 | www.华仕伯.com | 新闻稿 | ||||||||||||||||||
华仕伯公布2024年第三季度业绩
百慕大，2024年10月30日… 华仕伯有限公司（纽交所：VAL）（「华仕伯」或「公司」）今天公布了2024年第三季度业绩。
院长兼首席执行官安东·迪博维茨表示：“我们在第三季度取得了强劲的运营表现和财务业绩，包括稳健的自由现金流产生。我们全船队的营业收入效率达到了98%，其中包括 VALARIS DS-7 在第二季度合同启动后整个季度的运营。基于我们在安全、可靠和高效运营上的不懈努力，我们自豪地宣布，连续第二年被海洋安全中心授予安全领导奖，以表彰我们开发的 Restricted Zone Analysis 工具。”
Dibowitz表示：「我们坚信这一轮高潮的强度和持久性，并认为华仕伯已经处于有利位置，可推动长期价值创造。虽然我们看到一些客户需求被推迟，但2026年及以后的展望仍然强劲。我们继续专注于确保我们可用钻井舰队获得具吸引力的长期工作，以支持我们的盈利和现金流成长。」
Dibowitz得出结论说，“如预期般，我们的自由现金流状况相对于上半年有所改善，并在第三季度回购了10000万美元的股票。我们坚持将来所有的自由现金流返还给股东，除非有更好或更具增值的用途。”
财务与营运亮点
•净利润为6300万美元，调整后的EBITDA为15000万美元；
•营业收入效率达到98%;
•从营运活动中产生了19300万的现金，以及自由现金流11100万;
•回购了10000万美元的股份；
•凭借其2024年安全领导奖，该公司因发展受限区域分析工具而获得海上安全中心的认可；
•华仕伯DS-7 钻井船在第二季重新启动并开始合约运营后，进行了一整个季度的运作。
•十月份授予VALARIS 118高规格升降式钻井平台三年合同延长，增加$16800万的合同待处理额。
第三季度检讨
净利润从2024年第二季的$15100万降至$6300万。净利润中包括$2400万的税费，相比之下，第二季的税收补助为$3000万。调整后的EBITDA由第二季的$13900万增加至$15000万，主要是由于VALARIS DS-7在合同开始后全季度营运和浮动舰队的日均营业收入增加。这些因素部分被VALARIS DPS-5和DS-10的低利用率以及VALARIS 249因腿部维修而停用和维修成本部分抵消。
营业收入从2024年第二季的6亿4300万美元增加到6亿1000万美元。不计可退还项目，营业收入从第二季的5亿7300万美元增加到5亿9800万美元，主要是由于操作日数增加以及与华仕伯247号油井业务相关的分期摊销的运输收入增加，华仕伯DS-7号油井运营了一个完整的季度，以及浮动平台舰队的平均日收入增加。这些项目部分被华仕伯DPS-5号和DS-10号的利用率降低以及华仕伯249号油井停机时间抵销。
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承包钻探支出从2024年第二季的43900万增加到46200万美元。除可退款项目外，主要由于合同钻探支出从第二季的40700万增加到42300万，部分原因是因为 伴随VALARIS 247的摊销动员费用增加，以及VALARIS DS-7全季运营成本上升，相关成本较高。这在一定程度上被与VALARIS DS-17工作地点变更相关的低重新启动费用和低人员成本部分抵销。
折旧费用从2024年第二季的3000万元增加到3200万元，主要是由于重新启动项目和资本升级为某些钻井平台投入服务的新资产。2024年第二季总和行政费用从3300万元降至3100万元，主要是由于专业费用较低。
其他支出为800万元，与2024年第二季度其他收入1200万元相比，主要是由于利息收入和外币兑换亏损减少，而与第二季度收益相比。
2024年第二季度税费为2400万美元，而第三季度税款则包括一笔微不足道的离散税款，第二季度则包括6400万美元的离散减免税款，这主要归因于对于先前年度纳税部位的未认列税款利益负债的变化。
考虑离散税务项目后，税费从第二季度的3.4亿美元降至2.4亿美元。
资本支出为8200万美元，比2024年第二季度的1.1亿美元下降主要是由于较低的维护和升级资本支出。
现金及现金等价物和受限现金于2024年9月30日降至3.92亿美元，低于2024年6月30日的4.1亿美元。此下降主要是由于股份回购和资本支出，部分抵销自营业现金流。
第三季度部门回顾
飞蚊症
浮动平台的收入从2024年第二季的38400万美元增至38900万美元。不包括可退款项目，收入从第二季的37000万美元增至37300万美元。主要增长原因为VALARIS DS-7的运营天数增加，该船于第二季启动合同，以及浮动平台舰队的平均日收入较高，主要是因为VALARIS DS-16，在第二季末启动了新的更高日费合同。这在一定程度上被VALARIS DPS-5和DS-10的运营天数减少所抵销，这两者在第三季完成了他们的合同。
承包钻探支出从2024年第二季的25700万美元降至24800万美元。在扣除可退还项目后，2024年第二季的承包钻探支出从24500万美元降至23500万美元。主要是由于VALARIS DS-7在第二季回归工作，降低了重新启动费用，以及与VALARIS DS-17有关的人员费用因营运地点变更而降低。这部分被VALARIS DS-7一整个季度的运营成本增加部分抵消。
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提升机
Jackup 营业收入由2024年第二季的18600万元增加至21400万元。扣除可退还项目后，营业收入由2024年第二季的16700万元增加至19300万元，主要是由于 VALARIS 247 开始在澳洲外海执行合同，其在7月从英国调动开始的折旧摊销收入以及营运天数增加所致。部分被 VALARIS 249 的脚修理停机时间抵销。
合同钻探费用在2024年第二季度从$12300万增加到$15700万。扣除可报销项目后，合同钻探费用从$10800万增加到$13700万，这主要是由于与华仕伯247相关的摊销动员费用和华仕伯249的维修成本增加。
ARO钻井
Revenues decreased to $114 million from $124 million in the second quarter 2024 primarily due to the contract termination for VALARIS 143 in the second quarter and contract suspensions for VALARIS 147 and 148 during the third quarter. Subsequently, ARO elected to terminate these suspended contracts in October. Contract drilling expense of $94 million was in line with the second quarter.
Other
Revenues of $40 million were in line with the second quarter 2024. Contract drilling expense increased to $22 million from $20 million in the second quarter.
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Floaters | Jackups | ARO (1) | Other | Reconciling Items (1)(2) | Consolidated Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions of $, except %) | Q3 2024 | Q2 2024 | Chg | Q3 2024 | Q2 2024 | Chg | Q3 2024 | Q2 2024 | Chg | Q3 2024 | Q2 2024 | Chg | Q3 2024 | Q2 2024 | Q3 2024 | Q2 2024 | Chg | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | 389.0 | $ | 383.9 | 1 | % | $ | 213.7 | $ | 185.8 | 15 | % | $ | 113.7 | $ | 124.2 | (8) | % | $ | 40.4 | $ | 40.4 | — | % | $ | (113.7) | $ | (124.2) | $ | 643.1 | $ | 610.1 | 5 | % | ||||||||||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract drilling | 247.7 | 257.4 | 4 | % | 156.7 | 123.2 | (27) | % | 93.8 | 94.1 | — | % | 22.1 | 19.6 | (13) | % | (58.2) | (55.6) | 462.1 | 438.7 | (5) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Loss on impairment | — | — | — | % | — | — | — | % | 28.4 | — | nm | — | — | — | % | (28.4) | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation | 14.8 | 14.1 | (5) | % | 11.4 | 10.9 | (5) | % | 21.1 | 19.7 | (7) | % | 2.9 | 2.5 | (16) | % | (18.5) | (17.5) | 31.7 | 29.7 | (7) | % | ||||||||||||||||||||||||||||||||||||||||||||||
| General and admin. | — | — | — | % | — | — | — | % | 4.9 | 5.5 | 11 | % | — | — | — | % | 25.7 | 27.0 | 30.6 | 32.5 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Equity in losses of ARO | — | — | — | % | — | — | — | % | — | — | — | % | — | — | — | % | (23.8) | (0.3) | (23.8) | (0.3) | nm | |||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ | 126.5 | $ | 112.4 | 13 | % | $ | 45.6 | $ | 51.7 | (12) | % | $ | (34.5) | $ | 4.9 | nm | $ | 15.4 | $ | 18.3 | (16) | % | $ | (58.1) | $ | (78.4) | $ | 94.9 | $ | 108.9 | (13) | % | |||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 126.8 | $ | 114.1 | 11 | % | $ | 45.7 | $ | 52.8 | (13) | % | $ | (54.0) | $ | (6.7) | nm | $ | 16.3 | $ | 18.3 | (11) | % | $ | (71.9) | $ | (27.7) | $ | 62.9 | $ | 150.8 | (58) | % | |||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 141.3 | $ | 126.4 | 12 | % | $ | 57.0 | $ | 62.6 | (9) | % | $ | 15.0 | $ | 24.6 | (39) | % | $ | 18.3 | $ | 20.8 | (12) | % | $ | (81.2) | $ | (95.5) | $ | 150.4 | $ | 138.9 | 8 | % | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDAR | $ | 143.2 | $ | 137.3 | 4 | % | $ | 57.0 | $ | 62.6 | (9) | % | $ | 15.0 | $ | 24.6 | (39) | % | $ | 18.3 | $ | 20.8 | (12) | % | $ | (81.2) | $ | (95.5) | $ | 152.3 | $ | 149.8 | 2 | % | ||||||||||||||||||||||||||||||||||
nm - Not meaningful
(1) The full operating results included above for ARO are not included within our consolidated results and thus deducted under "Reconciling Items" and replaced with our equity in earnings of ARO.
