Valaris Announces Contract Awards and Updated Guidance
06 Março 2023 - 10:30AM
Business Wire
Valaris Limited (NYSE: VAL) (“Valaris” or the “Company”)
announced today new contracts awarded subsequent to issuing the
Company’s most recent fleet status report on February 21, 2023.
- Three-year contract with Petrobras for drillship VALARIS DS-8.
The rig will be reactivated for this contract. The total contract
value is approximately $500 million, including a $30 million
mobilization fee.
- 100-day contract with a TotalEnergies affiliate for drillship
VALARIS DS-12. The contract is expected to commence in second
quarter 2023.
- 70-day contract with Beach Energy offshore New Zealand for
heavy duty modern jackup VALARIS 107. The contract is expected to
commence in third quarter 2023. The total contract value is
approximately $26 million.
President and Chief Executive Officer Anton Dibowitz said, “We
are particularly pleased to have secured the award for preservation
stacked drillship VALARIS DS-8, for a contract that is expected to
generate a meaningful return over the firm contract term, and we
remain focused on exercising our operational leverage in a
disciplined manner. This most recent award represents the sixth
contract awarded to one of our high-quality stacked floaters since
mid-2021, and speaks volumes about our demonstrated track record of
project execution when reactivating rigs.”
Dibowitz added, “Following the reactivation of VALARIS DS-17 and
DS-8, we will have ten floaters working across the golden triangle,
including four drillships in Brazil, a market where we expect to
see continued growth over the next several years.”
Updated Guidance
As a result of the contract awarded to VALARIS DS-8, which will
require the rig to be reactivated from preservation stack, we are
updating our first quarter 2023 and full-year 2023 guidance
provided on our fourth quarter 2022 conference call on February 21,
2023.
First Quarter 2023
- Contract drilling expense is expected to increase by
approximately $5 million to $385 million to $395 million.
- Adjusted EBITDA is expected to decrease by approximately $5
million to negative $5 million to breakeven. Adjusted EBITDAR,
which adds back one-time reactivation expense, is expected to be
$25 million to $30 million, unchanged from the guidance provided on
our fourth quarter 2022 conference call.
Full-Year 2023
- Revenues are anticipated to be $1.8 billion to $1.9 billion,
unchanged from the guidance provided on our fourth quarter 2022
conference call.
- Contract drilling expense is expected to increase by
approximately $60 million to $1.49 billion to $1.59 billion.
- Adjusted EBITDA is expected to decrease by approximately $60
million to $180 million to $220 million. Adjusted EBITDAR, which
adds back one-time reactivation expense, is expected to be $280
million to $320 million, unchanged from the guidance provided on
our fourth quarter 2022 conference call.
- Capital expenditures are expected to increase by $60 million to
$320 million to $360 million.
About Valaris Limited
Valaris Limited (NYSE: VAL) is the industry leader in offshore
drilling services across all water depths and geographies.
Operating a high-quality rig fleet of ultra-deepwater drillships,
versatile semisubmersibles and modern shallow-water jackups,
Valaris has experience operating in nearly every major offshore
basin. Valaris maintains an unwavering commitment to safety,
operational excellence, and customer satisfaction, with a focus on
technology and innovation. Valaris Limited is a Bermuda exempted
company (Bermuda No. 56245). To learn more, visit our website at
www.valaris.com.
Cautionary Statements
Statements contained in this press release that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include words or phrases such as
"anticipate," "believe," "estimate," "expect," "intend," "likely,"
"plan," "project," "could," "may," "might," "should," "will" and
similar words and specifically include statements regarding
expected financial performance; expected utilization, day rates,
revenues, operating expenses, cash flows, contract status, terms
and duration, contract backlog, capital expenditures, insurance,
financing and funding; the offshore drilling market, including
supply and demand, customer drilling programs, stacking of rigs,
effects of new rigs on the market and effect of the volatility of
commodity prices; expected work commitments, awards, contracts and
letters of intent; performance of our joint ventures, including our
joint venture with Saudi Aramco; the availability, delivery,
mobilization, contract commencement, availability, relocation or
other movement of rigs and the timing thereof; rig reactivations;
suitability of rigs for future contracts; divestitures of assets;
general economic, market, business and industry conditions,
including inflation and recessions, trends and outlook; general
political conditions, including political tensions, conflicts and
war (such as the ongoing conflict in Ukraine); cybersecurity
attacks and threats; the effect, impact, potential duration and
other implications of COVID-19; future operations; increasing
regulatory complexity; the outcome of tax disputes; assessments and
settlements; and expense management. The forward-looking statements
contained in this press release are subject to numerous risks,
uncertainties and assumptions that may cause actual results to vary
materially from those indicated, including cancellation,
suspension, renegotiation or termination of drilling contracts and
programs; our ability to obtain financing, service our debt, fund
capital expenditures and pursue other business opportunities;
adequacy of sources of liquidity for us and our customers; actions
by regulatory authorities, or other third parties; actions by our
security holders; internal control risk; commodity price
fluctuations and volatility, customer demand, loss of a significant
customer or customer contract; downtime and other risks associated
with offshore rig operations; adverse weather, including
hurricanes; changes in worldwide rig supply, including as a result
of reactivations and newbuilds, and demand, competition and
technology; supply chain and logistics challenges; consumer
preferences for alternative fuels; increased scrutiny of our
Environmental, Social and Governance practices, initiatives and
reporting responsibilities; changes in customer strategy, including
increased focus on renewable energy projects; future levels of
offshore drilling activity; governmental action, civil unrest and
political and economic uncertainties; terrorism, piracy and
military action; risks inherent to shipyard rig reactivation,
construction, upgrade, repair, maintenance or enhancement; our
ability to enter into, and the terms of, future drilling contracts;
the outcome of litigation, legal proceedings, investigations or
other claims or contract disputes; governmental regulatory,
legislative and permitting requirements affecting drilling
operations; our ability to attract and retain skilled personnel on
commercially reasonable terms; environmental or other liabilities,
risks or losses; debt restrictions that may limit our liquidity and
flexibility; and changes in foreign currency exchange rates. In
addition to the numerous factors described above, you should also
carefully read and consider "Item 1A. Risk Factors" in Part I and
"Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations" in Part II of our most recent
annual report on Form 10-K, which is available on the SEC's website
at www.sec.gov or on the Investor Relations section of our website
at www.valaris.com. Each forward-looking statement speaks only as
of the date of the particular statement, and we undertake no
obligation to update or revise any forward-looking statements,
except as required by law.
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Darin Gibbins Vice President - Investor Relations and Treasurer
+1-713-979-4623
Tim Richardson Director - Investor Relations +1-713-979-4619
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