Valaris Q4 Revenues Slide Sequentially Reflecting Lower Utilization; Reaffirms Guidance - Valaris (NYSE:VAL)

Valaris Ltd VAL reported Q1 2023 revenues of $430.1 million, up from $318.4 million a year ago and beating the consensus of $408.4 million.
Excluding reimbursable items, revenues decreased to $408 million in Q1 2023 from $413 million in Q4 2022 due to lower utilization for the harsh environment jackup fleet.
In Q1, the company got new contracts and extensions, with an associated contract backlog of around $820 million, increasing to $2.8 billion.
Contract drilling expenses stood at $377 million (vs. $353 million in Q4 2022), with higher repair and maintenance expenses related to special periodic surveys and increased reactivation costs.
Adjusted EBITDA stood at $24.3 million vs. adjusted loss of $30.9 million a year ago.
EPS of $0.61 surpassed the consensus loss of $(0.35).
Capital expenditures increased to $56 million in Q1 from $54 million in Q4 2022.
Repurchase: The Board of Directors authorized an increase in the share repurchase program to $300 million in April 2023 and intends to repurchase shares worth $150 million by the end-2023.
VAL announced Mohamed Hegazi as the new CEO of ARO Drilling, its 50/50 joint venture with Saudi Aramco, effective immediately.
2023 Outlook Reiterated: The company expects revenues of $1.8 billion-$1.9 billion (consensus of $1.80 billion), adjusted EBITDA of $180 million-$220 million, contract drilling expense of $1.49 billion-$1.59 billion and capital expenditures of $320 million-$360 million.
Price Action: VAL shares are trading lower by 6.05% at $55.97 on the last check Tuesday.

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