(2) Our onshore support costs included within contract drilling expenses are not allocated to our operating segments for purposes of measuring segment operating income (loss) and as such, these costs are included in "Reconciling Items." Further, general and administrative expense and depreciation expense incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income (loss) and are included in "Reconciling Items."
As previously announced, Valaris will hold its third quarter 2024 earnings conference call at 9:00 a.m. CT (10:00 a.m. ET) on Thursday, October 31, 2024. An updated investor presentation will be available on the Valaris website after the call.
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About Valaris Limited
Valaris Limited (NYSE: VAL) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. Valaris maintains an unwavering commitment to safety, operational excellence, and customer satisfaction, with a focus on technology and innovation. Valaris Limited is a Bermuda exempted company. To learn more, visit the Valaris website at www.valaris.com.
Forward-Looking Statements
Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding expected financial performance; expected utilization, day rates, revenues, operating expenses, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs and the attainment of requisite permits for such programs, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards, contracts and letters of intent; scheduled delivery dates for rigs; performance of our joint ventures, including our joint venture with Saudi Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore Drilling Company ("ARO") newbuild rigs and the timing of additional ARO newbuild orders; the availability, delivery, mobilization, contract commencement, availability, relocation or other movement of rigs and the timing thereof; rig reactivations; suitability of rigs for future contracts; divestitures of assets; general economic, market, business and industry conditions, including inflation and recessions, trends and outlook; general political conditions, including political tensions, conflicts and war; cybersecurity attacks and threats; impacts and effects of public health crises, pandemics and epidemics; future operations; ability to renew expiring contracts or obtain new contracts, including for VALARIS DS-13 and VALARIS DS-14; increasing regulatory complexity; targets, progress, plans and goals related to sustainability matters; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including cancellation, suspension, renegotiation or termination of drilling contracts and programs; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; future share repurchases; actions by regulatory authorities, or other third parties; actions by our security holders; internal control risk; commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract, downtime and other risks associated with offshore rig operations; adverse weather, including hurricanes; changes in worldwide rig supply, including as a result of reactivations and newbuilds; and demand, competition and technology; supply chain and logistics challenges; consumer preferences for alternative fuels and forecasts or expectations regarding the global energy transition; increased scrutiny of our sustainability targets, initiatives and reporting and our ability to achieve such targets or initiatives; changes in customer strategy; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties, including recessions, volatility affecting the banking system and financial markets, inflation and adverse changes in the level of international trade activity; terrorism, piracy and military action; risks inherent to shipyard rig reactivation, upgrade, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; compliance with our debt agreements and debt restrictions that may limit our liquidity and flexibility, including in any return of capital plans; cybersecurity risks and threats; and changes in foreign currency exchange rates. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the Securities and Exchange Commission's website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law.
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| Investor & Media Contacts: | Nick Georgas | ||||
Vice President - Treasurer and Investor Relations | |||||
+1-713-979-4632 | |||||
| Tim Richardson | |||||
| Director - Investor Relations | |||||
+1-713-979-4619 | |||||
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| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| (In millions, except per share amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
| OPERATING REVENUES | $ | 643.1 | $ | 610.1 | $ | 525.0 | $ | 483.8 | $ | 455.1 | |||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||||||||
| Contract drilling (exclusive of depreciation) | 462.1 | 438.7 | 444.8 | 402.0 | 390.9 | ||||||||||||||||||||||||
| Depreciation | 31.7 | 29.7 | 26.8 | 27.5 | 25.8 | ||||||||||||||||||||||||
| General and administrative | 30.6 | 32.5 | 26.5 | 24.3 | 24.2 | ||||||||||||||||||||||||
| Total operating expenses | 524.4 | 500.9 | 498.1 | 453.8 | 440.9 | ||||||||||||||||||||||||
| EQUITY IN EARNINGS (LOSSES) OF ARO | (23.8) | (0.3) | 2.4 | 8.3 | 2.4 | ||||||||||||||||||||||||
| OPERATING INCOME | 94.9 | 108.9 | 29.3 | 38.3 | 16.6 | ||||||||||||||||||||||||
| OTHER INCOME (EXPENSE) | |||||||||||||||||||||||||||||
| Interest income | 17.5 | 31.0 | 21.0 | 27.2 | 26.6 | ||||||||||||||||||||||||
| Interest expense, net | (22.4) | (22.6) | (17.7) | (21.7) | (19.4) | ||||||||||||||||||||||||
| Other, net | (2.8) | 3.5 | 5.8 | (5.5) | 3.9 | ||||||||||||||||||||||||
| (7.7) | 11.9 | 9.1 | — | 11.1 | |||||||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 87.2 | 120.8 | 38.4 | 38.3 | 27.7 | ||||||||||||||||||||||||
| PROVISION (BENEFIT) FOR INCOME TAXES | 24.3 | (30.0) | 12.9 | (790.2) | 10.7 | ||||||||||||||||||||||||
| NET INCOME | 62.9 | 150.8 | 25.5 | 828.5 | 17.0 | ||||||||||||||||||||||||
| NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1.7 | (1.2) | — | 6.7 | (4.1) | ||||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO VALARIS | $ | 64.6 | $ | 149.6 | $ | 25.5 | $ | 835.2 | $ | 12.9 | |||||||||||||||||||
| EARNINGS PER SHARE | |||||||||||||||||||||||||||||
| Basic | $ | 0.89 | $ | 2.07 | $ | 0.35 | $ | 11.47 | $ | 0.18 | |||||||||||||||||||
| Diluted | $ | 0.88 | $ | 2.03 | $ | 0.35 | $ | 11.30 | $ | 0.17 | |||||||||||||||||||
| WEIGHTED-AVERAGE SHARES OUTSTANDING | |||||||||||||||||||||||||||||
| Basic | 72.4 | 72.4 | 72.4 | 72.8 | 73.7 | ||||||||||||||||||||||||
| Diluted | 73.2 | 73.7 | 73.6 | 73.9 | 74.8 | ||||||||||||||||||||||||
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| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (In millions) | ||||||||||||||
(Unaudited) | ||||||||||||||
| As of | |||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||
| ASSETS | |||||||||||||||||
| CURRENT ASSETS | |||||||||||||||||
| Cash and cash equivalents | $ | 379.3 | $ | 398.3 | $ | 494.1 | $ | 620.5 | $ | 1,041.1 | |||||||
| Restricted cash | 12.9 | 12.0 | 15.0 | 15.2 | 16.2 | ||||||||||||
| Accounts receivable, net | 555.8 | 631.7 | 510.9 | 459.3 | 492.4 | ||||||||||||
| Other current assets | 163.5 | 182.6 | 177.6 | 177.2 | 178.7 | ||||||||||||
| Total current assets | $ | 1,111.5 | $ | 1,224.6 | $ | 1,197.6 | $ | 1,272.2 | $ | 1,728.4 | |||||||
| PROPERTY AND EQUIPMENT, NET | 1,842.7 | 1,809.4 | 1,732.3 | 1,633.8 | 1,159.9 | ||||||||||||
| LONG-TERM NOTES RECEIVABLE FROM ARO | 265.4 | 259.2 | 289.3 | 282.3 | 275.2 | ||||||||||||
| INVESTMENT IN ARO | 102.7 | 126.5 | 126.8 | 124.4 | 116.1 | ||||||||||||
