Strong Revenue Efficiency and Financial Performance
Valaris delivered strong operational and financial performance with a revenue efficiency of 96%, contributing to adjusted EBITDA of $201 million and adjusted free cash flow of $63 million for the quarter.
Significant Contract Awards
Valaris secured more than $1 billion in new contract backlog since the first quarter, increasing the total backlog to approximately $4.7 billion. Notably, $860 million was added in drillship backlog at average day rates above $400,000.
Safety Achievements
The company completed the first half of the year without a single Lost Time Incident. Several rigs reached significant safety milestones, including VALARIS DS-10 with two years without a recordable incident.
Positive Market Outlook
The offshore drilling market remains strong with expectations for increased deepwater project sanctioning in 2026 and 2027. The majority of these projects have breakeven prices below $50 per barrel.
Jackup Fleet Performance
Valaris reported robust contract coverage for its jackup fleet, with more than 70% of available days for active rigs contracted in 2026 and 60% in 2027.
Positive Financial Guidance
Valaris increased its full-year 2025 adjusted EBITDA guidance to $565 million to $605 million from the previous range of $500 million to $560 million.