Loading...
•
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.
Valaris
Valaris
Valaris Revenue by Segment
Revenue by Segment
Floaters Revenue
CapyFin.comJackups Revenue
CapyFin.comOther Revenue
CapyFin.com 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.
- Failure to satisfy debt obligations.
- Commodity price fluctuations and volatility, customer demand, new rig supply, downtime and other risks associated with offshore rig operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income