| DEFERRED TAX ASSETS | 837.0 | 841.1 | 854.8 | 855.1 | 53.8 | ||||||||||||
| OTHER ASSETS | 174.1 | 154.8 | 153.6 | 154.4 | 151.5 | ||||||||||||
| $ | 4,333.4 | $ | 4,415.6 | $ | 4,354.4 | $ | 4,322.2 | $ | 3,484.9 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
| CURRENT LIABILITIES | |||||||||||||||||
| Accounts payable - trade | $ | 303.7 | $ | 347.0 | $ | 394.2 | $ | 400.1 | $ | 376.4 | |||||||
| Accrued liabilities and other | 388.6 | 360.6 | 366.5 | 344.2 | 346.6 | ||||||||||||
| Total current liabilities | $ | 692.3 | $ | 707.6 | $ | 760.7 | $ | 744.3 | $ | 723.0 | |||||||
| LONG-TERM DEBT | 1,081.8 | 1,081.0 | 1,080.1 | 1,079.3 | 1,079.4 | ||||||||||||
| DEFERRED TAX LIABILITIES | 31.1 | 31.2 | 31.6 | 29.9 | 17.1 | ||||||||||||
| OTHER LIABILITIES | 404.4 | 408.4 | 451.7 | 471.7 | 465.4 | ||||||||||||
| TOTAL LIABILITIES | 2,209.6 | 2,228.2 | 2,324.1 | 2,325.2 | 2,284.9 | ||||||||||||
| TOTAL EQUITY | 2,123.8 | 2,187.4 | 2,030.3 | 1,997.0 | 1,200.0 | ||||||||||||
| $ | 4,333.4 | $ | 4,415.6 | $ | 4,354.4 | $ | 4,322.2 | $ | 3,484.9 | ||||||||
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| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| (In millions) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| OPERATING ACTIVITIES | |||||||||||
| Net income | $ | 239.2 | $ | 38.3 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation expense | 88.2 | 73.6 | |||||||||
| Accretion of discount on notes receivable from ARO | (33.8) | (21.2) | |||||||||
| Share-based compensation expense | 22.4 | 19.5 | |||||||||
| Equity in losses (earnings) of ARO | 21.7 | (5.0) | |||||||||
| Deferred income tax expense | 19.3 | 2.3 | |||||||||
| Net (gain) loss on sale of property | 0.3 | (27.9) | |||||||||
| Loss on extinguishment of debt | — | 29.2 | |||||||||
| Changes in contract liabilities | (13.5) | (3.9) | |||||||||
| Changes in deferred costs | 32.6 | (29.3) | |||||||||
| Other | 5.0 | 5.2 | |||||||||
| Changes in other operating assets and liabilities | (131.0) | 94.5 | |||||||||
| Contributions to pension plans and other post-retirement benefits | (19.6) | (4.5) | |||||||||
| Net cash provided by operating activities | $ | 230.8 | $ | 170.8 | |||||||
| INVESTING ACTIVITIES | |||||||||||
| Additions to property and equipment | $ | (343.4) | $ | (233.1) | |||||||
| Net proceeds from disposition of assets | 0.2 | 29.2 | |||||||||
| Net cash used in investing activities | $ | (343.2) | $ | (203.9) | |||||||
| FINANCING ACTIVITIES | |||||||||||
| Payments for share repurchases | $ | (101.4) | $ | (147.4) | |||||||
| Payments related to tax withholdings for share-based awards | (29.7) | (5.2) | |||||||||
| Issuance of Second Lien Notes | — | 1,103.0 | |||||||||
| Redemption of First Lien Notes | — | (571.8) | |||||||||
| Debt issuance costs | — | (36.7) | |||||||||
| Net cash provided by (used in) financing activities | $ | (131.1) | $ | 341.9 | |||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | $ | (243.5) | $ | 308.8 | |||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 635.7 | 748.5 | |||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 392.2 | $ | 1,057.3 | |||||||
8
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| (In millions) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||
| Net income | $ | 62.9 | $ | 150.8 | $ | 25.5 | $ | 828.5 | $ | 17.0 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation expense | 31.7 | 29.7 | 26.8 | 27.5 | 25.8 | ||||||||||||
| Equity in losses (earnings) of ARO | 23.8 | 0.3 | (2.4) | (8.3) | (2.4) | ||||||||||||
| Share-based compensation expense | 7.0 | 7.4 | 8.0 | 7.8 | 6.8 | ||||||||||||
| Accretion of discount on notes receivable from ARO | (6.2) | (20.6) | (7.0) | (7.1) | (7.2) | ||||||||||||
| Deferred income tax expense (benefit) | 3.8 | 13.5 | 2.0 | (788.7) | (4.8) | ||||||||||||
| Net (gain) loss on sale of property | 0.2 | — | 0.1 | (0.7) | — | ||||||||||||
| Changes in contract liabilities | 11.3 | (17.8) | (7.0) | 8.8 | 3.6 | ||||||||||||
| Changes in deferred costs | 33.4 | (3.0) | 2.2 | 3.2 | (22.4) | ||||||||||||
| Other | 0.8 | 2.4 | 1.8 | 0.6 | 2.7 | ||||||||||||
| Changes in other operating assets and liabilities | 37.8 | (147.5) | (21.3) | 27.3 | 31.0 | ||||||||||||
| Contributions to pension plans and other post-retirement benefits | (13.5) | (3.7) | (2.4) | (2.2) | (1.9) | ||||||||||||
| Net cash provided by operating activities | $ | 193.0 | $ | 11.5 | $ | 26.3 | $ | 96.7 | $ | 48.2 | |||||||
| INVESTING ACTIVITIES | |||||||||||||||||
| Additions to property and equipment | $ | (81.9) | $ | (110.2) | $ | (151.3) | $ | (463.0) | $ | (105.8) | |||||||
| Net proceeds from disposition of assets | 0.1 | 0.1 | — | 1.1 | 0.1 | ||||||||||||
| Net cash used in investing activities | $ | (81.8) | $ | (110.1) | $ | (151.3) | $ | (461.9) | $ | (105.7) | |||||||
| FINANCING ACTIVITIES | |||||||||||||||||
| Payments for share repurchases | $ | (100.0) | $ | — | $ | (1.4) | $ | (51.2) | $ | (83.0) | |||||||
| Payments for tax withholdings for share-based awards | (29.3) | (0.2) | (0.2) | (0.2) | (4.8) | ||||||||||||
| Debt issuance costs | — | — | — | (1.9) | (5.7) | ||||||||||||
| Issuance of Second Lien Notes | — | — | — | — | 403.0 | ||||||||||||
| Other | — | — | — | (3.1) | — | ||||||||||||
| Net cash provided by (used in) financing activities | $ | (129.3) | $ | (0.2) | $ | (1.6) | $ | (56.4) | $ | 309.5 | |||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | $ | (18.1) | $ | (98.8) | $ | (126.6) | $ | (421.6) | $ | 252.0 | |||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 410.3 | 509.1 | 635.7 | 1,057.3 | 805.3 | ||||||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 392.2 | $ | 410.3 | $ | 509.1 | $ | 635.7 | $ | 1,057.3 | |||||||
9
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (In millions) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | $ | 322.3 | $ | 291.5 | $ | 249.6 | $ | 190.7 | $ | 168.2 | |||||||||||||||||||
| Semisubmersibles | 50.9 | 78.9 | 60.2 | 56.3 | 64.1 | ||||||||||||||||||||||||
| $ | 373.2 | $ | 370.4 | $ | 309.8 | $ | 247.0 | $ | 232.3 | ||||||||||||||||||||
Reimbursable and Other Revenues (1) | 15.8 | 13.5 | 14.6 | 16.2 | 11.0 | ||||||||||||||||||||||||
Total Floaters | $ | 389.0 | $ | 383.9 | $ | 324.4 | $ | 263.2 | $ | 243.3 | |||||||||||||||||||
Jackups (2) | |||||||||||||||||||||||||||||
HD Harsh Environment | $ | 118.8 | $ | 87.6 | $ | 67.5 | $ | 76.6 | $ | 75.5 | |||||||||||||||||||
| HD & SD Modern | 58.4 | 63.7 | 56.9 | 79.0 | 68.8 | ||||||||||||||||||||||||
| SD Legacy | 15.4 | 15.4 | 14.8 | 14.2 | 10.5 | ||||||||||||||||||||||||
| $ | 192.6 | $ | 166.7 | $ | 139.2 | $ | 169.8 | $ | 154.8 | ||||||||||||||||||||
Reimbursable and Other Revenues (1) | 21.1 | 19.1 | 13.1 | 9.5 | 11.1 | ||||||||||||||||||||||||
Total Jackups | $ | 213.7 | $ | 185.8 | $ | 152.3 | $ | 179.3 | $ | 165.9 | |||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | $ | 32.4 | $ | 35.6 | $ | 42.1 | $ | 36.0 | $ | 40.1 | |||||||||||||||||||
Reimbursable and Other Revenues (1) | 8.0 | 4.8 | 6.2 | 5.3 | 5.8 | ||||||||||||||||||||||||
Total Other | $ | 40.4 | $ | 40.4 | $ | 48.3 | $ | 41.3 | $ | 45.9 | |||||||||||||||||||
Total Operating Revenues | $ | 643.1 | $ | 610.1 | $ | 525.0 | $ | 483.8 | $ | 455.1 | |||||||||||||||||||
Total Reimbursable and Other Revenues (1) | $ | 44.9 | $ | 37.4 | $ | 33.9 | $ | 31.0 | $ | 27.9 | |||||||||||||||||||
Revenues Excluding Reimbursable and Other Revenues | $ | 598.2 | $ | 572.7 | $ | 491.1 | $ | 452.8 | $ | 427.2 | |||||||||||||||||||
(1)Reimbursable and other revenues includes certain types of non-recurring reimbursable revenues, revenues earned during suspension periods and revenues attributable to amortization of contract intangibles.
