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Dec 31, 2021
Valaris Q4 2021 Earnings Report
Reported fourth quarter 2021 results, showing strong operational performance and increased contract backlog.
Key Takeaways
Valaris reported a decrease in revenues to $306 million in the fourth quarter 2021 from $327 million in the third quarter 2021. Contract backlog increased to $2.4 billion from $1.0 billion at the beginning of 2021. The company is in a transitional period, incurring reactivation costs for upcoming contracts, but anticipates financial results will improve significantly as these reactivations are completed.
Achieved revenue efficiency of 97% during the fourth quarter and more than 98% over the course of 2021.
Improved personal safety performance by 25% as compared to 2020.
Increased contract backlog to $2.4 billion from $1.0 billion at the beginning of 2021.
Added approximately $330 million of new backlog since last quarterly report.
Revenue by Segment
Forward Guidance
Valaris anticipates that financial results will improve significantly as reactivations are completed. The company has three uncontracted drillships remaining within their stacked fleet providing operational leverage to the improving floater market.
Positive Outlook
- Financial results are expected to improve significantly as reactivations are completed.
- Three uncontracted drillships in stacked fleet provide operational leverage.
- Company will be disciplined in exercising operational leverage.
- Assets will only return to the active fleet for opportunities that provide meaningful returns.
- Strong operational performance.
Challenges Ahead
- Company is in a transitional period that will extend into the second quarter of this year.
- Incurring reactivation costs to ready three drillships and one semisubmersible for contracts.
- Revenues decreased to $306 million in the fourth quarter 2021 from $327 million in the third quarter 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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