Continued Strong Operational Performance – 99%
Revenue Efficiency in 1Q 2022 Four Floater Reactivation Projects in
Progress for Contracts Expected to Commence in 2Q 2022 Drillship
VALARIS DS-12 Awarded Contract Offshore West Africa Jackups VALARIS
113 and 114 Sold for a Total of $125 Million
Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today
reported first quarter 2022 results.
President and Chief Executive Officer Anton Dibowitz said, “The
heart of our business, and our primary focus every day, is on
delivering safe, reliable and efficient operations to our
customers. I would like to thank the Valaris team for continuing to
deliver the strong performance that our customers have come to
expect from us, achieving 99% revenue efficiency during the first
quarter.”
Dibowitz commented, “We are currently in the midst of a
transitional period as we incur reactivation costs to put three
drillships and one semisubmersible back to work on long-term
contracts. I am proud of the progress that the entire Valaris team
has made in executing these major projects concurrently,
particularly considering the ongoing pandemic, personnel and global
supply chain challenges. VALARIS DPS-1 recently returned to work,
and we continue to expect that all four floaters will be on
contract by the middle of the year with financial results expected
to improve meaningfully as these reactivations are completed.”
Dibowitz added, “Very recently, we were awarded a contract with
a major operator offshore Angola and the Republic of Congo for
drillship VALARIS DS-12. The operating rate for this contract,
which is expected to take place during the first quarter 2023, is
at a level not seen in the past seven years for drillship work
offshore West Africa, providing further evidence of the improvement
in floater day rates across geographies.”
Dibowitz concluded, “We continue to take a rational approach to
fleet management, including regularly assessing our fleet for
retirement and divestiture candidates. In this regard, we recently
sold two jackups, VALARIS 113 and 114, to ADES for a total of $125
million, a value which is highly accretive to our shareholders.
Each of these rigs had been stacked for more than six years and
would have required meaningful capital to reactivate.”
First Quarter Review
Revenues increased to $318 million in the first quarter 2022
from $306 million in the fourth quarter 2021. Excluding
reimbursable items, revenues increased to $291 million in the first
quarter from $283 million in the fourth quarter primarily due to
higher utilization for the jackup fleet and higher average day
rates for the other segment, partially offset by lower utilization
for the floater fleet.
Contract drilling expense increased to $331 million in the first
quarter 2022 from $286 million in the fourth quarter 2021.
Excluding reimbursable items, contract drilling expense increased
to $305 million in the first quarter from $264 million in the
fourth quarter, primarily due to higher rig reactivation costs,
which increased to $62 million in the first quarter from $37
million in the fourth quarter, as we prepare four floaters for
long-term contracts that are expected to commence in the second
quarter. The remaining variance was due to higher personnel costs,
higher repair and maintenance costs and higher mobilization
costs.
Depreciation expense decreased to $23 million in the first
quarter 2022 from $25 million in the fourth quarter 2021. General
and administrative expense increased marginally to $19 million in
the first quarter 2022 from $18 million in the fourth quarter
2021.
Other income decreased to $9 million in the first quarter 2022
from $21 million in the fourth quarter 2021. First quarter other
income included a gain on sale of assets of $2 million related to
the sale of jackup VALARIS 67 compared to a $21 million gain on
sale of assets related to the sale of jackups VALARIS 22, 37 and
142 in the fourth quarter. The remaining variance is primarily due
to lower reorganization-related professional fees in the first
quarter as compared to the fourth quarter.
Tax benefit decreased to $1 million in the first quarter 2022
from $31 million in the fourth quarter 2021. The first quarter tax
provision included $15 million of discrete tax benefit primarily
related to a reduction in liabilities for unrecognized tax benefits
associated with tax positions taken in prior years. The fourth
quarter tax provision included $30 million of discrete tax benefit
primarily related to a reduction in liabilities for unrecognized
tax benefits associated with tax positions taken in prior years and
deferred tax benefits associated with Swiss tax reform. Adjusted
for discrete items, tax expense of $14 million in the first quarter
compared to a tax benefit of $1 million in the fourth quarter. The
increase in tax expense is primarily due to changes in the relative
components of our earnings generated in tax jurisdictions with
higher tax rates compared to the prior quarter, and to a reduction
in deferred tax valuation allowances in the prior quarter.
Net loss was $40 million in the first quarter 2022 compared to
net income of $28 million in the fourth quarter 2021. Adjusted
EBITDA decreased to negative $31 million in the first quarter from
$3 million in the fourth quarter. Adjusted EBITDAR decreased to $31
million in the first quarter from $40 million in the fourth
quarter.
Segment Review
Floaters
Floater revenues decreased marginally to $100 million in the
first quarter 2022 from $101 million in the fourth quarter 2021.
Excluding reimbursable items, revenues decreased to $87 million in
the first quarter from $93 million in the fourth quarter. The
sequential quarter decline was primarily due to semisubmersible
VALARIS DPS-5 being out of service for most of the first quarter
while undergoing a five-year special survey prior to starting the
first of several new contracts. This was partially offset by higher
utilization and average day rates for the drillship fleet.
Contract drilling expense increased to $148 million in the first
quarter 2022 from $114 million in the fourth quarter 2021.
Excluding reimbursable items, contract drilling expense increased
to $135 million in the first quarter from $106 million in the
fourth quarter. The sequential quarter increase was primarily due
to higher rig reactivation costs, which increased to $61 million in
the first quarter from $34 million in the fourth quarter, as we
prepared drillships VALARIS DS-4, DS-9 and DS-16 as well as
semisubmersible VALARIS DPS-1 for new long-term contracts. Included
within first quarter reactivation costs is approximately $4 million
related to minor damage arising from an incident involving VALARIS
DS-16, which broke free from its moorings during gale force winds.
We also incurred repair and maintenance costs in the first quarter
on semisubmersible VALARIS DPS-5 while the rig was in the shipyard
undergoing a five-year special survey.
Jackups
Jackup revenues increased to $181 million in the first quarter
2022 from $172 million in the fourth quarter 2021. Excluding
reimbursable items, revenues increased to $170 million in the first
quarter from $160 million in the fourth quarter. The sequential
quarter increase was primarily due to higher utilization on VALARIS
249, 117, 144 and Norway, each of which commenced new contracts
either in the first quarter or late in the fourth quarter. This was
partially offset by idle time between contracts for VALARIS Viking
and 107.
Contract drilling expense increased to $139 million in the first
quarter 2022 from $128 million in the fourth quarter 2021.
Excluding reimbursable items, contract drilling expense increased
to $129 million in the first quarter from $117 million in the
fourth quarter. The sequential quarter increase was primarily due
to higher costs resulting from more operating days across the
jackup fleet in the first quarter and higher mobilization costs
primarily related to VALARIS 144.
ARO Drilling
Revenues increased to $111 million in the first quarter 2022
from $105 million in the fourth quarter 2021 primarily due to
higher utilization and the addition of VALARIS 140 to the leased
rig fleet late in the first quarter. Contract drilling expense
decreased to $84 million in the first quarter from $89 million in
the fourth quarter. Operating income was $5 million in the first
quarter compared to an operating loss of $6 million in the fourth
quarter. EBITDA was $22 million in the first quarter compared to
$11 million in the fourth quarter.
Other
Revenues increased to $38 million in the first quarter 2022 from
$33 million in the fourth quarter 2021 primarily due to higher day
rates for managed rigs Mad Dog and Thunder Horse, which were each
awarded two-year contract extensions, effective from late January.
Contract drilling expense increased marginally to $16 million in
the first quarter from $15 million in the fourth quarter. Operating
income increased to $22 million in the first quarter from $16
million in the fourth quarter. EBITDA increased to $23 million in
the first quarter from $17 million in the fourth quarter.
First Quarter
Floaters
Jackups
ARO
Other
Reconciling Items
Consolidated Total
(in millions of $, except %)
Q1 2022
Q4 2021
Chg
Q1 2022
Q4 2021
Chg
Q1 2022
Q4 2021
Chg
Q1 2022
Q4 2021
Chg
Q1 2022
Q4 2021
Q1 2022
Q4 2021
Chg
Revenues
99.7
100.5
(1
)%
180.7
172.3
5
%
111.3
105.4
6
%
38.0
32.7
16
%
(111.3
)
(105.4
)
318.4
305.5
4
%
Operating expenses
Contract drilling
147.6
113.8
30
%
139.2
128.0
9
%
84.2
88.9
(5
)%
15.5
15.4
1
%
(55.2
)
(60.6
)
331.3
285.5
16
%
Depreciation
12.2
11.7
4
%
9.1
12.1
(25
)%
16.5
17.7
(7
)%
0.9
1.1
(18
)%
(16.2
)
(17.5
)
22.5
25.1
(10
)%
General and admin.