(2)HD = Heavy Duty; SD = Standard Duty. Heavy duty jackups are well-suited for operations in tropical revolving storm areas.
10
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (In millions) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
ADJUSTED EBITDA (1) | |||||||||||||||||||||||||||||
Floaters | |||||||||||||||||||||||||||||
| Drillships | $ | 130.9 | $ | 91.2 | $ | 55.6 | $ | 16.7 | $ | 2.8 | |||||||||||||||||||
| Semisubmersibles | 10.4 | 35.2 | 15.4 | 20.5 | 25.4 | ||||||||||||||||||||||||
| $ | 141.3 | $ | 126.4 | $ | 71.0 | $ | 37.2 | $ | 28.2 | ||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | $ | 31.4 | $ | 36.3 | $ | 5.4 | $ | 21.1 | $ | 20.9 | |||||||||||||||||||
| HD & SD Modern | 20.0 | 21.3 | 8.6 | 30.1 | 20.4 | ||||||||||||||||||||||||
| SD Legacy | 5.6 | 5.0 | 4.4 | 4.8 | 2.9 | ||||||||||||||||||||||||
| $ | 57.0 | $ | 62.6 | $ | 18.4 | $ | 56.0 | $ | 44.2 | ||||||||||||||||||||
| Total | $ | 198.3 | $ | 189.0 | $ | 89.4 | $ | 93.2 | $ | 72.4 | |||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | $ | 18.3 | $ | 20.8 | $ | 26.1 | $ | 23.2 | $ | 27.2 | |||||||||||||||||||
| Total | $ | 216.6 | $ | 209.8 | $ | 115.5 | $ | 116.4 | $ | 99.6 | |||||||||||||||||||
| Support costs | |||||||||||||||||||||||||||||
| General and administrative expense | $ | 30.6 | $ | 32.5 | $ | 26.5 | $ | 24.3 | $ | 24.2 | |||||||||||||||||||
| Onshore support costs | 35.6 | 38.4 | 35.3 | 34.6 | 35.4 | ||||||||||||||||||||||||
| $ | 66.2 | $ | 70.9 | $ | 61.8 | $ | 58.9 | $ | 59.6 | ||||||||||||||||||||
Total | $ | 150.4 | $ | 138.9 | $ | 53.7 | $ | 57.5 | $ | 40.0 | |||||||||||||||||||
(1)Adjusted EBITDA is earnings before interest, tax, depreciation and amortization. Adjusted EBITDA for asset category also excludes onshore support costs and general and administrative expense.
11
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (In millions) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
ADJUSTED EBITDAR (1) | |||||||||||||||||||||||||||||
Active Fleet (2) | $ | 213.1 | $ | 218.1 | $ | 126.3 | $ | 137.5 | $ | 129.3 | |||||||||||||||||||
Leased and Managed Rigs | 18.3 | 20.8 | 26.1 | 23.2 | 27.2 | ||||||||||||||||||||||||
| $ | 231.4 | $ | 238.9 | $ | 152.4 | $ | 160.7 | $ | 156.5 | ||||||||||||||||||||
Stacked Fleet (3) | (12.9) | (18.2) | (6.6) | (5.8) | (6.0) | ||||||||||||||||||||||||
| $ | 218.5 | $ | 220.7 | $ | 145.8 | $ | 154.9 | $ | 150.5 | ||||||||||||||||||||
| Support costs | |||||||||||||||||||||||||||||
| General and administrative expense | $ | 30.6 | $ | 32.5 | $ | 26.5 | $ | 24.3 | $ | 24.2 | |||||||||||||||||||
| Onshore support costs | 35.6 | 38.4 | 35.3 | 34.6 | 35.4 | ||||||||||||||||||||||||
| $ | 66.2 | $ | 70.9 | $ | 61.8 | $ | 58.9 | $ | 59.6 | ||||||||||||||||||||
Total | $ | 152.3 | $ | 149.8 | $ | 84.0 | $ | 96.0 | $ | 90.9 | |||||||||||||||||||
Reactivation costs (4) | $ | 1.9 | $ | 10.9 | $ | 30.3 | $ | 38.5 | $ | 50.9 | |||||||||||||||||||
(1)Adjusted EBITDAR is earnings before interest, tax, depreciation, amortization and reactivation costs. Adjusted EBITDAR for active fleet, leased and managed rigs and stacked fleet also excludes onshore support costs and general and administrative expense.
(2)Active fleet represents rigs that are not preservation stacked and includes rigs that are in the process of being reactivated.
(3)Adjusted EBITDAR for the stacked fleet represents the combined total of all preservation and stacking costs.
(4)Reactivation costs, all of which are attributed to Valaris' active fleet, are excluded from adjusted EBITDAR.
12
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (In millions) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
ADJUSTED EBITDAR (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | $ | 132.8 | $ | 102.1 | $ | 85.9 | $ | 55.2 | $ | 53.7 | |||||||||||||||||||
| Semisubmersibles | 10.4 | 35.2 | 15.4 | 20.5 | 25.4 | ||||||||||||||||||||||||
| $ | 143.2 | $ | 137.3 | $ | 101.3 | $ | 75.7 | $ | 79.1 | ||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | $ | 31.4 | $ | 36.3 | $ | 5.4 | $ | 21.1 | $ | 20.9 | |||||||||||||||||||
| HD & SD Modern | 20.0 | 21.3 | 8.6 | 30.1 | 20.4 | ||||||||||||||||||||||||
| SD Legacy | 5.6 | 5.0 | 4.4 | 4.8 | 2.9 | ||||||||||||||||||||||||
| $ | 57.0 | $ | 62.6 | $ | 18.4 | $ | 56.0 | $ | 44.2 | ||||||||||||||||||||
| Total | $ | 200.2 | $ | 199.9 | $ | 119.7 | $ | 131.7 | $ | 123.3 | |||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | $ | 18.3 | $ | 20.8 | $ | 26.1 | $ | 23.2 | $ | 27.2 | |||||||||||||||||||
| Total | $ | 218.5 | $ | 220.7 | $ | 145.8 | $ | 154.9 | $ | 150.5 | |||||||||||||||||||
| Support costs | |||||||||||||||||||||||||||||
| General and administrative expense | $ | 30.6 | $ | 32.5 | $ | 26.5 | $ | 24.3 | $ | 24.2 | |||||||||||||||||||
| Onshore support costs | 35.6 | 38.4 | 35.3 | 34.6 | 35.4 | ||||||||||||||||||||||||
| $ | 66.2 | $ | 70.9 | $ | 61.8 | $ | 58.9 | $ | 59.6 | ||||||||||||||||||||
Total | $ | 152.3 | $ | 149.8 | $ | 84.0 | $ | 96.0 | $ | 90.9 | |||||||||||||||||||
(1)Adjusted EBITDAR is earnings before interest, tax, depreciation, amortization and reactivation costs. Adjusted EBITDAR for asset category also excludes onshore support costs and general and administrative expense.
13
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (In millions) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| As of | |||||||||||||||||||||||||||||
| Oct 30, 2024 | Jul 29, 2024 | Apr 30, 2024 | Feb 15, 2024 | Nov 1, 2023 | |||||||||||||||||||||||||
CONTRACT BACKLOG (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | $ | 2,289.7 | $ | 2,508.3 | $ | 2,223.9 | $ | 2,307.6 | $ | 1,726.5 | |||||||||||||||||||
| Semisubmersibles | 106.0 | 122.1 | 180.7 | 224.1 | 259.5 | ||||||||||||||||||||||||
| $ | 2,395.7 | $ | 2,630.4 | $ | 2,404.6 | $ | 2,531.7 | $ | 1,986.0 | ||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
| HD Harsh Environment | $ | 635.1 | $ | 665.0 | $ | 607.0 | $ | 646.8 | $ | 327.9 | |||||||||||||||||||
| HD & SD Modern | 585.2 | 438.9 | 449.1 | 347.1 | 406.8 | ||||||||||||||||||||||||
| SD Legacy | 178.4 | 189.0 | 128.8 | 173.5 | 186.9 | ||||||||||||||||||||||||
| $ | 1,398.7 | $ | 1,292.9 | $ | 1,184.9 | $ | 1,167.4 | $ | 921.6 | ||||||||||||||||||||
| Total | $ | 3,794.4 | $ | 3,923.3 | $ | 3,589.5 | $ | 3,699.1 | $ | 2,907.6 | |||||||||||||||||||
Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | $ | 310.4 | $ | 384.2 | $ | 427.7 | $ | 222.3 | $ | 250.5 | |||||||||||||||||||
Total | $ | 4,104.8 | $ | 4,307.5 | $ | 4,017.2 | $ | 3,921.4 | $ | 3,158.1 | |||||||||||||||||||
(1)Our contract drilling backlog reflects commitments, represented by signed drilling contracts, and is calculated by multiplying the contracted day rate by the contract period. Contract drilling backlog includes drilling contracts subject to FID and drilling contracts which grant the customer termination rights if FID is not received with respect to projects for which the drilling rig is contracted. The contracted day rate excludes certain types of lump sum fees for rig mobilization, demobilization, contract preparation, as well as customer reimbursables and bonus opportunities.
