REFILE-Valaris reports Q2 net income of $114 mln, beats adjusted EBITDA estimates

Overview

• Valaris Q2 net income $114 mln, a turnaround from Q1 net loss

• Adjusted EBITDA of $201 mln beats expectations

• Company secured $1 bln in new contracts, boosting backlog to $4.7 bln

Outlook

• Valaris anticipates additional awards across the industry in coming months

• Company sees pipeline of floater opportunities converting into contracts

• Valaris highlights high-specification fleet for future opportunities

• Company emphasizes readiness to deliver long-term shareholder value

Result Drivers

• CONTRACT BACKLOG - Valaris secured over $1 bln in new contracts, increasing total backlog to approximately $4.7 bln

• REVENUE EFFICIENCY - Achieved revenue efficiency of 96%, contributing to strong operational performance

• FLEET UTILIZATION - Secured contracts for three 7th generation drillships, demonstrating fleet quality and operational strength

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas drilling peer group is "buy"

• Wall Street's median 12-month price target for Valaris Ltd is $50.00, about 1.9% below its July 29 closing price of $50.94

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBwlMV7Ka