—
—
—
%
—
—
—
%
5.2
5.1
2
%
—
—
—
%
13.6
13.2
18.8
18.3
3
%
Equity in earnings (losses) of ARO
—
—
—
%
—
—
—
%
—
—
—
%
—
—
—
%
4.3
(1.3
)
4.3
(1.3
)
nm
Operating income (loss)
(60.1
)
(25.0
)
140
%
32.4
32.2
1
%
5.4
(6.3
)
nm
21.6
16.2
33
%
(49.2
)
(41.8
)
(49.9
)
(24.7
)
102
%
Net income (loss)
(60.0
)
(25.4
)
136
%
34.7
52.8
(34
)%
1.4
(10.0
)
nm
21.6
16.2
33
%
(37.5
)
(5.9
)
(39.8
)
27.7
nm
Adjusted EBITDA
(48.7
)
(12.9
)
278
%
43.0
44.4
(3
)%
21.9
11.4
92
%
22.6
17.3
31
%
(69.7
)
(57.5
)
(30.9
)
2.7
nm
Adjusted EBITDAR
12.2
20.9
(42
)%
43.6
47.7
(9
)%
21.9
11.4
92
%
22.6
17.4
30
%
(69.7
)
(57.5
)
30.6
39.9
(23
)%
Fresh Start Accounting
Valaris emerged from Chapter 11 bankruptcy protection on April
30, 2021 (the "Effective Date"). Upon emergence, Valaris applied
fresh start accounting which resulted in Valaris becoming a new
reporting entity for accounting and financial reporting.
Accordingly, our financial statements and notes after the Effective
Date are not comparable to our financial statements and notes prior
to that date. As required by GAAP, results for the second quarter
must be presented separately for the predecessor period from April
1, 2021, through April 30, 2021 (the "Predecessor" period) and the
successor period from May 1, 2021, through June 30, 2021 (the
"Successor" period). However, the Company has combined certain
results of the Predecessor and Successor periods ("Combined"
results) as non-GAAP measures to compare the combined second
quarter with other quarters since we believe it provides the most
meaningful basis to analyze our results. The Predecessor and
Successor results for the second quarter are more fully discussed
in our quarterly report on Form 10-Q for the period ended June 30,
2021 filed with the SEC on August 3, 2021.
As previously announced, Valaris will hold its first quarter
2022 earnings conference call at 9:00 a.m. CT (10:00 a.m. ET) on
Tuesday, May 3, 2022. An updated investor presentation will be
available on the Valaris website after the call.
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. To learn more, visit the Valaris website at www.valaris.com.
Forward-Looking 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, rig commitments and availability,
cash flows, contract status, terms and duration, contract backlog,
capital expenditures, insurance, financing and funding; the effect,
impact, potential duration and other implications of the ongoing
COVID-19 pandemic; impact of our emergence from bankruptcy; 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 and contracts; letters of intent;
scheduled delivery dates for rigs; performance of our joint venture
with Saudi Aramco; the timing of delivery, mobilization, contract
commencement, availability, relocation or other movement of rigs;
future rig reactivations; expected divestitures of assets; general
market, business and industry conditions, trends and outlook;
general political conditions, including political tensions,
conflicts and war (such as the ongoing conflict in Ukraine); 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 the COVID-19 outbreak and global pandemic and the related
public health measures implemented by governments worldwide, which
may, among other things, impact our ability to staff rigs and
rotate crews; cancellation, suspension, renegotiation or
termination of drilling contracts and programs, including drilling
contracts which grant the customer termination right if FID is not
received with respect to projects for which the drilling rig is
contracted; potential additional asset impairments; failure to
satisfy our debt obligations; 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; the effects of our emergence from bankruptcy on the
Company's business, relationships, comparability of our financial
results and ability to access financing sources; actions by
regulatory authorities, or other third parties; actions by our
security holders; commodity price fluctuations and volatility,
customer demand, new rig supply, downtime and other risks
associated with offshore rig operations; severe weather or
hurricanes; changes in worldwide rig supply and demand, competition
and technology; consumer preferences for alternative fuels;
increased scrutiny of our Environmental, Social and Governance
("ESG") practices and reporting responsibilities; changes in
customer strategy; 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, upgrade, repair, maintenance
or enhancement; our ability to enter into, and the terms of, future
drilling contracts; suitability of rigs for future contracts; the
cancellation of letters of intent or letters of award or any
failure to execute definitive contracts following announcements of
letters of intent, letters of award or other expected work
commitments; 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 cybersecurity risks and threats. 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.
VALARIS LIMITED AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions,
except per share amounts)
Three Months Ended
Successor
Combined (Non-GAAP) (1)
Predecessor
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
OPERATING REVENUES
$
318.4
$
305.5
$
326.7
$
293.1
$
307.1
OPERATING EXPENSES
Contract drilling (exclusive of
depreciation)
331.3
285.5
274.6
258.8
253.6
Loss on impairment
—
—
—
—
756.5
Depreciation
22.5
25.1
24.4
54.1
122.1
General and administrative
18.8
18.3
27.2
19.1
24.3
Total operating expenses
372.6
328.9
326.2
332.0
1,156.5
EQUITY IN EARNINGS (LOSSES) OF ARO
4.3
(1.3
)
2.6
6.0
1.9
OPERATING INCOME (LOSS)
(49.9
)
(24.7
)
3.1
(32.9
)
(847.5
)
OTHER INCOME (EXPENSE)
Interest income
10.9
11.0
9.7
8.8
2.6
Interest expense, net (Unrecognized
contractual interest expense for debt subject to compromise was
$32.6 million and $100.3 million for the three months ended June
30, 2021 and March 31, 2021, respectively)
(11.5
)
(11.7
)
(11.3
)
(9.1
)
(1.3
)
Reorganization items, net
(1.0
)
(4.9
)
(6.5
)
(3,536.5
)
(52.2
)
Other, net
11.0
27.0
5.5
9.0
22.5
9.4
21.4
(2.6
)
(3,527.8
)
(28.4
)
INCOME (LOSS) BEFORE INCOME TAXES
(40.5
)
(3.3
)
0.5
(3,560.7
)
(875.9
)
PROVISION (BENEFIT) FOR INCOME TAXES
(0.7
)
(31.0
)
53.3
(0.4
)
31.7
NET INCOME (LOSS)
(39.8
)
27.7
(52.8
)
(3,560.3
)
(907.6
)
NET (INCOME) LOSS ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
1.2
—
(1.7
)
(2.9
)
(2.4
)
NET INCOME (LOSS) ATTRIBUTABLE TO
VALARIS
$
(38.6
)
$
27.7
$
(54.5
)
$
(3,563.2
)
$
(910.0
)
INCOME (LOSS) PER SHARE - BASIC AND
DILUTED
$
(0.51
)
$
0.37
$
(0.73
)
n/m
$
(4.56
)
WEIGHTED-AVERAGE SHARES OUTSTANDING -
BASIC AND DILUTED
75.0
75.0
75.0
n/m
199.6
(1)
Represents the combined results of
operations for the two-months ended June 30, 2021 (Successor) and
the one-month ended April 30, 2021 (Predecessor).
VALARIS LIMITED AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions)
Successor
Predecessor
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
578.2
$
608.7
$
620.8
$
608.8
$
291.7
Restricted cash
30.0
35.9
33.9
53.1
17.1
Accounts receivable, net
439.3
444.2
455.8
436.1
449.8
Other current assets
125.7
117.8
117.0
119.7
366.4
Total current assets
$
1,173.2
$
1,206.6
$
1,227.5
$
1,217.7
$
1,125.0
PROPERTY AND EQUIPMENT, NET
930.2
890.9
892.3
897.8
10,083.9
LONG-TERM NOTES RECEIVABLE FROM ARO
256.8
249.1
241.3
234.3
442.7
INVESTMENT IN ARO
90.9
86.6
87.9
85.4
122.8
OTHER ASSETS
186.6
176.0
153.5
166.5
172.5
$
2,637.7
$
2,609.2
$
2,602.5
$
2,601.7
$
11,946.9
LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable - trade
$
311.2
$
225.8
$
203.0
$
183.9
$
176.8
Accrued liabilities and other
212.1
196.2
223.8
212.7
290.6
Total current liabilities
$
523.3
$
422.0
$
426.8
$
396.6
$
467.4
LONG-TERM DEBT
545.5
545.3
545.1
544.8
—
OTHER LIABILITIES
544.8
581.1
591.3
569.8
704.6
TOTAL LIABILITIES NOT SUBJECT TO
COMPROMISE
1,613.6
1,548.4
1,563.2
1,511.2
1,172.0
LIABILITIES SUBJECT TO COMPROMISE
—
—
—
—
7,313.7
TOTAL EQUITY
1,024.1
1,060.8
1,039.3
1,090.5
3,461.2
$
2,637.7
$
2,609.2
$
2,602.5
$
2,601.7
$
11,946.9
VALARIS LIMITED AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In
millions)
Three Months Ended
Successor
Combined (Non-GAAP) (1)
Predecessor
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
OPERATING ACTIVITIES
Net income (loss)
$
(39.8
)
$
27.7
$
(52.8
)
$
(3,560.3
)
$
(907.6
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation expense
22.5
25.1
24.4
54.1
122.1
Accretion of discount on shareholder
note
(7.7
)
(7.9
)
(6.9
)
(6.0
)
—
Equity in losses (earnings) of ARO
(4.3
)
1.3
(2.6
)
(6.0
)
(1.9
)
Net periodic pension and retiree medical
income
(4.0
)
(2.6
)
(3.7
)
(3.8
)
(4.0
)
Share-based compensation expense
3.4
2.7
1.6
1.0
3.8
Gain on asset disposals
(2.5
)
(21.0
)
(0.3
)
(4.5
)
(1.4
)
Amortization, net
1.6
(0.5
)
3.1
(0.5
)
(4.6
)
Deferred income tax expense (benefit)
(0.6
)
(22.5
)
0.1
(18.0
)
0.9
Amortization of debt issuance cost
0.2
0.2
(0.1
)
0.4
—
Loss on impairment
—
—
—
—
756.5
Non-cash reorganization items, net
—
—
—
3,487.3
—
Other
—
0.3
0.2
1.3
5.8
Changes in operating assets and
liabilities
32.5
(9.0
)
45.0
21.9
20.9
Contributions to pension plans and other
post-retirement benefits
(0.8
)
(1.0
)
(1.1
)
(0.9
)
(22.2
)
Net cash provided by (used in) operating
activities
$
0.5
$
(7.2
)
$
6.9
$
(34.0
)
$
(31.7
)
INVESTING ACTIVITIES
Additions to property and equipment
$
(38.5
)
$
(26.5
)
$
(15.6
)
$
(10.8
)
$
(6.0
)
Net proceeds from disposition of
assets
1.3
23.6
1.3
26.6
3.7
Net cash provided by (used in) investing
activities
$
(37.2
)
$
(2.9
)
$
(14.3
)
$
15.8
$
(2.3
)
FINANCING ACTIVITIES
Issuance of first lien notes
$
—
$
—
$
—
$
520.0
$
—
Payments to Predecessor creditors
—
—
—
(129.9
)
—
Other
—
—
—
(1.4
)
—
Net cash provided by financing
activities
$
—
$
—
$
—
$
388.7
$
—
Effect of exchange rate changes on cash
and cash equivalents
$
0.3
$
—
$
0.2
$
(0.3
)
$
(0.1
)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH
$
(36.4
)
$
(10.1
)
$
(7.2
)
$
370.2
$
(34.1
)
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH, BEGINNING OF PERIOD
644.6
654.7
661.9
291.7
325.8
CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH, END OF PERIOD
$
608.2
$
644.6
$
654.7
$
661.9
$
291.7
(1)
Represents the combined results of
operations for the two-months ended June 30, 2021 (Successor) and
the one-month ended April 30, 2021 (Predecessor).