14
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
AVERAGE DAILY REVENUE (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | $ | 386,000 | $ | 358,000 | $ | 328,000 | $ | 307,000 | $ | 288,000 | |||||||||||||||||||
| Semisubmersibles | 247,000 | 289,000 | 261,000 | 229,000 | 257,000 | ||||||||||||||||||||||||
| $ | 359,000 | $ | 340,000 | $ | 312,000 | $ | 285,000 | $ | 279,000 | ||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | $ | 163,000 | $ | 134,000 | $ | 123,000 | $ | 111,000 | $ | 116,000 | |||||||||||||||||||
| HD & SD Modern | 111,000 | 115,000 | 103,000 | 119,000 | 105,000 | ||||||||||||||||||||||||
| SD Legacy | 84,000 | 85,000 | 81,000 | 79,000 | 83,000 | ||||||||||||||||||||||||
| $ | 133,000 | $ | 120,000 | $ | 108,000 | $ | 111,000 | $ | 108,000 | ||||||||||||||||||||
| Total | $ | 228,000 | $ | 217,000 | $ | 197,000 | $ | 174,000 | $ | 171,000 | |||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | $ | 32,000 | $ | 37,000 | $ | 45,000 | $ | 39,000 | $ | 44,000 | |||||||||||||||||||
Total | $ | 171,000 | $ | 167,000 | $ | 153,000 | $ | 136,000 | $ | 134,000 | |||||||||||||||||||
(1)Average daily revenue is derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues, revenues earned during suspension periods, revenues attributable to amortization of drilling contract intangibles and lump-sum revenues and amortization thereof, by the aggregate number of operating days.
15
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
UTILIZATION - TOTAL FLEET (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | 70 | % | 69 | % | 64 | % | 60 | % | 58 | % | |||||||||||||||||||
| Semisubmersibles | 45 | % | 60 | % | 51 | % | 53 | % | 54 | % | |||||||||||||||||||
| 63 | % | 66 | % | 61 | % | 58 | % | 57 | % | ||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 72 | % | 65 | % | 55 | % | 68 | % | 64 | % | |||||||||||||||||||
| HD & SD Modern | 44 | % | 45 | % | 44 | % | 52 | % | 51 | % | |||||||||||||||||||
| SD Legacy | 100 | % | 100 | % | 100 | % | 97 | % | 69 | % | |||||||||||||||||||
| 60 | % | 58 | % | 53 | % | 62 | % | 58 | % | ||||||||||||||||||||
| Total | 61 | % | 61 | % | 56 | % | 60 | % | 57 | % | |||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||
Total | 69 | % | 69 | % | 64 | % | 68 | % | 65 | % | |||||||||||||||||||
Pro Forma Jackups (2) | 71 | % | 68 | % | 64 | % | 70 | % | 67 | % | |||||||||||||||||||
(1)Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the total fleet.
(2)Includes all Valaris jackups including those leased to ARO Drilling.
16
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
UTILIZATION - ACTIVE FLEET (1) (2) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | 91 | % | 90 | % | 84 | % | 68 | % | 63 | % | |||||||||||||||||||
| Semisubmersibles | 75 | % | 100 | % | 85 | % | 89 | % | 90 | % | |||||||||||||||||||
| 87 | % | 92 | % | 84 | % | 72 | % | 70 | % | ||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 88 | % | 80 | % | 67 | % | 83 | % | 79 | % | |||||||||||||||||||
| HD & SD Modern | 82 | % | 81 | % | 69 | % | 80 | % | 79 | % | |||||||||||||||||||
| SD Legacy | 100 | % | 100 | % | 100 | % | 97 | % | 68 | % | |||||||||||||||||||
| 87 | % | 82 | % | 71 | % | 83 | % | 78 | % | ||||||||||||||||||||
| Total | 87 | % | 86 | % | 76 | % | 79 | % | 75 | % | |||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||
Total | 90 | % | 90 | % | 82 | % | 84 | % | 81 | % | |||||||||||||||||||
Pro Forma Jackups (3) | 91 | % | 88 | % | 80 | % | 88 | % | 84 | % | |||||||||||||||||||
(1)Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the active fleet.
(2)Active fleet represents rigs that are not preservation stacked and includes rigs that are in the process of being reactivated.
(3)Includes all Valaris jackups including those leased to ARO Drilling.
17
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
AVAILABLE DAYS - TOTAL FLEET (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | 1,196 | 1,183 | 1,183 | 1,032 | 1,012 | ||||||||||||||||||||||||
| Semisubmersibles | 460 | 455 | 455 | 460 | 460 | ||||||||||||||||||||||||
| 1,656 | 1,638 | 1,638 | 1,492 | 1,472 | |||||||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 1,012 | 1,001 | 1,001 | 1,012 | 1,012 | ||||||||||||||||||||||||
| HD & SD Modern | 1,196 | 1,225 | 1,258 | 1,288 | 1,288 | ||||||||||||||||||||||||
| SD Legacy | 184 | 182 | 182 | 184 | 184 | ||||||||||||||||||||||||
| 2,392 | 2,408 | 2,441 | 2,484 | 2,484 | |||||||||||||||||||||||||
| Total | 4,048 | 4,046 | 4,079 | 3,976 | 3,956 | ||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | 1,012 | 959 | 926 | 920 | 920 | ||||||||||||||||||||||||
Total | 5,060 | 5,005 | 5,005 | 4,896 | 4,876 | ||||||||||||||||||||||||
(1)Represents the maximum number of days available in the period for the total fleet, calculated by multiplying the number of rigs in each asset category by the number of days in the period, irrespective of asset status.
18
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
AVAILABLE DAYS - ACTIVE FLEET (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | 920 | 910 | 910 | 920 | 920 | ||||||||||||||||||||||||
| Semisubmersibles | 276 | 273 | 273 | 276 | 276 | ||||||||||||||||||||||||
| 1,196 | 1,183 | 1,183 | 1,196 | 1,196 | |||||||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 828 | 819 | 819 | 828 | 828 | ||||||||||||||||||||||||
| HD & SD Modern | 644 | 683 | 803 | 828 | 828 | ||||||||||||||||||||||||
| SD Legacy | 184 | 182 | 182 | 184 | 184 | ||||||||||||||||||||||||
| 1,656 | 1,684 | 1,804 | 1,840 | 1,840 | |||||||||||||||||||||||||
| Total | 2,852 | 2,867 | 2,987 | 3,036 | 3,036 | ||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | 1,012 | 959 | 926 | 920 | 920 | ||||||||||||||||||||||||
Total | 3,864 | 3,826 | 3,913 | 3,956 | 3,956 | ||||||||||||||||||||||||
(1)Represents the maximum number of days available in the period for the active fleet, calculated by multiplying the number of rigs in each asset category by the number of days in the period, for active rigs only. Active rigs are defined as rigs that are not preservation stacked.
19
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
OPERATING DAYS (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | 834 | 815 | 761 | 622 | 584 | ||||||||||||||||||||||||
| Semisubmersibles | 206 | 273 | 231 | 245 | 249 | ||||||||||||||||||||||||
| 1,040 | 1,088 | 992 | 867 | 833 | |||||||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 731 | 655 | 549 | 691 | 652 | ||||||||||||||||||||||||
| HD & SD Modern | 528 | 552 | 555 | 665 | 654 | ||||||||||||||||||||||||
| SD Legacy | 184 | 182 | 182 | 178 | 126 | ||||||||||||||||||||||||
| 1,443 | 1,389 | 1,286 | 1,534 | 1,432 | |||||||||||||||||||||||||
| Total | 2,483 | 2,477 | 2,278 | 2,401 | 2,265 | ||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||
| Leased and Managed Rigs | 1,012 | 959 | 926 | 920 | 920 | ||||||||||||||||||||||||
Total | 3,495 | 3,436 | 3,204 | 3,321 | 3,185 | ||||||||||||||||||||||||
(1)Represents the total number of days under contract in the period. Days under contract equals the total number of days that rigs have earned and recognized day rate revenue, including days associated with early contract terminations, compensated downtime and mobilizations. When revenue is deferred and amortized over a future period, for example when we receive fees while mobilizing to commence a new contract or while being upgraded in a shipyard, the related days are excluded from days under contract.
