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Mar 31, 2025
Valaris Q1 2025 Earnings Report
Valaris reported its first quarter 2025 results.
Key Takeaways
Valaris reported a net loss of $39 million in the first quarter of 2025, primarily due to a significant discrete tax expense of $167 million. Despite the loss, total operating revenues increased to $621 million, and operating income rose to $143 million, driven by stronger performance in the floater segment. The company also achieved a revenue efficiency of 96% and secured approximately $1.0 billion in new contract backlog, increasing the total backlog to over $4.2 billion.
Reported a net loss of $39 million, impacted by $167 million of discrete tax expense.
Total operating revenues increased 6% to $621 million compared to the previous quarter.
Operating income grew 20% to $143 million from the fourth quarter of 2024.
Secured approximately $1.0 billion of new contract backlog, increasing total backlog to over $4.2 billion.
Revenue by Segment
Forward Guidance
Valaris expects offshore production to remain vital for global energy needs and is well-positioned to secure additional contracts, although macroeconomic uncertainty has recently increased.
Positive Outlook
- Expects offshore production to continue playing a vital role in meeting world's energy needs.
- Believes Valaris is well positioned to secure additional contracts.
- Actively engaged with customers for additional contracting opportunities in 2026 and beyond.
- Prudent fleet management is expected to support earnings and cash flow.
- Strong operational and financial performance provides a solid foundation.
Challenges Ahead
- Increased macroeconomic uncertainty.
- Potential for cancellation, suspension, renegotiation, or termination of drilling contracts.
- Exposure to commodity price fluctuations and volatility.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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