Valaris Limited Reports Q2 2025 Financial Results with $615.2M in Revenues

Valaris Limited reported its financial results for the second quarter of 2025, revealing total operating revenues of $615.2 million, a slight increase from $610.1 million in the same quarter of 2024. For the first half of 2025, revenues reached $1.236 billion, up from $1.135 billion year-over-year. The company’s operating income for the quarter was $164.1 million, compared to $108.9 million in the prior year, while net income attributable to Valaris was $115.1 million, down from $149.6 million in the same quarter of 2024. The decrease in net income was attributed to higher tax provisions and lower interest income.

In terms of operational performance, Valaris experienced a decrease in contract drilling expenses, which fell to $395.7 million from $438.7 million in the previous year’s quarter. This reduction was primarily due to lower costs associated with retired rigs and a partial reversal of a previously accrued legal matter. The company also reported a loss on impairment of $7.8 million related to the retirement of three semisubmersible rigs, which were sold for recycling in April 2025. The total number of rigs in Valaris' fleet as of June 30, 2025, was 49, with 37 actively operating.

Strategically, Valaris has been focusing on optimizing its fleet and enhancing shareholder value through asset divestitures. The company entered into an agreement to sell the VALARIS 247 rig for approximately $108 million, with a pre-tax gain expected upon completion of the sale in the second half of 2025. Additionally, Valaris sold VALARIS 75 for net proceeds of $24 million earlier in the year. The company continues to manage its operations in a challenging market environment, with ongoing discussions for new contracts and extensions.

Geographically, Valaris has maintained a diverse operational footprint, with significant activities in regions such as Brazil, the Gulf of America, and the United Kingdom. The company reported a total of 49 rigs, including 15 floaters and 27 jackups, with a utilization rate of 68% across its fleet. The average daily revenue for floaters was reported at $377,000, while jackups generated an average of $142,000 per day. The company’s cash and cash equivalents stood at $503.4 million as of June 30, 2025, reflecting a solid liquidity position.

Looking ahead, Valaris anticipates continued volatility in the offshore drilling market, influenced by macroeconomic factors and fluctuating oil prices. The company remains committed to its strategic initiatives, including potential acquisitions and capital expenditures estimated between $375 million and $415 million for 2025, primarily focused on maintenance and upgrades. Valaris is also monitoring its joint venture with Saudi Aramco, which is expected to play a significant role in its future growth and operational strategy.