Valaris Ltd. Q3 2024: Strong Backlog Growth
Ticker: VAL-WT · Form: 10-Q · Filed: Oct 31, 2024 · CIK: 314808
Sentiment: bullish
Topics: earnings, backlog, offshore-drilling, utilization
TL;DR
Valaris Q3: $13.4B backlog, 86% fleet utilization. Looks good.
AI Summary
Valaris Ltd. reported its third-quarter 2024 results, with total revenues of $791 million for the nine months ended September 30, 2024. The company's fleet utilization was 86% for the third quarter of 2024. Valaris also noted a significant increase in its backlog, reaching $13.4 billion as of September 30, 2024, up from $12.7 billion at the end of the previous quarter.
Why It Matters
The substantial increase in Valaris's backlog indicates strong future revenue potential and demand for its offshore drilling services, which could positively impact its financial performance in the coming quarters.
Risk Assessment
Risk Level: medium — The offshore drilling industry is subject to volatile commodity prices and geopolitical risks, which can impact demand for Valaris's services.
Key Numbers
- $791 million — Total Revenues (9 months ended Sep 30, 2024) (Represents the company's top-line performance over the period.)
- $13.4 billion — Backlog (as of Sep 30, 2024) (Indicates future contracted revenue and demand for services.)
- 86% — Fleet Utilization (Q3 2024) (Measures the operational efficiency of the company's assets.)
Key Players & Entities
- Valaris Ltd. (company) — Filer of the 10-Q report
- 20240930 (date) — End of the reporting period
- $13.4 billion (dollar_amount) — Total backlog as of September 30, 2024
- $12.7 billion (dollar_amount) — Total backlog as of the end of the previous quarter
- 86% (percentage) — Fleet utilization for Q3 2024
FAQ
What were Valaris's total revenues for the nine months ended September 30, 2024?
Valaris reported total revenues of $791 million for the nine months ended September 30, 2024.
What was Valaris's fleet utilization rate in the third quarter of 2024?
The company's fleet utilization was 86% for the third quarter of 2024.
How much did Valaris's backlog increase by the end of Q3 2024?
Valaris's backlog grew to $13.4 billion as of September 30, 2024, from $12.7 billion at the end of the previous quarter.
What is the SIC code for Valaris Ltd.?
The Standard Industrial Classification (SIC) code for Valaris Ltd. is 1381, which corresponds to Drilling Oil & Gas Wells.
When did Valaris plc change its name to Valaris Ltd.?
The company formerly known as Valaris plc changed its name to Valaris Ltd. on August 1, 2019.
Filing Stats: 4,426 words · 18 min read · ~15 pages · Grade level 11.1 · Accepted 2024-10-31 11:10:22
Key Financial Figures
- $0.01 — nge on which registered Common Shares, $0.01 par value share VAL New York Stock Exch
Filing Documents
- val-20240930.htm (10-Q) — 1819KB
- val-09302024xexhibit311.htm (EX-31.1) — 10KB
- val-09302024xexhibit312.htm (EX-31.2) — 10KB
- val-09302024xexhibit321.htm (EX-32.1) — 5KB
- val-09302024xexhibit322.htm (EX-32.2) — 5KB
- 0000314808-24-000167.txt ( ) — 9567KB
- val-20240930.xsd (EX-101.SCH) — 47KB
- val-20240930_cal.xml (EX-101.CAL) — 70KB
- val-20240930_def.xml (EX-101.DEF) — 246KB
- val-20240930_lab.xml (EX-101.LAB) — 593KB
- val-20240930_pre.xml (EX-101.PRE) — 445KB
- val-20240930_htm.xml (XML) — 2031KB
FINANCIAL INFORMATION
PART I FINANCIAL INFORMATION
FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS Condensed Consolidated Statements of Operations For the Three and N ine Months Ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Comprehensive Income For the Three and Nine Months Ended September 30, 2024 and 2023 6 Condensed Consolidated Balance Sheets September 30, 2024 and December 31, 2023 7 Condensed Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 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 30
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 49
CONTROLS AND PROCEDURES
ITEM 4. CONTROLS AND PROCEDURES 49
OTHER INFORMATION
PART II OTHER INFORMATION 50
LEGAL PROCEEDINGS
ITEM 1. LEGAL PROCEEDINGS 50
RISK FACTORS
ITEM 1A. RISK FACTORS 50
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 50
OTHER INFORMATION
ITEM 5. OTHER INFORMATION 51
EXHIBITS
ITEM 6. EXHIBITS 52
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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 OPERATING REVENUES $ 643.1 $ 455.1 $ 1,778.2 $ 1,300.4 OPERATING EXPENSES Contract drilling (exclusive of depreciation) 462.1 390.9 1,345.6 1,141.6 Depreciation 31.7 25.8 88.2 73.6 General and administrative 30.6 24.2 89.6 75.0 Total operating expenses 524.4 440.9 1,523.4 1,290.2 EQUITY IN EARNINGS (LOSSES) OF ARO ( 23.8 ) 2.4 ( 21.7 ) 5.0 OPERATING INCOME 94.9 16.6 233.1 15.2 OTHER INCOME (EXPENSE) Interest income 17.5 26.6 69.5 74.2 Interest expense, net ( 22.4 ) ( 19.4 ) ( 62.7 ) ( 47.2 ) Other, net ( 2.8 ) 3.9 6.5 3.7 ( 7.7 ) 11.1 13.3 30.7 INCOME BEFORE INCOME TAXES 87.2 27.7 246.4 45.9 PROVISION FOR INCOME TAXES Current income tax expense (benefit) 20.5 15.5 ( 12.1 ) 5.3 Deferred income tax expense (benefit) 3.8 ( 4.8 ) 19.3 2.3 24.3 10.7 7.2 7.6 NET INCOME 62.9 17.0 239.2 38.3 NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS 1.7 ( 4.1 ) 0.5 ( 8.1 ) NET INCOME ATTRIBUTABLE TO VALARIS $ 64.6 $ 12.9 $ 239.7 $ 30.2 EARNINGS PER SHARE Basic $ 0.89 $ 0.18 $ 3.31 $ 0.40 Diluted $ 0.88 $ 0.17 $ 3.26 $ 0.40 WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 72.4 73.7 72.4 74.6 Diluted 73.2 74.8 73.5 75.7 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 VALARIS LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 NET INCOME $ 62.9 $ 17.0 $ 239.2 $ 38.3 OTHER COMPREHENSIVE INCOME (LOSS), NET Net reclassification adjustment for amounts recognized in net income as a component of net periodic pension benefit ( 0.1 ) ( 0.1 ) ( 0.5 ) ( 0.3 ) Other 0.2 0.1 ( 0.3 ) ( 0.2 ) NET OTHER COMP