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Valaris Reports Third Quarter 2021 Results

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Valaris reported strong operational performance with 99% revenue efficiency in Q3 2021, increasing revenues to $327 million from $293 million in the previous quarter. The company added approximately $330 million to its contract backlog, totaling over $2.1 billion year-to-date. Recent contract awards include VALARIS DS-9 and DS-4. Valaris is enhancing sustainability with emissions reduction systems on its rigs. However, general and administrative expenses increased due to executive severance. The tax provision rose significantly compared to the prior quarter.

Positive
  • Achieved 99% revenue efficiency in Q3 2021.
  • Increased revenues to $327 million from $293 million in prior quarter.
  • Added approximately $330 million to contract backlog, totaling over $2.1 billion year-to-date.
  • Secured key contracts for VALARIS DS-9 and DS-4.
Negative
  • General and administrative expenses rose to $27 million from $19 million due to executive severance costs.
  • Tax expense increased significantly to $53 million from a near-zero tax benefit in the prior quarter.

Outstanding Operational Performance – 99% Revenue Efficiency in the Third Quarter and Year to Date

Contracting Success – Approximately $330 Million of Contract Backlog Added Since Reporting Second Quarter Results and More Than $2.1 Billion Added Year to Date

VALARIS DS-9 Awarded Two-Year Contract and VALARIS DS-4 Awarded 548-Day Contract

Two Rigs Recently Equipped with Emissions Reductions Systems

HAMILTON, Bermuda--(BUSINESS WIRE)-- Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today reported third quarter 2021 results.

Interim President and Chief Executive Officer Anton Dibowitz said, “Valaris' best in class team continues to deliver at a high level for our customers, as demonstrated by achieving 99% revenue efficiency during the third quarter and year to date. This performance, combined with a high quality fleet and deep customer relationships, has enabled us to continue translating our operational leverage into meaningful backlog additions. We have added approximately $330 million of backlog in the past three months and more than $2.1 billion year to date, including recent contract wins for VALARIS DS-4 offshore Brazil as well as DS-9 and DS-10 offshore West Africa, enhancing our presence in these important deepwater markets. Over the past several months, we have secured term backlog on four preservation stacked drillships, highlighting our customers' confidence in our operational capabilities.”

Dibowitz added, “As a part of the value chain that delivers affordable energy, we recognize the importance of delivering that energy responsibly. In our business, emissions from our drilling rigs currently represent the largest contributor of atmospheric CO2 and are therefore the target of our near-term sustainability effort. While we are early on that journey, we have made great strides. For example, jackup VALARIS 123 is being upgraded with a selective catalytic reduction system that, when in operation, is designed to eliminate almost all NOX and SOX emissions from the rig, and drillship VALARIS DS-12 recently became the first vessel in the world to receive the ABS Enhanced Electrical System Notation EHS-E. This system is designed to optimize powerplant performance, enabling operations on fewer generators and thereby reducing emissions.”

Dibowitz concluded, “The market environment for offshore drilling has improved meaningfully in 2021, helped by a strong rebound in demand for hydrocarbons and constructive commodity prices. We have taken advantage of improving market conditions by winning an outsized share of contracts and rig years awarded, providing a platform for increased earnings in 2022 and beyond. Valaris is well-positioned to benefit from the opportunities we see in the market today, and we will continue to take a disciplined approach to capital allocation, with a focus on maximizing earnings and driving free cash flow as the market continues to recover.”

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 third quarter and combined second quarter 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.

Third Quarter Highlights

Revenues increased to $327 million in the third quarter 2021 from $293 million in the Combined second quarter. Excluding reimbursable items, revenues increased to $293 million in the third quarter from $261 in the Combined second quarter primarily due to higher utilization for the floater fleet as VALARIS DS-12 started a new contract early in the third quarter, and VALARIS DS-15 and MS-1 had a full quarter of revenues after commencing contracts in the latter part of the second quarter.

Contract drilling expense increased to $274 million in the third quarter 2021 from $254 million in the Combined second quarter 2021. Excluding reimbursable items, contract drilling expense increased to $255 million in the third quarter from $236 million in the Combined second quarter primarily due to more operating days for the floater fleet. This was partially offset by rig reactivation costs, which declined to $19 million in the third quarter from $24 million in the Combined second quarter.

Depreciation expense declined to $24 million in the third quarter 2021 from $54 million in the Combined second quarter due to a full quarter impact of fresh start accounting adjustments, which significantly reduced the carrying value of property and equipment on the balance sheet. General and administrative expense increased to $27 million in the third quarter 2021 from $19 million in the Combined second quarter primarily due to severance costs related to the departure of three senior executives during the third quarter.

Tax expense was $53 million in the third quarter 2021 compared to a tax benefit of less than $1 million in the Combined second quarter 2021. The third quarter tax provision included $39 million of discrete tax expense primarily related to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. The Combined second quarter tax provision included $12 million of discrete tax benefit primarily related to fresh start accounting adjustments. Adjusted for discrete items, tax expense of $14 million in the third quarter compared to tax expense of $12 million in the Combined second quarter.

Adjusted EBITDA of $30 million in the third quarter 2021 compared to $17 million in the Combined second quarter. Adjusted EBITDAR of $50 million in the third quarter 2021 compared to $41 million in the Combined second quarter.

Segment Highlights

Floaters

Floater revenues increased to $104 million in the third quarter 2021 from $68 million in the Combined second quarter. Excluding reimbursable items, revenues increased to $94 million in the third quarter from $62 million in the Combined second quarter primarily due to higher utilization as VALARIS DS-12 started a new contract early in the third quarter, and VALARIS DS-15 and MS-1 had a full quarter of revenues after commencing contracts in the latter part of the second quarter.

Contract drilling expense increased to $91 million in the third quarter 2021 from $67 million in the Combined second quarter 2021. Excluding reimbursable items, contract drilling expense increased to $83 million in the third quarter from $63 million in the Combined second quarter primarily due to more operating days in the third quarter.

Jackups

Jackup revenues of $186 million in the third quarter 2021 were marginally lower than revenues of $188 million in the Combined second quarter. Excluding reimbursable items, revenues of $168 million in the third quarter were marginally higher than revenues of $167 million in the Combined second quarter.

Contract drilling expense declined to $141 million in the third quarter 2021 from $144 million in the Combined second quarter. Excluding reimbursable items, contract drilling expense of $134 million in the third quarter was consistent with the Combined second quarter.

ARO Drilling

Revenues declined to $118 million in the third quarter 2021 from $125 million in the Combined second quarter 2021 primarily due to out of service days for a special periodic survey for one of ARO's owned rigs and VALARIS 22 completing its lease contract with ARO during the third quarter. Contract drilling expense of $94 million in the third quarter was marginally higher than $93 million in the Combined second quarter. EBITDA was $18 million in the third quarter compared to $28 million in the Combined second quarter.

Other

Revenues of $36 million in the third quarter 2021 were marginally lower than $37 million in the Combined second quarter and contract drilling expense of $14 million in the third quarter was in line with the Combined second quarter. EBITDA was $22 million in the third quarter compared to $23 million in the Combined second quarter.

 

Third Quarter

 

Floaters

 

Jackups

 

ARO

 

Other

 

Reconciling Items

 

Consolidated Total

(in millions of $, except %)

Q3
2021

Combined
Q2 2021

Chg

 

Q3
2021

Combined
Q2 2021

Chg

 

Q3
2021

Combined
Q2 2021

Chg

 

Q3
2021

Combined
Q2 2021

Chg

 

Q3
2021

Combined
Q2 2021

 

Q3
2021

Combined
Q2 2021

Chg

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

104.3

 

68.1

 

53

%

 

186.3

 

188.3

 

(1

)%

 

117.7

 

124.8

 

(6

)%

 

36.1

 

36.7

 

(2

)%

 

(117.7

)

(124.8

)

 

326.7

 

293.1

 

11

%

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

90.9

 

66.9

 

36

%

 

140.9

 

144.3

 

(2

)%

 

94.4

 

92.7

 

2

%

 

14.1

 

13.9

 

1

%

 

(66.0

)

(63.5

)

 

274.3

 

254.3

 

8

%

Depreciation

11.4

 

23.8

 

(52

)%

 

12.1

 

25.1

 

(52

)%

 

16.8

 

14.6

 

15

%

 

0.9

 

4.3

 

(79

)%

 

(16.8

)

(13.7

)

 

24.4

 

54.1

 

(55

)%

General and admin.

—

 

—

 

—

%

 

—

 

—

 

—

%

 

5.4

 

4.3

 

26

%

 

—

 

—

 

—

%

 

21.8

 

14.8

 

 

27.2

 

19.1

 

42

%

Equity in earnings of ARO

—

 

—

 

—

%

 

—

 

—

 

—

%

 

—

 

—

 

—

%

 

—

 

—

 

—

%

 

2.6

 

6.0

 

 

2.6

 

6.0

 

(57

)%

Operating income (loss)

2.0

 

(22.6

)

109

%

 

33.3

 

18.9

 

76

%

 

1.1

 

13.2

 

(92

)%

 

21.1

 

18.5

 

14

%

 

(54.1

)

(56.4

)

 

3.4

 

(28.4

)

112

%

As previously announced, Valaris will hold its third quarter 2021 earnings conference call at 9:00 a.m. CDT (10:00 a.m. EDT and 2:00 p.m. London) on Tuesday, November 2, 2021. 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," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements involving expected financial performance; expected utilization, rig commitments and availability, day rates, revenues, operating expenses including expenses related to reorganization items, cash flow, 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 effects of declines in commodity prices; synergies and expected additional cost savings; effective tax rates; expected work commitments, letters of intent; scheduled delivery dates for rigs; performance of our joint venture with Saudi Aramco; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; our intent to sell or scrap rigs; and general market, business and industry conditions, trends and outlook. 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 effects of the chapter 11 cases on the Company's business, relationships, comparability of our financial results and ability to access financing sources, the COVID-19 outbreak and global pandemic, 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 rights if final investment decision (FID) is not received with respect to projects for which the drilling rig is contracted; potential additional asset impairments; our failure to satisfy our debt obligations; our ability to obtain financing, service our debt, fund negative cash flow and capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; actions by regulatory authorities, rating agencies or other third parties; actions by our security holders; availability and terms of any financing; commodity price fluctuations, 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; 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 construction, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling 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 particular, the unprecedented nature of the current economic downturn, pandemic, and industry decline may make it particularly difficult to identify risks or predict the degree to which identified risks will impact the Company's business and financial condition. 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, as updated in our subsequent quarterly reports on Form 10-Q, which are 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts; unaudited)

 

 

Successor

 

 

Predecessor

 

Combined
(Non-GAAP)

 

Three Months
Ended
September 30,
2021

 

Two Months
Ended
June 30,
2021

 

 

One Month
Ended
April 30,
2021

 

Three Months
Ended
June 30,
2021

OPERATING REVENUES

$

326.7

 

 

$

202.8

 

 

 

$

90.3

 

 

$

293.1

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Contract drilling (exclusive of depreciation)

274.3

 

 

168.7

 

 

 

85.6

 

 

254.3

 

Depreciation

24.4

 

 

16.6

 

 

 

37.5

 

 

54.1

 

General and administrative

27.2

 

 

12.7

 

 

 

6.4

 

 

19.1

 

Total operating expenses

325.9

 

 

198.0

 

 

