to the your Nick, and good and morning everyone. in thank you Thanks, for Valaris. call Welcome interest
During for market XXXX main today’s priorities broader then quarter highlights. call, and update the fourth I the rigs. year will conditions four company’s briefly will I full an and discuss the on will provide offshore I review
comments, over Jon my to for his Following will prepared remarks. hand I call the
contracted effectiveness on These results utilization, strong reported to rate. fourth we million. EBITDA financial rigs which in adjusted of operational results our $XX from of keeping the terms measures our In benefited quarter,
XX% and of operational utilization for for the fourth jackups. XXXX, our For floaters quarter XX% was
execution year XXXX, year. throughout the focus employees’ XX% the full our was operational For demonstrating fleet across utilization
X.XX, with XX% benchmark closing an We also of safety from industry the average. safety used industry better metric to on recordable XXXX the a year rate, note total performance a perspective, strong a ended than incident
between can for our amount I challenging global do companies will merger and normal was employees progress results particularly in during the no of discuss a plan distraction moment in and that substantial an our are and robust given a impressive merger mergers under be associated with but different. while integration of change detail, our closed more they integration we and would circumstances, be XXXX. these completed come Therefore, amount work
exhibited day. want show I recognize dedication last the to to that employees and professionalism every continue and our year
our and remained led backlog also revenue Our all acknowledge year, that customers workforce delivering tireless $X.X added for on offshore a performance XXXX. has the efforts. during them I team, and I thank focus our of to operations would in billion reliable safe to which drillers commercial that like
start engaged by continued will us and also of were advanced the backlogs this for we further have discussions positive backlog. since in our more We contracts with that help bolster customers adding momentum XXXX additional
relationships we This customers customer over is contracting onshore quality rig our have crews a to our testament forged services. personnel provide of offshore fleet and our The the value with to and our success the time.
more from benefit being service continue will a going key our have enhanced efforts that as expect diverse a offshore been aided I last we larger, forward. by and merger, to following Our position year’s company provider
the I company. out closed laid When ago, four priorities we merger main one year nearly the for
delivering and from balance value reminder, our Drilling, a includes activities. our these managing management, and fleet priorities synergy are contracting capture, ARO As integration sheet which
legacy the to of $XXX merge in disruptions the plans headway plan and we’ve synergies. million made achieving with Starting our business from integration of delivering minimal our our synergies, executing on companies and combination. to The with commitments combinational two the significant integration focus while was
through our We’ve $XXX million our onshore completed initial approximately rate now than reached of of have synergy capture of target at roughly XX% of end run an halfway XX% rig-based synergy with activities integration. annual are the We more XXXX. merger our and
in This for is the milestones. do a work employees have these more integration we Well, original significant accomplishment, still to some and I achieving to work thank would hard to like their complete plan. our
We recently attention rationale. intent the effective making were to Valaris Synergies being industry organization. with have more on our the I from Valaris operations key this and scope to leader. am on as increased scale cost delivering turned merger’s an of And
driven company’s strong has to be the some plan. company will is financial while off will step impairing a be essence out our inefficiencies The my have better impact changes To drive this improve organizational next phase this that to and engagement. performance for experience end, been next capabilities of integration we’ve of workforce employee top-down, build kicked in and our the
this more process, the truly to harness we will also Through make and organization, agile as an will Valaris us help responsive which potential. company’s
last year, savings we cost million additional these mid-XXXX. of a phase rate in million exceed to were recurring we expect least as this As with by integration, result annual at the that of now late of savings merger capturing savings $XXX targeted per next $XXX on as year cost levels. initially to announced or an achieve run the will additional Combined pre-merger synergies, compared resulting improvements EBITDA basis
capture. even for focused internally level an of on are we value Frankly, higher pushing
Saudi jackups rigs Aramco, priority drilling ARO offshore Drilling, is and world. largest the the which XX-XX in venture for operates customer owns second with Our joint our for
Valaris fleet to with addition During jackcups of quarter, operating expanded Drilling’s the leased the ARO fleet. its fourth two
from are its now driver meaningful and of is seven year. XX important at Drilling of two milestone, Drilling long-term other creation program a this first of jackups, where least of order its ARO which fleet ARO rigs newbuild most is through recently construction by total, are of The in owned of nine ARO reached In the ARO January newbuild value Valaris. operating which an Drilling’s this and
