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Mar 31, 2022
Valaris Q1 2022 Earnings Report
Reported continued strong operational performance with 99% revenue efficiency and sold two jackups for $125 million.
Key Takeaways
Valaris reported first quarter 2022 results with revenues increasing to $318 million. The company achieved 99% revenue efficiency and sold two jackups for a total of $125 million. The company is in a transitional period as it incurs reactivation costs to put three drillships and one semisubmersible back to work on long-term contracts.
Revenues increased to $318 million in the first quarter 2022 from $306 million in the fourth quarter 2021.
Achieved 99% revenue efficiency during the first quarter.
Contract drilling expense increased to $331 million in the first quarter 2022 from $286 million in the fourth quarter 2021, primarily due to higher rig reactivation costs.
Net loss was $40 million in the first quarter 2022 compared to net income of $28 million in the fourth quarter 2021.
Valaris
Valaris
Valaris Revenue by Segment
Revenue by Segment
Floaters Revenue
CapyFin.comJackups Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Valaris expects financial results to improve meaningfully as reactivation projects are completed and rigs are put on contract.
Positive Outlook
- All four floaters will be on contract by the middle of the year.
- Financial results expected to improve meaningfully as these reactivations are completed.
- Awarded a contract with a major operator offshore Angola and the Republic of Congo for drillship VALARIS DS-12.
- The operating rate for this contract is at a level not seen in the past seven years for drillship work offshore West Africa.
- Recently sold two jackups, VALARIS 113 and 114, to ADES for a total of $125 million, a value which is highly accretive to our shareholders.
Challenges Ahead
- Incurring reactivation costs to put three drillships and one semisubmersible back to work on long-term contracts.
- Ongoing pandemic, personnel and global supply chain challenges.
- Minor damage arising from an incident involving VALARIS DS-16, which broke free from its moorings during gale force winds.
- Semisubmersible VALARIS DPS-5 being out of service for most of the first quarter while undergoing a five-year special survey.
- Net loss was $40 million in the first quarter 2022 compared to net income of $28 million in the fourth quarter 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income