NYSE$VAL
Valaris Limited · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
Reported continued strong operational performance with 99% revenue efficiency and sold two jackups for $125 million.
Valaris reported first quarter 2022 results with revenues increasing to $318 million. The company achieved 99% revenue efficiency and sold two jackups for a total of $125 million. The company is in a transitional period as it incurs reactivation costs to put three drillships and one semisubmersible back to work on long-term contracts.
- Revenues increased to $318 million in the first quarter 2022 from $306 million in the fourth quarter 2021.
- Achieved 99% revenue efficiency during the first quarter.
- Contract drilling expense increased to $331 million in the first quarter 2022 from $286 million in the fourth quarter 2021, primarily due to higher rig reactivation costs.
- Net loss was $40 million in the first quarter 2022 compared to net income of $28 million in the fourth quarter 2021.
Headline financials
Revenue & EPS history
Valaris · Revenue · Quarterly
$318M
Revenue by segment
Valaris · $318M total across 3 segments · Q1 2022
- Jackups$181M—56.8%
- Floaters$99.7M—31.3%
- Other$38M—11.9%
Forward guidance
Valaris expects financial results to improve meaningfully as reactivation projects are completed and rigs are put on contract.
Tailwinds
- All four floaters will be on contract by the middle of the year.
- Financial results expected to improve meaningfully as these reactivations are completed.
- Awarded a contract with a major operator offshore Angola and the Republic of Congo for drillship VALARIS DS-12.
- The operating rate for this contract is at a level not seen in the past seven years for drillship work offshore West Africa.
- Recently sold two jackups, VALARIS 113 and 114, to ADES for a total of $125 million, a value which is highly accretive to our shareholders.
Headwinds
- Incurring reactivation costs to put three drillships and one semisubmersible back to work on long-term contracts.
- Ongoing pandemic, personnel and global supply chain challenges.
- Minor damage arising from an incident involving VALARIS DS-16, which broke free from its moorings during gale force winds.
- Semisubmersible VALARIS DPS-5 being out of service for most of the first quarter while undergoing a five-year special survey.
- Net loss was $40 million in the first quarter 2022 compared to net income of $28 million in the fourth quarter 2021.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2022
+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
| Quarter | Report date | Reaction (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% | |
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