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS (In millions)
Three Months Ended
Successor
Combined (Non-GAAP)
Predecessor
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
REVENUES
Floaters
Drillships
$
85.4
$
73.5
$
67.5
$
42.6
$
81.0
Semisubmersibles
14.3
27.0
36.8
25.5
16.3
$
99.7
$
100.5
$
104.3
$
68.1
$
97.3
Jackups
(1)
HD Ultra-Harsh & Harsh Environment
$
92.9
$
94.0
$
102.8
$
104.9
$
95.5
HD & SD Modern
67.9
56.2
59.6
57.7
50.5
SD Legacy
19.9
22.1
23.9
25.7
26.6
$
180.7
$
172.3
$
186.3
$
188.3
$
172.6
Total
$
280.4
$
272.8
$
290.6
$
256.4
$
269.9
Other
Leased and Managed Rigs
$
38.0
$
32.7
$
36.1
$
36.7
$
37.2
Valaris Total
$
318.4
$
305.5
$
326.7
$
293.1
$
307.1
ARO
ARO Total
$
111.3
$
105.4
$
117.7
$
124.8
$
122.7
Valaris 50% Share (unconsolidated)
55.7
52.7
58.9
62.4
61.4
Adjusted Total (2)
$
374.1
$
358.2
$
385.6
$
355.5
$
368.5
(1)
HD = Heavy Duty; SD = Standard Duty. Heavy
duty jackups are well-suited for operations in tropical revolving
storm areas.
(2)
Adjusted total is Valaris consolidated
total plus Valaris 50% share of ARO (unconsolidated).
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS (In millions)
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
ADJUSTED EBITDAR (1)
Active Fleet (1) (2)
$
66.5
$
79.6
$
93.0
$
82.1
$
88.8
Leased and Managed Rigs (1)
22.6
17.4
22.2
22.9
22.7
$
89.1
$
97.0
$
115.2
$
105.0
$
111.5
Stacked Fleet (1) (3)
(10.7
)
(11.0
)
(12.5
)
(17.1
)
(17.7
)
$
78.4
$
86.0
$
102.7
$
87.9
$
93.8
Support
costs
General and administrative expense
$
18.8
$
18.3
$
27.2
$
19.1
$
24.3
Onshore support costs
29.0
28.0
27.1
29.1
32.2
$
47.8
$
46.3
$
54.3
$
48.2
$
56.5
Add:
Merger transaction and integration cost
included in contract drilling expense
—
0.2
0.9
0.9
1.9
Valaris Total
$
30.6
$
39.9
$
49.3
$
40.6
$
39.2
ARO
ARO Total
$
21.9
$
11.4
$
17.9
$
27.8
$
33.4
Valaris 50% Share (unconsolidated)
11.0
5.7
9.0
13.9
16.7
Adjusted Total (4)
$
41.6
$
45.6
$
58.3
$
54.5
$
55.9
Reactivation costs (5)
$
61.5
$
37.1
$
19.4
$
24.0
$
11.1
(1)
Adjusted EBITDAR is earnings before
interest, tax, depreciation, amortization and reactivation costs.
Adjusted EBITDAR for active fleet, leased and managed rigs and
stacked fleet also excludes onshore support costs and general and
administrative expense.
(2)
Active fleet represents rigs that are not
preservation stacked, including rigs that are in the process of
being reactivated.
(3)
Stacked fleet represents the combined
total of all preservation and stacking costs.
(4)
Adjusted total is Valaris consolidated
total plus Valaris 50% share of ARO (unconsolidated).
(5)
Reactivation costs, all of which are
attributed to the active fleet, are excluded from adjusted
EBITDAR.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS (In millions)
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
ADJUSTED EBITDAR (1)
Floaters
Drillships (1)
$
27.2
$
17.7
$
8.9
$
(2.5
)
$
16.1
Semisubmersibles (1)
(15.0
)
3.2
8.3
6.5
(1.0
)
$
12.2
$
20.9
$
17.2
$
4.0
$
15.1
Jackups
HD Ultra-Harsh & Harsh (1)
$
21.0
$
24.3
$
38.7
$
42.3
$
31.0
HD & SD - Modern (1)
13.7
11.6
15.6
6.7
12.0
SD - Legacy (1)
8.9
11.8
9.0
12.0
13.0
$
43.6
$
47.7
$
63.3
$
61.0
$
56.0
Total
$
55.8
$
68.6
$
80.5
$
65.0
$
71.1
Other
Leased and Managed Rigs (1)
$
22.6
$
17.4
$
22.2
$
22.9
$
22.7
Total
$
78.4
$
86.0
$
102.7
$
87.9
$
93.8
Support
costs
General and administrative expense
$
18.8
$
18.3
$
27.2
$
19.1
$
24.3
Onshore support costs
29.0
28.0
27.1
29.1
32.2
$
47.8
$
46.3
$
54.3
$
48.2
$
56.5
Add:
Merger transaction and integration cost
included in contract drilling expense
—
0.2
0.9
0.9
1.9
Valaris Total
$
30.6
$
39.9
$
49.3
$
40.6
$
39.2
ARO
ARO Total
$
21.9
$
11.4
$
17.9
$
27.8
$
33.4
Valaris 50% Share (unconsolidated)
11.0
5.7
9.0
13.9
16.7
Adjusted Total (2)
$
41.6
$
45.6
$
58.3
$
54.5
$
55.9
(1)
Adjusted EBITDAR is earnings before
interest, tax, depreciation, amortization and reactivation costs.
Adjusted EBITDAR for asset category also excludes onshore support
costs and general and administrative expense.
(2)
Adjusted total is Valaris consolidated
total plus Valaris 50% share of ARO (unconsolidated).
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS (In millions)
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
ADJUSTED EBITDA (1)
Floaters
Drillships (1)
$
(21.4
)
$
(6.6
)
$
8.6
$
(2.5
)
$
16.1
Semisubmersibles (1)
(27.3
)
(6.3
)
7.2
6.4
(6.7
)
$
(48.7
)
$
(12.9
)
$
15.8
$
3.9
$
9.4
Jackups
HD Ultra-Harsh & Harsh (1)
$
20.4
$
21.0
$
25.1
$
22.2
$
29.3
HD & SD - Modern (1)
13.7
11.6
11.2
2.9
8.3
SD - Legacy (1)
8.9
11.8
9.0
12.0
13.0
$
43.0
$
44.4
$
45.3
$
37.1
$
50.6
Total
$
(5.7
)
$
31.5
$
61.1
$
41.0
$
60.0
Other
Leased and Managed Rigs (1)
$
22.6
$
17.3
$
22.1
$
22.9
$
22.7
Total
$
16.9
$
48.8
$
83.2
$
63.9
$
82.7
Support
costs
General and administrative expense
$
18.8
$
18.3
$
27.2
$
19.1
$
24.3
Onshore support costs
29.0
28.0
27.1
29.1
32.2
$
47.8
$
46.3
$
54.3
$
48.2
$
56.5
Add:
Merger transaction and integration cost
included in contract drilling expense
—
0.2
0.9
0.9
1.9
Valaris Total
$
(30.9
)
$
2.7
$
29.8
$
16.6
$
28.1
ARO
ARO Total
$
21.9
$
11.4
$
17.9
$
27.8
$
33.4
Valaris 50% Share (unconsolidated)
11.0
5.7
9.0
13.9
16.7
Adjusted Total (2)
$
(19.9
)
$
8.4
$
38.8
$
30.5
$
44.8
(1)
Adjusted EBITDA is earnings before
interest, tax, depreciation and amortization. Adjusted EBITDA for
asset category also excludes onshore support costs and general and
administrative expense.
