- Company to sell two cold-stacked jackup rigs to ADES for aggregate sales proceeds of $125 million.
- Divestiture will help offset elevated rig reactivation costs expected for the first half of this year while reducing operating expenses by an estimated $3.5 million annually.
- Transaction likely to result in Valaris reporting an approximately $1.60 per share one-time gain in Q2.
- Unlike competitors, the company is going to keep a very strong presence in Saudi Arabia through its 50:50 ARO Drilling joint venture with Saudi Aramco.
- Investors should continue to prefer restructured offshore drillers like Valaris, Noble Corporation, Diamond Offshore, and Seadrill over debt-laden peers Borr Drilling and Transocean.
For further details see:
Valaris: Jackup Sale To ADES Is Great News