Valaris(NYSE) VAL

Valaris Limited drills for fuel under the ocean floor. It helps energy companies find oil in various water depths. Its rigs ensure a steady supply of global energy.

Drilling Across the Depths

• Floaters: High-specification drillships and semisubmersible rigs used for complex deepwater drilling; earned $471.6 million in revenue for the six-month period ended June 30, 2026.
• Jackups: Rigs with legs that rest on the seafloor used in shallower water; earned $379.2 million in revenue for the six-month period ended June 30, 2026.
• ARO Joint Venture: A 50/50 partnership with Saudi Aramco that operates jackup rigs in Saudi Arabia; contributed $17.4 million in equity earnings for the six-month period ended June 30, 2026.
• Other Services: Operation and maintenance of third-party rigs and leasing through bareboat charters; earned $81.6 million in revenue for the six-month period ended June 30, 2026.

Strategic Moves and Asset Sales

• Entered a business combination agreement with Transocean on Feb. 9, 2026, to create a larger combined offshore drilling company.
• Sold the VALARIS 104 jackup rig for $40.0 million in April 2026 to monetize noncore assets for alternative use.
• Completed the sale of the VALARIS 109 jackup rig for $34.0 million in July 2026 as part of a strategy to reduce holding costs.
• Ordered the fourth newbuild jackup rig, Kingdom 4, for the ARO joint venture in Nov. 2025 to expand operations in the Middle East.

Global Fleet and Partnerships

Valaris maintains one of the largest offshore drilling fleets in the world, with a significant concentration of advanced seventh-generation drillships. Its strategic partnership in Saudi Arabia provides long-term stability through dedicated contracts with a national oil company.

Performance by the Numbers

• Total operating revenue reached $1.0 billion for the six-month period ended June 30, 2026, down 19% year over year.
• Net income attributable to the company was $34.0 million for the six-month period ended June 30, 2026, down 56% year over year.
• Contract drilling backlog reached $4.6 billion as of Aug. 5, 2026, representing future revenue from signed drilling commitments.
• The company reported a market capitalization of $5.3 billion and a P/E ratio of 24.9 for the second quarter of 2026.

The Path Ahead

Valaris is focusing its operations on high-specification floaters and premium jackup rigs while preparing for a major merger with Transocean. This strategic evolution aims to improve capital efficiency and strengthen its competitive position in the cyclical offshore drilling market.