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    Valaris clears stacked vessels from its books

Summary

The backlog hints at renewed growth for OSV companies in light of the war in Ukraine.

by: Callum Cyrus

Posted in:

Complimentary, Natural Gas & LNG News, Europe, Corporate, News By Country, United Kingdom

Valaris clears stacked vessels from its books

London-headquartered rig contractor Valaris has three fewer stacked oil and gas rigs on its books than in February, the company said on May 2.

It now has only one idle heavy-duty jackup in its modern fleet, down from five in February, and also cleared off the last remaining legacy standard jackup from its stacked register.

The backlog update hints at the renewed growth for drilling companies as the industry takes stock of events in Ukraine, with the war expected to create tighter markets for oil and gas over the remainder of this year at least, and possibly well into 2023.

By 2024 Valaris's contract backlog is forecast to reach $1.1bn, from $965mn this year, with drillships and floating vessels accounting for $638.8mn and $727.9mn by the end of the forecast period.

Valaris posted its first quarter financial update on May 2. It recorded a $40mn net loss, compared with a $28mn profit in the fourth quarter of last year. Increased jackup bookings lifted its quarterly revenues to $318mn from $306mn in October - December 2021, and Valaris said it had also recorded above-trend day rates across its other drilling segments.