Valaris Ltd

Latest Results (19.05.2026):

Valaris Ltd (Valaris Limited) — First Quarter 2026: Valaris Ltd reported Q1 2026 results with total operating revenues of $465 million, revenue efficiency of 98%, Adjusted EBITDA of $67 million and a net loss of $18 million. The quarter included transaction-related costs and tax items, while the company strengthened contract backlog and announced an all‑stock transaction with Transocean.

Key financials

Total operating revenues $465M; revenues exclusive of reimbursables $430M. Adjusted EBITDA $66.7M. Net loss $18M (includes $28M tax expense). Revenue efficiency 98%.

Quarter‑over‑quarter drivers

Revenues excl. reimbursables fell from $502M in Q4 2025 to $430M in Q1 2026, primarily due to fewer operating days across floater and jackup fleets. Contract drilling expenses (ex. reimbursables) decreased to $340M from $380M, partly offset by ~$8M higher war‑risk insurance costs related to Middle East operations. Q1 included $14M of merger & integration expenses.

Backlog and commercial progress

Added over $500M of new contract backlog since Q4 2025; total contract backlog ~ $4.9B (highest in nearly a decade). Notable awards include a multi‑year extension for VALARIS DS‑4 (Brazil) and early return to service of DS‑12, with three additional drillships on track to restart later in 2026.

Liquidity, cash flow and capital spending

Cash and cash equivalents $578M as of March 31, 2026 (down from $599M at year end). Capital expenditures were $101M in the quarter. Operating cash flow provided $75M in the period.

Operational metrics

Fleet utilization (total fleet) 58% and active‑fleet utilization 76% for the quarter. Average daily revenues: drillships ~$436k, overall company average daily revenue ~$171k. Revenue efficiency remained high at 98%.

Corporate transaction and investor communications

Announced an all‑stock transaction with Transocean expected to create synergies and broaden capabilities; Valaris stated it will not hold future earnings conference calls or provide forward‑looking guidance in connection with the pending combination.

Tax, one‑offs and other items

Q1 included a $28M tax expense versus a $680M tax benefit in Q4 2025 (Q4 benefit largely from deferred tax valuation allowance changes). Other expense rose (foreign exchange impacts and lower interest income). Equity in earnings of ARO was $6.8M in the quarter.