(2)
Adjusted total is Valaris consolidated
total plus Valaris 50% share of ARO (unconsolidated).
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS (In millions)
As of
May 2, 2022
February 21, 2022
October 27, 2021
August 2, 2021
March 31, 2021
CONTRACT BACKLOG (1)
Floaters
Drillships (2)
$
1,290.9
$
1,280.4
$
1,338.6
$
1,102.2
$
117.6
Semisubmersibles
375.8
384.9
277.9
294.0
171.4
$
1,666.7
$
1,665.3
$
1,616.5
$
1,396.2
$
289.0
Jackups
HD Ultra-Harsh & Harsh
218.8
309.7
307.6
364.4
403.8
HD & SD - Modern
225.7
252.1
274.5
299.9
180.6
SD - Legacy
70.7
81.2
85.5
102.9
134.4
$
515.2
$
643.0
$
667.6
$
767.2
$
718.8
Total
$
2,181.9
$
2,308.3
$
2,284.1
$
2,163.4
$
1,007.8
Other (3)
Leased and Managed Rigs
$
271.5
$
135.6
$
33.9
$
60.3
$
90.8
Valaris Total
$
2,453.4
$
2,443.9
$
2,318.0
$
2,223.7
$
1,098.6
ARO
Owned Rigs
$
993.6
$
1,040.9
$
757.4
$
818.7
$
869.5
Leased Rigs
496.9
460.2
88.7
134.5
192.2
ARO Total
$
1,490.5
$
1,501.1
$
846.1
$
953.2
$
1,061.7
Valaris 50% Share of ARO Owned Rigs
496.8
520.5
378.7
409.4
434.8
Adjusted Total (4)
$
2,950.2
$
2,964.4
$
2,696.7
$
2,633.1
$
1,533.4
(1)
Our contract drilling backlog reflects
commitments, represented by signed drilling contracts, and is
calculated by multiplying the contracted day rate by the contract
period. Contract drilling backlog includes drilling contracts
subject to FID and drilling contracts which grant the customer
termination rights if FID is not received with respect to projects
for which the drilling rig is contracted. The contracted day rate
excludes certain types of lump sum fees for rig mobilization,
demobilization, contract preparation, as well as customer
reimbursables and bonus opportunities.
(2)
Approximately $428 million of backlog as
of May 2, 2022, is attributable to a contract awarded to drillship
VALARIS DS-11 that is expected to commence in mid-2024. In February
2022, the customer decided not to sanction and therefore withdrew
from the project. In March 2022, the contract was novated to
another customer, which was a partner on the project. No material
changes to the contract resulted from the novation, including with
respect to the termination provisions in the event the project does
not receive FID.
(3)
Leased rigs and managed rigs included in
Other reporting segment.
(4)
Adjusted total is Valaris consolidated
total plus Valaris 50% share of ARO owned rigs.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
AVERAGE DAY RATES (1)
Floaters
Drillships
$
203,000
$
196,000
$
189,000
$
212,000
$
208,000
Semisubmersibles
156,000
171,000
191,000
178,000
164,000
$
197,000
$
189,000
$
190,000
$
197,000
$
198,000
Jackups
HD Ultra-Harsh & Harsh
$
104,000
$
110,000
$
124,000
$
141,000
$
140,000
HD & SD Modern
80,000
76,000
77,000
73,000
70,000
SD Legacy
71,000
73,000
74,000
72,000
70,000
$
89,000
$
90,000
$
96,000
$
99,000
$
95,000
Total
$
108,000
$
111,000
$
115,000
$
114,000
$
116,000
Other
Leased and Managed Rigs
$
39,000
$
33,000
$
31,000
$
31,000
$
32,000
Valaris Total
$
90,000
$
89,000
$
90,000
$
87,000
$
89,000
ARO
Owned Rigs
$
99,000
$
101,000
$
99,000
$
99,000
$
98,000
Leased Rigs (2)
93,000
94,000
92,000
93,000
89,000
ARO Total
$
96,000
$
97,000
$
95,000
$
96,000
$
93,000
(1)
Average day rates are derived by dividing
contract drilling revenues, adjusted to exclude certain types of
non-recurring reimbursable revenues, lump-sum revenues, revenues
earned during suspension periods and revenues attributable to
amortization of drilling contract intangibles, by the aggregate
number of contract days, adjusted to exclude contract days
associated with certain suspension periods, mobilizations, and
demobilizations.
(2)
All ARO leased rigs are leased from
Valaris and also included in Valaris leased and managed rigs
average day rates.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
UTILIZATION - TOTAL FLEET (1)
Floaters
Drillships
30
%
27
%
24
%
18
%
33
%
Semisubmersibles
11
%
30
%
39
%
30
%
20
%
25
%
28
%
28
%
22
%
29
%
Jackups
HD Ultra-Harsh & Harsh
78
%
73
%
72
%
58
%
50
%
HD & SD Modern
51
%
42
%
43
%
43
%
40
%
SD Legacy
75
%
66
%
74
%
93
%
100
%
63
%
55
%
57
%
54
%
50
%
Total
49
%
46
%
47
%
44
%
44
%
Other
Leased and Managed Rigs
100
%
100
%
100
%
100
%
100
%
Valaris Total
57
%
54
%
56
%
54
%
54
%
Pro Forma Jackups (2)
68
%
62
%
62
%
63
%
60
%
ARO
Owned Rigs
91
%
80
%
85
%
96
%
97
%
Leased Rigs (3)
91
%
89
%
86
%
83
%
85
%
ARO Total
91
%
84
%
86
%
89
%
90
%
(1)
Rig utilization is derived by dividing the
number of operating days by the number of available days in the
period for the total fleet.
(2)
Includes all Valaris jackups including
those leased to ARO Drilling.
(3)
All ARO leased rigs are leased from
Valaris and also included in Valaris leased and managed rigs
utilization.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
UTILIZATION - ACTIVE FLEET (1)
(2)
Floaters
Drillships
56
%
57
%
79
%
51
%
91
%
Semisubmersibles
19
%
51
%
64
%
50
%
33
%
45
%
55
%
73
%
51
%
66
%
Jackups
HD Ultra-Harsh & Harsh
85
%
80
%
84
%
82
%
92
%
HD & SD Modern
83
%
76
%
75
%
74
%
84
%
SD Legacy
100
%
84
%
87
%
93
%
100
%
86
%
79
%
80
%
80
%
90
%
Total
74
%
72
%
79
%
74
%
84
%
Other
Leased and Managed Rigs
100
%
100
%
100
%
100
%
100
%
Valaris Total
80
%
78
%
84
%
81
%
89
%
Pro Forma Jackups (3)
87
%
81
%
82
%
86
%
93
%
ARO
Owned Rigs
91
%
80
%
85
%
96
%
97
%
Leased Rigs (4)
91
%
89
%
86
%
83
%
85
%
ARO Total
91
%
84
%
86
%
89
%
90
%
(1)
Rig utilization is derived by dividing the
number of operating days by the number of available days in the
period for the active fleet.
(2)
Active fleet represents rigs that are not
preservation stacked, including rigs that are in the process of
being reactivated.
(3)
Includes all Valaris jackups including
those leased to ARO Drilling.
(4)
All ARO leased rigs are leased from
Valaris and also included in Valaris leased and managed rigs
utilization.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
REVENUE EFFICIENCY (1)
Floaters
Drillships
98.3
%
91.5
%
97.6
%
100.0
%
95.7
%
Semisubmersibles
100.0
%
97.7
%
96.7
%
100.0
%
100.0
%
98.5
%
93.0
%
97.3
%
100.0
%
98.2
%
Jackups
HD Ultra-Harsh & Harsh
98.9
%
99.1
%
99.5
%
100.0
%
95.1
%
HD & SD Modern
99.8
%
97.9
%
100.0
%
99.8
%
99.7
%
SD Legacy
100.0
%
100.0
%
99.0
%
96.9
%
100.0
%
99.4
%
98.8
%
99.6
%
99.0
%
99.3
%
Valaris Total
99.1
%
96.6
%
98.8
%
99.3
%
98.9
%
ARO
Owned Rigs
96.8
%
96.3
%
98.1
%
94.0
%
99.7
%
Leased Rigs
95.5
%
91.3
%
96.9
%
92.6
%
96.0
%
ARO Total
96.2
%
93.7
%
97.4
%
93.3
%
97.9
%
(1)
Revenue efficiency is day rate revenue
earned as a percentage of maximum potential day rate revenue.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS
As of
NUMBER OF RIGS
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Active Fleet (1)
Floaters
Drillships
7
7
4
4
4
Semisubmersibles
3
3
3
3
3
10
10
7
7
7
Jackups
HD Ultra-Harsh & Harsh
10
10
10
10
9
HD & SD Modern
10
11
11
11
11
SD Legacy
3
3
3
4
4
23
24
24
25
24
Total Active Fleet
33
34
31
32
31
Stacked Fleet
Floaters
Drillships (2)
4
4
7
7
7
Semisubmersibles
2
2
2
2
2
6
6
9
9
9
Jackups
HD Ultra-Harsh & Harsh
1
1
1
2
4
HD & SD Modern
7
7
7
8
8
SD Legacy
—
1
1
—
—
8
9
9
10
12
Total Stacked Fleet
14
15
18
19
21
Leased Rigs (3)
Jackups
HD Ultra-Harsh & Harsh
1
1
1
1
1
HD & SD Modern
6
5
5
5
5
SD Legacy
1
1
2
3
3
Total Leased Rigs
8
7
8
9
9
Valaris Total
55
56
57
60
61
Managed Rigs (3)
2
2
2
2
2
ARO (4)
Owned Rigs
7
7
7
7
7
Leased Rigs
8
7
8
9
9
ARO Total
15
14
15
16
16
(1)
Active fleet represents rigs that are not
preservation stacked, including rigs that are in the process of
being reactivated.