 

129.5

 

 

327.5

 

EQUITY IN EARNINGS OF ARO

2.6

 

 

4.8

 

 

 

1.2

 

 

6.0

 

OPERATING INCOME (LOSS)

3.4

 

 

9.6

 

 

 

(38.0

)

 

(28.4

)

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

Interest income

9.7

 

 

7.8

 

 

 

1.0

 

 

8.8

 

Interest expense, net (Unrecognized contractual interest expense for debt subject to compromise was $32.6 million for the one month ended April 30, 2021)

(11.3

)

 

(8.0

)

 

 

(1.1

)

 

(9.1

)

Reorganization items, net

(6.5

)

 

(4.1

)

 

 

(3,532.4

)

 

(3,536.5

)

Other, net

5.2

 

 

5.7

 

 

 

(1.2

)

 

4.5

 

 

(2.9

)

 

1.4

 

 

 

(3,533.7

)

 

(3,532.3

)

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

0.5

 

 

11.0

 

 

 

(3,571.7

)

 

(3,560.7

)

 

 

 

 

 

 

 

 

 

PROVISION (BENEFIT) FOR INCOME TAXES

53.3

 

 

15.1

 

 

 

(15.5

)

 

(0.4

)

NET LOSS

(52.8

)

 

(4.1

)

 

 

(3,556.2

)

 

(3,560.3

)

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(1.7

)

 

(2.1

)

 

 

(0.8

)

 

(2.9

)

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO VALARIS

$

(54.5

)

 

$

(6.2

)

 

 

$

(3,557.0

)

 

$

(3,563.2

)

 

 

 

 

 

 

 

 

 

LOSS PER SHARE - BASIC AND DILUTED

$

(0.73

)

 

$

(0.08

)

 

 

$

(17.81

)

 

n/m

 

WEIGHTED-AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED

75.0

 

 

75.0

 

 

 

199.7

 

 

n/m

 

 

VALARIS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts; unaudited)

 

 

Three Months Ended

 

Successor

 

Combined
(Non-GAAP) (1)

 

Predecessor

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUES

$

326.7

 

 

$

293.1

 

 

$

307.1

 

 

$

296.5

 

 

$

285.3

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Contract drilling (exclusive of depreciation)

274.3

 

 

254.3

 

 

252.2

 

 

304.7

 

 

307.2

 

Loss on impairment

—

 

 

—

 

 

756.5

 

 

—

 

 

—

 

Depreciation

24.4

 

 

54.1

 

 

122.1

 

 

122.4

 

 

122.4

 

General and administrative

27.2

 

 

19.1

 

 

24.3

 

 

26.5

 

 

72.1

 

Total operating expenses

325.9

 

 

327.5

 

 

1,155.1

 

 

453.6

 

 

501.7

 

Other operating income

—

 

 

—

 

 

—

 

 

—

 

 

118.1

 

EQUITY IN EARNINGS (LOSSES) OF ARO

2.6

 

 

6.0

 

 

1.9

 

 

(0.2

)

 

3.9

 

OPERATING INCOME (LOSS)

3.4

 

 

(28.4

)

 

(846.1

)

 

(157.3

)

 

(94.4

)

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

 

Interest income

9.7

 

 

8.8

 

 

2.6

 

 

4.5

 

 

4.7

 

Interest expense, net (Unrecognized contractual interest expense for debt subject to compromise was $32.6 million, $100.3 million, $94.8 million, $45.9 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively)

(11.3

)

 

(9.1

)

 

(1.3

)

 

(1.4

)

 

(59.8

)

Reorganization items, net

(6.5

)

 

(3,536.5

)

 

(52.2

)

 

(30.1

)

 

(497.5

)

Other, net

5.2

 

 

4.5

 

 

21.1

 

 

1.7

 

 

(3.1

)

 

(2.9

)

 

(3,532.3

)

 

(29.8

)

 

(25.3

)

 

(555.7

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

0.5

 

 

(3,560.7

)

 

(875.9

)

 

(182.6

)

 

(650.1

)

 

 

 

 

 

 

 

 

 

 

PROVISION (BENEFIT) FOR INCOME TAXES

53.3

 

 

(0.4

)

 

31.7

 

 

(113.5

)

 

21.9

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

(52.8

)

 

(3,560.3

)

 

(907.6

)

 

(69.1

)

 

(672.0

)

 

 

 

 

 

 

 

 

 

 

NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(1.7

)

 

(2.9

)

 

(2.4

)

 

(1.8

)

 

1.1

 

 

 

 

 

 

 

 

 

 

 

NET LOSS ATTRIBUTABLE TO VALARIS

$

(54.5

)

 

$

(3,563.2

)

 

$

(910.0

)

 

$

(70.9

)

 

$

(670.9

)

 

 

 

 

 

 

 

 

 

 

LOSS PER SHARE - BASIC AND DILUTED

$

(0.73

)

 

n/m

 

 

$

(4.56

)

 

$

(0.36

)

 

$

(3.36

)

WEIGHTED-AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED

75.0

 

 

n/m

 

 

199.6

 

 

199.5

 

 

199.4

 

(1)

Represents the combined results of operations for the two-months ended June 30, 2021 and the one-month ended April 30, 2021.

 

VALARIS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions; unaudited, except for December 31, 2020)

 

Successor

 

 

Predecessor

 

September 30,
2021

June 30,
2021

 

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

620.8

 

608.8

 

 

 

$

291.7

 

 

$

325.8

 

 

$

180.4

 

Restricted cash

33.9

 

53.1

 

 

 

17.1

 

 

11.4

 

 

1.2

 

Accounts receivable, net

455.8

 

436.1

 

 

 

449.8

 

 

449.2

 

 

429.7

 

Other current assets

117.0

 

119.7

 

 

 

366.4

 

 

386.5

 

 

453.5

 

Total current assets

$

1,227.5

 

$

1,217.7

 

 

 

$

1,125.0

 

 

$

1,172.9

 

 

$

1,064.8

 

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

892.3

 

897.8

 

 

 

10,083.9

 

 

10,960.5

 

 

11,082.4

 

 

 

 

 

 

 

 

 

 

 

LONG-TERM NOTES RECEIVABLE FROM ARO

241.3

 

234.3

 

 

 

442.7

 

 

442.7

 

 

442.7

 

 

 

 

 

 

 

 

 

 

 

INVESTMENT IN ARO

87.9

 

85.4

 

 

 

122.8

 

 

120.9

 

 

121.1

 

 

 

 

 

 

 

 

 

 

 

OTHER ASSETS

153.5

 

166.5

 

 

 

172.5

 

 

176.2

 

 

200.2

 

 

 

 

 

 

 

 

 

 

 

 

$

2,602.5

 

$

2,601.7

 

 

 

$

11,946.9

 

 

$

12,873.2

 

 

$

12,911.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Accounts payable - trade

$

203.0

 

183.9

 

 

 

$

176.8

 

 

$

176.4

 

 

$

180.7

 

Accrued liabilities and other

223.8

 

212.7

 

 

 

290.6

 

 

250.4

 

 

207.3

 

Total current liabilities

$

426.8

 

$

396.6

 

 

 

$

467.4

 

 

$

426.8

 

 

$

388.0

 

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT

545.1

 

544.8

 

 

 

—

 

 

—

 

 

—

 

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES

591.3

 

569.8

 

 

 

704.6

 

 

762.4

 

 

696.9

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE

1,563.2

 

1,511.2

 

 

 

1,172.0

 

 

1,189.2

 

 

1,084.9

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES SUBJECT TO COMPROMISE

—

 

—

 

 

 

7,313.7

 

 

7,313.7

 

 

7,313.7

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

1,039.3

 

1,090.5

 

 

 

3,461.2

 

 

4,370.3

 

 

4,512.6

 

 

 

 

 

 

 

 

 

 

 

$

2,602.5

 

$

2,601.7

 

 

 

$

11,946.9

 

 

$

12,873.2

 

 

$

12,911.2

 

 

VALARIS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)

 

Successor

 

 

Predecessor

 

Combined

(Non-GAAP)

 

Predecessor

 

Five Months Ended
September 30,
2021

 

 

Four Months Ended
April 30,
2021

 

Nine Months Ended
September 30,
2021

 

Nine Months Ended
September 30,
2020

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net loss

$

(56.9

)

 

 

$

(4,463.8

)

 

$

(4,520.7

)

 

$

(4,788.5

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Reorganization items, net

—

 

 

 

3,487.3

 

 

3,487.3

 

 

447.9

 

Loss on impairment

—

 

 

 

756.5

 

 

756.5

 

 

3,646.2

 

Depreciation expense

41.0

 

 

 

159.6

 

 

200.6

 

 

418.4

 

Deferred income tax expense (benefit)

1.2

 

 

 

(18.2

)

 

(17.0

)

 

(103.6

)

Accretion of discount on shareholder note

(12.9

)

 

 

—

 

 

(12.9

)

 

—

 

Equity in losses (earnings) of ARO

(7.4

)

 

 

(3.1

)

 

(10.5

)

 

7.6

 

Share-based compensation expense

1.6

 

 

 

4.8

 

 

6.4

 

 

17.8

 

Amortization, net

2.8

 

 

 

(4.8

)

 

(2.0

)

 

14.4

 

Debt discounts and other

0.3

 

 

 

—

 

 

0.3

 

 

36.8

 

Debtor in possession financing fees and payments on Backstop Agreement

—

 

 

 

—

 

 

—

 

 

43.8

 

Adjustment to gain on bargain purchase

—

 

 

 

—

 

 

—

 

 

6.3

 

Gain on debt extinguishment

—

 

 

 

—

 

 

—

 

 

(3.1

)

Other

(6.3

)

 

 

(4.1

)

 

(10.4

)

 

2.4

 

Changes in operating assets and liabilities

19.3

 

 

 

68.5

 

 

87.8

 

 

(131.8

)

Contributions to pension plans and other post-retirement benefits

(1.7

)

 

 

(22.5

)

 

(24.2

)

 

(11.0

)

Net cash used in operating activities

(19.0

)

 

 

(39.8

)

 

(58.8

)

 

(396.4

)

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Additions to property and equipment

(23.7

)

 

 

(8.7

)

 

(32.4

)

 

(82.9

)

Net proceeds from disposition of assets

1.5

 

 

 

30.1

 

 

31.6

 

 

44.2

 

Net cash provided by (used in) investing activities

(22.2

)

 

 

21.4

 

 

(0.8

)

 

(38.7

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Issuance of first lien notes

—

 

 

 

520.0

 

 

520.0

 

 

—

 

Payments to Predecessor creditors

—

 

 

 

(129.9

)

 

(129.9

)

 

—

 

Borrowings on credit facility

—

 

 

 

—

 

 

—

 

 

596.0

 

Debtor in possession financing fees and payments on Backstop Agreement

—

 

 

 

—

 

 

—

 

 

(43.8

)

Repayments of credit facility borrowings

—

 

 

 

—

 

 

—

 

 

(15.0

)

Reduction of long-term borrowings

—

 

 

 

—

 

 

—

 

 

(9.7

)

Purchase of noncontrolling interests

—

 

 

 

—

 

 

—

 

 

(7.2

)

Other

—

 

 

 

(1.4

)

 

(1.4

)

 

(1.9

)

Net cash provided by financing activities

—

 

 

 

388.7

 

 

388.7

 

 

