Valaris Reports Lower Q4 Revenues, Reaffirms Guidance Despite Challenges
May 5, 2023
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Valaris ($NYSE:VAL) (NYSE:V) recently reported lower revenues for their fourth quarter, despite persistent challenges. According to the company’s earnings report, the decrease in revenue was mostly driven by lower utilization in the offshore drilling market and a decrease in the average day rate. Valaris is a leading offshore drilling contractor providing offshore drilling and related services to major energy companies and operators worldwide. The company remains committed to developing and deploying the latest technology and safety systems in order to provide its customers with the highest quality service.
Earnings
VALARIS LIMITED recently released their earnings report for the first quarter of the 2023 fiscal year ending March 31. The report showed total revenue of 430.1 million USD and net income of 46.7 million USD. This represents a 35.1% increase in total revenue and a 221.0% decrease in net income compared to the same period last year. Despite the challenges posed by the current economic climate, VALARIS LIMITED has reaffirmed its guidance for the upcoming quarters and remains optimistic about its potential to continue growing.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Valaris Limited. More…
| Total Revenues | Net Income | Net Margin |
| 1.71k | 261.8 | 17.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Valaris Limited. More…
| Operations | Investing | Financing |
| 278.7 | -35.7 | -6.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Valaris Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.95k | 1.6k | 17.16 |
Key Ratios Snapshot
Some of the financial key ratios for Valaris Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.9% | – | 19.3% |
| FCF Margin | ROE | ROA |
| 3.1% | 16.1% | 7.0% |
Share Price
Despite the recent news, stock opened on Wednesday at $55.3 and closed at $55.4, down 2.6% from the previous closing price of 56.9. Live Quote…
Analysis
GoodWhale has been monitoring the wellbeing of VALARIS LIMITED, and the results of our analysis are in. According to our Risk Rating, VALARIS LIMITED is assessed as a high risk investment, due to various factors in both financial and business aspects. Our analysis has detected two risk warnings in the income sheet and cashflow statement, and we advise potential investors to register on GoodWhale.com to view these alerts in more detail. Furthermore, our analysis also looks at various other metrics such as liquidity, leverage, and corporate governance to provide a holistic understanding of the company’s financials. We hope this helps you make an informed decision about investing in VALARIS LIMITED. More…
Peers
Valaris Ltd. is an offshore drilling contractor that provides drilling and related services to the oil and gas industry. The company operates a fleet of offshore drilling rigs and is headquartered in London, the United Kingdom. Select Energy Services Inc, Transocean Ltd, and Tetra Technologies Inc are all competitors of Valaris Ltd.
– Select Energy Services Inc ($NYSE:WTTR)
As of 2022, Select Energy Services Inc has a market cap of 988.86M and a Return on Equity of 2.29%. The company provides oilfield services and products to exploration and production companies in the United States and Canada. Select Energy Services Inc was founded in 2007 and is headquartered in Houston, Texas.
– Transocean Ltd ($NYSE:RIG)
Transocean Ltd is a Swiss-based international provider of offshore contract drilling services for oil and gas wells. The company has a market cap of 3.11B as of 2022 and a Return on Equity of -0.26%. Transocean’s primary business is offshore contract drilling, and it is one of the largest providers of offshore contract drilling services in the world. The company’s fleet consists of 63 rigs, including 27 ultra-deepwater rigs, 30 deepwater rigs and six high-specification jackups.
– Tetra Technologies Inc ($NYSE:TTI)
Tetra Technologies Inc is a North American oil and gas services company. They provide services to both onshore and offshore oil and gas projects. Their services include drilling, completion, and production services. They also have a presence in the oilfield chemicals market.
Summary
Valaris Limited (NYSE: V) is a leading offshore drilling company, providing services to both shallow and deepwater customers. Investors may find this encouraging, as it suggests the company is confident in its ability to weather the current market turbulence. Valaris has long been seen as a reliable stock, with a diversified portfolio of assets that have been resilient to industry downturns.
The company has made smart investments in its fleet, ensuring that it remains up-to-date with the latest technologies. With its strong financials, a solid balance sheet, and a secular tailwind in the form of increasing global demand for offshore drilling services, Valaris is well-positioned for growth going forward.
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