Valaris Q2 revenue rises 16% net income returns to profit

Valaris

05/08/2026 22:18

Overview
Offshore drilling contractor's Q2 revenue rose 16% yr/yr to $539 mln
Q2 net income was $47 mln, reversing a loss in the prior quarter
Adjusted EBITDA reached $97 mln, impacted by $30 mln in Middle East conflict costs

Outlook
Valaris expects financial performance to improve in the second half of 2026
Company expects adverse impacts from Middle East conflicts to moderate in H2 2026
Valaris expects robust deepwater contract opportunities and further industry awards

Result Drivers
DRILLSHIP STARTUPS - Revenue growth was driven by the startup of VALARIS DS-12 and DS-10 on new contracts, increasing operating days for the floater fleet
MIDDLE EAST CONFLICT COSTS - Ongoing conflicts in the Middle East negatively impacted Adjusted EBITDA by about $30 mln, mainly due to higher insurance costs and project delays
ASSET SALES AND BAD DEBT RECOVERY - Results benefited from a gain on asset sales and the reversal of a previously recognized bad debt expense

Company press release: ID:nBw2W3bPya

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
$47 mln
 
Q2 Adjusted EBITDA
 
$97 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the oil & gas drilling peer group is "buy."
Wall Street's median 12-month price target for Valaris Ltd is $70.00, about 10.4% below its August 4 closing price of $78.14
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
Aug 3 - Tidewater Q2 net income drops on higher costs; updates revenue, margin guidance
Aug 5 - ShaMaran Petroleum Q2 revenue falls on field shut-ins due to regional security concerns, the Iran war
Aug 4 - Canada's PHX Energy Q2 revenue rises to record high on increased drilling activity

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)