518.4

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

(0.1

)

 

 

(0.1

)

 

(0.2

)

 

(0.1

)

 

 

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(41.3

)

 

 

370.2

 

 

328.9

 

 

83.2

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

696.0

 

 

 

325.8

 

 

325.8

 

 

97.2

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

$

654.7

 

 

 

$

696.0

 

 

$

654.7

 

 

$

180.4

 

VALARIS LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions, unaudited)

 

Three Months Ended

 

Successor

 

 

Combined (Non-GAAP) (1)

 

Predecessor

 

September 30, 2021

 

 

June 30,

2021

 

March 31, 2021

 

December 31, 2020

 

September 30, 2020

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

Net loss

$

(52.8

)

 

 

$

(3,560.3

)

 

$

(907.6

)

 

$

(69.1

)

 

$

(672.0

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation expense

24.4

 

 

 

54.1

 

 

122.1

 

 

122.4

 

 

122.4

 

Accretion of discount on shareholder note

(6.9

)

 

 

(6.0

)

 

—

 

 

—

 

 

—

 

Amortization, net

3.1

 

 

 

(.5

)

 

(4.6

)

 

(8.2

)

 

2.2

 

Equity in losses (earnings) of ARO

(2.6

)

 

 

(6.0

)

 

(1.9

)

 

.2

 

 

(3.9

)

Share-based compensation expense

1.6

 

 

 

1.0

 

 

3.8

 

 

3.6

 

 

4.3

 

Deferred income tax expense (benefit)

.1

 

 

 

(18.0

)

 

.9

 

 

(2.1

)

 

5.5

 

Debt discounts and other

(.1

)

 

 

.4

 

 

—

 

 

—

 

 

8.0

 

Debtor in Possession financing fees and payments on Backstop Agreement

—

 

 

 

—

 

 

—

 

 

(3.8

)

 

43.8

 

Loss on impairment

—

 

 

 

—

 

 

756.5

 

 

—

 

 

—

 

Reorganization items, net

—

 

 

 

3,487.3

 

 

—

 

 

(11.5

)

 

447.9

 

Other

(3.8

)

 

 

(7.0

)

 

0.4

 

 

4.5

 

 

2.0

 

Changes in operating assets and liabilities

45.0

 

 

 

21.9

 

 

20.9

 

 

109.8

 

 

24.9

 

Contributions to pension plans and other post-retirement benefits

(1.1

)

 

 

(0.9

)

 

(22.2

)

 

(1.1

)

 

(0.4

)

Net cash provided by (used in) operating activities

6.9

 

 

 

(34.0

)

 

(31.7

)

 

144.7

 

 

(15.3

)

 

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

Additions to property and equipment

(15.6

)

 

 

(10.8

)

 

(6.0

)

 

(10.9

)

 

(15.8

)

Net proceeds from disposition of assets

1.3

 

 

 

26.6

 

 

3.7

 

 

7.6

 

 

30.4

 

Net cash provided by (used in) investing activities

(14.3

)

 

 

15.8

 

 

(2.3

)

 

(3.3

)

 

14.6

 

 

 

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

Issuance of first lien notes

—

 

 

 

520.0

 

 

—

 

 

—

 

 

—

 

Payments to Predecessor creditors

—

 

 

 

(129.9

)

 

—

 

 

—

 

 

—

 

Borrowings on credit facility

—

 

 

 

—

 

 

—

 

 

—

 

 

30.0

 

Debtor in Possession financing fees and payments on Backstop Agreement

—

 

 

 

—

 

 

—

 

 

3.8

 

 

(43.8

)

Purchase of noncontrolling interests

—

 

 

 

—

 

 

—

 

 

—

 

 

(7.2

)

Other

—

 

 

 

(1.4

)

 

—

 

 

—

 

 

—

 

Net cash provided by (used in) financing activities

—

 

 

 

388.7

 

 

—

 

 

3.8

 

 

(21.0

)

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

0.2

 

 

 

(0.3

)

 

(0.1

)

 

0.2

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(7.2

)

 

 

370.2

 

 

(34.1

)

 

145.4

 

 

(21.6

)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

661.9

 

 

 

291.7

 

 

325.8

 

 

180.4

 

 

202.0

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

$

654.7

 

 

 

$

661.9

 

 

$

291.7

 

 

$

325.8

 

 

$

180.4

 

(1)

Represents the combined results of operations for the two-months ended June 30, 2021 and the one-month ended April 30, 2021.

 

VALARIS LIMITED AND SUBSIDIARIES
OPERATING STATISTICS
(In millions, unaudited)

 

 

Three Months Ended

 

Successor

 

 

Combined
(Non-GAAP)

Predecessor

 

September 30,
2021

 

 

June 30,
2021

March 31,
2021

December 31,
2020

September 30,
2020

REVENUES

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

Drillships

$

67.5

 

 

 

$

42.6

 

$

81.0

 

$

93.8

 

$

35.4

 

Semisubmersibles

36.8

 

 

 

25.5

 

16.3

 

11.7

 

21.7

 

 

$

104.3

 

 

 

$

68.1

 

$

97.3

 

$

105.5

 

$

57.1

 

Jackups (1)

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh Environment

$

102.8

 

 

 

$

104.9

 

$

95.5

 

$

96.2

 

$

91.2

 

HD & SD Modern

59.6

 

 

 

57.7

 

50.5

 

61.1

 

67.8

 

SD Legacy

23.9

 

 

 

25.7

 

26.6

 

22.1

 

27.8

 

 

$

186.3

 

 

 

$

188.3

 

$

172.6

 

$

179.4

 

$

186.8

 

 

 

 

 

 

 

 

 

Total

$

290.6

 

 

 

$

256.4

 

$

269.9

 

$

284.9

 

$

243.9

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Leased and Managed Rigs

$

36.1

 

 

 

$

36.7

 

$

37.2

 

$

11.6

 

$

41.4

 

 

 

 

 

 

 

 

 

Valaris Total

$

326.7

 

 

 

$

293.1

 

$

307.1

 

$

296.5

 

$

285.3

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

ARO Total

$

117.7

 

 

 

$

124.8

 

$

122.7

 

$

117.5

 

$

145.6

 

Valaris 50% Share (unconsolidated)

58.9

 

 

 

62.4

 

61.4

 

58.8

 

72.8

 

 

 

 

 

 

 

 

 

Adjusted Total (2)

$

385.6

 

 

 

$

355.5

 

$

368.5

 

$

355.3

 

$

358.1

 

(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, unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

ADJUSTED EBITDAR (1)

 

 

 

 

 

 

 

 

 

Active Fleet (1)

$

93.0

 

 

$

82.1

 

 

$

88.8

 

 

$

59.1

 

 

$

163.9

 

Leased and Managed Rigs (1)

22.2

 

 

22.9

 

 

22.7

 

 

24.0

 

 

25.3

 

 

$

115.2

 

 

$

105.0

 

 

$

111.5

 

 

$

83.1

 

 

$

189.2

 

 

 

 

 

 

 

 

 

 

 

Stacked Fleet (1) (2)

(12.5

)

 

(17.1

)

 

(17.7

)

 

(31.5

)

 

(55.9

)

 

$

102.7

 

 

$

87.9

 

 

$

93.8

 

 

$

51.6

 

 

$

133.3

 

 

 

 

 

 

 

 

 

 

 

Support costs

 

 

 

 

 

 

 

 

 

General and administrative expense

$

27.2

 

 

$

19.1

 

 

$

24.3

 

 

$

26.3

 

 

$

72.0

 

Onshore support costs

27.1

 

 

29.1

 

 

32.2

 

 

35.6

 

 

37.9

 

 

$

54.3

 

 

$

48.2

 

 

$

56.5

 

 

$

61.9

 

 

$

109.9

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Merger transaction and integration cost included in contract drilling expense

0.9

 

 

0.9

 

 

1.9

 

 

2.1

 

 

50.7

 

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

ARO Total

$

17.9

 

 

$

27.8

 

 

$

33.4

 

 

$

46.1

 

 

$

40.8

 

Valaris 50% Share (unconsolidated)

9.0

 

 

13.9

 

 

16.7

 

 

23.1

 

 

20.4

 

 

 

 

 

 

 

 

 

 

 

Adjusted Total (3)

$

58.3

 

 

$

54.5

 

 

$

55.9

 

 

$

14.9

 

 

$

94.5

 

 

 

 

 

 

 

 

 

 

 

Reactivation costs (4)

$

19.4

 

 

$

24.0

 

 

$

11.1

 

 

$

1.6

 

 

$

0.9

 

 

 

 

 

 

 

 

 

 

 

(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)

Stacked fleet represents the combined total of all preservation and stacking costs.

 

 

(3)

Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO (unconsolidated).

 

 

(4)

Reactivation costs, all of which are attributed to the active fleet, are excluded from adjusted EBITDAR.

 

VALARIS LIMITED AND SUBSIDIARIES
OPERATING STATISTICS
(In millions, unaudited)

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

ADJUSTED EBITDAR (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships (1)

$

8.9

 

 

$

(2.5

)

 

$

16.1

 

 

$

5.1

 

 

$

68.3

 

Semisubmersibles (1)

8.3

 

 

6.5

 

 

(1.0

)

 

(11.5

)

 

(9.3

)

 

$

17.2

 

 

$

4.0

 

 

$

15.1

 

 

$

(6.4

)

 

$

59.0

 

 

 

 

 

 

 

 

 

 

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh (1)

$

38.7

 

 

$

42.3

 

 

$

31.0

 

 

$

16.6

 

 

$

22.5

 

HD & SD - Modern (1)

15.6

 

 

6.7

 

 

12.0

 

 

10.1

 

 

16.3

 

SD - Legacy (1)

9.0

 

 

12.0

 

 

13.0

 

 

7.3

 

 

10.2

 

 

$

63.3

 

 

$

61.0

 

 

$

56.0

 

 

$

34.0

 

 

$

49.0

 

 

 

 

 

 

 

 

 

 

 

Total

$

80.5

 

 

$

65.0

 

 

$

71.1

 

 

$

27.6

 

 

$

108.0

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs (1)

$

22.2

 

 

$

22.9

 

 

$

22.7

 

 

$

24.0

 

 

$

25.3

 

 

 

 

 

 

 

 

 

 

 

Total

$

102.7

 

 

$

87.9

 

 

$

93.8

 

 

$

51.6

 

 

$

133.3

 

 

 

 

 

 

 

 

 

 

 

Support costs

 

 

 

 

 

 

 

 

 

General and administrative expense

$

27.2

 

 

$

19.1

 

 

$

24.3

 

 

$

26.3

 

 

$

72.0

 

Onshore support costs

27.1

 

 

29.1

 

 

32.2

 

 

35.6

 

 

37.9

 

 

$

54.3

 

 

$

48.2

 

 

$

56.5

 

 

$

61.9

 

 

$

109.9

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Merger transaction and integration cost included in contract drilling expense

0.9

 

 

0.9

 

 

1.9

 

 

2.1

 

 

50.7

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

49.3

 

 

$

40.6

 

 

$

39.2

 

 

$

(8.2

)

 

$

74.1

 

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

ARO Total

$

17.9

 

 

$

27.8

 

 

$

33.4

 

 

$

46.1

 

 

$

40.8

 

Valaris 50% Share (unconsolidated)

9.0

 

 

13.9

 

 

16.7

 

 