to cash these Both back with to rig shipyard or cost total fully $XXX Saudi to newbuild costs the Drilling of specifications the are to pay of in first approximately day expected effectively Upon financing. contracts. in expected compliant operating Aramco is construction Saudi ARO funding each The half rig XXXX. is takeout contract be that first technical of each third-party an with the with payment be expected commence million with delivery, eight-year delivered six the years rigs Aramco rates
newbuild After grow fleet were completing that it step thereafter. for initial construction newbuild through these Aramco preference eight-year contracts contract, in alongside certain is working for and requirements provided will provide to of and fleet meets the strategic important its value this the a contracts years this rig potential partnership. each larger program an initial Saudi its expected ARO Drilling deliver look shareholders Drilling and we’ll And new Aramco the and the cash growth visible of come. first Drilling eight-year These flow Saudi contracts long-term forward over an This to XX additional see ARO so working technical will program on for new jackups important decade. program, that receive to we ARO next we in
structure in to and this another Directors his financial to sheet three strategies. Valaris of and its in its be To formed This balance virtue capital a to on equity provide finance the by assist helpful color the capital Board’s priority each to of now oversight of these of this includes from is committee financial next Management. of directors new and capabilities augments priorities, which Jon our an directors committee end, markets, and oversight of This consider that prepared focus is the steps. company’s Moving Board board as which management. Board. recently area experience finance Valaris’ priority additional were recently risk the enormously we governance, in debt their appointed management will remarks. our continues
these management fleet is contracting. The last of priorities and
decision-making contracting, previously, to reactivations and guide we portfolio our As have on asset a I discussed approach utilized retirements.
last are working, groups. our modern into we are As floaters. floating XX quarter, modern detailed now market we other on that three rigs actively working for I holding floaters we the or Those non-core floaters those of categorized and main intend
group intend drillships including floaters are we that on semisubs. or five have of working We the XX first working rigs XX and in
the that and generate cash for actively assets, uncontracted these these costs company is winning rigs managing our new on for during periods. With focus contracts
this our We since rigs have backlog for of than securing days work X,XXX call. successes group conference added had of more last recent with
contracted of XXXXs XX% now of XXXX that rigs, the there days place available contract this options would of group are for have another in exercised, availability. and XX% if We all are
these While derisk have helped wins to our partially recent contracting XXXX outlook.
capitalize availability contracted further we portfolio derisk We these line none outlook, have the of improving additional intend today, the of industry to and and on the just backlog XX% approach. we with our dynamics secure for XXXX to as availability in XXXX of as the floaters
preservation four drillships, group drillships, Korea, stacked second the two have semisubs. includes two preservation series two of floaters, stacked This XX in and stacked Within rigs. warm X,XXX newbuilds we
just lower stated fall mentioned a of of which terms the queue, first assets at group I in In contracting the we’re and behind prioritization, these costs. holding rigs our these reduces readiness,
Given the need accretive rigs group so. second be I a work and for for marketing for be mentioned, queue the to us are contracts would on from just to this we a basis to limited to putting rig these compensated do and cash
of XXXX, The XXXX in third and our that rig VALARIS we following floaters the sale group VALARIS fleet. one have the XXXX VALARIS such and older now contains remains just
XXXX. the two retirements and global companies floaters, semisubs since have XX now With beginning its drillships of retired Valaris predecessor our including these recent fleet, from XX the supply from and
allows us future our in core rigs our of the are and As offshore customers strategic rationalize that the going a capitalize needs our most efforts to concentrate floating services. semisubs focus efforts suited drillships these to emphasis to to for This narrowed our highly fleet, demand better technical result on organizational the forward. we’ve also improving fleet, to of our modern only on meet ability
our management a shallow-water on take our are market focused and We capitalizing as improving to we approach add marketed similar backlog contracting actively jackups on for fleet also rigs. with conditions and
can we conditions coverage to XXXX, contract idle that the the off in in for the for until or point reactivate our XX% of later do of the jackup days to XXXX the this inflection jackup jackup cost right not backlog may reactivate reactivating to market we for holding better we approximately XX% are an marketed and While consider fleet market recouped already jackups plan and this with have through be jackups opportunity. We contract But and contracted. further available XXXX, secure market award. contract year closer rigs are the we
continue the jackups JU-XX appropriate global fleet to JU-XX from recently JU-XX we of and will for also join this sale. to for since are retiring holding action VALARIS now and JU-XX these To the soon drilling VALARIS XX retired end, sold VALARIS and take supply. from comes the beginning we’ve when XXXX, jackups the the value expect it We salvage rigs.
