Valaris Announces Fleet Rationalization and Issues Fleet Status Report
Valaris (NYSE: VAL) announced significant fleet rationalization actions and issued a Fleet Status Report. The company is retiring three semisubmersibles (VALARIS DPS-3, DPS-5, and DPS-6) from its global drilling fleet and has sold the jackup VALARIS 75 for $24 million.
The company secured new contracts and extensions worth approximately $120 million in contract backlog, including a notable 600-day extension with TotalEnergies worth over $75 million for the VALARIS Stavanger in the UK North Sea. Additional contracts include a 100-day contract with BP offshore Trinidad ($16.8 million) and various other agreements including a contract with Jadestone Energy and an extension with BP Indonesia at $95,000 per day.
Three jackups (VALARIS 116, 146, and 250) received short-term bareboat charter agreement extensions through February 28, 2025, with ARO Drilling, while discussions continue with Saudi Aramco for longer-term extensions.
Valaris (NYSE: VAL) ha annunciato significative azioni di razionalizzazione della flotta e ha pubblicato un Rapporto sullo Stato della Flotta. L'azienda sta ritirando tre semisommergibili (VALARIS DPS-3, DPS-5 e DPS-6) dalla sua flotta globale di perforazione e ha venduto il jackup VALARIS 75 per 24 milioni di dollari.
L'azienda ha ottenuto nuovi contratti e proroghe per un valore complessivo di circa 120 milioni di dollari in portafoglio contratti, inclusa una notevole proroga di 600 giorni con TotalEnergies del valore di oltre 75 milioni di dollari per il VALARIS Stavanger nel Mare del Nord britannico. Altri contratti includono un contratto di 100 giorni con BP al largo di Trinidad (16,8 milioni di dollari) e vari altri accordi, tra cui un contratto con Jadestone Energy e una proroga con BP Indonesia a 95.000 dollari al giorno.
Tre jackup (VALARIS 116, 146 e 250) hanno ricevuto proroghe di contratti di locazione bareboat a breve termine fino al 28 febbraio 2025, con ARO Drilling, mentre continuano le discussioni con Saudi Aramco per proroghe a lungo termine.
Valaris (NYSE: VAL) anunció acciones significativas de racionalización de la flota y emitió un Informe de Estado de la Flota. La empresa está retirando tres semisumergibles (VALARIS DPS-3, DPS-5 y DPS-6) de su flota global de perforación y ha vendido el jackup VALARIS 75 por 24 millones de dólares.
La empresa aseguró nuevos contratos y extensiones por un valor aproximado de 120 millones de dólares en cartera de contratos, incluyendo una notable extensión de 600 días con TotalEnergies por más de 75 millones de dólares para el VALARIS Stavanger en el Mar del Norte del Reino Unido. Otros contratos incluyen un contrato de 100 días con BP en alta mar en Trinidad (16,8 millones de dólares) y varios otros acuerdos, incluyendo un contrato con Jadestone Energy y una extensión con BP Indonesia a 95,000 dólares por día.
Tres jackups (VALARIS 116, 146 y 250) recibieron extensiones de acuerdos de arrendamiento bareboat a corto plazo hasta el 28 de febrero de 2025, con ARO Drilling, mientras continúan las discusiones con Saudi Aramco para extensiones a largo plazo.
Valaris (NYSE: VAL)는 중요한 함대 합리화 조치를 발표하고 함대 상태 보고서를 발행했습니다. 이 회사는 글로벌 시추 함대에서 세 개의 반잠수정(VALARIS DPS-3, DPS-5, DPS-6)을 퇴역시키고, VALARIS 75 잭업을 2400만 달러에 매각했습니다.
회사는 약 1억 2000만 달러의 계약 잔고 가치를 가진 새로운 계약 및 연장을 확보했으며, 여기에는 영국 북해의 VALARIS Stavanger에 대해 TotalEnergies와 체결한 600일 연장이 7500만 달러가 넘는 주요 계약이 포함됩니다. 추가 계약에는 트리니다드 해상에서 BP와의 100일 계약(1680만 달러)과 Jadestone Energy와의 계약, 인도네시아 BP와의 하루 9만 5000달러의 연장이 포함됩니다.