23.1

 

 

20.4

 

 

 

 

 

 

 

 

 

 

 

Adjusted Total (2)

$

58.3

 

 

$

54.5

 

 

$

55.9

 

 

$

14.9

 

 

$

94.5

 

(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, unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

ADJUSTED EBITDA (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships (1)

$

8.6

 

 

$

(2.5

)

 

$

16.1

 

 

$

5.1

 

 

$

68.3

 

Semisubmersibles (1)

7.2

 

 

6.4

 

 

(6.7

)

 

(12.7

)

 

(10.2

)

 

$

15.8

 

 

$

3.9

 

 

$

9.4

 

 

$

(7.6

)

 

$

58.1

 

 

 

 

 

 

 

 

 

 

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh (1)

$

25.1

 

 

$

22.2

 

 

$

29.3

 

 

$

16.5

 

 

$

22.5

 

HD & SD - Modern (1)

11.2

 

 

2.9

 

 

8.3

 

 

9.8

 

 

16.3

 

SD - Legacy (1)

9.0

 

 

12.0

 

 

13.0

 

 

7.3

 

 

10.2

 

 

$

45.3

 

 

$

37.1

 

 

$

50.6

 

 

$

33.6

 

 

$

49.0

 

 

 

 

 

 

 

 

 

 

 

Total

$

61.1

 

 

$

41.0

 

 

$

60.0

 

 

$

26.0

 

 

$

107.1

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs (1)

$

22.1

 

 

$

22.9

 

 

$

22.7

 

 

$

24.0

 

 

$

25.3

 

 

 

 

 

 

 

 

 

 

 

Total

$

83.2

 

 

$

63.9

 

 

$

82.7

 

 

$

50.0

 

 

$

132.4

 

 

 

 

 

 

 

 

 

 

 

Support costs

 

 

 

 

 

 

 

 

 

General and administrative expense

$

27.2

 

 

$

19.1

 

 

$

24.3

 

 

$

26.3

 

 

$

72.0

 

Onshore support costs

27.1

 

 

29.1

 

 

32.2

 

 

35.6

 

 

37.9

 

 

$

54.3

 

 

$

48.2

 

 

$

56.5

 

 

$

61.9

 

 

$

109.9

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Merger transaction and integration cost included in contract drilling expense

0.9

 

 

0.9

 

 

1.9

 

 

2.1

 

 

50.7

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

29.8

 

 

$

16.6

 

 

$

28.1

 

 

$

(9.8

)

 

$

73.2

 

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

ARO Total

$

17.9

 

 

$

27.8

 

 

$

33.4

 

 

$

46.1

 

 

$

40.8

 

Valaris 50% Share (unconsolidated)

9.0

 

 

13.9

 

 

16.7

 

 

23.1

 

 

20.4

 

 

 

 

 

 

 

 

 

 

 

Adjusted Total (2)

$

38.8

 

 

$

30.5

 

 

$

44.8

 

 

$

13.3

 

 

$

93.6

 

(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, unaudited)

 

As of

 

October 27,
2021

 

August 2,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

CONTRACT BACKLOG (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

$

1,338.6

 

 

$

1,102.2

 

 

$

117.6

 

 

$

90.0

 

 

$

129.2

 

Semisubmersibles

277.9

 

 

294.0

 

 

171.4

 

 

73.7

 

 

82.3

 

 

$

1,616.5

 

 

$

1,396.2

 

 

$

289.0

 

 

$

163.7

 

 

$

211.5

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

307.6

 

 

364.4

 

 

403.8

 

 

358.7

 

 

400.3

 

HD & SD - Modern

274.5

 

 

299.9

 

 

180.6

 

 

211.8

 

 

253.4

 

SD - Legacy

85.5

 

 

102.9

 

 

134.4

 

 

167.1

 

 

176.3

 

 

$

667.6

 

 

$

767.2

 

 

$

718.8

 

 

$

737.6

 

 

$

830.0

 

 

 

 

 

 

 

 

 

 

 

Total

$

2,284.1

 

 

$

2,163.4

 

 

$

1,007.8

 

 

$

901.3

 

 

$

1,041.5

 

 

 

 

 

 

 

 

 

 

 

Other (2)

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

$

33.9

 

 

$

60.3

 

 

$

90.8

 

 

$

140.1

 

 

$

178.7

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

2,318.0

 

 

$

2,223.7

 

 

$

1,098.6

 

 

$

1,041.4

 

 

$

1,220.2

 

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Owned Rigs

$

757.4

 

 

$

818.7

 

 

$

869.5

 

 

$

84.2

 

 

$

146.7

 

Leased Rigs

88.7

 

 

134.5

 

 

192.2

 

 

263.3

 

 

347.1

 

ARO Total

$

846.1

 

 

$

953.2

 

 

$

1,061.7

 

 

$

347.5

 

 

$

493.8

 

 

 

 

 

 

 

 

 

 

 

Valaris 50% Share of ARO Owned Rigs

378.7

 

 

409.4

 

 

434.8

 

 

42.1

 

 

73.4

 

 

 

 

 

 

 

 

 

 

 

Adjusted Total (3)

$

2,696.7

 

 

$

2,633.1

 

 

$

1,533.4

 

 

$

1,083.5

 

 

$

1,293.6

 

(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 final investment decision (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)

Leased rigs and managed rigs included in Other reporting segment.

 

 

(3)

Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO owned rigs.

 

VALARIS LIMITED AND SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

AVERAGE DAY RATES (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

$

189,000

 

 

$

212,000

 

 

$

208,000

 

 

$

214,000

 

 

$

155,000

 

Semisubmersibles

191,000

 

 

178,000

 

 

164,000

 

 

160,000

 

 

262,000

 

 

$

190,000

 

 

$

197,000

 

 

$

198,000

 

 

$

206,000

 

 

$

190,000

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

$

124,000

 

 

$

141,000

 

 

$

140,000

 

 

$

120,000

 

 

$

138,000

 

HD & SD Modern

77,000

 

 

73,000

 

 

70,000

 

 

74,000

 

 

73,000

 

SD Legacy

74,000

 

 

72,000

 

 

70,000

 

 

55,000

 

 

65,000

 

 

$

96,000

 

 

$

99,000

 

 

$

95,000

 

 

$

86,000

 

 

$

93,000

 

 

 

 

 

 

 

 

 

 

 

Total

$

115,000

 

 

$

114,000

 

 

$

116,000

 

 

$

110,000

 

 

$

104,000

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

$

31,000

 

 

$

31,000

 

 

$

32,000

 

 

$

6,000

 

 

$

36,000

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

$

90,000

 

 

$

87,000

 

 

$

89,000

 

 

$

76,000

 

 

$

80,000

 

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Owned Rigs

$

99,000

 

 

$

99,000

 

 

$

98,000

 

 

$

116,000

 

 

$

116,000

 

Leased Rigs (2)

92,000

 

 

93,000

 

 

89,000

 

 

99,000

 

 

91,000

 

ARO Total

$

95,000

 

 

$

96,000

 

 

$

93,000

 

 

$

109,000

 

 

$

102,000

 

(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, demobilizations and shipyard contracts.

 

 

(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
(Unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

UTILIZATION - TOTAL FLEET (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

24

%

 

18

%

 

33

%

 

34

%

 

11

%

Semisubmersibles

39

%

 

30

%

 

20

%

 

11

%

 

11

%

 

28

%

 

22

%

 

29

%

 

26

%

 

11

%

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

72

%

 

58

%

 

50

%

 

44

%

 

48

%

HD & SD Modern

43

%

 

43

%

 

40

%

 

37

%

 

41

%

SD Legacy

74

%

 

93

%

 

100

%

 

100

%

 

99

%

 

57

%

 

54

%

 

50

%

 

46

%

 

50

%

 

 

 

 

 

 

 

 

 

 

Total

47

%

 

44

%

 

44

%

 

40

%

 

36

%

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

100

%

 

100

%

 

100

%

 

100

%

 

94

%

 

 

 

 

 

 

 

 

 

 

Valaris Total

56

%

 

54

%

 

54

%

 

50

%

 

45

%

 

 

 

 

 

 

 

 

 

 

Pro Forma Jackups (2)

62

%

 

63

%

 

60

%

 

56

%

 

59

%

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Owned Rigs

85

%

 

96

%

 

97

%

 

93

%

 

96

%

Leased Rigs (3)

86

%

 

83

%

 

85

%

 

53

%

 

98

%

ARO Total

86

%

 

89

%

 

90

%

 

70

%

 

97

%

(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
(Unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

UTILIZATION - ACTIVE FLEET (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

79

%

 

51

%

 

91

%

 

96

%

 

31

%

Semisubmersibles

64

%

 

50

%

 

33

%

 

20

%

 

19

%

 

73

%

 

51

%

 

66

%

 

63

%

 

26

%

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

84

%

 

82

%

 

92

%

 

67

%

 

78

%

HD & SD Modern

75

%

 

74

%

 

84

%

 

68

%

 

82

%

SD Legacy

87

%

 

93

%

 

100

%

 

100

%

 

75

%

 

80

%

 

80

%

 

90

%

 

73

%

 

79

%

 

 

 

 

 

 

 

 

 

 

Total

79

%

 

74

%

 

84

%

 

71

%

 

64

%

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

100

%

 

100

%

 

100

%

 

100

%

 

94

%

 

 

 

 

 

 

 

 

 

 

Valaris Total

84

%

 

81

%

 

89

%

 

78

%

 

72

%

 

 

 

 

 

 

 

 

 

 

Pro Forma Jackups (2)

82

%

 

86

%

 

93

%

 

80

%

 

85

%

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Owned Rigs

85

%

 

96

%

 

97

%

 

93

%

 

96

%

Leased Rigs (3)

86

%

 

83

%

 

85

%

 

53

%

 

98

%

ARO Total

86

%

 

89

%

 

90

%

 

70

%

 

97

%

(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)

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
(Unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

REVENUE EFFICIENCY (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

97.6

%

 

100.0

%

 

95.7

%

 

97.1

%

 

98.3

%

Semisubmersibles

96.7

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

97.3

%

 

100.0

%

 

98.2

%

 

98.8

%

 

98.9

%

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

99.5

%

 

100.0

%

 

95.1

%

 

95.7

%

 

92.1

%

HD & SD Modern

100.0

%

 

99.8

%

 

99.7

%

 

99.8

%

 

94.3

%

SD Legacy

99.0

%

 

96.9

%

 

100.0

%

 

100.0

%

 

100.0

%

 

99.6

%

 

99.0

%

 

99.3

%

 

99.1

%

 

95.2

%

 

 

 

 

 

 

 

 

 

 

Valaris Total

98.8

%

 

99.3

%

 

98.9

%

 

99.0

%

 

96.0

%

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Owned Rigs

98.1

%

 

94.0

%

 

99.7

%

 

99.8

%

 

98.0

%

Leased Rigs

96.9

%

 

92.6

%

 

96.0

%

 

94.5

%

 

95.3

%

ARO Total

97.4

%

 

93.3

%

 

97.9

%

 

97.8

%

 

96.6

%

(1)

Revenue efficiency is day rate revenue earned as a percentage of maximum potential day rate revenue.