20
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
REVENUE EFFICIENCY (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | 98 | % | 99 | % | 94 | % | 88 | % | 89 | % | |||||||||||||||||||
| Semisubmersibles | 100 | % | 100 | % | 99 | % | 94 | % | 93 | % | |||||||||||||||||||
| 98 | % | 99 | % | 95 | % | 90 | % | 90 | % | ||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 93 | % | 99 | % | 100 | % | 99 | % | 99 | % | |||||||||||||||||||
| HD & SD Modern | 100 | % | 100 | % | 99 | % | 97 | % | 97 | % | |||||||||||||||||||
| SD Legacy | 100 | % | 100 | % | 100 | % | 97 | % | 99 | % | |||||||||||||||||||
| 96 | % | 99 | % | 99 | % | 98 | % | 98 | % | ||||||||||||||||||||
Total | 98 | % | 99 | % | 97 | % | 93 | % | 94 | % | |||||||||||||||||||
(1)Revenue efficiency is day rate revenue earned as a percentage of maximum potential day rate revenue.
21
| VALARIS LIMITED AND SUBSIDIARIES | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| As of | |||||||||||||||||||||||||||||
| NUMBER OF RIGS | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | ||||||||||||||||||||||||
Active Fleet (1) | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
| Drillships | 10 | 10 | 10 | 10 | 10 | ||||||||||||||||||||||||
| Semisubmersibles | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||||||||
| 13 | 13 | 13 | 13 | 13 | |||||||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 9 | 9 | 9 | 9 | 9 | ||||||||||||||||||||||||
| HD & SD Modern | 7 | 7 | 8 | 9 | 9 | ||||||||||||||||||||||||
| SD Legacy | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
| 18 | 18 | 19 | 20 | 20 | |||||||||||||||||||||||||
| Total Active Fleet | 31 | 31 | 32 | 33 | 33 | ||||||||||||||||||||||||
| Stacked Fleet | |||||||||||||||||||||||||||||
| Floaters | |||||||||||||||||||||||||||||
Drillships | 3 | 3 | 3 | 3 | 1 | ||||||||||||||||||||||||
| Semisubmersibles | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
| 5 | 5 | 5 | 5 | 3 | |||||||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
| HD & SD Modern | 6 | 6 | 5 | 5 | 5 | ||||||||||||||||||||||||
| 8 | 8 | 7 | 7 | 7 | |||||||||||||||||||||||||
| Total Stacked Fleet | 13 | 13 | 12 | 12 | 10 | ||||||||||||||||||||||||
Leased Rigs (2) | |||||||||||||||||||||||||||||
| Jackups | |||||||||||||||||||||||||||||
HD Harsh Environment | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||
| HD & SD Modern | 8 | 8 | 8 | 7 | 7 | ||||||||||||||||||||||||
| Total Leased Rigs | 9 | 9 | 9 | 8 | 8 | ||||||||||||||||||||||||
Total | 53 | 53 | 53 | 53 | 51 | ||||||||||||||||||||||||
Managed Rigs (2) | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
(1)Active fleet represents rigs that are not preservation stacked, including rigs that are in the process of being reactivated.
(2)Leased rigs and managed rigs included in Other reporting segment.
22
| ARO DRILLING | ||||||||||||||
| CONDENSED BALANCE SHEET INFORMATION | ||||||||||||||
| (In millions) | ||||||||||||||
(Unaudited) | ||||||||||||||
| As of | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
| Cash | $ | 129.3 | $ | 131.7 | $ | 69.5 | $ | 92.9 | $ | 110.3 | |||||||||||||||||||
| Other current assets | 129.4 | 157.8 | 198.3 | 184.0 | 191.2 | ||||||||||||||||||||||||
| Non-current assets | 1,223.3 | 1,214.4 | 1,094.2 | 1,081.0 | 915.3 | ||||||||||||||||||||||||
| Total assets | $ | 1,482.0 | $ | 1,503.9 | $ | 1,362.0 | $ | 1,357.9 | $ | 1,216.8 | |||||||||||||||||||
| Current liabilities | $ | 200.7 | $ | 173.2 | $ | 135.0 | $ | 136.0 | $ | 173.6 | |||||||||||||||||||
| Non-current liabilities | 1,176.9 | 1,172.2 | 1,057.6 | 1,056.8 | 886.2 | ||||||||||||||||||||||||
| Total liabilities | $ | 1,377.6 | $ | 1,345.4 | $ | 1,192.6 | $ | 1,192.8 | $ | 1,059.8 | |||||||||||||||||||
| Shareholders' equity | $ | 104.4 | $ | 158.5 | $ | 169.4 | $ | 165.1 | $ | 157.0 | |||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,482.0 | $ | 1,503.9 | $ | 1,362.0 | $ | 1,357.9 | $ | 1,216.8 | |||||||||||||||||||
| ARO DRILLING | ||||||||||||||
| CONDENSED INCOME STATEMENT INFORMATION | ||||||||||||||
| (In millions) | ||||||||||||||
(Unaudited) | ||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
| Revenues | $ | 113.7 | $ | 124.2 | $ | 138.3 | $ | 133.7 | $ | 121.5 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||
| Contract drilling (exclusive of depreciation) | 93.8 | 94.1 | 98.3 | 88.0 | 92.0 | ||||||||||||||||||||||||
Loss on impairment | 28.4 | — | — | — | — | ||||||||||||||||||||||||
| Depreciation | 21.1 | 19.7 | 19.0 | 19.5 | 15.8 | ||||||||||||||||||||||||
| General and administrative | 4.9 | 5.5 | 5.8 | 6.3 | 5.6 | ||||||||||||||||||||||||
| Operating income (loss) | $ | (34.5) | $ | 4.9 | $ | 15.2 | $ | 19.9 | $ | 8.1 | |||||||||||||||||||
| Other expense, net | 15.3 | 13.4 | 13.1 | 3.6 | 9.0 | ||||||||||||||||||||||||
| Provision (benefit) for income taxes | 4.2 | (1.8) | 3.7 | 6.0 | 0.4 | ||||||||||||||||||||||||
| Net income (loss) | $ | (54.0) | $ | (6.7) | $ | (1.6) | $ | 10.3 | $ | (1.3) | |||||||||||||||||||
ARO Adjusted EBITDA | $ | 15.0 | $ | 24.6 | $ | 34.2 | $ | 39.4 | $ | 23.9 | |||||||||||||||||||
ARO Drilling condensed balance sheet and income statement information presented above represents 100% of ARO. Valaris has a 50% ownership interest in ARO.
23
| ARO DRILLING | ||||||||||||||
| OPERATING STATISTICS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| As of | |||||||||||||||||||||||||||||
| (In millions) | Oct 30, 2024 | Jul 29, 2024 | Apr 30, 2024 | Feb 15, 2024 | Nov 1, 2023 | ||||||||||||||||||||||||
CONTRACT BACKLOG (1) | |||||||||||||||||||||||||||||
| Owned Rigs | $ | 1,236.9 | $ | 1,322.9 | $ | 1,398.9 | $ | 1,475.4 | $ | 1,547.0 | |||||||||||||||||||
Leased Rigs (2) | 344.4 | 510.4 | 583.3 | 662.7 | 743.7 | ||||||||||||||||||||||||
| Total | $ | 1,581.3 | $ | 1,833.3 | $ | 1,982.2 | $ | 2,138.1 | $ | 2,290.7 | |||||||||||||||||||
(1)Contract drilling backlog reflects commitments, represented by signed drilling contracts, and is calculated by multiplying the contracted day rate by the contract period. The contracted day rate excludes certain types of lump sum fees for rig mobilization, demobilization, contract preparation, as well as customer reimbursables and bonus opportunities.
