NYSE$VAL

Valaris Limited · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net loss due to the impact of COVID-19 and lower energy demand.

Valaris plc reported a net loss attributable to the company of $3.01 billion for Q1 2020, compared to a net loss of $216 million in Q4 2019. Revenues declined to $457 million from $512 million in the previous quarter, primarily due to a decrease in fleet utilization. The company is taking steps to manage costs and preserve liquidity amidst a severe industry downturn.

  • Net loss attributable to the Company was $3.01 billion, or $15.19 per share.
  • Revenues declined to $457 million due to lower fleet utilization.
  • Adjusted EBITDA was ($40) million.
  • The company is implementing cost-saving measures and evaluating debt restructuring options.

Headline financials

Total Revenue

$457M

Previous: $406M+12.5%
EPS (adj)

-$1.66

Previous: -$1.69+1.8%
Net Income

-$3.01B

Previous: -$190M-1479.7%
Operating Income

-$3.05B

Previous: -$81.3M-3653.8%
Cash & Equivalents

$185M

Previous: $298M-38.0%
Total Assets

$14B

Previous: $13.9B+1.2%

Revenue & EPS history

Valaris · Revenue · Quarterly

$457M

Q1 2020+12.5%vs Q1 2019
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Valaris · $457M total across 3 segments · Q1 2020

  • Jackups
    $213M-7.7%
  • Floaters
    $180M-17.0%
  • Other
    $64.2M-1.5%

Forward guidance

Valaris expects to continue to report losses and negative cash flows throughout the remainder of the year due to the severe industry downturn.

Tailwinds

  • Taking steps to manage cost base.
  • Preserving liquidity.
  • Stacking certain uncontracted rigs.
  • Removing rigs from fleet.
  • Executing plans to lower operating costs.

Headwinds

  • Energy sector is facing a severe industry downturn.
  • Lower energy demand and a simultaneous increase in hydrocarbon supply.
  • Customers have significantly reduced their planned capital expenditures.
  • Customers are seeking to cancel or defer projects.
  • Expect to continue to report losses and negative cash flows throughout the remainder of the year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports

Historical avg

+0.2%

Avg return

Earnings day

-3.1%

Avg return

5 days after

+0.6%

Avg return

30 days after

55%

11 / 20 earnings

Positive

+11.9%

Q1 2022

Best reaction

-9.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-7.2%-9.3%
Q4 2025+3.3%+1.8%+0.0%
Q3 2025+2.3%-3.1%-0.1%
Q1 2025+3.5%-24.7%-9.4%
Q4 2024-4.4%-8.7%-11.5%
Q3 2024+4.3%+2.5%-4.8%
Q2 2024-4.9%-17.1%-21.1%
Q1 2024-0.0%+8.8%+19.0%
Q4 2023+8.8%+5.1%+16.7%
Q3 2023-5.4%-0.8%-6.0%
Q2 2023-2.4%-0.7%-1.9%
Q1 2023-5.2%-4.9%-3.8%
Q4 2022-9.0%-11.6%-15.2%
Q3 2022-3.2%-3.7%+1.6%
Q2 2022+1.5%-4.1%+1.6%
Q1 2022+11.9%+12.8%+21.8%
Q4 2021+0.1%-1.4%+25.1%
Q3 2021+1.2%-0.9%-13.9%
Q4 2020-0.0%-1.0%+14.9%
Q2 2021+1.1%-4.1%+8.5%
Q1 2021
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q4 2010
Q2 2011
Q1 2011
Q3 2010
Q2 2010
Q4 2007
Q1 2009
Q1 2010
Q4 2009
Q3 2008
Q3 2009
Q4 2008
Q2 2008
Q2 2009

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