Valaris Announces Multi-Year Contract Award for Drillship VALARIS DS-17
Valaris (NYSE: VAL) has secured a multi-year contract with Equinor Energy do Brasil Ltda. for the drillship VALARIS DS-17 to work offshore Brazil on Project Raia. The contract, valued at approximately $498 million, includes a 672-day drilling program expected to start in the first half of 2026, with an additional 180-day standby period.
The total contract duration is estimated at 852 days. During the standby period, the rig may be available for work both inside and outside Brazil, potentially generating additional revenue. This contract award demonstrates Valaris' strong relationship with Equinor and its ability to secure high-value contracts, supporting the company's anticipated earnings and cash flow growth in the coming years.
Valaris (NYSE: VAL) ha ottenuto un contratto pluriennale con Equinor Energy do Brasil Ltda. per il dragamine VALARIS DS-17 che lavorerà al largo della costa del Brasile nel Progetto Raia. Il contratto, del valore di circa 498 milioni di dollari, include un programma di perforazione di 672 giorni che dovrebbe iniziare nella prima metà del 2026, con un periodo di standby di 180 giorni aggiuntivo.
La durata totale del contratto è stimata in 852 giorni. Durante il periodo di standby, il rig potrebbe essere disponibile per lavori sia all'interno che all'esterno del Brasile, generando potenzialmente reddito aggiuntivo. L'assegnazione di questo contratto dimostra la forte relazione di Valaris con Equinor e la sua capacità di assicurarsi contratti di alto valore, sostenendo la prevista crescita degli utili e del flusso di cassa dell'azienda nei prossimi anni.
Valaris (NYSE: VAL) ha conseguido un contrato plurianual con Equinor Energy do Brasil Ltda. para el buque perforador VALARIS DS-17, que trabajará en alta mar en Brasil en el Proyecto Raia. El contrato, valorado en aproximadamente 498 millones de dólares, incluye un programa de perforación de 672 días que se espera comience en la primera mitad de 2026, con un período de espera de 180 días adicional.
La duración total del contrato se estima en 852 días. Durante el período de espera, la plataforma puede estar disponible para trabajos tanto dentro como fuera de Brasil, generando potencialmente ingresos adicionales. La adjudicación de este contrato demuestra la sólida relación de Valaris con Equinor y su capacidad para asegurar contratos de alto valor, apoyando el crecimiento anticipado de los ingresos y el flujo de caja de la empresa en los próximos años.
Valaris (NYSE: VAL)는 Equinor Energy do Brasil Ltda.와 다년 계약을 체결하여 VALARIS DS-17 해양 시추선이 브라질 해안에서 Raia 프로젝트에 참여하게 됩니다. 이 계약은 약 4억 9800만 달러의 가치를 가지고 있으며, 672일의 시추 프로그램이 포함되어 있으며, 이는 2026년 상반기에 시작될 것으로 예상되며, 추가로 180일의 대기 기간이 있습니다.
계약의 총 기간은 852일로 추정됩니다. 대기 기간 동안 기지는 브라질 내외에서 작업할 수 있어 추가 수익을 창출할 가능성이 있습니다. 이 계약의 수주는 Valaris와 Equinor 간의 강한 관계와 Valaris가 고부가가치 계약을 확보할 수 있는 능력을 입증하며, 향후 몇 년 동안 회사의 예상 수익 및 현금 흐름 성장에 기여하고 있습니다.
Valaris (NYSE: VAL) a obtenu un contrat pluriannuel avec Equinor Energy do Brasil Ltda. pour le navire de forage VALARIS DS-17 qui travaillera au large du Brésil sur le projet Raia. Le contrat, d'une valeur d'environ 498 millions de dollars, comprend un programme de forage de 672 jours qui devrait débuter dans la première moitié de 2026, avec une période d'attente de 180 jours supplémentaire.
La durée totale du contrat est estimée à 852 jours. Pendant la période d'attente, l'installation pourrait être disponible pour des travaux à l'intérieur et à l'extérieur du Brésil, générant potentiellement des revenus supplémentaires. L'attribution de ce contrat démontre la forte relation de Valaris avec Equinor et sa capacité à obtenir des contrats de grande valeur, soutenant la croissance anticipée des bénéfices et des flux de trésorerie de l'entreprise dans les années à venir.
Valaris (NYSE: VAL) hat einen mehrjährigen Vertrag mit Equinor Energy do Brasil Ltda. für das Bohrschiff VALARIS DS-17 gesichert, das vor der Küste Brasiliens im Projekt Raia eingesetzt wird. Der Vertrag hat einen Wert von ungefähr 498 Millionen Dollar und umfasst ein 672-tägiges Bohrprogramm, das voraussichtlich in der ersten Hälfte des Jahres 2026 beginnen wird, mit einem zusätzlichen 180-tägigen Standby-Zeitraum.