(2)Leased rigs backlog as of July 29, 2024, included approximately $113 million related to the drilling contracts for VALARIS 147 and VALARIS 148, which previously received suspension notices from Saudi Aramco. The contracts were subsequently terminated and are no longer included in leased rigs backlog as of October 30, 2024.
| Three Months Ended | |||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
AVERAGE DAILY REVENUE (1) | |||||||||||||||||||||||||||||
| Owned Rigs | $ | 109,000 | $ | 104,000 | $ | 105,000 | $ | 100,000 | $ | 91,000 | |||||||||||||||||||
Leased Rigs (2) | 98,000 | 101,000 | 99,000 | 97,000 | 98,000 | ||||||||||||||||||||||||
| Total | $ | 103,000 | $ | 102,000 | $ | 102,000 | $ | 98,000 | $ | 95,000 | |||||||||||||||||||
UTILIZATION (3) | |||||||||||||||||||||||||||||
| Owned Rigs | 62 | % | 77 | % | 91 | % | 96 | % | 91 | % | |||||||||||||||||||
Leased Rigs (2) | 71 | % | 86 | % | 93 | % | 94 | % | 95 | % | |||||||||||||||||||
| Total | 66 | % | 82 | % | 92 | % | 95 | % | 93 | % | |||||||||||||||||||
REVENUE EFFICIENCY (4) | |||||||||||||||||||||||||||||
| Owned Rigs | 70 | % | 90 | % | 98 | % | 94 | % | 99 | % | |||||||||||||||||||
Leased Rigs (2) | 70 | % | 91 | % | 99 | % | 98 | % | 97 | % | |||||||||||||||||||
| Total | 70 | % | 91 | % | 98 | % | 96 | % | 98 | % | |||||||||||||||||||
NUMBER OF RIGS (AT QUARTER END) | |||||||||||||||||||||||||||||
| Owned Rigs | 9 | 9 | 8 | 8 | 7 | ||||||||||||||||||||||||
Leased Rigs (2) | 9 | 9 | 9 | 8 | 8 | ||||||||||||||||||||||||
| Total | 18 | 18 | 17 | 16 | 15 | ||||||||||||||||||||||||
AVAILABLE DAYS (5) | |||||||||||||||||||||||||||||
| Owned Rigs | 828 | 728 | 728 | 695 | 644 | ||||||||||||||||||||||||
Leased Rigs (2) | 828 | 765 | 744 | 736 | 736 | ||||||||||||||||||||||||
| Total | 1,656 | 1,493 | 1,472 | 1,431 | 1,380 | ||||||||||||||||||||||||
OPERATING DAYS (6) | |||||||||||||||||||||||||||||
| Owned Rigs | 510 | 561 | 664 | 668 | 585 | ||||||||||||||||||||||||
Leased Rigs (2) | 590 | 657 | 692 | 691 | 697 | ||||||||||||||||||||||||
| Total | 1,100 | 1,218 | 1,356 | 1,359 | 1,282 | ||||||||||||||||||||||||
(1)Average daily revenue is derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues, revenues earned during suspension periods, revenues attributable to amortization of drilling contract intangibles and lump-sum revenues and amortization thereof, by the aggregate number of operating days.
(2)All ARO leased rigs are leased from Valaris.
(3)Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the rig fleet.
(4)Revenue efficiency is day rate revenue earned as a percentage of maximum potential day rate revenue.
(5)Represents the maximum number of days available in the period for the rig fleet, calculated by multiplying the number of rigs in each asset category by the number of days in the period, irrespective of asset status.
(6)Represents the total number of days under contract in the period. Days under contract equals the total number of days that rigs have earned and recognized day rate revenue, including days associated with early contract terminations, compensated downtime and mobilizations. When revenue is deferred and amortized over a future period, for example when we receive fees while mobilizing to commence a new contract or while being upgraded in a shipyard, the related days are excluded from days under contract.
24
Non-GAAP Financial Measures (Unaudited)
To supplement Valaris’ condensed consolidated financial statements presented on a GAAP basis, this press release provides investors with Adjusted EBITDA, Adjusted EBITDAR and Free Cash Flow, which are non-GAAP measures.
Valaris defines "Adjusted EBITDA" as net income (loss) before income tax expense, interest expense, other (income) expense, depreciation expense, amortization, and equity in (earnings) losses of ARO. Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.
Valaris defines "Adjusted EBITDAR" as Adjusted EBITDA before reactivation costs. Adjusted EBITDAR is a non-GAAP measure that our management uses to assess the performance of our fleet excluding one-time rig reactivation costs. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance. Adjusted EBITDAR should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. Adjusted EBITDAR may not be comparable to other similarly titled measures reported by other companies.
Valaris defines "ARO Adjusted EBITDA" as ARO's net income (loss) before income tax expense, other expense, net, depreciation expense and loss on impairment. ARO Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of ARO's core operating performance and to evaluate ARO's long-term financial performance against that of ARO's peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of ARO's core operating performance and makes it easier to compare ARO's results with those of other companies within ARO's industry. ARO Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. ARO Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.
The Company is not able to provide a reconciliation of the Company's forward-looking Adjusted EBITDA, as discussed on its third quarter 2024 earnings conference call, to the most directly comparable GAAP measure without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation, including forward-looking tax expense and other income (expense).
Valaris defines "Free Cash Flow" as net cash provided by operating activities less capital expenditures. Free Cash Flow is a non-GAAP measure that our management uses to assess the cash generation of our fleet after paying operating expenses and capital expenditures to maintain and upgrade our assets. We believe that this measure is useful to investors and analysts in allowing for greater transparency of the cash generation of our business.
Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
25
Reconciliation of Net Income (Loss) to Adjusted EBITDA
A reconciliation of net income as reported to Adjusted EBITDA is included in the tables below (in millions):
| Three Months Ended | |||||||||||
| Sep 30, 2024 | Jun 30, 2024 | ||||||||||
| VALARIS | |||||||||||
| Net income | $ | 62.9 | $ | 150.8 | |||||||
| Add (subtract): | |||||||||||
| Income tax expense (benefit) | 24.3 | (30.0) | |||||||||
| Interest expense, net | 22.4 | 22.6 | |||||||||
| Other income | (14.7) | (34.5) | |||||||||
| Operating income | $ | 94.9 | $ | 108.9 | |||||||
| Add: | |||||||||||
| Depreciation expense | 31.7 | 29.7 | |||||||||
| Equity in losses of ARO | 23.8 | 0.3 | |||||||||
Adjusted EBITDA | $ | 150.4 | $ | 138.9 | |||||||
A reconciliation of net loss as reported to ARO Adjusted EBITDA is included in the tables below (in millions):
| Three Months Ended | |||||||||||
| Sep 30, 2024 | Jun 30, 2024 | ||||||||||
| ARO | |||||||||||
| Net loss | $ | (54.0) | $ | (6.7) | |||||||
| Add (subtract): | |||||||||||
| Income tax expense (benefit) | 4.2 | (1.8) | |||||||||
| Other expense, net | 15.3 | 13.4 | |||||||||
| Operating income (loss) | $ | (34.5) | $ | 4.9 | |||||||
| Add: | |||||||||||
| Depreciation expense | 21.1 | 19.7 | |||||||||
Loss on impairment | 28.4 | — | |||||||||
ARO Adjusted EBITDA | $ | 15.0 | $ | 24.6 | |||||||
26
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAR
| (In millions) | Three Months Ended | ||||||||||
| Sep 30, 2024 | Jun 30, 2024 | ||||||||||
| FLOATERS | |||||||||||
| Net income | $ | 126.8 | $ | 114.1 | |||||||
| Subtract: | |||||||||||
| Other income | (0.3) | (1.7) | |||||||||
| Operating income | $ | 126.5 | $ | 112.4 | |||||||
| Add (subtract): | |||||||||||
| Depreciation | 14.8 | 14.1 | |||||||||
| Other costs | — | (0.1) | |||||||||
Adjusted EBITDA (1) | $ | 141.3 | $ | 126.4 | |||||||
| Add: | |||||||||||
| Reactivation costs | 1.9 | 10.9 | |||||||||
Adjusted EBITDAR (1) | $ | 143.2 | $ | 137.3 | |||||||
| JACKUPS | |||||||||||
| Net income | $ | 45.7 | $ | 52.8 | |||||||
| Subtract: | |||||||||||
| Other income | (0.1) | (1.1) | |||||||||
| Operating income | $ | 45.6 | $ | 51.7 | |||||||
| Add: | |||||||||||
| Depreciation | 11.4 | 10.9 | |||||||||
Adjusted EBITDA (1) | $ | 57.0 | $ | 62.6 | |||||||
Adjusted EBITDAR (1) | $ | 57.0 | $ | 62.6 | |||||||
| OTHER | |||||||||||
| Net income | $ | 16.3 | $ | 18.3 | |||||||
| Add (subtract): | |||||||||||
| Other income | (0.9) | — | |||||||||
| Operating income | $ | 15.4 | $ | 18.3 | |||||||
| Add: | |||||||||||
| Depreciation | 2.9 | 2.5 | |||||||||
Adjusted EBITDA (1) | $ | 18.3 | $ | 20.8 | |||||||
Adjusted EBITDAR (1) | $ | 18.3 | $ | 20.8 | |||||||
(1)Adjusted EBITDA and EBITDAR excludes onshore support costs and general and administrative expense.
