Valaris Awarded Multi-million Contracts; Backs 2023 Revenue View In Line With Estimates

(RTTNews) - Valaris Limited (VAL), an offshore drilling contractor, on Monday announced the award of multi-million contracts after its fleet status report on February 21.

It bagged a $500 million, three year contract with Petrobras, for drillship VALARIS DS-8.

The contract, focused on the reactivation of the rig, includes a $30 million mobilization fee.

The drilling firm noted that it has another 70-day around $26 million contract with Beach Energy offshore New Zealand, for heavy duty modern jackup VALARIS 107.

The contract is expected to commence in third quarter.

In addition, the company has announced a 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. This contract is projected to begin in the second quarter.

For full year, the company still expects revenue of $1.8 billion - $1.9 billion. Seven analysts, on average, polled by Thom Reuters expect the firm to post revenue of $1.8 billion, for the year. For the 12-month period, Valaris projects its capital expenditure to increase by $60 million to $320 million to $360 million.