Top-News

Die Bullen starten durch – spektakuläre Kursgewinne möglich(Anzeige)

Donnerstag, 20.02.2020 19:36 von PR Newswire | Aufrufe: 246

Valaris plc Reports Fourth Quarter and Full-Year 2019 Results

pixabay.com

PR Newswire

LONDON, Feb. 20, 2020

LONDON, Feb. 20, 2020 /PRNewswire/ -- Valaris plc (NYSE: VAL) ("Valaris" or the "Company") today reported a net loss attributable to the Company of $216 million, or $1.09 per share, for fourth quarter 2019 compared to a net loss of $197 million, or $1.00 per share, in third quarter 2019. The Company reported adjusted EBITDA of $22 million in fourth quarter 2019 compared to $35 million in third quarter 2019, and an adjusted loss of $1.55 per share in fourth quarter 2019 versus an adjusted loss of $1.27 per share in the prior quarter.

Valaris Verticle Logo (PRNewsfoto/Valaris plc)

Chief Executive Officer and President Tom Burke said, "Last year was pivotal in the company's evolution as an industry-leading offshore services provider. In April, we merged two leading offshore drillers to form Valaris and committed to delivering meaningful ongoing synergies from the combination. We made great strides to integrate the company in the months that followed, including completing the majority of our planned integration activities that have resulted in the company reaching approximately $135 million of annual run rate synergies by year-end 2019. Most importantly, we continued to deliver safe, efficient and reliable services to customers in 2019 – with 98% operational utilization across the fleet and safety performance significantly better than the industry – while achieving these integration and synergy milestones, which is a testament to the hard work and professionalism of our dedicated employees around the world."

Burke concluded, "We also enjoyed commercial success, signing new contracts that added $1.8 billion to our contracted revenue backlog during the year, reflecting the success of our team's efforts to win new work for our rigs in improving, albeit still challenging, market conditions. We have carried this contracting momentum into 2020 with the addition of incremental backlog and we are in advanced discussions with customers for several new contracts. While our diverse, high-quality modern rig fleet and technical expertise position us well to continue adding future backlog, we expect to report losses and have negative cash flows during 2020 despite gradual improvement in utilization and average day rates for Valaris' fleet."

Fourth Quarter Results

Revenues declined to $512 million in fourth quarter 2019 from $551 million in the prior quarter primarily due to the sale of VALARIS 5006, which operated during third quarter 2019. Fewer rig operating days across the broader fleet also contributed to lower revenues and a three percentage point decline in utilization to 61% from 64% in the prior quarter.

Contract drilling expense declined to $477 million in fourth quarter 2019 from $497 million in the prior quarter primarily due to the sale of VALARIS 5006 and lower costs for uncontracted floaters. This was partially offset by $11 million of merger transaction costs and $6 million of non-recurring charges for certain local employee benefits included in fourth quarter 2019 contract drilling expense, as compared to $8 million of merger transaction costs in third quarter 2019.

ARIVA.DE Börsen-Geflüster

Kurse

Valaris PLC

0,00%

Fourth quarter 2019 results included a non-cash asset impairment charge of $13 million related to VALARIS JU-70, which has been classified as held-for-sale and is expected to be retired from the global drilling fleet, and lease impairment charges for legacy company facilities. Third quarter 2019 results included an $88 million impairment charge related to VALARIS 5006.

Depreciation expense of $164 million in fourth quarter 2019 was in line with the prior quarter. General and administrative expense increased to $42 million from $36 million in the prior quarter mostly due to $4 million of professional fees associated with the Company's discussions with a significant shareholder on a matter that was resolved in first quarter 2020. Fourth quarter 2019 general and administrative expense also included $8 million of merger transaction costs, in line with the prior quarter.

Other income was $42 million in fourth quarter 2019 compared to $40 million in the third quarter. The sequential quarter comparison was influenced by $200 million of other income related to a payment received from Samsung Heavy Industries ("SHI") and $20 million of other expense associated with a dispute with a legacy company partner in the Middle East that were included in fourth quarter 2019 results. Additionally, there was a $23 million loss in fourth quarter 2019 from an adjustment to bargain purchase gain related to the merger compared to a $53 million loss in third quarter 2019 from an adjustment to bargain purchase gain. The adjustment to bargain purchase gain reflects changes in the estimated fair values of certain assets and liabilities, primarily related to long-lived assets, deferred income taxes and uncertain tax positions. Third quarter 2019 other income also included a $194 million gain resulting from the repurchase of senior notes. Interest expense in fourth quarter 2019 was $115 million, net of $1 million of interest that was capitalized, compared to interest expense of $114 million in third quarter 2019, net of $6 million of interest that was capitalized.

