Valaris Reports First Quarter 2023 Results

05/01/2023

Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today reported first quarter 2023 results.

President and Chief Executive Officer Anton Dibowitz said, “In the first quarter, we achieved strong revenue efficiency of 99% and won new contracts and extensions with associated contract backlog of approximately $820 million, including a three-year contract offshore Brazil for which we will reactivate drillship VALARIS DS-8.”

Dibowitz added, “On our fourth quarter conference call we outlined a goal to enhance our capital structure, and we achieved this objective through our recently completed refinancing transaction, including the addition of a revolving credit facility. The refinancing increased our liquidity by almost $500 million, enhancing our capital allocation flexibility including our ability to return capital to shareholders.”

Dibowitz concluded, “We continue to be highly constructive on the outlook for the industry and our business, with increasing demand and constrained supply continuing to tighten the market. As a result of our strong business outlook and commitment to returning capital to shareholders, the Valaris Board of Directors has increased our share repurchase authorization to $300 million, and we intend to repurchase $150 million of shares by the end of the year. As we look ahead, we will continue executing our focused, value driven and responsible strategy to deliver value to all stakeholders.”

Financial and Operational Highlights

  • Generated Net Income of $49 million, Adjusted EBITDA of $24 million and Adjusted EBITDAR of $51 million;
  • Delivered revenue efficiency of 99%;
  • Awarded new contracts and extensions with associated contract backlog of approximately $820 million, increasing total contract backlog to $2.8 billion;
  • Enhanced capital structure and liquidity through a refinancing in April 2023, including the addition of a $375 million revolving credit facility;
  • Valaris Board of Directors authorized an increase in the Company's share repurchase program to $300 million in April 2023; and
  • Published 2022 Sustainability Report in April 2023, in which we announced a Scope 1 carbon emissions intensity reduction target by 2030.

First Quarter Review

Net income was $49 million compared to $31 million in the fourth quarter 2022. Adjusted EBITDA decreased to $24 million from $54 million in the fourth quarter primarily due to increased repair and maintenance costs associated with special periodic surveys. Adjusted EBITDAR decreased to $51 million from $75 million in the fourth quarter for the same reason described above.

Revenues decreased to $430 million from $434 million in the fourth quarter 2022. Excluding reimbursable items, revenues decreased to $408 million from $413 million in the fourth quarter. The decrease was primarily due to lower utilization for the harsh environment jackup fleet, partially offset by a higher average day rate for the floater fleet.

Contract drilling expense increased to $377 million from $353 million in the fourth quarter 2022. Excluding reimbursable items, contract drilling expense increased to $356 million from $333 million in the fourth quarter primarily due to increased repair and maintenance costs associated with special periodic surveys and higher reactivation costs, which increased to $26 million from $21 million.

Depreciation expense decreased to $23 million from $24 million in the fourth quarter 2022. General and administrative expense of $24 million was in line with the fourth quarter 2022.

Other income was $13 million compared to other expense of less than $1 million in the fourth quarter 2022. This was primarily due to foreign currency exchange gains compared to losses in the fourth quarter and an increase in interest income due to a higher interest rate on the ARO shareholder notes receivable as well as an increase in interest from short-term deposits.

Tax benefit was $28 million compared to tax expense of $10 million in the fourth quarter 2022. The first quarter tax provision included $44 million of discrete tax benefit primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. The fourth quarter tax provision included $3 million of discrete tax benefit attributable to the resolution of prior period tax matters. Adjusted for discrete items, tax expense increased to $16 million from $13 million in the fourth quarter.

Total liquidity, which includes cash and cash equivalents and restricted cash, increased to $844 million as of March 31, 2023, from $749 million as of December 31, 2022. The increase was primarily due to cash flow generated from operations, including changes in working capital, of which $46 million was a refund payment from the IRS related to the CARES Act. These were partially offset by capital expenditures.

Capital expenditures increased to $56 million from $54 million in the fourth quarter 2022.

First Quarter Segment Review

Floaters

Floater revenues increased to $215 million from $211 million in the fourth quarter 2022. Excluding reimbursable items, revenues increased to $207 million from $203 million in the fourth quarter. The increase was primarily due to higher day rates for VALARIS DPS-5 and DS-12, which commenced new contracts during the first quarter. This was partially offset by lower utilization, primarily related to VALARIS DS-12, which mobilized from Mauritania to Angola during the first quarter, prior to commencing operations for another customer.

Contract drilling expense increased to $175 million from $173 million in the fourth quarter 2022. Excluding reimbursable items, contract drilling expense increased marginally to $166 million from $165 million in the fourth quarter.

Jackups

Jackup revenues decreased to $170 million from $182 million in the fourth quarter 2022. Excluding reimbursable items, revenues decreased to $162 million from $176 million in the fourth quarter primarily due to lower utilization for the harsh environment jackup fleet, including idle time for all three of our N-Class jackups as well as VALARIS 121 and 247.

Contract drilling expense increased to $149 million from $130 million in the fourth quarter 2022. Excluding reimbursable items, contract drilling expense increased to $142 million from $124 million in the fourth quarter primarily due to higher repair and maintenance costs associated with special periodic surveys.

ARO Drilling

Revenues increased to $124 million from $120 million in the fourth quarter 2022 primarily due to a higher average day rate following the commencement of three-year contract extensions for VALARIS 147 and 148 in December 2022 and February 2023, respectively. Contract drilling expense increased to $91 million from $86 million in the fourth quarter primarily due to higher bareboat charter expense.

Other

Revenues increased to $46 million from $41 million in the fourth quarter 2022 primarily due to higher ARO lease revenue for VALARIS 147 and 148, mentioned above. Contract drilling expense increased to $20 million from $18 million in the fourth quarter.

