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Jun 30, 2022
Valaris Q2 2022 Earnings Report
Reported increased revenues and net income due to a contract termination fee and higher utilization and day rates.
Key Takeaways
Valaris reported a net income of $113 million, a significant increase from the previous quarter's net loss. Revenues also saw a substantial rise, driven by a contract termination fee and improved fleet utilization and day rates.
Achieved 97% revenue efficiency in Q2 2022.
Completed four floater reactivation projects ahead of multi-year contracts.
Added approximately $560 million to contract backlog.
Secured a 540-day contract for stacked drillship VALARIS DS-17 offshore Brazil.
Revenue by Segment
Forward Guidance
The fundamental outlook for the industry remains constructive, with spot Brent crude prices above $100 per barrel for most of the past five months and two-year and five-year forward prices above $80 per barrel and $70 per barrel, respectively.
Positive Outlook
- Increase in both contracting and tendering activity across both floater and jackup markets.
- Awarded new contracts and extensions with associated contract backlog of approximately $560 million.
- New contracts awarded at leading-edge rates for their respective markets.
- Secured contract for one of preservation stacked drillships, VALARIS DS-17.
- Expect Brazil to be a significant growth market for high-specification floaters over the next several years.
Challenges Ahead
- COVID-19 outbreak and global pandemic may impact ability to staff rigs and rotate crews.
- Cancellation, suspension, renegotiation or termination of drilling contracts and programs.
- Potential additional asset impairments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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