 

VALARIS LIMITED AND SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)

 

 

As of

NUMBER OF RIGS

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

Active Fleet (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

4

 

 

4

 

 

4

 

 

4

 

 

5

 

Semisubmersibles

3

 

 

3

 

 

3

 

 

3

 

 

4

 

 

7

 

 

7

 

 

7

 

 

7

 

 

9

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

10

 

 

10

 

 

9

 

 

9

 

 

9

 

HD & SD Modern

11

 

 

11

 

 

11

 

 

11

 

 

11

 

SD Legacy

3

 

 

4

 

 

4

 

 

4

 

 

6

 

 

24

 

 

25

 

 

24

 

 

24

 

 

26

 

 

 

 

 

 

 

 

 

 

 

Total Active Fleet

31

 

 

32

 

 

31

 

 

31

 

 

35

 

 

 

 

 

 

 

 

 

 

 

Stacked Fleet

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships (2)

7

 

 

7

 

 

7

 

 

7

 

 

6

 

Semisubmersibles

2

 

 

2

 

 

2

 

 

2

 

 

2

 

 

9

 

 

9

 

 

9

 

 

9

 

 

8

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

1

 

 

2

 

 

4

 

 

4

 

 

4

 

HD & SD Modern

7

 

 

8

 

 

8

 

 

8

 

 

8

 

SD Legacy

1

 

 

—

 

 

—

 

 

—

 

 

—

 

 

9

 

 

10

 

 

12

 

 

12

 

 

12

 

 

 

 

 

 

 

 

 

 

 

Total Stacked Fleet

18

 

 

19

 

 

21

 

 

21

 

 

20

 

 

 

 

 

 

 

 

 

 

 

Leased Rigs (3)

 

 

 

 

 

 

 

 

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

1

 

 

1

 

 

1

 

 

1

 

 

1

 

HD & SD Modern

5

 

 

5

 

 

5

 

 

5

 

 

5

 

SD Legacy

2

 

 

3

 

 

3

 

 

3

 

 

3

 

Total Leased Rigs

8

 

 

9

 

 

9

 

 

9

 

 

9

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

57

 

 

60

 

 

61

 

 

61

 

 

64

 

 

 

 

 

 

 

 

 

 

 

Managed Rigs (3)

2

 

 

2

 

 

2

 

 

2

 

 

2

 

 

 

 

 

 

 

 

 

 

 

ARO (4)

 

 

 

 

 

 

 

 

 

Owned Rigs

7

 

 

7

 

 

7

 

 

7

 

 

7

 

Leased Rigs

8

 

 

9

 

 

9

 

 

9

 

 

9

 

ARO Total

15

 

 

16

 

 

16

 

 

16

 

 

16

 

(1)

Active rigs are defined as rigs that are not preservation stacked.

 

 

(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 scheduled to be delivered in 2022. All ARO leased rigs are leased from Valaris and also included in Valaris leased rig count

 

VALARIS LIMITED AND SUBSIDIARIES
OPERATING STATISTICS
(Unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

AVAILABLE DAYS - TOTAL FLEET (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

1,196

 

 

1,001

 

 

990

 

 

1,043

 

 

1,274

 

Semisubmersibles

460

 

 

455

 

 

450

 

 

521

 

 

628

 

 

1,656

 

 

1,456

 

 

1,440

 

 

1,564

 

 

1,902

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

1,074

 

 

1,153

 

 

1,170

 

 

1,328

 

 

1,196

 

HD & SD Modern

1,748

 

 

1,729

 

 

1,710

 

 

1,810

 

 

1,828

 

SD Legacy

398

 

 

364

 

 

360

 

 

368

 

 

368

 

 

3,220

 

 

3,246

 

 

3,240

 

 

3,506

 

 

3,392

 

 

 

 

 

 

 

 

 

 

 

Total

4,876

 

 

4,702

 

 

4,680

 

 

5,070

 

 

5,294

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

982

 

 

1,001

 

 

990

 

 

1,012

 

 

1,012

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

5,858

 

 

5,703

 

 

5,670

 

 

6,082

 

 

6,306

 

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Owned Rigs

644

 

 

637

 

 

630

 

 

644

 

 

644

 

Leased Rigs (2)

798

 

 

819

 

 

810

 

 

828

 

 

828

 

ARO Total

1,442

 

 

1,456

 

 

1,440

 

 

1,472

 

 

1,472

 

(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
(Unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

AVAILABLE DAYS - ACTIVE FLEET (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

368

 

 

364

 

 

360

 

 

368

 

 

460

 

Semisubmersibles

276

 

 

273

 

 

270

 

 

276

 

 

368

 

 

644

 

 

637

 

 

630

 

 

644

 

 

828

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

920

 

 

819

 

 

630

 

 

867

 

 

736

 

HD & SD Modern

1,012

 

 

1,001

 

 

810

 

 

982

 

 

920

 

SD Legacy

337

 

 

364

 

 

360

 

 

368

 

 

490

 

 

2,269

 

 

2,184

 

 

1,800

 

 

2,217

 

 

2,146

 

 

 

 

 

 

 

 

 

 

 

Total

2,913

 

 

2,821

 

 

2,430

 

 

2,861

 

 

2,974

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

982

 

 

1,001

 

 

990

 

 

1,012

 

 

1,012

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

3,895

 

 

3,822

 

 

3,420

 

 

3,873

 

 

3,986

 

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Owned Rigs

644

 

 

637

 

 

630

 

 

644

 

 

644

 

Leased Rigs (2)

798

 

 

819

 

 

810

 

 

828

 

 

828

 

ARO Total

1,442

 

 

1,456

 

 

1,440

 

 

1,472

 

 

1,472

 

(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)

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
(Unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

OPERATING DAYS (1)

 

 

 

 

 

 

 

 

 

Floaters

 

 

 

 

 

 

 

 

 

Drillships

290

 

 

185

 

 

329

 

 

352

 

 

142

 

Semisubmersibles

177

 

 

137

 

 

90

 

 

56

 

 

71

 

 

467

 

 

322

 

 

419

 

 

408

 

 

213

 

Jackups

 

 

 

 

 

 

 

 

 

HD Ultra-Harsh & Harsh

770

 

 

674

 

 

582

 

 

579

 

 

572

 

HD & SD Modern

759

 

 

742

 

 

683

 

 

669

 

 

750

 

SD Legacy

294

 

 

339

 

 

360

 

 

367

 

 

366

 

 

1,823

 

 

1,755

 

 

1,625

 

 

1,615

 

 

1,688

 

 

 

 

 

 

 

 

 

 

 

Total

2,290

 

 

2,077

 

 

2,044

 

 

2,023

 

 

1,901

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Leased and Managed Rigs

982

 

 

1,001

 

 

990

 

 

1,012

 

 

951

 

 

 

 

 

 

 

 

 

 

 

Valaris Total

3,272

 

 

3,078

 

 

3,034

 

 

3,035

 

 

2,852

 

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Owned Rigs

549

 

 

609

 

 

609

 

 

599

 

 

619

 

Leased Rigs (2)

687

 

 

684

 

 

687

 

 

437

 

 

814

 

ARO Total

1,236

 

 

1,293

 

 

1,296

 

 

1,036

 

 

1,433

 

(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
($s in millions, unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

DRILLSHIPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1)

$

54.6

 

 

$

38.4

 

 

$

66.4

 

 

$

71.1

 

 

$

28.9

 

Adjusted operating expense (2)

46.8

 

 

41.6

 

 

52.8

 

 

62.0

 

 

77.6

 

 

 

 

 

 

 

 

 

 

 

Rig operating margin

7.8

 

 

(3.2

)

 

13.6

 

 

9.1

 

 

(48.7

)

Rig operating margin %

14

%

 

(8

)%

 

20

%

 

13

%

 

(169

)%

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

 

 

 

 

 

 

 

 

Depreciation

10.5

 

 

21.4

 

 

43.0

 

 

42.8

 

 

42.4

 

Loss on impairment

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

$

10.5

 

 

$

21.4

 

 

$

43.0

 

 

$

42.8

 

 

$

42.4

 

 

 

 

 

 

 

 

 

 

 

Other operating income (expense) (3)

(7.7

)

 

(8.8

)

 

(3.2

)

 

(6.9

)

 

106.7

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

(10.4

)

 

$

(33.4

)

 

$

(32.6

)

 

$

(40.6

)

 

$

15.6

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (4)

$

8.6

 

 

$

(2.5

)

 

$

16.1

 

 

$

5.1

 

 

$

68.3

 

Reactivation costs (5)

0.3

 

 

—

 

 

—

 

 

—

 

 

—

 

Adjusted EBITDAR

$

8.9

 

 

$

(2.5

)

 

$

16.1

 

 

$

5.1

 

 

$

68.3

 

 

 

 

 

 

 

 

 

 

 

Preservation and stacking costs (5)

$

8.3

 

 

$

8.9

 

 

$

11.3

 

 

$

16.3

 

 

$

33.9

 

 

 

 

 

 

 

 

 

 

 

Number of Rigs (at quarter end)

 

 

 

 

 

 

 

 

 

Total Fleet

11

 

 

11

 

 

11

 

 

11

 

 

11

 

Active Fleet

4

 

 

4

 

 

4

 

 

4

 

 

5

 

 

 

 

 

 

 

 

 

 

 

Operating Days

290

 

 

185

 

 

329

 

 

352

 

 

142

 

Utilization - Active Fleet

79

%

 

51

%

 

91

%

 

96

%

 

31

%

Average Day Rate

$

189,000

 

 

$

212,000

 

 

$

208,000

 

 

$

214,000

 

 

$

155,000

 

(1)

Revenues exclusive of amortization and reimbursable items.

 

 

(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, gain or loss on sale of assets and other miscellaneous items. Other operating income in the quarter ended September 30, 2020 primarily relates to loss of hire insurance for VALARIS DS-8 following termination of a contract.

 

 

(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
($s in millions, unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

SEMISUBMERSIBLES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1)

$

32.7

 

 

$

23.7

 

 

$

14.1

 

 

$

9.4

 

 

$

18.9

 

Adjusted operating expense (2)

25.9

 

 

17.4

 

 

20.9

 

 

21.8

 

 

30.1

 

 

 

 

 

 

 

 

 

 

 

Rig operating margin

6.8

 

 

6.3

 

 

(6.8

)

 

(12.4

)

 

(11.2

)

Rig operating margin %

21

%

 

27

%

 

(48

)%

 

(132

)%

 

(59

)%

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

 

 

 

 

 

 

 

 

Depreciation

0.8

 

 

2.2

 

 

12.9

 

 

12.7

 

 

13.2

 

Loss on impairment

—

 

 

—

 

 

756.5

 

 

—

 

 

—

 

 

$

0.8

 

 

$

2.2

 

 

$

769.4

 

 

$

12.7

 

 

$

13.2

 

 

 

 

 

 

 

 

 

 

 

Other operating income (expense) (3)

(5.4

)

 

(5.9

)

 

(5.1

)

 

(4.9

)

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

0.6

 

 

$

(1.8

)

 

$

(781.3

)

 

$

(30.0

)

 

$

(24.5

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (4)

$

7.2

 

 

$

6.4

 

 

$

(6.7

)

 

$

(12.7

)

 

$

(10.2

)

Reactivation costs (5)

1.1

 

 

0.1

 

 

5.7

 

 

1.2

 

 

0.9

 

Adjusted EBITDAR

$

8.3

 

 

$

6.5

 

 

$

(1.0

)

 

$

(11.5

)

 

$

(9.3

)

 

 

 

 

 

 

 

 

 

 

Preservation and stacking costs (5)

$

1.4

 

 

$

1.4

 

 

$

1.6

 

 

$

3.6

 

 

$

7.9

 

 

 

 

 

 

 

 

 

 

 

Number of Rigs (at quarter end)

 

 

 

 

 

 

 

 

 

Total Fleet

5

 

 

5

 

 

5

 

 

5

 

 

6

 

Active Fleet

3

 

 

3

 

 

3

 

 

3

 

 

4

 

 

 

 

 

 

 

 

 

 

 

Operating Days

177

 

 

137

 

 

90

 

 

56

 

 

71

 

Utilization - Active Fleet

64

%

 

50

%

 

33

%

 

20

%

 

19

%

Average Day Rate

$

191,000

 

 

$

178,000

 

 

$

164,000

 

 

$

160,000

 

 

$

262,000

 

(1)

Revenues exclusive of amortization and reimbursable items.

