DDRLF - Valaris: Little If Any Hope Left As Company Expects More Contract Terminations And Rate Renegotiations

Valaris DS-7

Earlier this month, Valaris (VAL) shocked the market when it announced that its drillship Valaris DS-8 lost its blowout preventer (BOP) which has dropped to the seabed floor. At that time, the company indicated that it expected a $150 million EBITDA hit in case the customer, Total (TOT), terminated the contract but mentioned that it had insurance in place. Not surprisingly, the news dealt an additional blow to the already weak Valaris shares.

The company has just provided additional news on the issue, as well as news on additional