 

 

First Quarter

 

Floaters

 

Jackups

 

ARO (1)

 

Other

 

Reconciling
Items (1)(2)

 

Consolidated Total

(in millions of $, except %)

Q1 2023

Q4 2022

Chg

 

Q1 2023

Q4 2022

Chg

 

Q1 2023

Q4 2022

Chg

 

Q1 2023

Q4 2022

Chg

 

Q1 2023

Q4 2022

 

Q1 2023

Q4 2022

Chg

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

214.8

211.0

2%

 

169.8

181.8

(7)%

 

123.6

120.4

3%

 

45.5

40.8

12%

 

(123.6)

(120.4)

 

430.1

433.6

(1)%

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

174.6

172.6

(1)%

 

148.9

129.5

(15)%

 

90.9

85.5

(6)%

 

20.2

18.4

(10)%

 

(57.4)

(52.6)

 

377.2

353.4

(7)%

Depreciation

13.0

12.9

(1)%

 

9.0

9.6

6%

 

15.0

16.1

7%

 

1.3

1.2

(8)%

 

(15.0)

(16.0)

 

23.3

23.8

2%

General and admin.

—%

 

—%

 

4.6

5.6

18%

 

—%

 

19.8

18.3

 

24.4

23.9

(2)%

Equity in earnings of ARO

—%

 

—%

 

—%

 

—%

 

3.3

8.6

 

3.3

8.6

(62)%

Operating income (loss)

27.2

25.5

7%

 

11.9

42.7

(72)%

 

13.1

13.2

(1)%

 

24.0

21.2

13%

 

(67.7)

(61.5)

 

8.5

41.1

(79)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

27.5

26.6

3%

 

12.1

46.4

(74)%

 

0.8

10.7

(93)%

 

24.0

21.2

13%

 

(15.8)

(73.8)

 

48.6

31.1

56%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

38.9

37.5

4%

 

17.9

51.1

(65)%

 

28.1

29.3

(4)%

 

25.4

22.4

13%

 

(86.0)

(86.0)

 

24.3

54.3

(55)%

Adjusted EBITDAR

65.1

58.1

12%

 

18.0

51.2

(65)%

 

28.1

29.3

(4)%

 

25.4

22.4

13%

 

(86.0)

(86.0)

 

50.6

75.0

(33)%

 

(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."

Guidance

The Company's first quarter 2023 results were better than prior guidance primarily due to timing of anticipated projects moving from the first quarter to subsequent quarters. The Company's full-year 2023 guidance remains unchanged.

As previously announced, Valaris will hold its first quarter 2023 earnings conference call at 9:00 a.m. CT (10:00 a.m. ET) on Tuesday, May 2, 2023. 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, 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; 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 (such as the ongoing conflict in Ukraine); cybersecurity attacks and threats; impacts and effects of public health crises, pandemics and epidemics, such as the COVID-19 pandemic; future operations; increasing regulatory complexity; targets, progress, plans and goals related to environmental, social and governance ( ESG ) 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 ESG targets, including our Scope 1 emissions intensity reduction target, 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

C ONSOLIDATED STATEMENTS OF OPERATIONS

( In millions, except per share amounts)

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

OPERATING REVENUES

$

430.1

 

 

$

433.6

 

 

$

437.2

 

 

$

413.3

 

 

$

318.4

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Contract drilling (exclusive of depreciation)

 

377.2

 

 

 

353.4

 

 

 

336.7

 

 

 

361.8

 

 

 

331.3

 

Loss on impairment

 

 

 

 

 

 

 

 

 

 

34.5

 

 

 

 

Depreciation

 

23.3

 

 

 

23.8

 

 

 

22.6

 

 

 

22.3

 

 

 

22.5

 

General and administrative

 

24.4

 

 

 

23.9

 

 

 

19.2

 

 

 

19.0

 

 

 

18.8

 

Total operating expenses

 

424.9

 

 

 

401.1

 

 

 

378.5

 

 

 

437.6

 

 

 

372.6

 

EQUITY IN EARNINGS OF ARO

 

3.3

 

 

 

8.6

 

 

 

2.9

 

 

 

8.7

 

 

 

4.3

 

OPERATING INCOME (LOSS)

 

8.5

 

 

 

41.1

 

 

 

61.6

 

 

 

(15.6

)

 

 

(49.9

)

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

Interest income

 

23.0

 

 

 

15.5

 

 

 

27.9

 

 

 

11.2

 

 

 

10.9

 

Interest expense, net

 

(11.1

)

 

 

(10.5

)

 

 

(11.7

)

 

 

(11.6

)

 

 

(11.5

)

Reorganization items, net

 

 

 

 

(0.3

)

 

 

(0.4

)

 

 

(0.7

)

 

 

(1.0

)

Other, net

 

0.6

 

 

 

(4.9

)

 

 

14.1

 

 

 

149.7

 

 

 

11.0

 

 

 

12.5

 

 

 

(0.2

)

 

 

29.9

 

 

 

148.6

 

 

 

9.4

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

 

21.0

 

 

 

40.9

 

 

 

91.5

 

 

 

133.0

 

 

 

(40.5

)

 

 

 

 

 

 

 

 

 

 

PROVISION (BENEFIT) FOR INCOME TAXES

 

(27.6

)

 

 

9.8

 

 

 

13.8

 

 

 

20.2

 

 

 

(0.7

)

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

48.6

 

 

 

31.1

 

 

 

77.7

 

 

 

112.8

 

 

 

(39.8

)

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

(1.9

)

 

 

(1.9

)

 

 

(3.4

)

 

 

(1.2

)

 

 