 

 

(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, gain or loss on sale of assets 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
($s in millions, unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

HD ULTRA-HARSH &
HARSH JACKUPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1)

$

90.8

 

 

$

90.3

 

 

$

82.4

 

 

$

76.4

 

 

$

80.4

 

Adjusted operating expense (2)

68.8

 

 

71.3

 

 

55.2

 

 

62.2

 

 

60.0

 

 

 

 

 

 

 

 

 

 

 

Rig operating margin

22.0

 

 

19.0

 

 

27.2

 

 

14.2

 

 

20.4

 

Rig operating margin %

24

%

 

21

%

 

33

%

 

19

%

 

25

%

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

 

 

 

 

 

 

 

 

Depreciation

8.0

 

 

13.7

 

 

26.9

 

 

27.4

 

 

26.7

 

Loss on impairment

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

$

8.0

 

 

$

13.7

 

 

$

26.9

 

 

$

27.4

 

 

$

26.7

 

 

 

 

 

 

 

 

 

 

 

Other operating income (expense) (3)

(1.7

)

 

3.4

 

 

(1.7

)

 

(5.7

)

 

(7.6

)

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

12.3

 

 

$

8.7

 

 

$

(1.4

)

 

$

(18.9

)

 

$

(13.9

)

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (4)

$

25.1

 

 

$

22.2

 

 

$

29.3

 

 

$

16.5

 

 

$

22.5

 

Reactivation costs (5)

13.6

 

 

20.1

 

 

1.7

 

 

0.1

 

 

—

 

Adjusted EBITDAR

$

38.7

 

 

$

42.3

 

 

$

31.0

 

 

$

16.6

 

 

$

22.5

 

 

 

 

 

 

 

 

 

 

 

Preservation and stacking costs (5)

$

0.1

 

 

$

1.3

 

 

$

2.8

 

 

$

4.2

 

 

$

6.0

 

 

 

 

 

 

 

 

 

 

 

Number of Rigs (at quarter end)

 

 

 

 

 

 

 

 

 

Total Fleet

11

 

 

12

 

 

13

 

 

13

 

 

13

 

Active Fleet

10

 

 

10

 

 

9

 

 

9

 

 

9

 

 

 

 

 

 

 

 

 

 

 

Operating Days

770

 

 

674

 

 

582

 

 

579

 

 

572

 

Utilization - Active Fleet

84

%

 

82

%

 

92

%

 

67

%

 

78

%

Average Day Rate

$

124,000

 

 

$

141,000

 

 

$

140,000

 

 

$

120,000

 

 

$

138,000

 

(1)

Revenues exclusive of amortization and reimbursable items.

 

 

(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, gain or loss on sale of assets 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
($s in millions, unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

HD & SD MODERN JACKUPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1)

$

53.3

 

 

$

49.8

 

 

$

44.7

 

 

$

51.6

 

 

$

60.4

 

Adjusted operating expense (2)

44.9

 

 

49.2

 

 

38.8

 

 

45.1

 

 

46.4

 

 

 

 

 

 

 

 

 

 

 

Rig operating margin

8.4

 

 

0.6

 

 

5.9

 

 

6.5

 

 

14.0

 

Rig operating margin %

16

%

 

1

%

 

13

%

 

13

%

 

23

%

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

 

 

 

 

 

 

 

 

Depreciation

3.0

 

 

9.6

 

 

22.4

 

 

22.5

 

 

22.4

 

Loss on impairment

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

$

3.0

 

 

$

9.6

 

 

$

22.4

 

 

$

22.5

 

 

$

22.4

 

 

 

 

 

 

 

 

 

 

 

Other operating income (expense) (3)

(3.3)

 

 

(2.6)

 

 

(4.9)

 

 

(6.0)

 

 

(7.0)

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

2.1

 

 

$

(11.6)

 

 

$

(21.4)

 

 

$

(22.0)

 

 

$

(15.4)

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (4)

$

11.2

 

 

$

2.9

 

 

$

8.3

 

 

$

9.8

 

 

$

16.3

 

Reactivation costs (5)

4.4

 

 

3.8

 

 

3.7

 

 

0.3

 

 

—

 

Adjusted EBITDAR

$

15.6

 

 

$

6.7

 

 

$

12.0

 

 

$

10.1

 

 

$

16.3

 

 

 

 

 

 

 

 

 

 

 

Preservation and stacking costs (5)

$

0.5

 

 

$

5.5

 

 

$

2.0

 

 

$

7.4

 

 

$

8.1

 

 

 

 

 

 

 

 

 

 

 

Number of Rigs (at quarter end)

 

 

 

 

 

 

 

 

 

Total Fleet

18

 

 

19

 

 

19

 

 

19

 

 

19

 

Active Fleet

11

 

 

11

 

 

11

 

 

11

 

 

11

 

 

 

 

 

 

 

 

 

 

 

Operating Days

759

 

 

742

 

 

683

 

 

669

 

 

750

 

Utilization - Active Fleet

75

%

 

74

%

 

84

%

 

68

%

 

82

%

Average Day Rate

$

77,000

 

 

$

73,000

 

 

$

70,000

 

 

$

74,000

 

 

$

73,000

 

(1)

Revenues exclusive of amortization and reimbursable items.

 

 

(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, gain or loss on sale of assets 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
($s in millions, unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

SD LEGACY JACKUPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted revenues (1)

$

22.6

 

 

$

23.5

 

 

$

24.6

 

 

$

19.4

 

 

$

25.5

 

Adjusted operating expense (2)

14.2

 

 

11.8

 

 

12.1

 

 

12.3

 

 

15.9

 

 

 

 

 

 

 

 

 

 

 

Rig operating margin

8.4

 

 

11.7

 

 

12.5

 

 

7.1

 

 

9.6

 

Rig operating margin %

37

%

 

50

%

 

51

%

 

37

%

 

38

%

 

 

 

 

 

 

 

 

 

 

Other operating expenses

 

 

 

 

 

 

 

 

 

Depreciation

0.9

 

 

1.6

 

 

2.8

 

 

2.7

 

 

3.5

 

Loss on impairment

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

$

0.9

 

 

$

1.6

 

 

$

2.8

 

 

$

2.7

 

 

$

3.5

 

 

 

 

 

 

 

 

 

 

 

Other operating income (expense) (3)

(1.3

)

 

(2.1

)

 

(1.8

)

 

(1.2

)

 

(2.9

)

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

6.2

 

 

$

8.0

 

 

$

7.9

 

 

$

3.2

 

 

$

3.2

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (4)

$

9.0

 

 

$

12.0

 

 

$

13.0

 

 

$

7.3

 

 

$

10.2

 

Reactivation costs (5)

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Adjusted EBITDAR

$

9.0

 

 

$

12.0

 

 

$

13.0

 

 

$

7.3

 

 

$

10.2

 

 

 

 

 

 

 

 

 

 

 

Preservation and stacking costs (5)

$

2.3

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Number of Rigs (at quarter end)

 

 

 

 

 

 

 

 

 

Total Fleet

4

 

 

4

 

 

4

 

 

4

 

 

6

 

Active Fleet

3

 

 

4

 

 

4

 

 

4

 

 

6

 

 

 

 

 

 

 

 

 

 

 

Operating Days

294

 

 

339

 

 

360

 

 

367

 

 

366

 

Utilization - Active Fleet

87

%

 

93

%

 

100

%

 

100

%

 

75

%

Average Day Rate

$

74,000

 

 

$

72,000

 

 

$

70,000

 

 

$

55,000

 

 

$

65,000

 

(1)

Revenues exclusive of amortization and reimbursable items.

 

 

(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, gain or loss on sale of assets 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, unaudited)

 

 

As of

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

Cash

$

309.0

 

 

$

318.2

 

 

$

275.4

 

 

$

237.7

 

 

$

270.5

 

Other current assets

98.0

 

 

81.7

 

 

89.2

 

 

120.9

 

 

121.4

 

Non-current assets

776.1

 

 

782.8

 

 

789.0

 

 

804.0

 

 

898.2

 

Total assets

$

1,183.1

 

 

$

1,182.7

 

 

$

1,153.6

 

 

$

1,162.6

 

 

$

1,290.1

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

$

77.1

 

 

$

74.9

 

 

$

52.3

 

 

$

70.8

 

 

$

230.8

 

Non-current liabilities

951.0

 

 

950.3

 

 

952.1

 

 

950.8

 

 

940.8

 

Total liabilities

$

1,028.1

 

 

$

1,025.2

 

 

$

1,004.4

 

 

$

1,021.6

 

 

$

1,171.6

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

$

155.0

 

 

$

157.5

 

 

$

149.2

 

 

$

141.0

 

 

$

118.5

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

1,183.1

 

 

$

1,182.7

 

 

$

1,153.6

 

 

$

1,162.6

 

 

$

1,290.1

 

 

 

 

 

 

 

 

 

 

 

 

ARO DRILLING
CONDENSED INCOME STATEMENT INFORMATION
(In millions, unaudited)

 

 

Three Months Ended

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

Revenues

$

117.7

 

 

$

124.8

 

 

$

122.7

 

 

$

117.5

 

 

$

145.6

 

Operating expenses

 

 

 

 

 

 

 

 

 

Contract drilling (exclusive of depreciation)

94.4

 

 

92.7

 

 

86.3

 

 

68.4

 

 

99.0

 

Depreciation

16.8

 

 

14.6

 

 

16.1

 

 

13.7

 

 

14.8

 

General and administrative

5.4

 

 

4.3

 

 

3.0

 

 

3.0

 

 

5.8

 

Operating income

$

1.1

 

 

$

13.2

 

 

$

17.3

 

 

$

32.4

 

 

$

26.0

 

Other expense, net

3.4

 

 

3.1

 

 

4.5

 

 

6.7

 

 

6.7

 

Provision (benefit) for income taxes

0.2

 

 

1.9

 

 

4.5

 

 

19.6

 

 

(6.1

)

Net income (loss)

$

(2.5

)

 

$

8.2

 

 

$

8.3

 

 

$

6.1

 

 

$

25.4

 

 

 

 

 

 

 

 

 

 

 

EBITDA

$

17.9

 

 

$

27.8

 

 

$

33.4

 

 

$

46.1

 

 

$

40.8

 

Non-GAAP Financial Measures (Unaudited)

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, (gain) loss on asset disposals, 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.

