Valaris Ltd. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Valaris Ltd. has filed its 2023 10-K report detailing its annual performance and financial standing.</b>

AI Summary

Valaris Ltd (VAL-WT) filed a Annual Report (10-K) with the SEC on February 22, 2024. Valaris Ltd. reported its fiscal year 2023 results on February 22, 2024. The company's fiscal year ended on December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Valaris Ltd. is classified under the SIC code 1381 for Drilling Oil & Gas Wells. The company was formerly known as Ensco Rowan plc and Ensco plc.

Why It Matters

For investors and stakeholders tracking Valaris Ltd, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Valaris's financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. Understanding the details within this report is essential for stakeholders to evaluate Valaris's position in the oil and gas drilling sector, including its fleet status, contract backlog, and debt structure.

Risk Assessment

Risk Level: medium — Valaris Ltd shows moderate risk based on this filing. The company operates in the highly cyclical and capital-intensive offshore drilling industry, which is subject to fluctuations in oil and gas prices and exploration activity, as evidenced by its historical performance and industry trends.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Valaris's ability to navigate industry volatility and execute its growth strategy.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period end date)
• 2024-02-22 — Filing Date (Date the 10-K was filed)
• 125 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• Valaris Ltd. (company) — Filer name
• Ensco Rowan plc (company) — Former company name
• Ensco plc (company) — Former company name
• 1381 (dollar_amount) — Standard Industrial Classification code

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company faces risks related to customer concentration, where a significant portion of revenue could be derived from a limited number of customers.

Industry Context

Valaris Ltd. operates in the offshore drilling sector, providing contract drilling services for oil and gas companies globally. The industry is characterized by high capital expenditures and sensitivity to energy prices.

Regulatory Implications

As a publicly traded company, Valaris Ltd. is subject to the regulations of the U.S. Securities and Exchange Commission (SEC), requiring regular filings such as this 10-K report.

What Investors Should Do

1. Review the consolidated financial statements for detailed revenue, net income, and balance sheet information.
2. Analyze the 'Risk Factors' section for potential challenges and uncertainties facing the company.
3. Examine management's discussion and analysis (MD&A) for insights into operational performance and strategic outlook.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-22: Filing Date — Date Valaris Ltd. submitted its 10-K report.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by Valaris Ltd. detailing its financial and operational status for the fiscal year 2023.)

SIC Code 1381

Standard Industrial Classification code for Drilling Oil & Gas Wells. (Categorizes Valaris Ltd. within the oil and gas drilling services industry.)

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year ending December 31, 2023, providing a year-end summary compared to previous periods.

Key Financial Figures

• $0.01 — nge on which registered Common Shares, $0.01 par value share VAL New York Stock Exch
• $62.93 — York Stock Exchange on June 30, 2023 of $62.93 of the registrant held by non-affiliate
• $805.0 million — es third-party liability coverage up to $805.0 million. We retain the risk for liability not i

Filing Documents

• val-20231231.htm (10-K) — 3422KB
• val-ex211x12312023.htm (EX-21.1) — 68KB
• val-ex231x12312023.htm (EX-23.1) — 2KB
• val-ex311x12312023.htm (EX-31.1) — 10KB
• val-ex312x12312023.htm (EX-31.2) — 10KB
• val-ex321x12312023.htm (EX-32.1) — 5KB
• val-ex322x12312023.htm (EX-32.2) — 5KB
• val-ex971x12312023.htm (EX-97.1) — 9KB
• val-20231231_g1.jpg (GRAPHIC) — 26KB
• 0000314808-24-000014.txt (&nbsp;) — 18942KB
• val-20231231.xsd (EX-101.SCH) — 115KB
• val-20231231_cal.xml (EX-101.CAL) — 132KB
• val-20231231_def.xml (EX-101.DEF) — 641KB
• val-20231231_lab.xml (EX-101.LAB) — 1283KB
• val-20231231_pre.xml (EX-101.PRE) — 937KB
• val-20231231_htm.xml (XML) — 3786KB

ITEM 1. BUSINESS

PART I ITEM 1. BUSINESS 5 ITEM 1A.

RISK FACTORS

RISK FACTORS 14 ITEM 1B. UNRESOLVED STAFF COMMENTS 39 ITEM 1C. CYBERSECURITY 40 ITEM 2.

PROPERTIES

PROPERTIES 42 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 44 ITEM 4. MINE SAFETY DISCLOSURES 45

ITEM 5

PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 46

RESERVED

ITEM 6 RESERVED 48 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 48 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 69 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 70 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 139 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 139

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 139 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 139

ITEM 10

PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 140 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 140 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS 141 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 141 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 141

ITEM 15

PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 142 ITEM 16. FORM 10-K SUMMARY 146

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS

Business

Item 1. Business General Valaris Limited is a global offshore contract drilling company. Unless the context requires otherwise, the terms "Valaris," "Company," "we," "us" and "our" refer to Valaris Limited together with all its subsidiaries and predecessors. We are a leading provider of offshore contract drilling services to the international oil and gas industry with operations in almost every major offshore market across six continents. We own the world's largest offshore drilling rig fleet, including one of the newest ultra-deepwater fleets in the industry and a leading premium jackup fleet. We currently own 53 rigs, including 13 drillships, four dynamically positioned semisubmersible rigs, one moored semisubmersible rig, 35 jackup rigs and a 50% equity interest in ARO, our 50/50 unconsolidated joint venture with Saudi Aramco, which owns an additional eight rigs. Our customers include many of the leading international and government-owned oil and gas companies, in addition to many independent operators. We are among the most geographically diverse offshore drilling companies with global operations. The markets in which we operate include the Gulf of Mexico, South America, the North Sea, the Middle East, Africa and Asia Pacific. We provide drilling services on a day rate contract basis. Under day rate contracts, we provide an integrated service that includes the provision of a drilling rig and rig crews for which we receive a daily rate that may vary between the full rate and zero rate throughout the duration of the contractual term, depending on the operations of the rig. We also may receive lump-sum fees or similar compensation for the mobilization, demobilization and capital upgrades of our rigs. Our customers bear substantially all of the costs of constructing the well and supporting drilling operations as well as the economic risk relative to the success of the well. Demand for offshore drilling services continues to improve as evidenced by increa

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View this 10-K filing on SEC EDGAR