Jackups (3)
80
%
86
%
83
%
81
%
85
%
(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 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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
AVAILABLE DAYS - TOTAL FLEET
(1)
Floaters
Drillships
1,183
1,032
1,012
1,001
990
Semisubmersibles
455
460
460
455
450
1,638
1,492
1,472
1,456
1,440
Jackups
HD Harsh Environment
1,001
1,012
1,012
990
990
HD & SD Modern
1,258
1,288
1,288
1,274
1,260
SD Legacy
182
184
184
199
270
2,441
2,484
2,484
2,463
2,520
Total
4,079
3,976
3,956
3,919
3,960
Other
Leased and Managed Rigs
926
920
920
910
900
Total
5,005
4,896
4,876
4,829
4,860
(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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
AVAILABLE DAYS - ACTIVE FLEET
(1)
Floaters
Drillships
910
920
920
819
751
Semisubmersibles
273
276
276
273
270
1,183
1,196
1,196
1,092
1,021
Jackups
HD Harsh Environment
819
828
828
808
841
HD & SD Modern
803
828
828
819
810
SD Legacy
182
184
184
199
270
1,804
1,840
1,840
1,826
1,921
Total
2,987
3,036
3,036
2,918
2,942
Other
Leased and Managed Rigs
926
920
920
910
900
Total
3,913
3,956
3,956
3,828
3,842
(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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
OPERATING DAYS (1)
Floaters
Drillships
761
622
584
583
581
Semisubmersibles
231
245
249
272
258
992
867
833
855
839
Jackups
HD Harsh Environment
549
691
652
540
564
HD & SD Modern
555
665
654
663
718
SD Legacy
182
178
126
155
268
1,286
1,534
1,432
1,358
1,550
Total
2,278
2,401
2,265
2,213
2,389
Other
Leased and Managed Rigs
926
920
920
910
900
Total
3,204
3,321
3,185
3,123
3,289
(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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
REVENUE EFFICIENCY (1)
Floaters
Drillships
94
%
88
%
89
%
95
%
97
%
Semisubmersibles
99
%
94
%
93
%
100
%
100
%
95
%
90
%
90
%
96
%
98
%
Jackups
HD Harsh Environment
100
%
99
%
99
%
99
%
100
%
HD & SD Modern
99
%
97
%
97
%
98
%
100
%
SD Legacy
100
%
97
%
99
%
100
%
99
%
99
%
98
%
98
%
99
%
100
%
Total
97
%
93
%
94
%
97
%
99
%
(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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Active Fleet (1)
Floaters
Drillships
10
10
10
9
9
Semisubmersibles
3
3
3
3
3
13
13
13
12
12
Jackups
HD Harsh Environment
9
9
9
9
9
HD & SD Modern
8
9
9
9
9
SD Legacy
2
2
2
2
3
19
20
20
20
21
Total Active Fleet
32
33
33
32
33
Stacked Fleet
Floaters
Drillships
3
3
1
2
2
Semisubmersibles
2
2
2
2
2
5
5
3
4
4
Jackups
HD Harsh Environment
2
2
2
2
2
HD & SD Modern
5
5
5
5
5
7
7
7
7
7
Total Stacked Fleet
12
12
10
11
11
Leased Rigs (2)
Jackups
HD Harsh Environment
1
1
1
1
1
HD & SD Modern
8
7
7
7
7
Total Leased Rigs
9
8
8
8
8
Total
53
53
51
51
52
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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Cash
$
69.5
$
92.9
$
110.3
$
100.6
$
101.2
Other current assets
198.3
184.0
191.2
188.3
189.3
Non-current assets
1,094.2
1,081.0
915.3
879.6
830.2
Total assets
$
1,362.0
$
1,357.9
$
1,216.8
$
1,168.5
$
1,120.7
Current liabilities
$
135.0
$
136.0
$
173.6
$
122.6
$
68.5
Non-current liabilities
1,057.6
1,056.8
886.2
887.5
887.4
Total liabilities
$
1,192.6
$
1,192.8
$
1,059.8
$
1,010.1
$
955.9
Shareholders' equity
$
169.4
$
165.1
$
157.0
$
158.4
$
164.8
Total liabilities and shareholders'
equity
$
1,362.0
$
1,357.9
$
1,216.8
$
1,168.5
$
1,120.7
ARO DRILLING
CONDENSED INCOME STATEMENT
INFORMATION
(In millions)
(Unaudited)
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Revenues
$
138.3
$
133.7
$
121.5
$
117.8
$
123.6
Operating expenses
Contract drilling (exclusive of
depreciation)
98.3
88.0
92.0
95.0
90.9
Depreciation
19.0
19.5
15.8
15.6
15.0
General and administrative
5.8
6.3
5.6
5.7
4.6