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 Loss to Adjusted EBITDA

A reconciliation of net loss as reported to Adjusted EBITDA is included in the tables below (in millions):

 

 

Successor

 

Predecessor

Combined
(Non-GAAP)

 

Three Months
Ended
September 30,
2021

Two Months
Ended
June 30,
2021

 

One Month
Ended
April 30,
2021

Three Months
Ended
June 30,
2021

 

 

 

 

 

 

VALARIS

 

 

 

 

 

Net loss

$

(52.8

)

$

(4.1

)

 

$

(3,556.2

)

$

(3,560.3

)

Add (subtract):

 

 

 

 

 

Income tax expense (benefit)

53.3

 

15.1

 

 

(15.5

)

(0.4

)

Interest expense

11.3

 

8.0

 

 

1.1

 

9.1

 

Reorganization items

6.5

 

4.1

 

 

3,532.4

 

3,536.5

 

Other income

(14.9

)

(13.5

)

 

0.2

 

(13.3

)

Operating income (loss)

3.4

 

9.6

 

 

(38.0

)

(28.4

)

Add (subtract):

 

 

 

 

 

Depreciation expense

24.4

 

16.6

 

 

37.5

 

54.1

 

Amortization, net (1)

3.1

 

(0.3

)

 

(0.2

)

(0.5

)

Merger transaction and integration costs

1.8

 

1.0

 

 

0.9

 

1.9

 

Equity in (earnings) losses of ARO

(2.6

)

(4.8

)

 

(1.2

)

(6.0

)

(Gain) loss on asset disposals

(0.3

)

0.1

 

 

(4.6

)

(4.5

)

Adjusted EBITDA

$

29.8

 

$

22.2

 

 

$

(5.6

)

$

16.6

 

(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

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

December 31,
2020

 

September 30,
2020

 

 

 

 

 

 

 

 

 

 

ARO

 

 

 

 

 

 

 

 

 

Net Income

$

(2.5

)

 

$

8.2

 

 

$

8.3

 

 

$

6.1

 

 

$

25.4

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

0.2

 

 

1.9

 

 

4.5

 

 

19.6

 

 

(6.1

)

Other expense, net

3.4

 

 

3.1

 

 

4.5

 

 

6.7

 

 

6.7

 

Operating income

$

1.1

 

 

$

13.2

 

 

$

17.3

 

 

$

32.4

 

 

$

26.0

 

 

 

 

 

 

 

 

 

 

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation expense

16.8

 

 

14.6

 

 

16.1

 

 

13.7

 

 

14.8

 

EBITDA

$

17.9

 

 

$

27.8

 

 

$

33.4

 

 

$

46.1

 

 

$

40.8

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Successor and Predecessor Periods to Combined Non-GAAP Period

A reconciliation of the two months ended June 30, 2021 (Successor period) and one month ended April 30, 2021 (Predecessor period) to the three months ended June 30, 2021 (Combined second quarter):

 

 

 

Second Quarter

 

Floaters

 

Jackups

 

ARO

 

Other

 

Reconciling Items

 

Consolidated Total

 

Successor

Predecessor

Combined (Non-GAAP)

 

Successor

Predecessor

Combined (Non-GAAP)

 

Successor

Predecessor

Combined (Non-GAAP)

 

Successor

Predecessor

Combined (Non-GAAP)

 

Successor

Predecessor

Combined (Non-GAAP)

 

Successor

Predecessor

Combined (Non-GAAP)

(in millions of $, except %)

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

 

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

 

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

 

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

 

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

 

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

49.7

 

18.4

 

68.1

 

 

128.5

 

59.8

 

188.3

 

 

84.0

 

40.8

 

124.8

 

 

24.6

 

12.1

 

36.7

 

 

(84.0

)

(40.8

)

(124.8

)

 

202.8

 

90.3

 

293.1

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

45.2

 

21.7

 

66.9

 

 

95.5

 

48.8

 

144.3

 

 

62.9

 

29.8

 

92.7

 

 

9.2

 

4.7

 

13.9

 

 

(44.1

)

(19.4

)

(63.5

)

 

168.7

 

85.6

 

254.3

 

Depreciation

7.9

 

15.9

 

23.8

 

 

7.8

 

17.3

 

25.1

 

 

9.7

 

4.9

 

14.6

 

 

0.8

 

3.5

 

4.3

 

 

(9.6

)

(4.1

)

(13.7

)

 

16.6

 

37.5

 

54.1

 

General and admin.

—

 

—

 

—

 

 

—

 

—

 

—

 

 

3.1

 

1.2

 

4.3

 

 

—

 

—

 

—

 

 

9.6

 

5.2

 

14.8

 

 

12.7

 

6.4

 

19.1

 

Equity in earnings of ARO

—

 

—

 

—

 

 

—

 

—

 

—

 

 

—

 

—

 

—

 

 

—

 

—

 

—

 

 

4.8

 

1.2

 

6.0

 

 

4.8

 

1.2

 

6.0

 

Operating income (loss)

(3.4

)

(19.2

)

(22.6

)

 

25.2

 

(6.3

)

18.9

 

 

8.3

 

4.9

 

13.2

 

 

14.6

 

3.9

 

18.5

 

 

(35.1

)

(21.3

)

(56.4

)

 

9.6

 

(38.0

)

(28.4

)

 

Reconciliation of Operating Income (Loss) to Adjusted EBITDAR

 

(In millions)

Successor

 

 

Predecessor

Combined (Non-GAAP)

Predecessor

 

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

Three Months
Ended
December 31,
2020

Three Months
Ended
September 30,
2020

ACTIVE FLEET

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

28.6

 

$

20.3

 

 

 

$

(21.2

)

$

(0.9

)

$

(432.7

)

$

(33.5

)

$

55.9

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Reactivation costs

19.4

 

17.3

 

 

 

6.7

 

24.0

 

11.1

 

1.6

 

0.9

 

Depreciation and amortization, net

20.7

 

11.9

 

 

 

19.0

 

30.9

 

62.0

 

56.0

 

67.5

 

Loss on impairment

—

 

—

 

 

 

—

 

—

 

419.2

 

—

 

—

 

(Gain) loss on sale of assets

(1.4

)

(0.1

)

 

 

0.5

 

0.4

 

(1.4

)

(3.2

)

(0.6

)

Support and other costs

25.7

 

17.9

 

 

 

9.8

 

27.7

 

30.6

 

38.2

 

40.2

 

Adjusted EBITDAR (1)

$

93.0

 

$

67.3

 

 

 

$

14.8

 

$

82.1

 

$

88.8

 

$

59.1

 

$

163.9

 

 

 

 

 

 

 

 

 

 

 

LEASED AND MANAGED RIGS

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

18.7

 

$

13.0

 

 

 

$

2.6

 

$

15.6

 

$

7.7

 

$

(19.9

)

$

10.7

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization, net

1.2

 

0.9

 

 

 

3.9

 

4.8

 

12.3

 

12.3

 

12.2

 

(Gain) loss on sale of assets

(0.2

)

—

 

 

 

—

 

—

 

(0.1

)

—

 

—

 

Support and other costs

2.5

 

1.7

 

 

 

0.8

 

2.5

 

2.8

 

31.6

 

2.4

 

Adjusted EBITDAR (1)

$

22.2

 

$

15.6

 

 

 

$

7.3

 

$

22.9

 

$

22.7

 

$

24.0

 

$

25.3

 

 

 

 

 

 

 

 

 

 

 

STACKED FLEET

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

(17.4

)

$

(15.6

)

 

 

$

(13.6

)

$

(29.2

)

$

(396.1

)

$

(74.8

)

$

(90.9

)

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization, net

5.1

 

3.3

 

 

 

13.7

 

17.0

 

41.1

 

43.3

 

42.7

 

Loss on impairment

—

 

—

 

 

 

—

 

—

 

337.3

 

—

 

—

 

(Gain) loss on sale of assets

(0.2

)

0.3

 

 

 

(5.2

)

(4.9

)

—

 

—

 

(7.7

)

Support and other costs

—

 

—

 

 

 

—

 

—

 

—

 

—

 

—

 

Adjusted EBITDAR (1)

$

(12.5

)

$

(12.0

)

 

 

$

(5.1

)

$

(17.1

)

$

(17.7

)

$

(31.5

)

$

(55.9

)

 

 

 

 

 

 

 

 

 

 

VALARIS TOTAL

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

29.9

 

$

17.7

 

 

 

$

(32.2

)

$

(14.5

)

$

(821.1

)

$

(128.2

)

$

(24.3

)

Add (subtract):

 

 

 

 

 

 

 

 

 

Reactivation costs

19.4

 

17.3

 

 

 

6.7

 

24.0

 

11.1

 

1.6

 

0.9

 

Depreciation and amortization, net

27.0

 

16.1

 

 

 

36.6

 

52.7

 

115.4

 

111.6

 

122.4

 

Loss on impairment

—

 

—

 

 

 

—

 

—

 

756.5

 

—

 

—

 

(Gain) loss on sale of assets

(1.8

)

0.2

 

 

 

(4.7

)

(4.5

)

(1.5

)

(3.2

)

(8.3

)

Support and other costs

28.2

 

19.6

 

 

 

10.6

 

30.2

 

33.4

 

69.8

 

42.6

 

Adjusted EBITDAR (1)

$

102.7

 

$

70.9

 

 

 

$

17.0

 

$

87.9

 

$

93.8

 

$

51.6

 

$

133.3

 

(1)

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
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

Three Months
Ended
December 31,
2020

Three Months
Ended
September 30,
2020

DRILLSHIPS

 

 

 

 

 

 

 

 

 

Operating revenues

$

67.5

 

$

28.9

 

 

 

$

13.7

 

$

42.6

 

$

81.0

 

$

93.8

 

$

35.4

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Reimbursable revenues

(7.1

)

(2.4

)

 

 

(1.3

)

(3.7

)

(7.4

)

(11.5

)

(5.5

)

Amortized revenues

(5.8

)

—

 

 

 

(0.5

)

(0.5

)

(7.2

)

(11.2

)

(1.0

)

Adjusted revenues

$

54.6

 

$

26.5

 

 

 

$

11.9

 

$

38.4

 

$

66.4

 

$

71.1

 

$

28.9

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

$

77.9

 

$

39.8

 

 

 

$

36.2

 

$

76.0

 

$

113.6

 

$

134.4

 

$

137.9

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization

(17.0

)

(7.2

)

 

 

(15.3

)

(22.5

)

(46.6

)

(45.5

)

(43.3

)

Gain (loss) on sale of assets

0.5

 

0.1

 

 

 

(0.2

)

(0.1

)

0.5

 

—

 

(0.4

)

Reimbursable expenses

(6.5

)

(2.2

)

 

 

(1.0

)

(3.2

)

(5.0

)

(9.5

)

(4.9

)

Support and other costs

(8.1

)

(5.5

)

 

 

(3.1

)

(8.6

)

(9.7

)

(17.4

)

(11.7

)

Adjusted operating expenses

$

46.8

 

$

25.0

 

 

 

$

16.6

 

$

41.6

 

$

52.8

 

$

62.0

 

$

77.6

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

(10.4

)

$

(10.9

)

 

 

$

(22.5

)

$

(33.4

)

$

(32.6

)

$

(40.6

)

$

15.6

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization, net

11.2

 

7.2

 

 

 

14.8

 

22.0

 

39.4

 

34.3

 

42.3

 

(Gain) loss on sale of assets

(0.5

)

(0.1

)