1.2

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS

$

46.7

 

 

$

29.2

 

 

$

74.3

 

 

$

111.6

 

 

$

(38.6

)

 

 

 

 

 

 

 

 

 

 

EARNINGS (LOSS) PER SHARE

 

 

 

 

 

 

 

 

 

Basic

$

0.62

 

 

$

0.39

 

 

$

0.99

 

 

$

1.49

 

 

$

(0.51

)

Diluted

$

0.61

 

 

$

0.38

 

 

$

0.98

 

 

$

1.48

 

 

$

(0.51

)

WEIGHTED-AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

Basic

 

75.2

 

 

 

75.2

 

 

 

75.1

 

 

 

75.0

 

 

 

75.0

 

Diluted

 

76.4

 

 

 

76.0

 

 

 

75.6

 

 

 

75.6

 

 

 

75.0

 

VALARIS LIMITED AND SUBSIDIARIES

C ONSOLIDATED BALANCE SHEETS

( In millions)

 

 

As of

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

822.5

 

$

724.1

 

$

406.0

 

$

553.5

 

$

578.2

Restricted cash

 

21.5

 

 

24.4

 

 

18.2

 

 

23.8

 

 

30.0

Short-term investments

 

 

 

 

 

220.0

 

 

 

 

Accounts receivable, net

 

393.4

 

 

449.1

 

 

535.5

 

 

544.6

 

 

439.3

Other current assets

 

158.1

 

 

148.6

 

 

162.9

 

 

159.0

 

 

125.7

Total current assets

$

1,395.5

 

$

1,346.2

 

$

1,342.6

 

$

1,280.9

 

$

1,173.2

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

1,015.5

 

 

977.2

 

 

953.6

 

 

931.7

 

 

930.2

 

 

 

 

 

 

 

 

 

 

LONG-TERM NOTES RECEIVABLE FROM ARO

 

261.0

 

 

254.0

 

 

246.9

 

 

264.5

 

 

256.8

 

 

 

 

 

 

 

 

 

 

INVESTMENT IN ARO

 

114.4

 

 

111.1

 

 

102.6

 

 

99.6

 

 

90.9

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

164.8

 

 

171.8

 

 

175.5

 

 

184.1

 

 

180.5

 

 

 

 

 

 

 

 

 

 

 

$

2,951.2

 

$

2,860.3

 

$

2,821.2

 

$

2,760.8

 

$

2,631.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Accounts payable - trade

$

324.1

 

$

256.5

 

$

256.6

 

$

287.0

 

$

311.2

Accrued liabilities and other

 

267.7

 

 

247.9

 

 

262.5

 

 

260.1

 

 

212.1

Total current liabilities

$

591.8

 

$

504.4

 

$

519.1

 

$

547.1

 

$

523.3

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT

 

542.8

 

 

542.4

 

 

541.8

 

 

545.7

 

 

545.5

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES

 

464.6

 

 

515.6

 

 

523.2

 

 

511.0

 

 

522.1

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

1,599.2

 

 

1,562.4

 

 

1,584.1

 

 

1,603.8

 

 

1,590.9

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

1,352.0

 

 

1,297.9

 

 

1,237.1

 

 

1,157.0

 

 

1,040.7

 

 

 

 

 

 

 

 

 

 

 

$

2,951.2

 

$

2,860.3

 

$

2,821.2

 

$

2,760.8

 

$

2,631.6

VALARIS LIMITED AND SUBSIDIARIES

C ONSOLIDATED STATEMENTS OF CASH FLOWS

( In millions)

 

 

Three Months Ended

 

March 31,
2023

December 31,
2022

September 30,
2022

June 30,
2022

March 31,
2022

OPERATING ACTIVITIES

 

 

 

 

 

Net income (loss)

$

48.6

 

$

31.1

 

$

77.7

 

$

112.8

 

$

(39.8

)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

 

 

 

 

 

Depreciation expense

 

23.3

 

 

23.8

 

 

22.6

 

 

22.3

 

 

22.5

 

Accretion of discount on notes receivable

 

(7.0

)

 

(7.1

)

 

(22.4

)

 

(7.7

)

 

(7.7

)

Share-based compensation expense

 

5.7

 

 

5.9

 

 

4.6

 

 

3.5

 

 

3.4

 

Deferred income tax expense (benefit)

 

4.6

 

 

0.8

 

 

0.4

 

 

7.3

 

 

(0.6

)

Amortization, net

 

(4.2

)

 

(2.0

)

 

(5.4

)

 

(3.2

)

 

1.6

 

Equity in earnings of ARO

 

(3.3

)

 

(8.6

)

 

(2.9

)

 

(8.7

)

 

(4.3

)

Net periodic pension and retiree medical income

 

(0.1

)

 

(4.3

)

 

(4.0

)

 

(4.1

)

 

(4.0

)

Gain on asset disposals

 

(0.1

)

 

(3.5

)

 

(0.1

)

 

(135.1

)

 

(2.5

)

Loss on impairment

 

 

 

 

 

 

 

34.5

 

 

 

Other

 

0.1

 

 

(1.9

)

 

 

 

0.3

 

 

0.5

 

Changes in operating assets and liabilities

 

85.1

 

 

121.3

 

 

16.4

 

 

(134.8

)

 

32.5

 

Contributions to pension plans and other post-retirement benefits

 

(1.0

)

 

(0.8

)

 

(0.6

)

 

(1.9

)

 

(0.8

)

Net cash provided by (used in) operating activities

$

151.7

 

$

154.7

 

$

86.3

 

$

(114.8

)

$

0.8

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

Additions to property and equipment

$

(56.3

)

$

(53.9

)

$

(53.5

)

