Loading...
•
Sep 30
Valaris Q3 2025 Earnings Report
Valaris reported its third quarter 2025 financial results, highlighting strong operational performance and strategic contract wins.
Key Takeaways
Valaris delivered a strong third quarter in 2025, with net income increasing to $187 million and total operating revenues reaching $596 million. The company achieved a revenue efficiency of 95% and secured a significant contract for VALARIS DS-12, ensuring all four active drillships with near-term availability are now contracted. Proceeds from asset sales and robust cash flow from operations further strengthened the financial position.
Total operating revenues reached $596 million, with a strong revenue efficiency of 95%.
Net income significantly increased to $187 million, up from $114 million in the previous quarter, partly due to a $90 million gain on asset sale.
Adjusted EBITDA stood at $163 million, and the company generated $237 million in Adjusted Free Cash Flow.
Valaris secured a new contract for VALARIS DS-12, ensuring all four active drillships with near-term availability are contracted for work beginning next year.
Valaris
Valaris
Valaris Revenue by Segment
Valaris Revenue by Geographic Location
Revenue by Segment
Floaters Revenue
CapyFin.comJackups Revenue
CapyFin.comOther Revenue
CapyFin.comARO Drilling Revenue
CapyFin.comRevenue by Geographic Location
Global Revenue
CapyFin.com Forward Guidance
Valaris anticipates continued strong demand for offshore drilling services, particularly for its high-specification deepwater fleet, and is in advanced discussions for future contracts.
Positive Outlook
- Demand for offshore drilling services is developing as expected, with increasing customer interest in offshore projects.
- Solid pipeline of deepwater opportunities for the high-specification fleet.
- Advanced customer discussions are underway for drillships completing contracts in the second half of 2026.
- All four active drillships with near-term availability are now contracted for work beginning next year.
- Focus on delivering outstanding operational performance and executing commercial strategy to drive long-term shareholder value.
Challenges Ahead
- Near-term commodity price uncertainty could impact market conditions.
- VALARIS DS-15 and DS-18 completed contracts mid-third quarter without immediate follow-on work, though next contracts are scheduled for H2 2026.
- Contract drilling expense increased due to the absence of a prior quarter's accrual reversal.
- General and administrative expense increased due to the absence of a prior quarter's legal cost recovery.
- The report does not explicitly state negative forward guidance, but acknowledges near-term commodity price uncertainty.