 

 

0.2

 

0.1

 

(0.5

)

—

 

0.4

 

Support and other costs

8.3

 

5.7

 

 

 

3.1

 

8.8

 

9.8

 

11.4

 

10.0

 

Adjusted EBITDA (1)

$

8.6

 

$

1.9

 

 

 

$

(4.4

)

$

(2.5

)

$

16.1

 

$

5.1

 

$

68.3

 

(1)

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
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

Three Months
Ended
December 31,
2020

Three Months
Ended
September 30,
2020

SEMISUBMERSIBLES

 

 

 

 

 

 

 

 

 

Operating revenues

$

36.8

 

$

20.9

 

 

 

$

4.7

 

$

25.6

 

$

16.3

 

$

11.8

 

$

21.7

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Reimbursable revenues

(3.1

)

(1.8

)

 

 

(0.1

)

(1.9

)

(2.2

)

(2.4

)

(3.3

)

Amortized revenues

(1.0

)

—

 

 

 

—

 

—

 

—

 

—

 

0.5

 

Adjusted revenues

$

32.7

 

$

19.1

 

 

 

$

4.6

 

$

23.7

 

$

14.1

 

$

9.4

 

$

18.9

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

$

36.3

 

$

21.5

 

 

 

$

5.9

 

$

27.4

 

$

797.6

 

$

41.8

 

$

46.2

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization

(3.4

)

(1.9

)

 

 

(1.6

)

(3.5

)

(13.0

)

(12.7

)

(12.8

)

Loss on impairment

—

 

—

 

 

 

—

 

—

 

(756.5

)

—

 

—

 

Gain (loss) on sale of assets

0.2

 

—

 

 

 

(0.1

)

(0.1

)

0.2

 

0.7

 

7.5

 

Reimbursable expenses

(2.8

)

(1.5

)

 

 

(0.2

)

(1.7

)

(2.1

)

(2.4

)

(2.7

)

Support and other costs

(4.4

)

(3.0

)

 

 

(1.7

)

(4.7

)

(5.3

)

(5.6

)

(8.1

)

Adjusted operating expenses

$

25.9

 

$

15.1

 

 

 

$

2.3

 

$

17.4

 

$

20.9

 

$

21.8

 

$

30.1

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

0.6

 

$

(0.6

)

 

 

$

(1.2

)

$

(1.8

)

$

(781.3

)

$

(30.0

)

$

(24.5

)

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization, net

2.4

 

1.9

 

 

 

1.6

 

3.5

 

13.0

 

12.7

 

13.3

 

Loss on impairment

—

 

—

 

 

 

—

 

—

 

756.5

 

—

 

—

 

(Gain) loss on sale of assets

(0.2

)

—

 

 

 

0.1

 

0.1

 

(0.2

)

(0.7

)

(7.5

)

Support and other costs

4.4

 

2.9

 

 

 

1.7

 

4.6

 

5.3

 

5.3

 

8.5

 

Adjusted EBITDA (1)

$

7.2

 

$

4.2

 

 

 

$

2.2

 

$

6.4

 

$

(6.7

)

$

(12.7

)

$

(10.2

)

(1)

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
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

Three Months
Ended
December 31,
2020

Three Months
Ended
September 30,
2020

HD ULTRA-HARSH & HARSH JACKUPS

 

 

 

 

 

 

 

 

 

Operating revenues

$

102.8

 

$

70.9

 

 

 

$

34.0

 

$

104.9

 

$

95.5

 

$

96.2

 

$

91.2

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Reimbursable revenues

(11.6

)

(9.1

)

 

 

(4.2

)

(13.3

)

(9.7

)

(17.3

)

(8.1

)

Amortized revenues

(0.4

)

(0.2

)

 

 

(1.1

)

(1.3

)

(3.4

)

(2.5

)

(2.7

)

Adjusted revenues

$

90.8

 

$

61.6

 

 

 

$

28.7

 

$

90.3

 

$

82.4

 

$

76.4

 

$

80.4

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

$

90.5

 

$

59.4

 

 

 

$

36.8

 

$

96.2

 

$

96.9

 

$

115.1

 

$

105.1

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization

(8.2

)

(5.0

)

 

 

(9.0

)

(14.0

)

(28.8

)

(28.3

)

(29.5

)

Gain (loss) on sale of assets

0.4

 

(0.3

)

 

 

5.1

 

4.8

 

0.3

 

0.1

 

—

 

Reimbursable expenses

(8.8

)

(6.8

)

 

 

(3.2

)

(10.0

)

(7.6

)

(15.1

)

(6.1

)

Support and other costs

(5.1

)

(3.7

)

 

 

(2.0

)

(5.7

)

(5.6

)

(9.6

)

(9.5

)

Adjusted operating expenses

$

68.8

 

$

43.6

 

 

 

$

27.7

 

$

71.3

 

$

55.2

 

$

62.2

 

$

60.0

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

12.3

 

$

11.5

 

 

 

$

(2.8

)

$

8.7

 

$

(1.4

)

$

(18.9

)

$

(13.9

)

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization, net

7.8

 

4.8

 

 

 

7.9

 

12.7

 

25.4

 

25.8

 

26.8

 

(Gain) loss on sale of assets

(0.4

)

0.3

 

 

 

(5.1

)

(4.8

)

(0.3

)

(0.1

)

—

 

Support and other costs

5.4

 

3.6

 

 

 

2.0

 

5.6

 

5.6

 

9.7

 

9.6

 

Adjusted EBITDA (1)

$

25.1

 

$

20.2

 

 

 

$

2.0

 

$

22.2

 

$

29.3

 

$

16.5

 

$

22.5

 

(1)

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
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

Three Months
Ended
December 31,
2020

Three Months
Ended
September 30,
2020

HD & SD MODERN JACKUPS

 

 

 

 

 

 

 

 

 

Operating revenues

$

59.6

 

$

40.7

 

 

 

$

17.0

 

$

57.7

 

$

50.5

 

$

61.2

 

$

67.8

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Reimbursable revenues

(5.9

)

(3.5

)

 

 

(2.3

)

(5.8

)

(4.2

)

(7.8

)

(5.3

)

Amortized revenues

(0.4

)

(1.6

)

 

 

(0.5

)

(2.1

)

(1.6

)

(1.8

)

(2.1

)

Adjusted revenues

$

53.3

 

$

35.6

 

 

 

$

14.2

 

$

49.8

 

$

44.7

 

$

51.6

 

$

60.4

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

$

57.5

 

$

41.3

 

 

 

$

28.0

 

$

69.3

 

$

71.9

 

$

83.2

 

$

83.2

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization

(3.6

)

(2.2

)

 

 

(8.1

)

(10.3

)

(24.5

)

(25.7

)

(26.7

)

Gain (loss) on sale of assets

0.4

 

—

 

 

 

(0.1

)

(0.1

)

0.3

 

0.5

 

1.2

 

Reimbursable expenses

(3.2

)

(2.2

)

 

 

(1.2

)

(3.4

)

(1.8

)

(4.8

)

(3.1

)

Support and other costs

(6.2

)

(4.1

)

 

 

(2.2

)

(6.3

)

(7.1

)

(8.1

)

(8.2

)

Adjusted operating expenses

$

44.9

 

$

32.8

 

 

 

$

16.4

 

$

49.2

 

$

38.8

 

$

45.1

 

$

46.4

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

2.1

 

$

(0.6

)

 

 

$

(11.0

)

$

(11.6

)

$

(21.4

)

$

(22.0

)

$

(15.4

)

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization, net

3.2

 

0.6

 

 

 

7.6

 

8.2

 

22.9

 

23.9

 

24.6

 

(Gain) loss on sale of assets

(0.4

)

—

 

 

 

0.1

 

0.1

 

(0.3

)

(0.5

)

(1.2

)

Support and other costs

6.3

 

4.0

 

 

 

2.2

 

6.2

 

7.1

 

8.4

 

8.3

 

Adjusted EBITDA (1)

$

11.2

 

$

4.0

 

 

 

$

(1.1

)

$

2.9

 

$

8.3

 

$

9.8

 

$

16.3

 

(1)

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
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

Three Months
Ended
December 31,
2020

Three Months
Ended
September 30,
2020

SD LEGACY JACKUPS

 

 

 

 

 

 

 

 

 

Operating revenues

$

23.9

 

$

16.8

 

 

 

$

8.8

 

$

25.6

 

$

26.6

 

$

22.0

 

$

27.8

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Reimbursable revenues

(1.3

)

(1.4

)

 

 

(0.5

)

(1.9

)

(1.5

)

(1.9

)

(1.3

)

Amortized revenues

—

 

—

 

 

 

(0.2

)

(0.2

)

(0.5

)

(0.7

)

(1.0

)

Adjusted revenues

$

22.6

 

$

15.4

 

 

 

$

8.1

 

$

23.5

 

$

24.6

 

$

19.4

 

$

25.5

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

$

17.8

 

$

11.5

 

 

 

$

6.1

 

$

17.6

 

$

18.7

 

$

18.8

 

$

24.6

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization

(0.9

)

(0.7

)

 

 

(1.0

)

(1.7

)

(2.9

)

(3.3

)

(4.2

)

Gain (loss) on sale of assets

0.1

 

—

 

 

 

—

 

—

 

0.1

 

1.9

 

—

 

Reimbursable expenses

(0.9

)

(1.2

)

 

 

(0.4

)

(1.6

)

(1.0

)

(1.7

)

(0.7

)

Support and other costs

(1.9

)

(1.7

)

 

 

(0.8

)

(2.5

)

(2.8

)

(3.4

)

(3.8

)

Adjusted operating expenses

$

14.2

 

$

7.9

 

 

 

$

3.9

 

$

11.8

 

$

12.1

 

$

12.3

 

$

15.9

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

6.2

 

$

5.3

 

 

 

$

2.7

 

$

8.0

 

$

7.9

 

$

3.2

 

$

3.2

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Depreciation and amortization, net

0.9

 

0.7

 

 

 

0.8

 

1.5

 

2.4

 

2.6

 

3.2

 

(Gain) loss on sale of assets

(0.1

)

—

 

 

 

—

 

—

 

(0.1

)

(1.9

)

—

 

Support and other costs

2.0

 

1.7

 

 

 

0.8

 

2.5

 

2.8

 

3.4

 

3.8

 

Adjusted EBITDA (1)

$

9.0

 

$

7.7

 

 

 

$

4.3

 

$

12.0

 

$

13.0

 

$

7.3

 

$

10.2

 

(1)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

 

Investor & Media Contact:

Tim Richardson

Director - Investor Relations

+1-713-979-4619

Source: Valaris Limited

FAQ

What were Valaris' Q3 2021 revenue figures?

Valaris reported revenues of $327 million in Q3 2021, up from $293 million in the previous quarter.

How much contract backlog did Valaris add in Q3 2021?

Valaris added approximately $330 million to its contract backlog in Q3 2021.

What contracts were awarded to Valaris in Q3 2021?

Valaris was awarded contracts for VALARIS DS-9 and VALARIS DS-4 in Q3 2021.

How did executive severance affect Valaris' finances in Q3 2021?

Executive severance costs increased Valaris' general and administrative expenses to $27 million in Q3 2021.

What was the tax expense reported by Valaris in Q3 2021?

Valaris reported a tax expense of $53 million in Q3 2021.

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Valaris Limited

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