세 개의 잭업(VALARIS 116, 146, 250)은 ARO Drilling과 2025년 2월 28일까지 단기 전세 계약 연장을 받았으며, Saudi Aramco와의 장기 연장에 대한 논의가 계속되고 있습니다.
Valaris (NYSE: VAL) a annoncé des actions significatives de rationalisation de la flotte et a publié un rapport sur l'état de la flotte. L'entreprise retire trois semi-submersibles (VALARIS DPS-3, DPS-5 et DPS-6) de sa flotte mondiale de forage et a vendu le jackup VALARIS 75 pour 24 millions de dollars.
L'entreprise a sécurisé de nouveaux contrats et prolongations d'une valeur d'environ 120 millions de dollars dans son carnet de commandes, y compris une prolongation notable de 600 jours avec TotalEnergies d'une valeur de plus de 75 millions de dollars pour le VALARIS Stavanger en mer du Nord britannique. Parmi les autres contrats figurent un contrat de 100 jours avec BP au large de Trinidad (16,8 millions de dollars) et divers autres accords, dont un contrat avec Jadestone Energy et une prolongation avec BP Indonésie à 95 000 dollars par jour.
Trois jackups (VALARIS 116, 146 et 250) ont reçu des prolongations de contrats de charter bareboat à court terme jusqu'au 28 février 2025, avec ARO Drilling, tandis que les discussions se poursuivent avec Saudi Aramco pour des prolongations à long terme.
Valaris (NYSE: VAL) hat bedeutende Maßnahmen zur Rationalisierung der Flotte angekündigt und einen Flottenstatusbericht veröffentlicht. Das Unternehmen zieht drei Halbtaucher (VALARIS DPS-3, DPS-5 und DPS-6) aus seiner globalen Bohrflotte zurück und hat den Jackup VALARIS 75 für 24 Millionen Dollar verkauft.
Das Unternehmen hat neue Verträge und Verlängerungen im Wert von etwa 120 Millionen Dollar im Auftragsbestand gesichert, darunter eine bemerkenswerte 600-tägige Verlängerung mit TotalEnergies im Wert von über 75 Millionen Dollar für den VALARIS Stavanger in der Nordsee vor Großbritannien. Weitere Verträge umfassen einen 100-tägigen Vertrag mit BP vor Trinidad (16,8 Millionen Dollar) und verschiedene andere Vereinbarungen, darunter einen Vertrag mit Jadestone Energy und eine Verlängerung mit BP Indonesien zu 95.000 Dollar pro Tag.
Drei Jackups (VALARIS 116, 146 und 250) erhielten kurzfristige Bareboat-Charterverlängerungen bis zum 28. Februar 2025 mit ARO Drilling, während die Gespräche mit Saudi Aramco über langfristige Verlängerungen fortgesetzt werden.
- Sale of VALARIS 75 jackup for $24 million
- Secured new contracts and extensions worth $120 million in backlog
- Major 600-day contract extension with TotalEnergies worth over $75 million
- Operating day rate of $95,000 for BP Indonesia contract
- Retirement of three semisubmersible rigs from the fleet
- VALARIS DPS-5 has been idle since Q3 2024
- VALARIS DPS-3 and DPS-6 have been stacked for several years
Insights
The strategic fleet rationalization announced by Valaris represents a calculated move to enhance operational efficiency and strengthen its financial position. The retirement of three semisubmersibles and sale of an aging jackup rig generates immediate benefits: $24 million in cash from the VALARIS 75 sale, reduced maintenance costs for idle assets, and improved fleet utilization metrics.
The new contract awards, totaling $120 million in backlog, demonstrate robust demand for Valaris's high-specification assets. The 600-day extension with TotalEnergies, valued at over $75 million, provides stable long-term revenue visibility. The day rate of $95,000 for VALARIS 106 indicates strong pricing power in the current market environment, suggesting potential for margin expansion.
