Valaris Limited reported a slight decline in total revenues for the fiscal year ending December 31, 2025, with figures reaching $2.37 billion, a marginal increase from $2.36 billion in 2024. The company experienced a decrease in operating days due to the completion of contracts for certain floaters, which were either warm stacked or retired. However, this was partially offset by an increase in average daily revenues, particularly from rigs operating under higher day rate contracts. Operating income rose significantly to $477 million, up 35% from $352 million in the previous year, while net income attributable to Valaris surged to $982.8 million, compared to $373.4 million in 2024, largely due to a substantial deferred tax benefit.
In terms of operational metrics, Valaris maintained a total fleet of 46 rigs, including 13 drillships and 31 jackup rigs, as of December 31, 2025. The company reported a total rig utilization rate of 65%, with active fleet utilization at 87%. The average daily revenue for floaters increased to $386,000, while jackups saw an increase to $138,000. The company’s backlog of contract drilling revenue stood at approximately $4.67 billion, reflecting a significant increase from $3.61 billion in the previous year, driven by new contract awards and extensions.
Strategically, Valaris announced a business combination agreement with Transocean Ltd. on February 9, 2026, under which Transocean will acquire all outstanding common shares of Valaris in an all-stock transaction valued at approximately $5.8 billion. This transaction is subject to customary closing conditions, including shareholder approvals and regulatory clearances. The agreement stipulates that Valaris shareholders will receive 15.235 shares of Transocean for each Valaris share, resulting in a combined ownership structure of approximately 53% for Transocean shareholders and 47% for Valaris shareholders.
The company’s workforce comprised approximately 5,070 individuals, including contractors, as of December 31, 2025. Valaris continues to focus on enhancing its operational efficiency and maintaining a diverse and skilled workforce to support its global operations across various offshore markets. The company also reported a significant increase in cash and cash equivalents, totaling $599.4 million, up from $368.2 million in 2024, providing a solid liquidity position to support ongoing operations and strategic initiatives.
Looking ahead, Valaris anticipates continued demand for offshore drilling services, particularly in deepwater projects, despite current market volatility. The company expects to invest between $425 million and $475 million in capital expenditures during 2026, primarily for maintenance and upgrades of its drilling rigs. The outlook remains cautiously optimistic, with expectations of increased project sanctioning in the offshore sector over the next few years, driven by a need for sustained investment in oil and gas to ensure reliable energy supply.
About Valaris Ltd
Valaris Limited is a global offshore contract drilling company providing drilling services to the oil and gas industry. It owns the world's largest fleet of rigs, including drillships, semisubmersibles, and jackups, serving major international markets. The company operates on a day rate contract basis, offering integrated drilling solutions with a focus on safety, operational excellence, and sustainability in a cyclical, competitive industry.
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