The following is a summary of the Valaris Limited (VAL) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Valaris began 2024 with robust Q1 performance and adjusted EBITDA at $54 million.

• Q1 revenue stood at $525 million, an increase from $484 million in the previous quarter.

• Valaris has total liquidity of $884 million at the end of the quarter, including cash and cash equivalents and a full availability of $375 million revolving credit facility.

• Q2 total revenues are expected to be within the range of $580 million to $600 million, with contract drilling expense projected between $460 million and $470 million.

• 2024 capital expenditures will likely be between $420 million and $460 million.

• The company returned $200 million to shareholders through a share repurchase program last year.

Business Progress:

• Significant safety and operational milestones were achieved, complemented by efficiently executed rig reactivation projects.

• The company's backlog increased consistently for six quarters, reaching over $4 billion.

• Anticipating an influx of offshore work in 2025 and 2026, customer demand presents promising opportunities for earnings and cash flow growth.

• With a focus on active rig utilization and optimal contract economics, Valaris expects increased contract awards throughout the year.

• Market conditions for offshore drilling are favourable, driven by rising oil prices that can likely boost demand and rates.

• The existing revenue commitments underpin 97% of expected revenue for 2024.

• Valaris signals increased activity in Africa, the Mediterranean, and Southeast Asia, with several marketing opportunities for DPS-5 drillship internationally.

• Company projects strong customer demand, particularly for the second half of 2025, and plans on more floater reactivations.

More details: Valaris IR

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