(2)
Excludes VALARIS DS-13 and VALARIS DS-14,
which Valaris has the option to purchase through year-end 2023.
Prior periods have been revised to conform with the current
treatment.
(3)
Leased rigs and managed rigs included in
Other reporting segment.
(4)
Valaris has a 50% ownership interest in
ARO. Rig count for ARO owned rigs excludes two newbuild rigs. The
first two rigs are expected to be delivered in the first half 2023.
All ARO leased rigs are leased from Valaris and also included in
Valaris leased rig count.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
AVAILABLE DAYS - TOTAL FLEET
(1)
Floaters
Drillships
1,170
1,196
1,196
1,001
990
Semisubmersibles
450
460
460
455
450
1,620
1,656
1,656
1,456
1,440
Jackups
HD Ultra-Harsh & Harsh
990
1,012
1,074
1,153
1,170
HD & SD Modern
1,599
1,668
1,748
1,729
1,710
SD Legacy
360
420
398
364
360
2,949
3,100
3,220
3,246
3,240
Total
4,569
4,756
4,876
4,702
4,680
Other
Leased and Managed Rigs
831
828
982
1,001
990
Valaris Total
5,400
5,584
5,858
5,703
5,670
ARO
Owned Rigs
630
644
644
637
630
Leased Rigs (2)
646
644
798
819
810
ARO Total
1,276
1,288
1,442
1,456
1,440
(1)
Represents the maximum number of days
available in the period for the total fleet, calculated by
multiplying the number of rigs in each asset category by the number
of days in the period, irrespective of asset status.
(2)
All ARO leased rigs are leased from
Valaris and also included in Valaris leased and managed rigs
available days.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
AVAILABLE DAYS - ACTIVE FLEET (1)
(2)
Floaters
Drillships
630
567
368
364
360
Semisubmersibles
270
276
276
273
270
900
843
644
637
630
Jackups
HD Ultra-Harsh & Harsh
900
920
920
819
630
HD & SD Modern
969
932
1,012
1,001
810
SD Legacy
270
328
337
364
360
2,139
2,180
2,269
2,184
1,800
Total
3,039
3,023
2,913
2,821
2,430
Other
Leased and Managed Rigs
831
828
982
1,001
990
Valaris Total
3,870
3,851
3,895
3,822
3,420
ARO
Owned Rigs
630
644
644
637
630
Leased Rigs (2)
646
644
798
819
810
ARO Total
1,276
1,288
1,442
1,456
1,440
(1)
Represents the maximum number of days
available in the period for the active fleet, calculated by
multiplying the number of rigs in each asset category by the number
of days in the period, for active rigs only. Active rigs are
defined as rigs that are not preservation stacked.
(2)
Active fleet represents rigs that are not
preservation stacked, including rigs that are in the process of
being reactivated.
(3)
All ARO leased rigs are leased from
Valaris and also included in Valaris leased and managed rigs
available days.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
OPERATING DAYS (1)
Floaters
Drillships
353
322
290
185
329
Semisubmersibles
52
140
177
137
90
405
462
467
322
419
Jackups
HD Ultra-Harsh & Harsh
769
734
770
674
582
HD & SD Modern
809
706
759
742
683
SD Legacy
270
276
294
339
360
1,848
1,716
1,823
1,755
1,625
Total
2,253
2,178
2,290
2,077
2,044
Other
Leased and Managed Rigs
831
828
982
1,001
990
Valaris Total
3,084
3,006
3,272
3,078
3,034
ARO
Owned Rigs
572
513
549
609
609
Leased Rigs (2)
588
570
687
684
687
ARO Total
1,160
1,083
1,236
1,293
1,296
(1)
Represents the total number of days under
contract in the period. Days under contract equals the total number
of days that rigs have earned and recognized day rate revenue,
including days associated with early contract terminations,
compensated downtime and mobilizations. When revenue is deferred
and amortized over a future period, for example when we receive
fees while mobilizing to commence a new contract or while being
upgraded in a shipyard, the related days are excluded from days
under contract.
(2)
All ARO leased rigs are leased from
Valaris and also included in Valaris leased and managed rigs
operating days.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS ($ in millions, except average
day rate)
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
DRILLSHIPS
Adjusted revenues (1)
$
73.1
$
63.3
$
55.7
$
39.6
$
71.3
Adjusted operating expense (2)
94.0
69.2
46.8
41.6
52.8
Rig operating margin
(20.9
)
(5.9
)
8.9
(2.0
)
18.5
Rig operating margin %
(29
)%
(9
)%
16
%
(5
)%
26
%
Other operating expenses
Depreciation
11.3
10.8
10.5
21.4
43.0
Loss on impairment
—
—
—
—
—
$
11.3
$
10.8
$
10.5
$
21.4
$
43.0
Other operating income (expense) (3)
(11.6
)
(11.4
)
(9.3
)
(9.9
)
(8.6
)
Operating loss
$
(43.8
)
$
(28.1
)
$
(10.9
)
$
(33.3
)
$
(33.1
)
Adjusted EBITDA (4)
$
(21.4
)
$
(6.6
)
$
8.6
$
(2.5
)
$
16.1
Reactivation costs (5)
48.6
24.3
0.3
—
—
Adjusted EBITDAR
$
27.2
$
17.7
$
8.9
$
(2.5
)
$
16.1
Preservation and stacking costs (5)
$
7.5
$
7.6
$
8.3
$
8.9
$
11.3
Number of Rigs (at quarter end)
Total Fleet
11
11
11
11
11
Active Fleet
7
7
4
4
4
Operating Days
353
322
290
185
329
Utilization - Active Fleet
56
%
57
%
79
%
51
%
91
%
Average Day Rate
$
203,000
$
196,000
$
189,000
$
212,000
$
208,000
(1)
Revenues exclusive of amortization and
reimbursable items. In the three months ended March 31, 2022, we
adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Operating expense exclusive of
depreciation, amortization, reimbursable items, bad debt expense
and onshore support costs.
(3)
Other operating income (expense) includes
reimbursable revenue and expense, amortized revenue and expense,
bad debt expense and other miscellaneous items.
(4)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
(5)
Included in rig operating expense.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS ($ in millions, except average
day rate
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
SEMISUBMERSIBLES
Adjusted revenues (1)
$
8.1
$
24.0
$
33.8
$
24.5
$
14.9
Adjusted operating expense (2)
34.5
28.2
25.9
17.4
20.9
Rig operating margin
(26.4
)
(4.2
)
7.9
7.1
(6.0
)
Rig operating margin %
(326
)%
(18
)%
23
%
29
%
(40
)%
Other operating expenses
Depreciation
0.8
0.8
0.8
2.2
12.9
Loss on impairment
—
—
—
—
756.5
$
0.8
$
0.8
$
0.8
$
2.2
$
769.4
Other operating income (expense) (3)
(4.8
)
(5.8
)
(6.7
)
(6.6
)
(6.1
)
Operating income (loss)
$
(32.0
)
$
(10.8
)
$
0.4
$
(1.7
)
$
(781.5
)
Adjusted EBITDA (4)
$
(27.3
)
$
(6.3
)
$
7.2
$
6.4
$
(6.7
)
Reactivation costs (5)
12.3
9.5
1.1
0.1
5.7
Adjusted EBITDAR
$
(15.0
)
$
3.2
$
8.3
$
6.5
$
(1.0
)
Preservation and stacking costs (5)
$
1.2
$
1.0
$
1.4
$
1.4
$
1.6
Number of Rigs (at quarter end)
Total Fleet
5
5
5
5
5
Active Fleet
3
3
3
3
3
Operating Days
52
140
177
137
90
Utilization - Active Fleet
19
%
51
%
64
%
50
%
33
%
Average Day Rate
$
156,000
$
171,000
$
191,000
$
178,000
$
164,000
(1)
Revenues exclusive of amortization and
reimbursable items. In the three months ended March 31, 2022, we
adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Operating expense exclusive of
depreciation, amortization, reimbursable items, bad debt expense
and onshore support costs.
(3)
Other operating income (expense) includes
reimbursable revenue and expense, amortized revenue and expense,
bad debt expense and other miscellaneous items.
