NYSE$VAL

Valaris Limited · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Valaris reported mixed results in Q4 2022, with a decrease in revenues and adjusted EBITDA, but new contracts and extensions were awarded.

Valaris reported a net income of $31 million for Q4 2022, with revenues decreasing slightly to $434 million. The company was awarded new contracts and extensions with associated contract backlog of more than $400 million during the quarter. Reactivation of VALARIS DS-17 is well underway and they are in advanced discussions for a multi-year opportunity for one of their stacked drillships

  • Net income was $31 million.
  • Revenue efficiency of 98% was delivered.
  • New contracts and extensions with associated contract backlog of more than $400 million were awarded.
  • Total liquidity increased to $748 million as of December 31, 2022.

Headline financials

Total Revenue

$434M

Previous: $306M+41.9%
EPS (adj)

$0.38

Previous: -$0.32+218.8%
Revenue Efficiency

98.0%

Previous: 97.0%+1.0%
Capital Expenditures

$53.9M

Previous: $26.5M+103.4%
Free Cash Flow

$101M

Previous: -$33.7M+398.5%
Net Income

$31M

Previous: $27.7M+11.9%
Operating Income

$41.1M

Previous: -$24.7M+266.4%
Gross Profit

$56.4M

Previous: -$5.1M+1205.9%
Cash & Equivalents

$724M

Previous: $609M+19.0%
Total Assets

$2.86B

Previous: $1.21B+137.1%
Stock-Based Comp

$5.9M

Previous: $2.7M+118.5%

Revenue & EPS history

Valaris · Revenue · Quarterly

$434M

Q4 2022+41.9%vs Q4 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Valaris · $554M total across 4 segments · Q4 2022

  • Floaters
    $211M+110.0%
  • Jackups
    $182M+5.5%
  • ARO Drilling
    $120M
  • Other
    $40.8M

Forward guidance

Valaris did not provide specific financial forward guidance in this earnings report. However, they highlighted positive future prospects due to new contracts and extensions, as well as the reactivation of floaters.

Tailwinds

  • Awarded new contracts and extensions with associated contract backlog of more than $400 million during the fourth quarter.
  • Additional contracts awarded or extended in 2023 to date, with associated contract backlog of approximately $230 million.
  • Reactivation of a fifth floater, VALARIS DS-17, is well underway
  • Advanced discussions for a multi-year opportunity for one of our stacked drillships that is expected to deliver meaningful returns.
  • Strategy will drive increased earnings and significant free cash flow over time

Headwinds

  • Cancellation, suspension, renegotiation or termination of drilling contracts and programs
  • Commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract
  • Changes in worldwide rig supply, including as a result of reactivations and newbuilds, and demand, competition and technology
  • Governmental action, civil unrest and political and economic uncertainties
  • Environmental or other liabilities, risks or losses

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 2022

Historical avgQ4 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

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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro