Thu, Oct 31, 3:11 PM (63 days ago)
Valaris Limited (VAL) reported strong quarterly results for Q3 2024, with revenues of $643.1 million, a 41% increase year-over-year. Operating income surged to $94.9 million from $16.6 million in the same quarter last year, driven by higher day rates and increased operational activity. The net income attributable to Valaris rose significantly to $64.6 million, compared to $12.9 million in Q3 2023. Operating expenses increased by 19% to $524.4 million, primarily due to higher contract drilling costs. The equity in losses of its joint venture with ARO negatively impacted results, recording a loss of $23.8 million. Cash flow from operations was robust at $230.8 million, although capital expenditures rose to $343.4 million as the company focused on rig upgrades and reactivations. Valaris maintained a healthy liquidity position with $379.3 million in cash and no principal debt payments due until 2030. The company continues to navigate inflationary pressures and market uncertainties while capitalizing on favorable oil prices and demand recovery in offshore drilling. Future operations may be impacted by ongoing geopolitical tensions and regulatory changes.