Valaris ( NYSE: VAL ) +4.8% post-market after saying it received a $40M payment from its ARO Drilling joint venture, representing a partial early repayment of its shareholder notes receivable.
"ARO is an important strategic asset for Valaris, providing a unique partnership with the largest customer for jackups in the world," Valaris ( VAL ) President and CEO Anton Dibowitz said. "We are excited by ARO's growth prospects over the next several years through its 20-rig newbuild program, backed by attractive long-term contracts with Saudi Aramco."
Dibowitz said ARO is exploring financing options for its newbuild rigs and expects financing to be secured prior to delivery of the first two newbuilds in H1 2023.
"The partial early repayment of our shareholder notes demonstrates ARO's confidence that the newbuild rigs will be financed by third-party financing and cash from ARO operations," and not from Valaris ( VAL ) or Aramco, Dibowitz said.
Last week, Valaris ( VAL ) disclosed new contracts and extensions with associated contract backlog of $149M .
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Valaris secures $40M payment from ARO Drilling joint venture