NYSE$VAL

Valaris Limited · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported third quarter 2023 results with increased revenues and adjusted EBITDA.

Valaris reported a net income of $17 million and revenues of $455 million for the third quarter of 2023. The company was awarded new contracts and extensions with associated contract backlog of approximately $465 million during the quarter. The outlook for Valaris is positive, with increasing demand and constrained supply tightening the market.

  • Net income of $17 million, Adjusted EBITDA of $40 million and Adjusted EBITDAR of $91 million.
  • Delivered revenue efficiency of 94% during the quarter and 97% year to date.
  • Awarded new contracts and extensions with associated contract backlog of approximately $465 million during the third quarter.
  • Repurchased $85 million of shares during the third quarter and $171 million to date.

Headline financials

Total Revenue

$455M

Previous: $437M+4.1%
EPS (adj)

$0.17

Previous: $0.98-82.7%
Revenue Efficiency

94.0%

Previous: 96.0%-2.1%
Capital Expenditures

-$233M

Previous: -$153M-52.3%
Free Cash Flow

-$220M

Previous: -$78.8M-179.4%
Net Income

$12.9M

Previous: $74.3M-82.6%
Operating Income

$16.6M

Previous: $61.6M-73.1%
Gross Profit

$64.2M

Previous: $415M-84.5%
Cash & Equivalents

$1.04B

Previous: $406M+156.4%
Total Assets

$3.48B

Previous: $2.82B+23.5%
Stock-Based Comp

$6.8M

Previous: $4.6M+47.8%

Revenue & EPS history

Valaris · Revenue · Quarterly

$455M

Q3 2023+4.1%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Valaris · $455M total across 3 segments · Q3 2023

  • Floaters
    $243M+20.6%
  • Jackups
    $166M-15.3%
  • Other
    $45.9M+15.9%

Forward guidance

The outlook for Valaris is positive, with increasing demand and constrained supply tightening the market. The company expects to deliver meaningfully improved earnings in both 2024 and 2025 due to the impact of recent and ongoing drillship reactivations at attractive day rates, as well as the repricing of rigs from legacy day rate contracts to higher markets 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 Q3 2023

Historical avgQ3 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
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Q1 2015
Q4 2014
Q3 2014
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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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