Valaris Ltd. Files Q2 2024 10-Q Report

Ticker: VAL-WT · Form: 10-Q · Filed: Aug 1, 2024 · CIK: 314808

Sentiment: neutral

Topics: 10-Q, financials, oil and gas

TL;DR

Valaris Q2 10-Q is in. Check financials.

AI Summary

Valaris Ltd. reported its second quarter 2024 results, ending June 30, 2024. The company's filing details its financial performance and operational activities for the period. Specific financial figures and operational metrics are provided within the report.

Why It Matters

This 10-Q filing provides investors and analysts with the latest financial and operational data for Valaris Ltd., crucial for understanding the company's performance and future outlook in the offshore drilling sector.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the oil and gas industry carries inherent market and operational risks.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the quarter ended June 30, 2024.

When was this 10-Q filing submitted to the SEC?

This 10-Q filing was submitted on August 1, 2024.

What were Valaris Ltd.'s previous names?

Valaris Ltd. was formerly known as Valaris plc and Ensco Rowan plc, and prior to that, Ensco plc.

What is the Standard Industrial Classification (SIC) code for Valaris Ltd.?

The SIC code for Valaris Ltd. is 1381, which corresponds to Drilling Oil & Gas Wells.

What is the company's fiscal year end?

Valaris Ltd.'s fiscal year ends on December 31.

Filing Stats: 4,485 words · 18 min read · ~15 pages · Grade level 10.9 · Accepted 2024-08-01 10:58:01

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Condensed Consolidated Statements of Operations For the Three and Six Months Ended June 3 0 , 2024 and 2023 5 Condensed Consolidated Statements of Comprehensive Income (Loss) For the Three and Six Months Ended June 3 0 , 2024 and 2023 6 Condensed Consolidated Balance Sheets June 3 0 , 2024 and December 31, 2023 7 Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 3 0 , 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements 9

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

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 28

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 46

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 47

OTHER INFORMATION

PART II OTHER INFORMATION 48

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 48

RISK FACTORS

ITEM 1A. RISK FACTORS 48

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 48

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 48

EXHIBITS

ITEM 6. EXHIBITS 49

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 VALARIS LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 OPERATING REVENUES $ 610.1 $ 415.2 $ 1,135.1 $ 845.3 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 438.7 373.5 883.5 750.7 Depreciation 29.7 24.5 56.5 47.8 General and administrative 32.5 26.4 59.0 50.8 Total operating expenses 500.9 424.4 999.0 849.3 EQUITY IN EARNINGS (LOSSES) OF ARO ( 0.3 ) ( 0.7 ) 2.1 2.6 OPERATING INCOME (LOSS) 108.9 ( 9.9 ) 138.2 ( 1.4 ) OTHER INCOME (EXPENSE) Interest income 31.0 24.6 52.0 47.6 Interest expense, net ( 22.6 ) ( 16.7 ) ( 40.3 ) ( 27.8 ) Other, net 3.5 ( 0.8 ) 9.3 ( 0.2 ) 11.9 7.1 21.0 19.6 INCOME (LOSS) BEFORE INCOME TAXES 120.8 ( 2.8 ) 159.2 18.2 PROVISION (BENEFIT) FOR INCOME TAXES Current income tax expense (benefit) ( 43.5 ) 22.0 ( 32.6 ) ( 10.2 ) Deferred income tax expense 13.5 2.5 15.5 7.1 ( 30.0 ) 24.5 ( 17.1 ) ( 3.1 ) NET INCOME (LOSS) 150.8 ( 27.3 ) 176.3 21.3 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS ( 1.2 ) ( 2.1 ) ( 1.2 ) ( 4.0 ) NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS $ 149.6 $ ( 29.4 ) $ 175.1 $ 17.3 EARNINGS (LOSS) PER SHARE Basic $ 2.07 $ ( 0.39 ) $ 2.42 $ 0.23 Diluted $ 2.03 $ ( 0.39 ) $ 2.38 $ 0.23 WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 72.4 74.8 72.4 75.0 Diluted 73.7 74.8 73.7 76.2 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 VALARIS LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In millions) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 NET INCOME (LOSS) $ 150.8 $ ( 27.3 ) $ 176.3 $ 21.3 OTHER COMPREHENSIVE LOSS, NET Net reclassification adjustment for amounts recognized in net income as a component of net periodic pension benefit ( 0.2 ) ( 0.1 ) ( 0

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