Valaris Ltd reported significant financial growth in its third quarter and the first nine months of 2024, driven by increased operating revenues and improved profitability. For Q3 2024, operating revenues reached $643.1 million, a substantial increase from $455.1 million in Q3 2023. For the nine months ended September 30, 2024, revenues totaled $1,778.2 million, up from $1,300.4 million in the same period of 2023, marking a 37% increase.
Operating expenses also rose, totaling $524.4 million for Q3 2024 compared to $440.9 million in Q3 2023, and $1,523.4 million for the nine months ended September 30, 2024, versus $1,290.2 million in the prior year. Despite the increase in expenses, operating income surged to $94.9 million in Q3 2024, up from $16.6 million in Q3 2023, and $233.1 million for the nine-month period, compared to $15.2 million in 2023.
Net income for Q3 2024 was $62.9 million, significantly higher than $17.0 million in Q3 2023. For the nine months ended September 30, 2024, net income reached $239.2 million, compared to $38.3 million in the same period last year. Basic earnings per share for Q3 2024 were $0.89, up from $0.18 in Q3 2023, while for the nine months, it increased to $3.31 from $0.40.
The company’s cash and cash equivalents decreased to $379.3 million as of September 30, 2024, down from $620.5 million at the end of 2023. However, accounts receivable increased to $555.8 million, up from $459.3 million at year-end 2023. Total liabilities decreased to $2,209.6 million from $2,325.2 million, while total equity rose to $2,123.8 million from $1,997.0 million.
Strategically, Valaris continues to invest in its fleet, with capital expenditures projected between $465 million and $475 million for 2024, primarily for maintenance and upgrades. The company has also authorized a share repurchase program of up to $600 million, with approximately $300 million remaining available for repurchases as of September 30, 2024.
Valaris operates through four segments: Floaters, Jackups, ARO, and Other, with Floaters and Jackups being the primary revenue contributors. The company’s joint venture, ARO, has ordered additional newbuild jackup rigs, further enhancing its operational capacity. The overall outlook for the offshore drilling market remains positive, supported by stable oil prices and improved rig utilization rates.
About Valaris Ltd
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