NYSE$VAL

Valaris Limited · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth quarter 2021 results, showing strong operational performance and increased contract backlog.

Valaris reported a decrease in revenues to $306 million in the fourth quarter 2021 from $327 million in the third quarter 2021. Contract backlog increased to $2.4 billion from $1.0 billion at the beginning of 2021. The company is in a transitional period, incurring reactivation costs for upcoming contracts, but anticipates financial results will improve significantly as these reactivations are completed.

  • Achieved revenue efficiency of 97% during the fourth quarter and more than 98% over the course of 2021.
  • Improved personal safety performance by 25% as compared to 2020.
  • Increased contract backlog to $2.4 billion from $1.0 billion at the beginning of 2021.
  • Added approximately $330 million of new backlog since last quarterly report.

Headline financials

Total Revenue

$306M

Previous: $297M+3.0%
EPS (adj)

-$0.32

Previous: -$24.42+98.7%
Revenue Efficiency

97.0%

No prior period
Capital Expenditures

$26.5M

Previous: $10.9M+143.1%
Free Cash Flow

-$33.7M

Previous: $134M-125.2%
Net Income

$27.7M

Previous: -$70.9M+139.1%
Operating Income

-$24.7M

Previous: -$169M+85.4%
Gross Profit

-$5.1M

Previous: -$142M+96.4%
Cash & Equivalents

$609M

Previous: $326M+86.8%
Total Assets

$1.21B

Previous: $12.9B-90.6%
Stock-Based Comp

$2.7M

Previous: $3.6M-25.0%

Revenue & EPS history

Valaris · Revenue · Quarterly

$306M

Q4 2021+3%vs Q4 2020
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Valaris · $273M total across 2 segments · Q4 2021

  • Jackups
    $172M
  • Floaters
    $101M

Forward guidance

Valaris anticipates that financial results will improve significantly as reactivations are completed. The company has three uncontracted drillships remaining within their stacked fleet providing operational leverage to the improving floater market.

Tailwinds

  • Financial results are expected to improve significantly as reactivations are completed.
  • Three uncontracted drillships in stacked fleet provide operational leverage.
  • Company will be disciplined in exercising operational leverage.
  • Assets will only return to the active fleet for opportunities that provide meaningful returns.
  • Strong operational performance.

Headwinds

  • Company is in a transitional period that will extend into the second quarter of this year.
  • Incurring reactivation costs to ready three drillships and one semisubmersible for contracts.
  • Revenues decreased to $306 million in the fourth quarter 2021 from $327 million in the third quarter 2021.
  • Higher rig reactivation costs.
  • Customer decided not to sanction and therefore withdraw from the project associated with this contract.

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 Q4 2021

Historical avgQ4 2021

+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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Q4 2014
Q3 2014
Q2 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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