Valaris Announces Contract Awards and Fleet Status Updates
September 11 2023 - 9:00AM
Business Wire
Valaris Limited (NYSE: VAL) (“Valaris” or the “Company”)
announced today new contracts and contract extensions, with
associated contract backlog of approximately $65 million, awarded
subsequent to issuing the Company’s most recent fleet status report
on August 1, 2023. Contract backlog excludes lump sum payments such
as mobilization fees and capital reimbursements.
- One-well contract with BP offshore Brazil for drillship VALARIS
DS-15. The contract is expected to commence in late first quarter
or early second quarter 2024 in direct continuation of the rig’s
current program, with TotalEnergies, and has an estimated duration
of 80 days. The estimated contract value is approximately $33
million and excludes payments we will receive for mobilization and
any additional services.
- A previously disclosed exercised priced option with
TotalEnergies offshore Brazil for drillship VALARIS DS-15 is now
expected to be undertaken in direct continuation of the
aforementioned BP contract. The option period is expected to
commence in late second quarter or early third quarter 2024 and has
an estimated duration of 100 days. The operating day rate for the
option period is approximately $254,000. The contract backlog for
this previously disclosed contract is not included in the $65
million of additional backlog mentioned above. VALARIS DS-15 –
Estimated Schedule:
Customer
Location
Contract Start
Date
Contract End
Date(1)
Day Rate(2)
Total Energies
Brazil
Jun 21
Feb 24
BP
Brazil
Mar 24
May 24
$410,000
TotalEnergies
Brazil
Jun 24
Sep 24
$254,000
- Five-well priced option exercised by BP Indonesia for heavy
duty modern jackup VALARIS 106. The option period is expected to
commence in January 2024, in direct continuation of the existing
firm program and has an estimated duration of 365 days. The
operating day rate is $85,000 effective from January 6, 2024,
increasing to $95,000 from January 6, 2025. As previously
disclosed, the rig is expected to be out of service for
approximately 90 days for planned maintenance across second quarter
and third quarter 2024.
(1)
Contract duration does not include any unexercised optional
extensions. Contract end dates can vary based on how long it takes
to complete the wells subject to the contract.
(2)
Day rates are reported to the nearest thousand and reflect the
operating day rates charged to customers, excluding certain types
of non-recurring revenues such as lump sum mobilization payments.
Day rates are provided unless such disclosures are restricted by
confidentiality provisions
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; scheduled delivery dates for rigs; performance
of our joint ventures, including our joint venture with Saudi
Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore
Drilling Company ("ARO") newbuild rigs and the timing of additional
ARO newbuild orders; 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; impacts and effects of public health crises, pandemics and
epidemics, such as the COVID-19 pandemic; future operations; any
exercise of our options for delivery of the VALARIS DS-13 and
VALARIS DS-14; increasing regulatory complexity; targets, progress,
plans and goals related to environmental, social and governance
(“ESG”) matters; 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; future
share repurchases; 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 and forecasts or
expectations regarding the global energy transition; increased
scrutiny of our ESG targets, including our Scope 1 emissions
intensity reduction target, initiatives and reporting and our
ability to achieve such targets or initiatives; changes in customer
strategy; future levels of offshore drilling activity; governmental
action, civil unrest and political and economic uncertainties,
including recessions, volatility affecting the banking system and
financial markets, inflation and adverse changes in the level of
international trade activity; 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; compliance with our debt
agreements and debt restrictions that may limit our liquidity and
flexibility; cybersecurity risks and threats; 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 Securities and Exchange
Commission'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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230911894970/en/
Investor & Media Contacts:
Darin Gibbins Vice President - Investor Relations and Treasurer
+1-713-979-4623
Tim Richardson Director - Investor Relations +1-713-979-4619
Valaris (NYSE:VAL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Valaris (NYSE:VAL)
Historical Stock Chart
From Apr 2023 to Apr 2024