(4)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
(5)
Included in rig operating expense.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS ($ in millions, except average
day rate)
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
HD ULTRA-HARSH & HARSH
JACKUPS
Adjusted revenues (1)
$
81.1
$
83.7
$
95.8
$
95.0
$
86.4
Adjusted operating expense (2)
58.1
61.4
68.8
71.3
55.2
Rig operating margin
23.0
22.3
27.0
23.7
31.2
Rig operating margin %
28
%
27
%
28
%
25
%
36
%
Other operating expenses
Depreciation
5.5
7.9
8.0
13.7
26.9
Loss on impairment
—
—
—
—
—
$
5.5
$
7.9
$
8.0
$
13.7
$
26.9
Other operating income (expense) (3)
(4.4
)
(5.4
)
(7.1
)
(6.1
)
(6.0
)
Operating income (loss)
$
13.1
$
9.0
$
11.9
$
3.9
$
(1.7
)
Adjusted EBITDA (4)
$
20.4
$
21.0
$
25.1
$
22.2
$
29.3
Reactivation costs (5)
0.6
3.3
13.6
20.1
1.7
Adjusted EBITDAR
$
21.0
$
24.3
$
38.7
$
42.3
$
31.0
Preservation and stacking costs (5)
$
0.1
$
0.1
$
0.1
$
1.3
$
2.8
Number of Rigs (at quarter end)
Total Fleet
11
11
11
12
13
Active Fleet
10
10
10
10
9
Operating Days
769
734
770
674
582
Utilization - Active Fleet
85
%
80
%
84
%
82
%
92
%
Average Day Rate
$
104,000
$
110,000
$
124,000
$
141,000
$
140,000
(1)
Revenues exclusive of amortization and
reimbursable items. In the three months ended March 31, 2022, we
adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Operating expense exclusive of
depreciation, amortization, reimbursable items, bad debt expense
and onshore support costs.
(3)
Other operating income (expense) includes
reimbursable revenue and expense, amortized revenue and expense,
bad debt expense and other miscellaneous items.
(4)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
(5)
Included in rig operating expense.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS ($ in millions, except average
day rate)
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
HD & SD MODERN JACKUPS
Adjusted revenues (1)
$
65.5
$
54.2
$
58.1
$
54.2
$
48.4
Adjusted operating expense (2)
47.6
40.6
44.9
49.2
38.8
Rig operating margin
17.9
13.6
13.2
5.0
9.6
Rig operating margin %
27
%
25
%
23
%
9
%
20
%
Other operating expenses
Depreciation
2.5
3.2
3.0
9.6
22.4
Loss on impairment
—
—
—
—
—
$
2.5
$
3.2
$
3.0
$
9.6
$
22.4
Other operating income (expense) (3)
(13.7
)
(8.3
)
(8.5
)
(6.9
)
(8.9
)
Operating income (loss)
$
1.7
$
2.1
$
1.7
$
(11.5
)
$
(21.7
)
Adjusted EBITDA (4)
$
13.7
$
11.6
$
11.2
$
2.9
$
8.3
Reactivation costs (5)
—
—
4.4
3.8
3.7
Adjusted EBITDAR
$
13.7
$
11.6
$
15.6
$
6.7
$
12.0
Preservation and stacking costs (5)
$
1.8
$
2.0
$
0.5
$
5.5
$
2.0
Number of Rigs (at quarter end)
Total Fleet
17
18
18
19
19
Active Fleet
10
11
11
11
11
Operating Days
809
706
759
742
683
Utilization - Active Fleet
83
%
76
%
75
%
74
%
84
%
Average Day Rate
$
80,000
$
76,000
$
77,000
$
73,000
$
70,000
(1)
Revenues exclusive of amortization and
reimbursable items. In the three months ended March 31, 2022, we
adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Operating expense exclusive of
depreciation, amortization, reimbursable items, bad debt expense
and onshore support costs.
(3)
Other operating income (expense) includes
reimbursable revenue and expense, amortized revenue and expense,
bad debt expense and other miscellaneous items.
(4)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
(5)
Included in rig operating expense.
VALARIS LIMITED AND
SUBSIDIARIES OPERATING STATISTICS ($ in millions, except average
day rate)
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
SD LEGACY JACKUPS
Adjusted revenues (1)
$
19.2
$
20.3
$
23.4
$
24.4
$
25.5
Adjusted operating expense (2)
9.9
8.4
14.2
11.8
12.1
Rig operating margin
9.3
11.9
9.2
12.6
13.4
Rig operating margin %
48
%
59
%
39
%
52
%
53
%
Other operating expenses
Depreciation
1.0
1.0
0.9
1.6
2.8
Loss on impairment
—
—
—
—
—
$
1.0
$
1.0
$
0.9
$
1.6
$
2.8
Other operating income (expense) (3)
(1.8
)
(1.7
)
(2.2
)
(3.0
)
(2.8
)
Operating income
$
6.5
$
9.2
$
6.1
$
8.0
$
7.8
Adjusted EBITDA (4)
$
8.9
$
11.8
$
9.0
$
12.0
$
13.0
Reactivation costs (5)
—
—
—
—
—
Adjusted EBITDAR
$
8.9
$
11.8
$
9.0
$
12.0
$
13.0
Preservation and stacking costs (5)
$
—
$
0.3
$
2.3
$
—
$
—
Number of Rigs (at quarter end)
Total Fleet
3
4
4
4
4
Active Fleet
3
3
3
4
4
Operating Days
270
276
294
339
360
Utilization - Active Fleet
100
%
84
%
87
%
93
%
100
%
Average Day Rate
$
71,000
$
73,000
$
74,000
$
72,000
$
70,000
(1)
Revenues exclusive of amortization and
reimbursable items. In the three months ended March 31, 2022, we
adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Operating expense exclusive of
depreciation, amortization, reimbursable items, bad debt expense
and onshore support costs.
(3)
Other operating income (expense) includes
reimbursable revenue and expense, amortized revenue and expense,
bad debt expense and other miscellaneous items.
(4)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
(5)
Included in rig operating expense.
ARO DRILLING CONDENSED BALANCE
SHEET INFORMATION (In millions)
As of
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Cash
$
240.2
$
270.8
$
309.0
$
318.2
$
275.4
Other current assets
179.5
135.0
98.0
81.7
89.2
Non-current assets
775.8
775.8
776.1
782.8
789.0
Total assets
$
1,195.5
$
1,181.6
$
1,183.1
$
1,182.7
$
1,153.6
Current liabilities
$
92.9
$
79.9
$
77.1
$
74.9
$
52.3
Non-current liabilities
957.9
956.7
951.0
950.3
952.1
Total liabilities
$
1,050.8
$
1,036.6
$
1,028.1
$
1,025.2
$
1,004.4
Shareholders' equity
$
144.7
$
145.0
$
155.0
$
157.5
$
149.2
Total liabilities and shareholders'
equity
$
1,195.5
$
1,181.6
$
1,183.1
$
1,182.7
$
1,153.6
ARO DRILLING CONDENSED INCOME
STATEMENT INFORMATION (In millions)
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
Revenues
$
111.3
$
105.4
$
117.7
$
124.8
$
122.7
Operating expenses
Contract drilling (exclusive of
depreciation)
84.2
88.9
94.4
92.7
86.3
Depreciation
16.5
17.7
16.8
14.6
16.1
General and administrative
5.2
5.1
5.4
4.3
3.0
Operating income (loss)
$
5.4
$
(6.3
)
$
1.1
$
13.2
$
17.3
Other expense, net
3.3
2.4
3.4
3.1
4.5
Provision for income taxes
0.7
1.3
0.2
1.9
4.5
Net income (loss)
$
1.4
$
(10.0
)
$
(2.5
)
$
8.2
$
8.3
EBITDA
$
21.9
$
11.4
$
17.9
$
27.8
$
33.4
ARO Drilling condensed balance sheet and income statement
information presented above represents 100% of ARO. Valaris has a
50% ownership interest in ARO.
Non-GAAP Financial Measures
To supplement Valaris’ condensed consolidated financial
statements presented on a GAAP basis, this press release provides
investors with Adjusted EBITDA and Adjusted EBITDAR, which are
non-GAAP measures.
Valaris defines "Adjusted EBITDA" as net loss from continuing
operations before income tax expense, interest expense,
reorganization items, net, other (income) expense, depreciation
expense, amortization, net, loss on impairment, equity in earnings
of ARO, merger transaction and integration costs and lease
modification adjustment. Adjusted EBITDA is a non-GAAP measure that
our management uses to facilitate period-to-period comparisons of
our core operating performance and to evaluate our long-term
financial performance against that of our peers. We believe that
this measure is useful to investors and analysts in allowing for
greater transparency of our core operating performance and makes it
easier to compare our results with those of other companies within
our industry. Adjusted EBITDA should not be considered (a) in
isolation of, or as a substitute for, net income (loss), (b) as an
indication of cash flows from operating activities, or (c) as a
measure of liquidity. Adjusted EBITDA may not be comparable to
other similarly titled measures reported by other companies.
Valaris defines "Adjusted EBITDAR" as Adjusted EBITDA before
reactivation costs. Adjusted EBITDAR is a non-GAAP measure that our
management uses to assess the performance of our fleet excluding
one-time rig reactivation costs. We believe that this measure is
useful to investors and analysts in allowing for greater
transparency of our core operating performance. Adjusted EBITDAR
should not be considered (a) in isolation of, or as a substitute
for, net income (loss), (b) as an indication of cash flows from
operating activities, or (c) as a measure of liquidity. Adjusted
EBITDAR may not be comparable to other similarly titled measures
reported by other companies.