$

(61.1

)

$

(38.5

)

Net proceeds from disposition of assets

 

0.1

 

 

3.5

 

 

0.3

 

 

145.2

 

 

1.3

 

Purchases of short-term investments

 

 

 

 

 

(220.0

)

 

 

 

 

Maturities of short-term investments

 

 

 

220.0

 

 

 

 

 

 

 

Repayments of note receivable from ARO

 

 

 

 

 

40.0

 

 

 

 

 

Net cash provided by (used in) investing activities

$

(56.2

)

$

169.6

 

$

(233.2

)

$

84.1

 

$

(37.2

)

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

Consent solicitation fees

$

 

$

 

$

(3.9

)

$

 

$

 

Payments for tax withholdings for share-based awards

 

 

 

 

 

(2.3

)

 

(0.2

)

 

 

Net cash provided by (used in) financing activities

$

 

$

 

$

(6.2

)

$

(0.2

)

$

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

$

95.5

 

$

324.3

 

$

(153.1

)

$

(30.9

)

$

(36.4

)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

 

748.5

 

 

424.2

 

 

577.3

 

 

608.2

 

 

644.6

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

$

844.0

 

$

748.5

 

$

424.2

 

$

577.3

 

$

608.2

 

VALARIS LIMITED AND SUBSIDIARIES

OPERATING STATISTICS

(In millions)

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

REVENUES

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

$

146.5

 

$

151.9

 

$

139.8

 

$

149.0

 

$

85.4

Semisubmersibles

 

68.3

 

 

59.1

 

 

61.9

 

 

39.1

 

 

14.3

 

$

214.8

 

$

211.0

 

$

201.7

 

$

188.1

 

$

99.7

Jackups (1)

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh Environment

$

75.7

 

$

98.5

 

$

123.0

 

$

106.1

 

$

92.9

HD & SD Modern

 

73.2

 

 

62.5

 

 

59.0

 

 

61.1

 

 

67.9

SD Legacy

 

20.9

 

 

20.8

 

 

13.9

 

 

18.6

 

 

19.9

 

$

169.8

 

$

181.8

 

$

195.9

 

$

185.8

 

$

180.7

 

 

 

 

 

 

 

 

 

 

Total

$

384.6

 

$

392.8

 

$

397.6

 

$

373.9

 

$

280.4

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

$

45.5

 

$

40.8

 

$

39.6

 

$

39.4

 

$

38.0

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

430.1

 

$

433.6

 

$

437.2

 

$

413.3

 

$

318.4

 

 

 

 

 

 

 

 

 

 

(1)

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)

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

ADJUSTED EBITDAR (1)

 

 

 

 

 

 

 

 

 

Active Fleet (1) (2)

$

96.2

 

 

$

117.5

 

 

$

129.6

 

 

$

98.7

 

 

$

66.5

 

Leased and Managed Rigs (1)

 

25.4

 

 

 

22.4

 

 

 

22.1

 

 

 

14.9

 

 

 

22.6

 

 

$

121.6

 

 

$

139.9

 

 

$

151.7

 

 

$

113.6

 

 

$

89.1

 

 

 

 

 

 

 

 

 

 

 

Stacked Fleet (1) (3)

 

(13.1

)

 

 

(8.2

)

 

 

(8.5

)

 

 

(11.3

)

 

 

(10.7

)

 

$

108.5

 

 

$

131.7

 

 

$

143.2

 

 

$

102.3

 

 

$

78.4

 

 

 

 

 

 

 

 

 

 

 

Support costs

 

 

 

 

 

 

 

 

 

General and administrative expense

$

24.4

 

 

$

23.9

 

 

$

19.2

 

 

$

19.0

 

 

$

18.8

 

Onshore support costs

 

33.5

 

 

 

32.8

 

 

 

30.2

 

 

 

29.7

 

 

 

29.0

 

 

$

57.9

 

 

$

56.7

 

 

$

49.4

 

 

$

48.7

 

 

$

47.8

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

50.6

 

 

$

75.0

 

 

$

93.8

 

 

$

53.6

 

 

$

30.6

 

 

 

 

 

 

 

 

 

 

 

Reactivation costs (4)

$

26.3

 

 

$

20.7

 

 

$

17.8

 

 

$

24.3

 

 

$

61.5

 

(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 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)

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

ADJUSTED EBITDAR (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships (1)

$

37.3

 

 

$

37.4

 

$

30.5

 

$

44.3

 

$

27.2

 

Semisubmersibles (1)

 

27.8

 

 

 

20.7

 

 

28.0

 

 

2.9

 

 

(15.0

)

 

$

65.1

 

 

$

58.1

 

$

58.5

 

$

47.2

 

$

12.2

 

 

 

 

 

 

 

 

 

 

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh (1)

$

(0.7

)

 

$

28.1

 

$

50.4

 

$

30.7

 

$

21.0

 

HD & SD - Modern (1)

 

9.6

 

 

 

12.9

 

 

10.1

 

 

1.7

 

 

13.7

 

SD - Legacy (1)

 

9.1

 

 

 

10.2

 

 

2.1

 

 

7.8

 

 

8.9

 

 

$

18.0

 

 

$

51.2

 

$

62.6

 

$

40.2

 

$

43.6

 

 

 

 

 

 

 

 

 

 

 

Total

$

83.1

 

 

$

109.3

 

$

121.1

 

$

87.4

 

$

55.8

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs (1)

$

25.4

 

 

$

22.4

 

$

22.1

 

$

14.9

 

$

22.6

 

 

 

 

 

 

 

 

 

 

 

Total

$

108.5

 

 

$

131.7

 

$

143.2

 

$

102.3

 