Operating income
$
15.2
$
19.9
$
8.1
$
1.5
$
13.1
Other expense, net
13.1
3.6
9.0
8.8
10.4
Provision for income taxes
3.7
6.0
0.4
—
1.9
Net income (loss)
$
(1.6
)
$
10.3
$
(1.3
)
$
(7.3
)
$
0.8
EBITDA
$
34.2
$
39.4
$
23.9
$
17.1
$
28.1
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)
Apr 30, 2024
Feb 15, 2024
Nov 1, 2023
Aug 1, 2023
May 1, 2023
CONTRACT BACKLOG (1)
Owned Rigs
$
1,398.9
$
1,475.4
$
1,547.0
$
686.3
$
747.7
Leased Rigs
583.3
662.7
743.7
815.0
884.7
Total
$
1,982.2
$
2,138.1
$
2,290.7
$
1,501.3
$
1,632.4
(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
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
AVERAGE DAILY REVENUE (1)
Owned Rigs
$ 105,000
$ 100,000
$ 91,000
$ 90,000
$ 99,000
Leased Rigs (2)
99,000
97,000
98,000
98,000
98,000
Total
$ 102,000
$ 98,000
$ 95,000
$ 95,000
$ 98,000
UTILIZATION (3)
Owned Rigs
91 %
96 %
91 %
83 %
91 %
Leased Rigs (2)
93 %
94 %
95 %
98 %
95 %
Total
92 %
95 %
93 %
91 %
93 %
REVENUE EFFICIENCY (4)
Owned Rigs
98 %
94 %
99 %
95 %
98 %
Leased Rigs (2)
99 %
98 %
97 %
99 %
95 %
Total
98 %
96 %
98 %
97 %
96 %
NUMBER OF RIGS (AT QUARTER END)
(5)
Owned Rigs
8
8
7
7
7
Leased Rigs (2)
9
8
8
8
8
Total
17
16
15
15
15
AVAILABLE DAYS (6)
Owned Rigs
728
695
644
637
630
Leased Rigs (2)
744
736
736
728
720
Total
1,472
1,431
1,380
1,365
1,350
OPERATING DAYS (7)
Owned Rigs
664
668
585
532
575
Leased Rigs (2)
692
691
697
713
683
Total
1,356
1,359
1,282
1,245
1,258
(1)
Average daily revenue is derived by
dividing contract drilling revenues, adjusted to exclude certain
types of non-recurring reimbursable revenues, revenues earned
during suspension periods and revenues attributable to amortization
of drilling contract intangibles, 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)
Rig count for owned rigs as of March 31,
2024 excludes a rig under construction, which is expected to be
delivered in the second quarter of 2024.
(6)
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.
(7) 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 and Adjusted EBITDAR, 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, loss on impairment 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 "EBITDA" as net income before income tax
expense, other expense, net and depreciation expense. 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. 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. 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
first 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).
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
Mar 31, 2024
Dec 31, 2023
VALARIS
Net income
$
25.5
$
828.5
Add (subtract):
Income tax expense (benefit)
12.9
(790.2
)
Interest expense
17.7
21.7
Other income
(26.8
)
(21.7
)
Operating income
$
29.3
$
38.3
Add (subtract):
Depreciation expense
26.8
27.5
Equity in earnings of ARO
(2.4
)
(8.3
)
Adjusted EBITDA
$
53.7
$
57.5
Three Months Ended
Mar 31, 2024
Dec 31, 2023
ARO
Net income (loss)
$
(1.6
)
$
10.3
Add:
Income tax expense
3.7
6.0
Other expense, net
13.1
3.6
Operating income
$
15.2
$
19.9
Add:
Depreciation expense
19.0
19.5
EBITDA
$
34.2
$
39.4
Reconciliation of Net Income to Adjusted EBITDA and Adjusted
EBITDAR
(In millions)
Three Months Ended
Mar 31, 2024
Dec 31, 2023
FLOATERS
Net income
$
64.1
$
24.3
Subtract:
Other income
(6.3
)
(2.1
)
Operating income
$
57.8
$
22.2
Add:
Depreciation
13.2
15.0
Adjusted EBITDA (1)
$
71.0
$
37.2
Add:
Reactivation costs
30.3
38.5
Adjusted EBITDAR (1)
$
101.3
$
75.7
JACKUPS
Net income
$
8.8
$
46.1
Subtract:
Other income
(0.8
)
(1.3
)
Operating income
$
8.0
$
44.8
Add:
Depreciation
10.4
11.2
Adjusted EBITDA (1)
$
18.4
$
56.0
Adjusted EBITDAR (1)
$
18.4
$
56.0
OTHER
Net income
$
24.8
$
22.1
Operating income
$
24.8
$
22.1
Add (subtract):