Tax expense increased to $63 million in fourth quarter 2019 from $2 million in the prior quarter. The fourth quarter 2019 tax provision included $21 million of discrete tax expense due to the resolution of prior year tax matters, rig sales and the SHI settlement, compared to $18 million of discrete tax benefit in third quarter 2019 mostly due to the impairment charge noted above. Adjusted for discrete items, tax expense increased $22 million on a sequential-quarter basis mostly due to changes in the estimate of taxable income across operating jurisdictions during the year in addition to valuation allowances on certain deferred tax assets recorded during fourth quarter 2019.

Segment Highlights

Floaters

Floater revenues declined to $216 million in fourth quarter 2019 from $270 million in the prior quarter. The sequential quarter decline was primarily due to VALARIS 5006, VALARIS DPS-1, VALARIS DS-15 and VALARIS DS-4 completing contracts during the third and fourth quarters. Average day rates declined to $205,000 from $215,000 in the third quarter and utilization declined by six percentage points to 42%. Adjusted for uncontracted rigs and planned downtime, operational utilization was 97% compared to 94% in the prior quarter.

Contract drilling expense declined to $217 million from $250 million in third quarter 2019 primarily due to the sale of VALARIS 5006, lower mobilization costs and disciplined cost management for rigs during uncontracted periods.

Jackups

Jackup revenues increased to $231 million in fourth quarter 2019 from $218 million in the prior quarter primarily due to contract startups for three rigs offshore Norway during the fourth quarter as well as a full quarter of revenue for VALARIS JU-107 and VALARIS JU-123, which commenced new contracts during the third quarter. This was partially offset by fewer operating days in fourth quarter 2019 for several rigs that recently completed contracts. Average day rates increased to $83,000 from $78,000 in the prior quarter, while utilization declined by two percentage points to 63%. Adjusted for uncontracted rigs and planned downtime, operational utilization was 99%, equal to the third quarter.

Contract drilling expense increased to $228 million in fourth quarter 2019 from $214 million in the third quarter mostly due to higher operating costs for the rigs that started new contracts along with the benefits adjustment noted above, partially offset by lower costs resulting from a decline in operating days and lower mobilization expenses in the fourth quarter.

ARO Drilling

ARO Drilling is a non-consolidated joint venture between Valaris and Saudi Aramco to own, manage and operate drilling rigs. Revenues increased to $148 million in fourth quarter 2019 from $138 million in the prior quarter and contract drilling expense increased to $108 million from $93 million primarily due to the addition of VALARIS JU-147 and VALARIS JU-148 to the active leased fleet. General and administrative expense increased to $13 million in fourth quarter 2019 from $9 million in the prior quarter due to the transition of processes and personnel previously provided by Valaris. Valaris accounts for its 50% interest in ARO Drilling using the equity method of accounting and only recognizes its portion of ARO Drilling's net income, which is included in equity earnings of ARO Drilling in our consolidated statements of operations. Valaris recognized a loss of $9.5 million in fourth quarter 2019 compared to a loss of $3.7 million in third quarter 2019 inclusive of the effect of acquisition accounting and the resulting amortization of basis differences that arose from the fair value adjustment of our investment in ARO Drilling.

Other

Revenues increased to $65 million from $64 million in the prior quarter due to higher reimbursable revenue from managed rigs. Fourth quarter 2019 revenues included $21 million of ARO Drilling leased revenue, $24 million of ARO Drilling reimbursables and $20 million for managed rigs. Contract drilling expense declined to $32 million from $33 million in third quarter 2019 due to a decline in ARO Drilling reimbursable costs.

Fourth Quarter

(in millions of $,

Floaters

Jackups

ARO

Other

Reconciling
Items

Consolidated Total

except %)

Chg

Revenues

216.3

269.8

(20)

230.6

217.8

148.3

138.4

65.2

63.7

(148.3)

(138.4)

512.1

551.3

(7)

Operating expenses

Contract drilling

217.3

250.3

(13)

227.8

213.5

108.5

92.7

31.5

32.7

(4)

(108.5)

(92.7)

476.6

496.5

(4)

Impairment

—

88.2

Mehr Nachrichten zur Valaris PLC Aktie kostenlos abonnieren

E-Mail-Adresse

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.