$

78.4

 

 

 

 

 

 

 

 

 

 

 

Support costs

 

 

 

 

 

 

 

 

 

General and administrative expense

$

24.4

 

 

$

23.9

 

$

19.2

 

$

19.0

 

$

18.8

 

Onshore support costs

 

33.5

 

 

 

32.8

 

 

30.2

 

 

29.7

 

 

29.0

 

 

$

57.9

 

 

$

56.7

 

$

49.4

 

$

48.7

 

$

47.8

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

50.6

 

 

$

75.0

 

$

93.8

 

$

53.6

 

$

30.6

 

(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)

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

ADJUSTED EBITDA (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships (1)

$

11.4

 

 

$

17.1

 

$

13.5

 

$

21.0

 

$

(21.4

)

Semisubmersibles (1)

 

27.5

 

 

 

20.4

 

 

27.2

 

 

2.1

 

 

(27.3

)

 

$

38.9

 

 

$

37.5

 

$

40.7

 

$

23.1

 

$

(48.7

)

 

 

 

 

 

 

 

 

 

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh (1)

$

(0.8

)

 

$

28.0

 

$

50.5

 

$

30.5

 

$

20.4

 

HD & SD - Modern (1)

 

9.6

 

 

 

12.9

 

 

10.0

 

 

1.6

 

 

13.7

 

SD - Legacy (1)

 

9.1

 

 

 

10.2

 

 

2.1

 

 

7.9

 

 

8.9

 

 

$

17.9

 

 

$

51.1

 

$

62.6

 

$

40.0

 

$

43.0

 

 

 

 

 

 

 

 

 

 

 

Total

$

56.8

 

 

$

88.6

 

$

103.3

 

$

63.1

 

$

(5.7

)

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs (1)

$

25.4

 

 

$

22.4

 

$

22.1

 

$

14.9

 

$

22.6

 

 

 

 

 

 

 

 

 

 

 

Total

$

82.2

 

 

$

111.0

 

$

125.4

 

$

78.0

 

$

16.9

 

 

 

 

 

 

 

 

 

 

 

Support costs

 

 

 

 

 

 

 

 

 

General and administrative expense

$

24.4

 

 

$

23.9

 

$

19.2

 

$

19.0

 

$

18.8

 

Onshore support costs

 

33.5

 

 

 

32.8

 

 

30.2

 

 

29.7

 

 

29.0

 

 

$

57.9

 

 

$

56.7

 

$

49.4

 

$

48.7

 

$

47.8

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

24.3

 

 

$

54.3

 

$

76.0

 

$

29.3

 

$

(30.9

)

(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)

 

As of

 

May 1,
2023

 

February 21,
2023

 

October 31,
2022

 

July 28,
2022

 

May 2,
2022

CONTRACT BACKLOG (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships (2)

$

1,499.0

 

$

1,062.3

 

$

995.1

 

$

1,090.3

 

$

1,290.9

Semisubmersibles

 

270.2

 

 

314.6

 

 

379.5

 

 

359.6

 

 

375.8

 

$

1,769.2

 

$

1,376.9

 

$

1,374.6

 

$

1,449.9

 

$

1,666.7

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

 

277.7

 

 

348.3

 

 

185.1

 

 

192.0

 

 

218.8

HD & SD - Modern

 

317.7

 

 

341.1

 

 

395.3

 

 

377.6

 

 

225.7

SD - Legacy

 

119.7

 

 

52.9

 

 

82.3

 

 

72.3

 

 

70.7

 

$

715.1

 

$

742.3

 

$

662.7

 

$

641.9

 

$

515.2

 

 

 

 

 

 

 

 

 

 

Total

$

2,484.3

 

$

2,119.2

 

$

2,037.3

 

$

2,091.8

 

$

2,181.9

 

 

 

 

 

 

 

 

 

 

Other (3)

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

$

318.9

 

$

344.0

 

$

223.3

 

$

257.5

 

$

271.5

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

2,803.2

 

$

2,463.2

 

$

2,260.6

 

$

2,349.3

 

$

2,453.4

 

 

 

 

 

 

 

 

 

 

(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 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.

(2)

Approximately $428 million of backlog as of May 2, 2022 was attributable to a contract awarded to drillship VALARIS DS-11 for an eight-well deepwater project in the U.S. Gulf of Mexico that was expected to commence in mid-2024. In June 2022, the customer terminated the contract.

(3)

Leased rigs and managed rigs included in Other reporting segment.

VALARIS LIMITED AND SUBSIDIARIES

OPERATING STATISTICS

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

AVERAGE DAY RATES (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

$

221,000

 

$

215,000

 

$

220,000

 

$

213,000

 

$

203,000

Semisubmersibles

 

246,000

 

 

204,000

 

 

226,000

 

 

214,000

 

 

156,000

 

$

228,000

 

$

212,000

 

$

222,000

 

$

213,000

 

$

197,000

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

$

97,000

 

$

108,000

 

$

121,000

 

$

114,000

 

$

104,000

HD & SD Modern

 

92,000

 

 

83,000

 

 

82,000

 

 

79,000

 

 

80,000

SD Legacy

 

76,000

 

 

74,000

 

 

74,000

 

 

74,000

 

 

71,000

 

$

91,000

 

$

93,000

 

$

100,000

 

$

94,000

 

$

89,000

 

 

 

 

 

 

 

 

 

 

Total

$

139,000

 

$

133,000

 

$

138,000

 

$

120,000

 

$

108,000

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

$

43,000

 

$

36,000

 

$

38,000

 

$

39,000

 

$

39,000

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

113,000

 

$

108,000

 

$

112,000

 

$

98,000

 

$

90,000

(1)

Average day rates are derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues, lump-sum revenues, revenues earned during suspension periods and revenues attributable to amortization of drilling contract intangibles, by the aggregate number of contract days, adjusted to exclude contract days associated with certain suspension periods, mobilizations, demobilizations and shipyard contracts.

