Valaris Sees Sequential Jump in Quarterly Profit

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Valaris Sees Sequential Jump in Quarterly Profit

Offshore drilling contractor Valaris Ltd. has reported a net income of $131 million for the fourth quarter (Q4) of 2024. The company its net income more than doubled from $63 million for the prior quarter, affected by a $24 million tax expense. Adjusted EBITDA decreased to $142 million from Q3’s $150 million primarily due to […]

Adjusted EBITDA decreased to $142 million from Q3’s $150 million primarily due to lower utilization for its floater fleet, partially offset by more operating days for the jack-up fleet, the company said.

Capital expenditures increased to $112 million in the fourth quarter, versus $82 million in the previous quarter, primarily due to higher rig upgrade expenditures related to contract preparations for VALARIS 144 and DS-4.

“We continued to deliver solid operating and financial performance, achieving fleetwide revenue efficiency of 96 percent in the fourth quarter and 97 percent for the full year. We also had outstanding safety performance in 2024 and are proud to have been recognized with safety awards by both the IADC and the Center for Offshore Safety”, Anton Dibowitz, President and Chief Executive Officer, said.

“The contracting outlook for 2026 and beyond remains strong for high-specification assets and we are focused on securing attractive, long-term programs for our active rigs. We will also continue to prudently manage our fleet as demonstrated by our recent actions to reduce costs for idle rigs and further focus our fleet on high-specification assets”, Dibowitz added.

Across its segments, Valaris reported mixed results as revenues from floaters and jack-ups decreased mostly due to lower utilization from rigs undergoing upgrades, regulatory compliance, idle time, and lower amortized mobilization revenue, partially offset by increased operating days.

ARO drilling posted a revenue increase, due to a full quarter of operations for one rig and more operating days for another, while expenses decreased due to lower bareboat charter expenses.

Revenues from other activities slightly increased, while expenses increased due to higher survey costs for leased rigs, Valaris said.

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