27
Reconciliation of Net Income (Loss) to Adjusted EBITDAR
| (In millions) | Three Months Ended | ||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
ACTIVE FLEET (1) | |||||||||||||||||||||||||||||
| Net income | $ | 186.8 | $ | 186.6 | $ | 80.8 | $ | 78.7 | $ | 57.5 | |||||||||||||||||||
| Subtract: | |||||||||||||||||||||||||||||
| Other income | (0.4) | (2.8) | (7.0) | (3.3) | (1.0) | ||||||||||||||||||||||||
| Operating income | $ | 186.4 | $ | 183.8 | $ | 73.8 | $ | 75.4 | $ | 56.5 | |||||||||||||||||||
| Add (subtract): | |||||||||||||||||||||||||||||
| Reactivation costs | 1.9 | 10.9 | 30.3 | 38.5 | 50.9 | ||||||||||||||||||||||||
Depreciation | 24.8 | 23.5 | 22.2 | 23.5 | 21.9 | ||||||||||||||||||||||||
Other | — | (0.1) | — | 0.1 | — | ||||||||||||||||||||||||
Adjusted EBITDAR (2) | $ | 213.1 | $ | 218.1 | $ | 126.3 | $ | 137.5 | $ | 129.3 | |||||||||||||||||||
LEASED AND MANAGED RIGS | |||||||||||||||||||||||||||||
| Net income | $ | 16.3 | $ | 18.3 | $ | 24.8 | $ | 22.1 | $ | 25.8 | |||||||||||||||||||
| Subtract: | |||||||||||||||||||||||||||||
| Other income | (0.9) | — | — | — | — | ||||||||||||||||||||||||
| Operating income | $ | 15.4 | $ | 18.3 | $ | 24.8 | $ | 22.1 | $ | 25.8 | |||||||||||||||||||
| Add (subtract): | |||||||||||||||||||||||||||||
Depreciation | 2.9 | 2.5 | 1.3 | 1.2 | 1.3 | ||||||||||||||||||||||||
Other | — | — | — | (0.1) | 0.1 | ||||||||||||||||||||||||
Adjusted EBITDAR (2) | $ | 18.3 | $ | 20.8 | $ | 26.1 | $ | 23.2 | $ | 27.2 | |||||||||||||||||||
STACKED FLEET | |||||||||||||||||||||||||||||
| Net loss | $ | (14.3) | $ | (19.7) | $ | (7.9) | $ | (8.3) | $ | (8.6) | |||||||||||||||||||
| Subtract: | |||||||||||||||||||||||||||||
| Other income | — | — | (0.1) | (0.1) | — | ||||||||||||||||||||||||
| Operating loss | $ | (14.3) | $ | (19.7) | $ | (8.0) | $ | (8.4) | $ | (8.6) | |||||||||||||||||||
| Add (subtract): | |||||||||||||||||||||||||||||
Depreciation | 1.4 | 1.5 | 1.4 | 2.7 | 2.5 | ||||||||||||||||||||||||
Other | — | — | — | (0.1) | 0.1 | ||||||||||||||||||||||||
Adjusted EBITDAR (2) | $ | (12.9) | $ | (18.2) | $ | (6.6) | $ | (5.8) | $ | (6.0) | |||||||||||||||||||
TOTAL FLEET | |||||||||||||||||||||||||||||
| Net income | $ | 188.8 | $ | 185.2 | $ | 97.7 | $ | 92.5 | $ | 74.7 | |||||||||||||||||||
| Subtract: | |||||||||||||||||||||||||||||
| Other income | (1.3) | (2.8) | (7.1) | (3.4) | (1.0) | ||||||||||||||||||||||||
| Operating income | $ | 187.5 | $ | 182.4 | $ | 90.6 | $ | 89.1 | $ | 73.7 | |||||||||||||||||||
| Add (subtract): | |||||||||||||||||||||||||||||
| Reactivation costs | 1.9 | 10.9 | 30.3 | 38.5 | 50.9 | ||||||||||||||||||||||||
Depreciation | 29.1 | 27.5 | 24.9 | 27.4 | 25.7 | ||||||||||||||||||||||||
Other | — | (0.1) | — | (0.1) | 0.2 | ||||||||||||||||||||||||
Adjusted EBITDAR (2) | $ | 218.5 | $ | 220.7 | $ | 145.8 | $ | 154.9 | $ | 150.5 | |||||||||||||||||||
(1)Active fleet represents rigs that are not preservation stacked and includes rigs that are in the process of being reactivated.
(2)Adjusted EBITDAR for active fleet, leased and managed rigs and stacked fleet excludes onshore support costs and general and administrative expense.
28
Reconciliation of Net Income (Loss) to Adjusted EBITDA
| (In millions) | Three Months Ended | ||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
DRILLSHIPS | |||||||||||||||||||||||||||||
| Net income (loss) | $ | 117.3 | $ | 79.6 | $ | 49.4 | $ | 4.7 | $ | (9.9) | |||||||||||||||||||
| Subtract: | |||||||||||||||||||||||||||||
| Other income | (0.3) | (1.5) | (6.2) | (2.0) | (0.6) | ||||||||||||||||||||||||
| Operating income (loss) | $ | 117.0 | $ | 78.1 | $ | 43.2 | $ | 2.7 | $ | (10.5) | |||||||||||||||||||
| Add (subtract): | |||||||||||||||||||||||||||||
Depreciation | 13.9 | 13.2 | 12.4 | 14.0 | 13.2 | ||||||||||||||||||||||||
| Other | — | (0.1) | — | — | 0.1 | ||||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 130.9 | $ | 91.2 | $ | 55.6 | $ | 16.7 | $ | 2.8 | |||||||||||||||||||
SEMISUBMERSIBLES | |||||||||||||||||||||||||||||
| Net income | $ | 9.5 | $ | 34.5 | $ | 14.7 | $ | 19.6 | $ | 24.4 | |||||||||||||||||||
| Subtract: | |||||||||||||||||||||||||||||
| Other income | — | (0.2) | (0.1) | (0.1) | — | ||||||||||||||||||||||||
| Operating income | $ | 9.5 | $ | 34.3 | $ | 14.6 | $ | 19.5 | $ | 24.4 | |||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||
| Depreciation | 0.9 | 0.9 | 0.8 | 1.0 | 1.0 | ||||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 10.4 | $ | 35.2 | $ | 15.4 | $ | 20.5 | $ | 25.4 | |||||||||||||||||||
(1)Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.
29
Reconciliation of Net Income to Adjusted EBITDA
| (In millions) | Three Months Ended | ||||||||||||||||||||||||||||
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | |||||||||||||||||||||||||
HD HARSH ENVIRONMENT | |||||||||||||||||||||||||||||
| Net income | $ | 24.8 | $ | 31.0 | $ | 0.4 | $ | 15.4 | $ | 15.4 | |||||||||||||||||||
| Add (subtract): | |||||||||||||||||||||||||||||
| Other (income) expense | 0.2 | (0.3) | (0.3) | (0.1) | (0.2) | ||||||||||||||||||||||||
| Operating income | $ | 25.0 | $ | 30.7 | $ | 0.1 | $ | 15.3 | $ | 15.2 | |||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||
Depreciation | 6.4 | 5.6 | 5.3 | 5.8 | 5.7 | ||||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 31.4 | $ | 36.3 | $ | 5.4 | $ | 21.1 | $ | 20.9 | |||||||||||||||||||
HD & SD MODERN JACKUPS | |||||||||||||||||||||||||||||
| Net income | $ | 17.6 | $ | 19.2 | $ | 6.4 | $ | 28.2 | $ | 17.7 | |||||||||||||||||||
| Subtract: | |||||||||||||||||||||||||||||
| Other income | (0.2) | (0.8) | (0.6) | (1.2) | (0.2) | ||||||||||||||||||||||||
| Operating income | $ | 17.4 | $ | 18.4 | $ | 5.8 | $ | 27.0 | $ | 17.5 | |||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||
Depreciation | 2.6 | 2.9 | 2.8 | 3.0 | 2.9 | ||||||||||||||||||||||||
| Other | — | — | — | 0.1 | — | ||||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 20.0 | $ | 21.3 | $ | 8.6 | $ | 30.1 | $ | 20.4 | |||||||||||||||||||
SD LEGACY JACKUPS | |||||||||||||||||||||||||||||
| Net income | $ | 3.3 | $ | 2.6 | $ | 2.0 | $ | 2.5 | $ | 1.3 | |||||||||||||||||||
| Add (subtract): | |||||||||||||||||||||||||||||
| Other (income) expense | (0.1) | — | 0.1 | — | — | ||||||||||||||||||||||||
| Operating income | $ | 3.2 | $ | 2.6 | $ | 2.1 | $ | 2.5 | $ | 1.3 | |||||||||||||||||||
| Add (subtract): | |||||||||||||||||||||||||||||
Depreciation | 2.4 | 2.4 | 2.3 | 2.4 | 1.6 | ||||||||||||||||||||||||
| Other | — | — | — | (0.1) | — | ||||||||||||||||||||||||
Adjusted EBITDA (1) | $ | 5.6 | $ | 5.0 | $ | 4.4 | $ | 4.8 | $ | 2.9 | |||||||||||||||||||
(1)Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.
30
Reconciliation of Cash from Operating Activities to Free Cash Flow
| (In millions) | Three Months Ended | ||||||||||
| Sep 30, 2024 | Jun 30, 2024 | ||||||||||
| Net cash provided by operating activities | $ | 193.0 | $ | 11.5 | |||||||
| Additions to property and equipment | (81.9) | (110.2) | |||||||||
Free cash flow | $ | 111.1 | $ | (98.7) | |||||||
31