Die Gesamtdauer des Vertrags wird auf 852 Tage geschätzt. Während des Standby-Zeitraums kann die Plattform sowohl in Brasilien als auch außerhalb für Arbeiten zur Verfügung stehen, was potenziell zusätzliche Einnahmen generieren kann. Die Vergabe dieses Vertrags zeigt die starke Beziehung von Valaris zu Equinor und die Fähigkeit des Unternehmens, hochpreisige Verträge zu sichern, was das erwartete Wachstum von Erträgen und Cashflow in den kommenden Jahren unterstützt.
- Secured a multi-year contract worth approximately $498 million
- Contract includes a 672-day drilling program and 180-day standby period
- Potential for additional revenue during the standby period
- Demonstrates strong customer demand for work in 2025 and 2026
- Supports anticipated earnings and cash flow growth
- Contract commencement not until first half of 2026
- 180-day standby period between current program and new contract
Insights
The multi-year contract award for Valaris' drillship VALARIS DS-17 with Equinor is a significant development for the company. This contract, valued at approximately
From a financial perspective, this contract enhances Valaris' revenue visibility and backlog, contributing positively to its financial stability and performance projections. Additionally, the inclusion of mobilization and minor rig upgrades indicates a potential for additional revenue streams which could incrementally bolster their financial results.
For retail investors, this news suggests a promising outlook for Valaris' financial health. The company's ability to secure a long-term contract with a major player like Equinor underscores its market positioning and operational efficiency. In the short term, investors might anticipate a positive market reaction, while in the long term, the contract's contribution to steady revenue and cash flow growth could support sustained value appreciation.
The contract emphasizes the role of technological advancements in securing high-value contracts. Equinor's investments in leading-edge safety and automation technology for the VALARIS DS-17 highlight the increasing importance of technological innovation in the offshore drilling industry.
Valaris' ability to integrate these technologies into their operations not only enhances their service offering but also demonstrates their competitiveness in the market. The focus on advanced safety and automation technology could lead to more efficient operations and lower downtime, which is important for maintaining high performance standards in offshore projects.
For investors, Valaris' technological capabilities could be a key differentiator in a market where efficiency and safety are paramount. The collaboration with Equinor, a major industry player, further solidifies Valaris' reputation as a technologically adept operator, potentially attracting more high-profile contracts in the future.
This contract award places Valaris in a strong position within the offshore drilling market, particularly in Brazil. Brazil's offshore oil and gas sector is a vibrant and growing market, with substantial reserves and ongoing investment in exploration and production.
By securing this contract, Valaris not only strengthens its presence in Brazil but also aligns itself with major players like Equinor, Repsol Sinpoec Brazil and Petrobras. This partnership could open doors to future opportunities within this lucrative market. Moreover, the contract includes a standby period that offers Valaris flexibility to pursue additional revenue opportunities, potentially increasing the overall revenue from the drillship.
Investors should view this contract as a strategic move that enhances Valaris' market position and potential for future growth. The alignment with prominent industry partners and the focus on high-demand regions underscore Valaris' strategic planning and market acumen.
The estimated total contract value is approximately
- The contract includes a 672-day drilling program that is expected to commence in the first half of 2026.
- The rig will be on standby for an estimated duration of 180 days between the end of the rig’s current program and the beginning of the operating period.
-
During the standby period, the rig may be available for work both inside and outside
Brazil , which could lead to incremental revenue.
President and Chief Executive Officer Anton Dibowitz said, “This contract award is a testament to the quality of our crews and the collaborative nature of our relationship with Equinor. We are grateful to Equinor for the investments they have made in leading-edge safety and automation technology on VALARIS DS-17 and the trust they have placed in us to execute their development programs offshore
Dibowitz added, “We continue to execute our commercial strategy by securing new contracts at higher day rates and consistently building our backlog as evidenced by this multi-year drillship contract. We see strong customer demand for work that is expected to commence in 2025 and 2026 that will continue to support our anticipated earnings and cash flow growth over the next few years.”
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," "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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240722619812/en/
Investor & Media Contacts:
Nick Georgas
Vice President – Treasurer and Investor Relations
+1-713-979-4632
Tim Richardson
Director – Investor Relations
+1-713-979-4619
Source: Valaris Limited
FAQ
What is the value of the contract Valaris (VAL) secured with Equinor?
When is the drilling program for VALARIS DS-17 expected to commence?
How long is the total duration of the contract for VALARIS DS-17?
Where will the VALARIS DS-17 drillship be operating under this contract?