Depreciation
1.3
1.2
Other costs
—
(0.1
)
Adjusted EBITDA (1)
$
26.1
$
23.2
Adjusted EBITDAR (1)
$
26.1
$
23.2
Reconciliation of Net Income (Loss) to Adjusted
EBITDAR
(In millions)
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
ACTIVE FLEET (1)
Net income
$
80.8
$
78.7
$
57.5
$
68.2
$
55.4
Subtract:
Other income
(7.0
)
(3.3
)
(1.0
)
(27.4
)
—
Operating income
$
73.8
$
75.4
$
56.5
$
40.8
$
55.4
Add (subtract):
Reactivation costs
30.3
38.5
50.9
44.1
26.3
Depreciation
22.2
23.5
21.9
19.6
18.9
Support and other costs
—
0.1
—
—
(0.2
)
Adjusted EBITDAR (2)
$
126.3
$
137.5
$
129.3
$
104.5
$
100.4
LEASED AND MANAGED RIGS
Net income
$
24.8
$
22.1
$
25.8
$
23.8
$
24.0
Operating income
$
24.8
$
22.1
$
25.8
$
23.8
$
24.0
Add (subtract):
Depreciation
1.3
1.2
1.3
1.2
1.3
Support and other costs
—
(0.1
)
0.1
(0.1
)
0.1
Adjusted EBITDAR (2)
$
26.1
$
23.2
$
27.2
$
24.9
$
25.4
STACKED FLEET
Net loss
$
(7.9
)
$
(8.3
)
$
(8.6
)
$
(11.7
)
$
(15.8
)
Subtract:
Other income
(0.1
)
(0.1
)
—
—
(0.5
)
Operating loss
$
(8.0
)
$
(8.4
)
$
(8.6
)
$
(11.7
)
$
(16.3
)
Add (subtract):
Depreciation
1.4
2.7
2.5
3.6
3.2
Support and other costs
—
(0.1
)
0.1
(0.1
)
—
Adjusted EBITDAR (2)
$
(6.6
)
$
(5.8
)
$
(6.0
)
$
(8.2
)
$
(13.1
)
TOTAL FLEET
Net income
$
97.7
$
92.5
$
74.7
$
80.3
$
63.6
Subtract:
Other income
(7.1
)
(3.4
)
(1.0
)
(27.4
)
(0.5
)
Operating income
$
90.6
$
89.1
$
73.7
$
52.9
$
63.1
Add (subtract):
Reactivation costs
30.3
38.5
50.9
44.1
26.3
Depreciation
24.9
27.4
25.7
24.4
23.4
Support and other costs
—
(0.1
)
0.2
(0.2
)
(0.1
)
Adjusted EBITDAR (2)
$
145.8
$
154.9
$
150.5
$
121.2
$
112.7
(1)
Active fleet represents rigs that are not
preservation stacked and includes 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 (Loss) to Adjusted
EBITDA
(In millions)
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
DRILLSHIPS
Net income (loss)
$
49.4
$
4.7
$
(9.9
)
$
(12.0
)
$
0.4
Subtract:
Other income
(6.2
)
(2.0
)
(0.6
)
(0.4
)
(0.3
)
Operating income (loss)
43.2
2.7
(10.5
)
(12.4
)
0.1
Add (subtract):
Depreciation
12.4
14.0
13.2
12.8
12.2
Other
—
—
0.1
(0.1
)
(0.1
)
Adjusted EBITDA (1)
$
55.6
$
16.7
$
2.8
$
0.3
$
12.2
SEMISUBMERSIBLES
Net income
$
14.7
$
19.6
$
24.4
$
29.9
$
27.1
Add (subtract):
Other (income) expense
(0.1
)
(0.1
)
—
0.1
—
Operating income
14.6
19.5
24.4
30.0
27.1
Add:
Depreciation
0.8
1.0
1.0
0.8
0.9
Adjusted EBITDA (1)
$
15.4
$
20.5
$
25.4
$
30.8
$
28.0
(1)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
Reconciliation of Net Income (Loss) to Adjusted
EBITDA
(In millions)
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
HD Harsh Environment
Net income (loss)
$
0.4
$
15.4
$
15.4
$
0.4
$
(2.5
)
Subtract:
Other income
(0.3
)
(0.1
)
(0.2
)
—
(0.1
)
Operating income (loss)
0.1
15.3
15.2
0.4
(2.6
)
Add (subtract):
Depreciation
5.3
5.8
5.7
5.7
5.8
Other
—
—
—
—
(0.2
)
Adjusted EBITDA (1)
$
5.4
$
21.1
$
20.9
$
6.1
$
3.0
HD & SD MODERN JACKUPS
Net income
$
6.4
$
28.2
$
17.7
$
8.9
$
7.2
Subtract:
Other income
(0.6
)
(1.2
)
(0.2
)
(0.1
)
(0.1
)
Operating income
5.8
27.0
17.5
8.8
7.1
Add (subtract):
Depreciation
2.8
3.0
2.9
2.9
2.4
Other
—
0.1
—
(0.1
)
(0.1
)
Adjusted EBITDA (1)
$
8.6
$
30.1
$
20.4
$
11.6
$
9.4
SD LEGACY JACKUPS
Net income
$
2.0
$
2.5
$
1.3
$
29.8
$
7.4
Add (subtract):
Other (income) expense
0.1
—
—
(27.5
)
—
Operating income
2.1
2.5
1.3
2.3
7.4
Add (subtract):
Depreciation
2.3
2.4
1.6
1.0
0.9
Other
—
(0.1
)
—
0.1
0.1
Adjusted EBITDA (1)
$
4.4
$
4.8
$
2.9
$
3.4
$
8.4
(1)
Adjusted EBITDA for asset category excludes onshore support
costs and general and administrative expense.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240430106845/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
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