NYSE$VAL

Valaris Limited · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Second quarter 2023 results were reported.

Valaris reported a net loss of $27 million and revenues of $415 million. The company achieved a revenue efficiency of 97% and was awarded new contracts and extensions with associated contract backlog of approximately $180 million during the second quarter. The company increased its 2023 share repurchase target from $150 million to $200 million.

  • Net loss of $27 million, Adjusted EBITDA of $15 million and Adjusted EBITDAR of $59 million.
  • Delivered revenue efficiency of 97%.
  • Awarded new contracts and extensions with associated contract backlog of approximately $180 million during the second quarter.
  • Increased 2023 share repurchase target from $150 million to $200 million in conjunction with the VALARIS DS-7 contract award.

Headline financials

Total Revenue

$415M

Previous: $413M+0.5%
EPS (adj)

-$0.39

Previous: $1.48-126.4%
Revenue Efficiency

97.0%

Previous: 97.0%+0.0%
Capital Expenditures

-$127M

Previous: -$99.6M-27.8%
Free Cash Flow

-$157M

Previous: $12M-1405.8%
Net Income

-$29.4M

Previous: $112M-126.3%
Operating Income

-$9.9M

Previous: -$15.6M+36.5%
Gross Profit

$41.7M

Previous: $391M-89.3%
Cash & Equivalents

$787M

Previous: $554M+42.2%
Total Assets

$3.09B

Previous: $2.76B+11.9%
Stock-Based Comp

$7M

Previous: $3.5M+100.0%

Revenue & EPS history

Valaris · Revenue · Quarterly

$415M

Q2 2023+0.5%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Valaris · $415M total across 3 segments · Q2 2023

  • Floaters
    $227M+20.9%
  • Jackups
    $145M-22.2%
  • Other
    $43.2M+9.6%

Forward guidance

Valaris' outlook for the industry and their business remains very positive, with increasing demand and constrained supply tightening the market. Earnings and cash flow should grow meaningfully over the next few years as rigs roll from legacy day rate contracts to higher market rates and reactivated rigs return to work on attractive contracts.

Tailwinds

  • Increasing demand.
  • Constrained supply tightening the market.
  • Increases in contract duration.
  • Increases in lead times.
  • Increases in day rates.

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 Q2 2023

Historical avgQ2 2023

+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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