VAL - Valaris signs $500M drillship deal with Petrobras; maintains full-year guidance

2023-03-06 09:25:09 ET

Valaris ( NYSE: VAL ) +2.5% pre-market Monday after reporting new contract awards and issuing updated guidance.

The offshore drilling contractor said it signed a three-year contract with Petrobras ( PBR ) for drillship Valaris DS-8 valued at ~$500M, a 100-day contract with a TotalEnergies affiliate for drillship Valaris DS-12, and a 70-day contract with Beach Energy offshore New Zealand for jackup Valaris 107.

As a result of the Valaris DS-8 contract, the company expects Q1 drilling expense will increase by ~$5M to $385M-$395M, and Q1 EBITDA will decrease by ~$5M to negative $5M to breakeven.

For FY 2023, Valaris ( VAL ) maintains guidance for revenues of $1.8B-$1.9B and adjusted EBITDAR of $280M-$320M; full-year capital spending is expected to increase by $60M to $320M-$360M.

After Friday's close, Standard & Poor's said Valaris ( VAL ) will move into the S&P MidCap 400 index .

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