Valaris defines ARO "EBITDA" as net income before income tax
expense, other expense, net and depreciation expense. EBITDA is a
non-GAAP measure that our management uses to facilitate
period-to-period comparisons of ARO's core operating performance
and to evaluate ARO's long-term financial performance against that
of ARO's peers. We believe that this measure is useful to investors
and analysts in allowing for greater transparency of ARO's core
operating performance and makes it easier to compare ARO's results
with those of other companies within ARO's industry. EBITDA should
not be considered (a) in isolation of, or as a substitute for, net
income (loss), (b) as an indication of cash flows from operating
activities, or (c) as a measure of liquidity. EBITDA may not be
comparable to other similarly titled measures reported by other
companies.
The Company is not able to provide a reconciliation of the
Company's forward-looking Adjusted EBITDA, as discussed on its
first quarter 2022 earnings conference call, to the most directly
comparable GAAP measure without unreasonable effort because of the
inherent difficulty in forecasting and quantifying certain amounts
necessary for such a reconciliation, including forward-looking tax
expense and other income (expense).
Non-GAAP financial measures should be considered as a supplement
to, and not as a substitute for, or superior to, financial measures
prepared in accordance with GAAP.
Reconciliation of Net Income (Loss) to Adjusted
EBITDA
A reconciliation of net income (loss) as reported to Adjusted
EBITDA is included in the tables below (in millions):
Three Months Ended
March 31, 2022
December 31, 2021
VALARIS
Net income (loss)
$
(39.8
)
$
27.7
Add (subtract):
Income tax benefit
(0.7
)
(31.0
)
Interest expense
11.5
11.7
Reorganization items
1.0
4.9
Other income
(21.9
)
(38.0
)
Operating loss
(49.9
)
(24.7
)
Add (subtract):
Depreciation expense
22.5
25.1
Amortization, net (1)
1.6
(0.5
)
Merger transaction and integration
costs
(0.8
)
1.3
Equity in (earnings) losses of ARO
(4.3
)
1.3
Adjusted EBITDA
$
(30.9
)
$
2.5
(1)
Amortization, net, includes amortization
during the indicated period for deferred mobilization revenues and
costs, deferred capital upgrade revenues, deferred certification
costs, intangible amortization and other amortization.
Three Months Ended
March 31, 2022
December 31, 2021
September 30, 2021
June 30, 2021
March 31, 2021
ARO
Net (loss) income
$
1.4
$
(10.0
)
$
(2.5
)
$
8.2
$
8.3
Add:
Income tax expense
0.7
1.3
0.2
1.9
4.5
Other expense, net
3.3
2.4
3.4
3.1
4.5
Operating (loss) income
$
5.4
$
(6.3
)
$
1.1
$
13.2
$
17.3
Add:
Depreciation expense
16.5
17.7
16.8
14.6
16.1
EBITDA
$
21.9
$
11.4
$
17.9
$
27.8
$
33.4
Reconciliation of Net Income (Loss) to
Adjusted EBITDA and Adjusted EBITDAR
(In millions)
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
FLOATERS
Net loss
$
(60.0
)
$
(25.4
)
Add (subtract):
Other (income) expense
(0.1
)
0.4
Operating loss
$
(60.1
)
$
(25.0
)
Add (subtract):
Depreciation and amortization, net
11.4
11.2
Other costs
—
0.9
Adjusted EBITDA
$
(48.7
)
$
(12.9
)
Add (subtract):
Reactivation costs
60.9
33.8
Adjusted EBITDAR
$
12.2
$
20.9
JACKUPS
Net income
$
34.7
$
52.8
Add (subtract):
Other income
(2.3
)
(20.6
)
Operating income
$
32.4
$
32.2
Add (subtract):
Depreciation and amortization, net
10.6
11.9
Other costs
—
0.3
Adjusted EBITDA
$
43.0
$
44.4
Add (subtract):
Reactivation costs
0.6
3.3
Adjusted EBITDAR
$
43.6
$
47.7
OTHER
Net income
$
21.6
$
16.2
Add (subtract):
Operating income
$
21.6
$
16.2
Add (subtract):
Depreciation and amortization, net
1.0
1.1
Adjusted EBITDA
$
22.6
$
17.3
Add (subtract):
Reactivation costs
—
0.1
Adjusted EBITDAR
$
22.6
$
17.4
Reconciliation of Operating Income
(Loss) to Adjusted EBITDAR
(In millions)
Successor
Predecessor
Combined (Non-GAAP)
Predecessor
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Two Months Ended June 30,
2021
One Month Ended April 30,
2021
Three Months Ended June 30,
2021
Three Months Ended March 31,
2021
ACTIVE FLEET (1)
Operating income (loss)
$
(40.0
)
$
(3.1
)
$
27.2
$
20.2
$
(20.7
)
$
(0.5
)
$
(434.1
)
Add (subtract):
Reactivation costs
61.5
37.1
19.4
17.3
6.7
24.0
11.1
Depreciation and amortization, net
18.9
19.0
20.7
11.9
19.0
30.9
62.0
Loss on impairment
—
—
—
—
—
—
419.2
Support and other costs
26.1
26.6
25.7
17.9
9.8
27.7
30.6
Adjusted EBITDAR (2)
$
66.5
$
79.6
$
93.0
$
67.3
$
14.8
$
82.1
$
88.8
LEASED AND MANAGED RIGS
Operating income
$
19.4
$
13.9
$
18.5
$
13.0
$
2.6
$
15.6
$
7.6
Add (subtract):
Depreciation and amortization, net
1.2
1.2
1.2
0.9
3.9
4.8
12.3
Support and other costs
2.0
2.3
2.5
1.7
0.8
2.5
2.8
Adjusted EBITDAR (2)
$
22.6
$
17.4
$
22.2
$
15.6
$
7.3
$
22.9
$
22.7
STACKED FLEET
Operating loss
$
(14.6
)
$
(15.2
)
$
(17.6
)
$
(15.3
)
$
(18.8
)
$
(34.1
)
$
(396.1
)
Add (subtract):
Depreciation and amortization, net
3.4
3.9
5.1
3.3
13.7
17.0
41.1
Loss on impairment
—
—
—
—
—
—
337.3
Support and other costs
0.5
0.4
—
—
—
—
—
Adjusted EBITDAR (2)
$
(10.7
)
$
(10.9
)
$
(12.5
)
$
(12.0
)
$
(5.1
)
$
(17.1
)
$
(17.7
)
VALARIS TOTAL
Operating income (loss)
$
(35.2
)
$
(4.4
)
$
28.1
$
17.9
$
(36.9
)
$
(19.0
)
$
(822.6
)
Add (subtract):
Reactivation costs
61.5
37.1
19.4
17.3
6.7
24.0
11.1
Depreciation and amortization, net
23.5
24.0
27.0
16.1
36.6
52.7
115.4
Loss on impairment
—
—
—
—
—
—
756.5
Support and other costs
28.6
29.3
28.2
19.6
10.6
30.2
33.4
Adjusted EBITDAR (2)
$
78.4
$
86.0
$
102.7
$
70.9
$
17.0
$
87.9
$
93.8
(1)
Active fleet represents rigs that are not
preservation stacked, including rigs that are in the process of
being reactivated.
(2)
Adjusted EBITDAR for active fleet, leased
and managed rigs and stacked fleet excludes onshore support costs
and general and administrative expense.