VALARIS LIMITED AND SUBSIDIARIES

OPERATING STATISTICS

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

UTILIZATION - TOTAL FLEET (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

59 %

 

62 %

 

54 %

 

34 %

 

36 %

Semisubmersibles

57 %

 

57 %

 

54 %

 

37 %

 

11 %

 

58 %

 

60 %

 

54 %

 

35 %

 

28 %

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

57 %

 

77 %

 

85 %

 

81 %

 

78 %

HD & SD Modern

57 %

 

55 %

 

53 %

 

53 %

 

51 %

SD Legacy

99 %

 

99 %

 

67 %

 

88 %

 

75 %

 

62 %

 

68 %

 

67 %

 

67 %

 

63 %

 

 

 

 

 

 

 

 

 

 

Total

60 %

 

65 %

 

62 %

 

56 %

 

51 %

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

100 %

 

100 %

 

100 %

 

100 %

 

100 %

 

 

 

 

 

 

 

 

 

 

Valaris Total

68 %

 

72 %

 

69 %

 

64 %

 

59 %

 

 

 

 

 

 

 

 

 

 

Pro Forma Jackups (2)

68 %

 

73 %

 

72 %

 

72 %

 

68 %

(1)

Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the total fleet.

(2)

Includes all Valaris jackups including those leased to ARO Drilling.

VALARIS LIMITED AND SUBSIDIARIES

OPERATING STATISTICS

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

UTILIZATION - ACTIVE FLEET (1) (2)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

77 %

 

85 %

 

74 %

 

52 %

 

56 %

Semisubmersibles

96 %

 

96 %

 

91 %

 

62 %

 

19 %

 

82 %

 

88 %

 

79 %

 

55 %

 

45 %

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

67 %

 

85 %

 

94 %

 

89 %

 

85 %

HD & SD Modern

89 %

 

86 %

 

81 %

 

82 %

 

83 %

SD Legacy

99 %

 

99 %

 

67 %

 

90 %

 

100 %

 

81 %

 

87 %

 

85 %

 

86 %

 

86 %

 

 

 

 

 

 

 

 

 

 

Total

81 %

 

87 %

 

83 %

 

77 %

 

74 %

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

100 %

 

100 %

 

100 %

 

100 %

 

100 %

 

 

 

 

 

 

 

 

 

 

Valaris Total

86 %

 

90 %

 

87 %

 

82 %

 

80 %

 

 

 

 

 

 

 

 

 

 

Pro Forma Jackups (3)

83 %

 

88 %

 

86 %

 

87 %

 

87 %

(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

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

REVENUE EFFICIENCY (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

97 %

 

96 %

 

90 %

 

95 %

 

98 %

Semisubmersibles

100 %

 

100 %

 

100 %

 

92 %

 

100 %

 

98 %

 

97 %

 

93 %

 

94 %

 

99 %

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

100 %

 

96 %

 

99 %

 

99 %

 

99 %

HD & SD Modern

100 %

 

99 %

 

97 %

 

98 %

 

100 %

SD Legacy

99 %

 

100 %

 

100 %

 

100 %

 

100 %

 

100 %

 

98 %

 

98 %

 

99 %

 

99 %

 

 

 

 

 

 

 

 

 

 

Valaris Total

99 %

 

98 %

 

96 %

 

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

 

 

As of

NUMBER OF RIGS

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

Active Fleet (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

9

 

8

 

8

 

8

 

7

Semisubmersibles

3

 

3

 

3

 

3

 

3

 

12

 

11

 

11

 

11

 

10

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

9

 

10

 

10

 

10

 

10

HD & SD Modern

9

 

9

 

9

 

10

 

10

SD Legacy

3

 

3

 

3

 

3

 

3

 

21

 

22

 

22

 

23

 

23

 

 

 

 

 

 

 

 

 

 

Total Active Fleet

33

 

33

 

33

 

34

 

33

 

 

 

 

 

 

 

 

 

 

Stacked Fleet

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships (2)

2

 

3

 

3

 

3

 

4

Semisubmersibles

2

 

2

 

2

 

2

 

2

 

4

 

5

 

5

 

5

 

6

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

2

 

1

 

1

 

1

 

1

HD & SD Modern

5

 

5

 

5

 

5

 

7

SD Legacy

 

 

 

 

 

7

 

6

 

6

 

6

 

8

 

 

 

 

 

 

 

 

 

 

Total Stacked Fleet

11

 

11

 

11

 

11

 

14

 

 

 

 

 

 

 

 

 

 

Leased Rigs (3)

 

 

 

 

 

 

 

 

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

1

 

1

 

1

 

1

 

1

HD & SD Modern

7

 

7

 

7

 

6

 

6

SD Legacy

 

 

 

 

1

Total Leased Rigs

8

 

8

 

8

 

7

 

8

 

 

 

 

 

 

 

 

 

 

Valaris Total

52

 

52

 

52

 

52

 

55

 

 

 

 

 

 

 

 

 

 

Managed Rigs (3)

2

 

2

 

2

 

2

 

2

(1)

Active fleet represents rigs that are not preservation stacked and includes rigs that are in the process of being reactivated.

(2)

Excludes VALARIS DS-13 and VALARIS DS-14, which Valaris has the option to take delivery by year-end 2023.

(3)

Leased rigs and managed rigs included in Other reporting segment.

