Valaris Ltd. on Wednesday reported $615.2 million in revenue for the second quarter, down one percent from the prior three-month period due to fewer operating days and lower amortized revenue for its floater fleet.
That was partially offset by more operating days and higher average daily revenue for the jackup fleet.
Revenue from floaters was $362.9 million, down 10 percent against Q1. Revenue from jackups was $238 million, up 11 percent. ARO Drilling, Valaris’ 50-50 venture with Saudi Arabian Oil Co., contributed $139.9 million, down four percent.
Total revenue exclusive of reimbursable items came at $572.3 million, compared to $577.8 million for Q1. Reimbursable revenue was $42.9 million.
“Since reporting our first quarter results, we have secured new contracts with associated revenue backlog of more than $1 billion, increasing our total backlog to approximately $4.7 billion”, president and chief executive Anton Dibowitz said. “These awards include attractive contracts for three seventh-generation drillships, and we have now secured work for three of our four drillships with near-term availability”.
“As expected, the pipeline of floater opportunities we have discussed in recent quarters are [sic] converting into contracts, and we anticipate additional awards across the industry in the coming months”, Dibowitz added.
Valaris noted, “Exclusive of reimbursable items, contract drilling expense decreased to $355 million from $374 million in the first quarter 2025 primarily due to a favorable arbitration outcome related to previously disclosed patent license litigation, which led to a $17 million accrual reversal, as well as lower amortized expense for the floater fleet and a reduction in costs associated with three retired semisubmersibles that were sold for recycling during the quarter”.
While revenue fell, the Hamilton, Bermuda-based driller rebounded from a net loss of $39.2 million for Q1 to a net profit of $114.2 million for Q2.
“Net income included tax expense of $32 million compared to $194 million in the first quarter”, Valaris explained.
Besides a higher tax expense, Q1 net profit was dragged down by an $8-million impairment from the decision to retire semisubmersibles VALARIS DPS-3, DPS-5 and DPS-6. These were sold April for recycling.
Diluted earnings per share for Q2 landed at $1.61, beating the Zacks Consensus Estimate of $1.16.
Operating income rose 15 percent sequentially to $164.1 million. Adjusted EBITDA increased 11 percent to $200.7 million.
Cash flow from operating activities in Q2 was $120 million. Adjusted free cash flow was $63 million.
Valaris ended Q2 with $503.4 million in cash and cash equivalents. Current assets totaled $1.23 billion. Current liabilities stood at $678.7 million.
To contact the author, email jov.onsat@rigzone.com
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