Reconciliation of Operating Revenues to
Adjusted Revenues, Operating Expenses to Adjusted Operating
Expenses and Operating Income (Loss) to Adjusted EBITDA
(In millions)
Successor
Predecessor
Combined (Non-GAAP)
Predecessor
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Two Months Ended June 30,
2021
One Month Ended April 30,
2021
Three Months Ended June 30,
2021
Three Months Ended March 31,
2021
DRILLSHIPS
Operating revenues
$
85.4
$
73.5
$
67.5
$
28.9
$
13.7
$
42.6
$
81.0
Add (subtract):
Reimbursable revenues (1)
(6.9
)
(5.2
)
(6.0
)
(1.9
)
(0.6
)
(2.5
)
(2.5
)
Amortized revenues
(5.4
)
(5.0
)
(5.8
)
—
(0.5
)
(0.5
)
(7.2
)
Adjusted revenues
$
73.1
$
63.3
$
55.7
$
27.0
$
12.6
$
39.6
$
71.3
Operating expenses
$
129.3
$
101.6
$
78.4
$
39.9
$
36.0
$
75.9
$
114.1
Add (subtract):
Depreciation and amortization
(15.8
)
(15.7
)
(17.0
)
(7.2
)
(15.3
)
(22.5
)
(46.6
)
Reimbursable expenses
(7.7
)
(5.8
)
(6.5
)
(2.2
)
(1.0
)
(3.2
)
(5.0
)
Support and other costs
(11.8
)
(10.9
)
(8.1
)
(5.5
)
(3.1
)
(8.6
)
(9.7
)
Adjusted operating expenses
$
94.0
$
69.2
$
46.8
$
25.0
$
16.6
$
41.6
$
52.8
Operating loss
$
(43.8
)
$
(28.1
)
$
(10.9
)
$
(11.0
)
$
(22.7
)
$
(33.3
)
$
(33.1
)
Add (subtract):
Depreciation and amortization, net
10.4
10.7
11.2
7.2
14.8
22.0
39.4
Support and other costs
12.0
10.8
8.3
5.7
3.1
8.8
9.8
Adjusted EBITDA (2)
$
(21.4
)
$
(6.6
)
$
8.6
$
1.9
$
(4.8
)
$
(2.5
)
$
16.1
(1)
In the three months ended March 31, 2022,
we adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
Reconciliation of Operating Revenues to
Adjusted Revenues, Operating Expenses to Adjusted Operating
Expenses and Operating Income (Loss) to Adjusted EBITDA
(In millions)
Successor
Predecessor
Combined (Non-GAAP)
Predecessor
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Two Months Ended June 30,
2021
One Month Ended April 30,
2021
Three Months Ended June 30,
2021
Three Months Ended March 31,
2021
SEMISUBMERSIBLES
Operating revenues
$
14.3
$
27.0
$
36.8
$
20.9
$
4.7
$
25.6
$
16.3
Add (subtract):
Reimbursable revenues (1)
(6.2
)
(2.3
)
(2.0
)
(1.1
)
—
(1.1
)
(1.4
)
Amortized revenues
—
(0.7
)
(1.0
)
—
—
—
—
Adjusted revenues
$
8.1
$
24.0
$
33.8
$
19.8
$
4.7
$
24.5
$
14.9
Operating expenses
$
46.3
$
37.9
$
36.5
$
21.5
$
5.8
$
27.3
$
797.8
Add (subtract):
Depreciation and amortization
(1.0
)
(1.2
)
(3.4
)
(1.9
)
(1.6
)
(3.5
)
(13.0
)
Loss on impairment
—
—
—
—
—
—
(756.5
)
Reimbursable expenses
(7.3
)
(4.9
)
(2.8
)
(1.5
)
(0.2
)
(1.7
)
(2.1
)
Support and other costs
(3.5
)
(3.6
)
(4.4
)
(3.0
)
(1.7
)
(4.7
)
(5.3
)
Adjusted operating expenses
$
34.5
$
28.2
$
25.9
$
15.1
$
2.3
$
17.4
$
20.9
Operating income (loss)
$
(32.0
)
$
(10.8
)
$
0.4
$
(0.6
)
$
(1.1
)
$
(1.7
)
$
(781.5
)
Add (subtract):
Depreciation and amortization, net
1.0
0.5
2.4
1.9
1.6
3.5
13.0
Loss on impairment
—
—
—
—
—
—
756.5
Support and other costs
3.7
4.0
4.4
2.9
1.7
4.6
5.3
Adjusted EBITDA (2)
$
(27.3
)
$
(6.3
)
$
7.2
$
4.2
$
2.2
$
6.4
$
(6.7
)
(1)
In the three months ended March 31, 2022,
we adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
Reconciliation of Operating Revenues to
Adjusted Revenues, Operating Expenses to Adjusted Operating
Expenses and Operating Income (Loss) to Adjusted EBITDA
(In millions)
Successor
Predecessor
Combined (Non-GAAP)
Predecessor
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Two Months Ended June 30,
2021
One Month Ended April 30,
2021
Three Months Ended June 30,
2021
Three Months Ended March 31,
2021
HD ULTRA-HARSH & HARSH
JACKUPS
Operating revenues
$
92.9
$
94.0
$
102.8
$
70.9
$
34.0
$
104.9
$
95.5
Add (subtract):
Reimbursable revenues (1)
(6.6
)
(8.6
)
(6.6
)
(5.9
)
(2.7
)
(8.6
)
(5.7
)
Amortized revenues
(5.2
)
(1.7
)
(0.4
)
(0.2
)
(1.1
)
(1.3
)
(3.4
)
Adjusted revenues
$
81.1
$
83.7
$
95.8
$
64.8
$
30.2
$
95.0
$
86.4
Operating expenses
$
79.9
$
85.0
$
90.9
$
59.1
$
41.9
$
101.0
$
97.2
Add (subtract):
Depreciation and amortization
(8.1
)
(8.9
)
(8.2
)
(5.0
)
(9.0
)
(14.0
)
(28.8
)
Reimbursable expenses
(9.2
)
(10.1
)
(8.8
)
(6.8
)
(3.2
)
(10.0
)
(7.6
)
Support and other costs
(4.5
)
(4.6
)
(5.1
)
(3.7
)
(2.0
)
(5.7
)
(5.6
)
Adjusted operating expenses
$
58.1
$
61.4
$
68.8
$
43.6
$
27.7
$
71.3
$
55.2
Operating income (loss)
$
13.1
$
9.0
$
11.9
$
11.8
$
(7.9
)
$
3.9
$
(1.7
)
Add (subtract):
Depreciation and amortization, net
2.8
7.2
7.8
4.8
7.9
12.7
25.4
Support and other costs
4.5
4.8
5.4
3.6
2.0
5.6
5.6
Adjusted EBITDA (2)
$
20.4
$
21.0
$
25.1
$
20.2
$
2.0
$
22.2
$
29.3
(1)
In the three months ended March 31, 2022,
we adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
Reconciliation of Operating Revenues to
Adjusted Revenues, Operating Expenses to Adjusted Operating
Expenses and Operating Income (Loss) to Adjusted EBITDA
(In millions)
Successor
Predecessor
Combined (Non-GAAP)
Predecessor
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Two Months Ended June 30,
2021
One Month Ended April 30,
2021
Three Months Ended June 30,
2021
Three Months Ended March 31,
2021
HD & SD MODERN JACKUPS
Operating revenues
$
67.8
$
56.2
$
59.6
$
40.7
$
17.0
$
57.7
$
50.5
Add (subtract):
Reimbursable revenues (1)
(3.1
)
(1.4
)
(1.1
)
(0.9
)
(0.5
)
(1.4
)
(0.5
)
Amortized revenues
0.8
(0.6
)
(0.4
)
(1.6
)
(0.5
)
(2.1
)
(1.6
)
Adjusted revenues
$
65.5
$
54.2
$
58.1
$
38.2
$
16.0
$
54.2
$
48.4
Operating expenses
$
66.2
$
54.1
$
57.9
$
41.3
$
27.9
$
69.2
$
72.2
Add (subtract):
Depreciation and amortization
(6.0
)
(4.3
)
(3.6
)
(2.2
)
(8.1
)
(10.3
)
(24.5
)
Reimbursable expenses
(7.5
)
(3.2
)
(3.2
)
(2.2
)
(1.2
)
(3.4
)
(1.8
)
Support and other costs
(5.1
)
(6.0
)
(6.2
)
(4.1
)
(2.2
)
(6.3
)
(7.1
)
Adjusted operating expenses
$
47.6
$
40.6
$
44.9
$
32.8
$
16.4
$
49.2
$
38.8
Operating income (loss)
$
1.7
$
2.1
$
1.7
$
(0.6
)
$
(10.9
)
$
(11.5
)
$
(21.7
)
Add (subtract):
Depreciation and amortization, net
6.8
3.7
3.2
0.6
7.6
8.2
22.9
Support and other costs
5.2
5.8
6.3
4.0
2.2
6.2
7.1
Adjusted EBITDA (2)
$
13.7
$
11.6
$
11.2
$
4.0
$
(1.1
)
$
2.9
$
8.3
(1)
In the three months ended March 31, 2022,
we adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
Reconciliation of Operating Revenues to
Adjusted Revenues, Operating Expenses to Adjusted Operating
Expenses and Operating Income (Loss) to Adjusted EBITDA
(In millions)
Successor
Predecessor
Combined (Non-GAAP)
Predecessor
Three Months Ended March 31,
2022
Three Months Ended December 31,
2021
Three Months Ended September 30,
2021
Two Months Ended June 30,
2021
One Month Ended April 30,
2021
Three Months Ended June 30,
2021
Three Months Ended March 31,
2021
SD LEGACY JACKUPS
Operating revenues
$
19.9
$
22.1
$
23.9
$
16.8
$
8.8
$
25.6
$
26.6
Add (subtract):
Reimbursable revenues (1)
(0.7
)
(1.8
)
(0.5
)
(0.8
)
(0.2
)
(1.0
)
(0.6
)
Amortized revenues
—
—
—
—
(0.2
)
(0.2
)
(0.5
)
Adjusted revenues
$
19.2
$
20.3
$
23.4
$
16.0
$
8.4
$
24.4
$
25.5
Operating expenses
$
13.5
$
12.9
$
17.9
$
11.5
$
6.1
$
17.6
$
18.8
Add (subtract):
Depreciation and amortization
(1.0
)
(1.0
)
(0.9
)
(0.7
)
(1.0
)
(1.7
)
(2.9
)
Reimbursable expenses
(1.1
)
(2.1
)
(0.9
)
(1.2
)
(0.4
)
(1.6
)
(1.0
)
Support and other costs
(1.5
)
(1.4
)
(1.9
)
(1.7
)
(0.8
)
(2.5
)
(2.8
)
Adjusted operating expenses
$
9.9
$
8.4
$
14.2
$
7.9
$
3.9
$
11.8
$
12.1
Operating income
$
6.5
$
9.2
$
6.1
$
5.3
$
2.7
$
8.0
$
7.8
Add (subtract):
Depreciation and amortization, net
1.0
1.0
0.9
0.7
0.8
1.5
2.4
Support and other costs
1.4
1.6
2.0
1.7
0.8
2.5
2.8
Adjusted EBITDA (2)
$
8.9
$
11.8
$
9.0
$
7.7
$
4.3
$
12.0
$
13.0
(1)
In the three months ended March 31, 2022,
we adjusted reimbursable revenues to exclude recurring reimbursable
revenues. Prior periods were adjusted to conform with the current
period presentation.
(2)
Adjusted EBITDA for asset category
excludes onshore support costs and general and administrative
expense.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220502005923/en/
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