VALARIS LIMITED AND SUBSIDIARIES

OPERATING STATISTICS

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

AVAILABLE DAYS - TOTAL FLEET (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

990

 

1,012

 

1,012

 

979

 

990

Semisubmersibles

450

 

460

 

460

 

455

 

450

 

1,440

 

1,472

 

1,472

 

1,434

 

1,440

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

990

 

1,012

 

1,012

 

1,001

 

990

HD & SD Modern

1,260

 

1,288

 

1,328

 

1,419

 

1,599

SD Legacy

270

 

276

 

276

 

279

 

360

 

2,520

 

2,576

 

2,616

 

2,699

 

2,949

 

 

 

 

 

 

 

 

 

 

Total

3,960

 

4,048

 

4,088

 

4,133

 

4,389

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

900

 

920

 

880

 

874

 

831

 

 

 

 

 

 

 

 

 

 

Valaris Total

4,860

 

4,968

 

4,968

 

5,007

 

5,220

(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

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

AVAILABLE DAYS - ACTIVE FLEET (1) (2)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

751

 

736

 

736

 

645

 

630

Semisubmersibles

270

 

276

 

276

 

273

 

270

 

1,021

 

1,012

 

1,012

 

918

 

900

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

841

 

920

 

920

 

910

 

900

HD & SD Modern

810

 

828

 

868

 

910

 

969

SD Legacy

270

 

276

 

276

 

273

 

270

 

1,921

 

2,024

 

2,064

 

2,093

 

2,139

 

 

 

 

 

 

 

 

 

 

Total

2,942

 

3,036

 

3,076

 

3,011

 

3,039

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

900

 

920

 

880

 

874

 

831

 

 

 

 

 

 

 

 

 

 

Valaris Total

3,842

 

3,956

 

3,956

 

3,885

 

3,870

(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.

(2)

Active fleet represents rigs that are not preservation stacked and includes rigs that are in the process of being reactivated.

VALARIS LIMITED AND SUBSIDIARIES

OPERATING STATISTICS

 

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

OPERATING DAYS (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

581

 

623

 

546

 

335

 

353

Semisubmersibles

258

 

264

 

251

 

168

 

52

 

839

 

887

 

797

 

503

 

405

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

564

 

778

 

862

 

810

 

769

HD & SD Modern

718

 

713

 

700

 

750

 

809

SD Legacy

268

 

273

 

184

 

245

 

270

 

1,550

 

1,764

 

1,746

 

1,805

 

1,848

 

 

 

 

 

 

 

 

 

 

Total

2,389

 

2,651

 

2,543

 

2,308

 

2,253

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

900

 

920

 

881

 

874

 

831

 

 

 

 

 

 

 

 

 

 

Valaris Total

3,289

 

3,571

 

3,424

 

3,182

 

3,084

(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

($ in millions, except average day rate)

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

DRILLSHIPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1)

$

128.6

 

 

$

134.4

 

 

$

120.1

 

 

$

128.1

 

 

$

73.1

 

Adjusted operating expense (2)

 

117.3

 

 

 

118.1

 

 

 

106.4

 

 

 

106.7

 

 

 

94.0

 

 

 

 

 

 

 

 

 

 

 

Rig operating margin

$

11.3

 

 

$

16.3

 

 

$

13.7

 

 

$

21.4

 

 

$

(20.9

)

Rig operating margin %

 

9

%

 

 

12

%

 

 

11

%

 

 

17

%

 

 

(29

)%

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

 

 

 

 

 

 

 

 

Depreciation

 

12.1

 

 

 

12.0

 

 

 

11.8

 

 

 

11.6

 

 

 

11.3

 

Loss on impairment

 

 

 

 

 

 

 

 

 

 

34.5

 

 

 

 

 

$

12.1

 

 

$

12.0

 

 

$

11.8

 

 

$

46.1

 

 

$

11.3

 

 

 

 

 

 

 

 

 

 

 

Other operating income (expense) (3)

 

0.9

 

 

 

2.2

 

 

 

0.5

 

 

 

(0.4

)

 

 

0.5

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) (4)

$

0.1

 

 

$

6.5

 

 

$

2.4

 

 

$

(25.1

)

 

$

(31.7

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (5)

$

11.4

 

 

$

17.1

 

 

$

13.5

 

 

$

21.0

 

 

$

(21.4

)

Reactivation costs (6)

 

25.9

 

 

 

20.3

 

 

 

17.0

 

 

 

23.3

 

 

 

48.6

 

Adjusted EBITDAR

$

37.3

 

 

$

37.4

 

 

$

30.5

 

 

$

44.3

 

 

$

27.2

 

 

 

 

 

 

 

 

 

 

 

Preservation and stacking costs (6)

$

4.5

 

 

$

4.9

 

 

$

4.5

 

 

$

11.1

 

 

$

7.5

 

 

 

 

 

 

 

 

 

 

 

Number of Rigs (at quarter end)

 

 

 

 

 

 

 

 

 

Total Fleet

 

11

 

 

 

11

 

 

 

11

 

 

 

11

 

 

 

11

 

Active Fleet

 

9

 

 

 

8

 

 

 

8

 

 

 

8

 

 

 

7

 

 

 

 

 

 

 

 

 

 

 

Operating Days

 

581

 

 

 

623

 

 

 

546

 

 

 

335

 

 

 

353

 

Utilization - Active Fleet

 

77

%

 

 

85

%

 

 

74

%

 

 

52

%

 

 

56

%

Average Day Rate

$

221,000

 

 

$

215,000

 

 

$

220,000

 

 

$

213,000

 

 

$

203,000

 

(1)

Revenues exclusive of amortization and recurring reimbursable items.

(2)

Operating expense exclusive of depreciation, amortization, reimbursable items, bad debt expense and onshore support costs.