The ongoing discussions with Saudi Aramco regarding long-term extensions for three jackups (VALARIS 116, 146, and 250) through ARO Drilling are particularly significant. These negotiations could secure additional stable revenue streams in the strategic Middle East market. The temporary extension through February 2025 provides operational continuity while longer-term arrangements are finalized.
The fleet high-grading strategy aligns with industry trends toward more efficient, modern rigs capable of meeting stringent operational and environmental requirements. By divesting older, less competitive assets, Valaris is positioning itself to capture premium rates while reducing its cost structure. This approach should enhance free cash flow generation and strengthen the company's competitive position in the high-end offshore drilling market.
Semisubmersibles VALARIS DPS-3, DPS-5 and DPS-6 to be Retired from Global Drilling Supply
Jackup VALARIS 75 Sold for
Multi-Year Contract for Jackup VALARIS Stavanger in the North Sea
Fleet Rationalization Actions
- The Company recently decided to retire three semisubmersibles from its fleet: VALARIS DPS-5, which has been idle since last working in third quarter 2024, as well as VALARIS DPS-3 and VALARIS DPS-6, which have been stacked for several years. The Company expects that these rigs will be removed from the global drilling supply and repurposed for alternative uses or scrapped.
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Jackup VALARIS 75 has been sold for
$24 million U.S. Gulf for five years. As part of the purchase and sale agreement, future operations are restricted to theU.S. Gulf.
President and Chief Executive Officer Anton Dibowitz said, “We are committed to prudently managing our fleet and will retire or divest rigs when the expected future economic benefit for an asset does not justify its costs. Consistent with this approach, we have decided to high-grade our fleet by retiring three semisubmersibles: VALARIS DPS-3, DPS-5 and DPS-6, for which we see limited attractive, long-term contract opportunities, as well as selling jackup VALARIS 75. These actions reduce costs for idle rigs, benefit our cash flow and further focus our fleet on high-specification assets.”
Fleet Status Report
The Company has also issued a Fleet Status Report, announcing new contracts and contract extensions, with associated contract backlog of approximately
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600-day priced contract extension with TotalEnergies in the
UK North Sea for jackup VALARIS Stavanger. The priced extension is expected to commence in the third quarter 2025 in direct continuation of the current program. The total contract value for the priced extension is over$75 million -
100-day contract for jackup VALARIS 249 with BP offshore
Trinidad . The contract is expected to commence in the first quarter 2026 in direct continuation of the rig’s previous program with another operator. The total contract value is approximately$16.8 million -
One-well contract with Jadestone Energy offshore
Australia for jackup VALARIS 247. The contract is expected to commence in March 2025 in direct continuation of the rig’s current program with another operator. -
Two-well priced option exercised by BP Indonesia for jackup VALARIS 106. The option period has an estimated duration of 80 days and is expected to commence in May 2025 in direct continuation of the existing firm program. The operating day rate is
$95,000 - Short-term bareboat charter agreement extensions through February 28, 2025, for jackups VALARIS 116, VALARIS 146 and VALARIS 250, which are leased to ARO Drilling (“ARO”). Valaris and ARO remain in discussions with Saudi Aramco regarding longer-term contract extensions for these rigs.
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
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," "outlook," "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 and the attainment of requisite permits for such 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 and expected benefits 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; cybersecurity attacks and threats; uncertainty around the use and impacts of artificial intelligence applications; impacts and effects of public health crises, pandemics and epidemics; future operations; ability to renew expiring contracts or obtain new contracts, including for VALARIS DS-13 and VALARIS DS-14; increasing regulatory complexity; targets, progress, plans and goals related to sustainability 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 sustainability targets, 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, tariffs 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; the use of artificial intelligence by us, third-party service providers or our competitors; 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, including in any return of capital plans; 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.
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Investor & Media Contacts:
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Vice President – Treasurer and Investor Relations
+1-713-979-4632
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+1-713-979-4619
Source: Valaris Limited
FAQ
How much did Valaris (VAL) sell the VALARIS 75 jackup rig for?
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Which three semisubmersible rigs is Valaris (VAL) retiring?
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What is the day rate for the BP Indonesia contract for VALARIS 106?
