EQNR - Valaris hit with drillship contract termination

Valaris (NYSE:VAL) said Wednesday that Equinor (EQNR) delivered a termination notice for the drilling contract that had been awarded to its DS-11 drillship, effective at the end of June. Valaris (VAL) said its $2.5B total contract backlog as of May 2 included $428M related to the DS-11 contract. The company said it will receive an early termination fee that is "more than sufficient" to cover expenses and commitments it incurred on the project. "The floater market and dayrates have improved meaningfully since this contract was entered into in July 2021, and we expect there will be other attractive projects for a high specification drillship like Valaris DS-11 with similar or earlier commencement dates," the company said. Valaris (VAL) recently reported a Q1 GAAP loss of $0.51/share on revenues of $318M.

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Valaris hit with drillship contract termination