(3)

Other operating income (expense) includes reimbursable revenue and expense, amortized revenue and expense, bad debt expense and other miscellaneous items.

(4)

Starting from the second quarter 2022, we adjusted operating income (loss) to exclude support costs. Prior periods were adjusted to conform with the current period presentation.

(5)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

(6)

Included in adjusted operating expense.

VALARIS LIMITED AND SUBSIDIARIES

OPERATING STATISTICS

($ in millions, except average day rate)

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

SEMISUBMERSIBLES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1)

$

63.9

 

 

$

54.0

 

 

$

58.3

 

 

$

36.3

 

 

$

8.1

 

Adjusted operating expense (2)

 

36.1

 

 

 

33.5

 

 

 

31.0

 

 

 

34.0

 

 

 

34.5

 

 

 

 

 

 

 

 

 

 

 

Rig operating margin

$

27.8

 

 

$

20.5

 

 

$

27.3

 

 

$

2.3

 

 

$

(26.4

)

Rig operating margin %

 

44

%

 

 

38

%

 

 

47

%

 

 

6

%

 

 

(326

)%

 

 

 

 

 

 

 

 

 

 

Depreciation

 

0.9

 

 

 

0.9

 

 

 

0.8

 

 

 

0.8

 

 

 

0.8

 

 

 

 

 

 

 

 

 

 

 

Other operating income (expense) (3)

 

0.2

 

 

 

(0.5

)

 

 

(0.3

)

 

 

(0.5

)

 

 

(1.1

)

 

 

 

 

 

 

 

 

 

 

Operating income (loss) (4)

$

27.1

 

 

$

19.1

 

 

$

26.2

 

 

$

1.0

 

 

$

(28.3

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (5)

$

27.5

 

 

$

20.4

 

 

$

27.2

 

 

$

2.1

 

 

$

(27.3

)

Reactivation costs (6)

 

0.3

 

 

 

0.3

 

 

 

0.8

 

 

 

0.8

 

 

 

12.3

 

Adjusted EBITDAR

$

27.8

 

 

$

20.7

 

 

$

28.0

 

 

$

2.9

 

 

$

(15.0

)

 

 

 

 

 

 

 

 

 

 

Preservation and stacking costs (6)

$

1.0

 

 

$

1.3

 

 

$

1.5

 

 

$

4.1

 

 

$

1.2

 

 

 

 

 

 

 

 

 

 

 

Number of Rigs (at quarter end)

 

 

 

 

 

 

 

 

 

Total Fleet

 

5

 

 

 

5

 

 

 

5

 

 

 

5

 

 

 

5

 

Active Fleet

 

3

 

 

 

3

 

 

 

3

 

 

 

3

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

Operating Days

 

258

 

 

 

264

 

 

 

251

 

 

 

168

 

 

 

52

 

Utilization - Active Fleet

 

96

%

 

 

96

%

 

 

91

%

 

 

62

%

 

 

19

%

Average Day Rate

$

246,000

 

 

$

204,000

 

 

$

226,000

 

 

$

214,000

 

 

$

156,000

 

(1)

Revenues exclusive of amortization and recurring reimbursable items.

(2)

Operating expense exclusive of depreciation, amortization, reimbursable items, bad debt expense and onshore support costs.

(3)

Other operating income (expense) includes reimbursable revenue and expense, amortized revenue and expense, bad debt expense and other miscellaneous items.

(4)

Starting from the second quarter 2022, we adjusted operating income (loss) to exclude support costs. Prior periods were adjusted to conform with the current period presentation.

(5)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

(6)

Included in adjusted operating expense.

VALARIS LIMITED AND SUBSIDIARIES

OPERATING STATISTICS

($ in millions, except average day rate)

 

Three Months Ended

 

March 31,
2023

 

December 31,
2022

 

September 30,
2022

 

June 30,
2022

 

March 31,
2022

HD ULTRA-HARSH &
HARSH JACKUPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1)

$

62.7

 

 

$

87.1

 

 

$

106.5

 

 

$

93.6

 

 

$

81.1

 

Adjusted operating expense (2)

 

63.8

 

 

 

59.3

 

 

 

56.2

 

 

 

63.4

 

 

 

58.1

 

 

 

 

 

 

 

 

 

 

 

Rig operating margin

$

(1.1

)

 

$

27.8

 

 

$

50.3

 

 

$

30.2

 

 

$

23.0

 

Rig operating margin %

 

(2

)%

 

 

32

%

 

 

47

%

 

 

32

%

 

 

28

%

 

 

 

 

 

 

 

 

 

 

Depreciation

 

5.7

 

 

 

5.7

 

 

 

5.6

 

 

 

5.5

 

 

 

5.5

 

 

 

 

 

 

 

 

 

 

 

Other operating income (3)

 

4.2

 

 

 

3.6

 

 

 

7.1

 

 

 

5.1

 

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) (4)

$

(2.6

)

 

$

25.7

 

 

$

51.8

 

 

$

29.8

 

 

$

17.6

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (5)

$

(0.8

)

 

$

28.0

 

 

$

50.5

 

 

$

30.5

 

 

$

20.4

 

Reactivation costs (6)

 

0.1

 

 

 

0.1

 

 

 

(0.1

)

 

 

0.2

 

 

 

0.6

 

Adjusted EBITDAR

$

(0.7

)

 

$

28.1

 

 

$

50.4

 

 

$

30.7

 

 

$

21.0

 

 

 

 

 

 

 

 

 

 

 

Preservation and stacking costs (6)

$

5.1

 

 

$

(0.5

)

 

$

 

 

$

0.6

 

 

$

0.1