come. to jackups to legacy will We more rigs and in quarters evaluate continue retire our may the
near-term. shift conditions broader growth market me sector. hydrocarbon industry in the on demand. and on slowing industry to commentary more lower yet a let discussion offshore demand levels to in the better supply result of in OPEC+ affect to Now, and action would specific concerns of side, resulted an standpoint, from for has expectations of recent the response the group global our balance in drilling in supplies that that supply From further discussions demand, lower all have over reductions
Expectations attractiveness collectively from of continued These have in given improved U.S. tempered in volatility year expectations factors the to supply relative given increase Many begin of was in integrated companies shale continue future month-on-month to demand permitting a that, prices growth commodity in drilling somewhat applications the services. led discuss slowing for January. market offshore projects to offshore economics. energy for impact the turn,
highly are to flows cash prices capital CapEx cover However, operating programs. returns commodity for and necessary sustained their
utilization global months seen volatility, remained and demand with Despite price gradually has from as past fleet. commodity prices continuing the to back conditions to-date, response improved the not customers by a customer evidenced increased several over in steady we’ve lower commodity recent market pull the to for
to that length total year. old prior of lows year even increased cyclical level. day XXXX, With a – the are increase new dilutive moved For led to increase in XX% years to utilization rig floater by XX% was utilization a off rates during ago. number corresponding a generate of that which awarded has during XXXX, floater the contracts levels contracts from contract as even XX% improvement slightly higher the to rig in driven margins compared for contract cash This margin floaters, or average break
durations market. contracts new the months just was further the of was longer in length contract nine just floater However, to – XXXX help eight average needed signed and are tighten
half in of of that’s either were fourth this more duration or roughly, six XXXX for these and with during contracts years. floater one approximately and begin we’re the to currently end, XXXX. these average a than half tracking XX opportunities have at and durations to least about expected a opportunities months work came the quarter
to increase floaters these seeing So, for firm XXXX. opportunities contract orders meaningfully help in durations to convert new could
the the drillship drillships fleet. customers. are particularly awarded of delivered and customer preference specification specification superior well-suited utilization XXXX million several two longer-term their on with water since in preferred global by given rigs derricks Focusing work low-part and assets two market, and preventers at for will for XXXX blowout a deep These with capabilities. for for commencing in rigs either higher just stands be expect drillships we types be higher remaining continue XX% higher or versus multi-year programs these the to XXXX half specification XX% these to opportunities technical
for contracts VALARIS and West extensions DS-XX and specification VALARIS these of offshore Since of have VALARIS and in six most Egypt our been well-positioned XX Africa. assets, and recent it’s Our of conference opportunities. including VALARIS DS-XX awarded these for drillship drillships, DS-XX offshore newbuilds DS-XX VALARIS DS-X call, DS-XX Gulf or the includes Brazil, our new we DS-X offshore and fleet DS-XX compete VALARIS to higher Mexico,
the a increase during an semi-submarket, in fourth semisubmersible the opportunities of that or positioned number quarter. to saw dynamically we benign require either the now Moving environment MOD
unique semi in it a duration the short-term needs of that of environment key us an in vary Having Mexico relatively new requirements well for the fleet can Gulf months. semi However, could the greatly. benign these average and opportunities to just Australia, with modern like versatile were positions these markets work. drillships, future opportunities Mediterranean for technology meet contrast these six Why with is
the a of want additional call, MOD contracting operated XXXX. has where offshore contracting year for semi-VALARIS Our for MS-X This an be semisubmersibles recent year. and and been in most market third that over Australian is previously will for the in expected market, XXXX to conference for we be work expect last years. this continues returning in occupy many for availability open begin MS-X region Since we wins rigs support and quarter in this. it’s our to important for opportunities region and to idle work semis the the Australia
secure With the the returning on capabilities, and believe work. follow the rigs I to modern positioned MS-X of virtue market drilling by well to it’s
of these its dynamically had the and through in or the XXXX In of nodes sister U.S. the of XXXX. the Gulf of well in operate extended the versatility which for the addition, VALARIS Mexico. VALARIS rig, positioned its VALARIS XXXX contract current future places Mexico can first opportunities rigs half Gulf XXXX, either in MOD
XX% by also XXXX to fixtures contracts versus stands and previous improvement term These increase average XX and by a is The increased jackup Global compared the new XX%, of overall type improve jackup a demand. improvement broad months of to in rig XXX and had higher is awarded the year to during jackups XXXX. improvement driven signed market contract XX% in moving although year. an market. contracted The years currently this region. approximately number rigs new varies and based months utilization the number have XXX during XX asset due jackup continues durations jackup of in compared XXXX dynamics an levels ago jackup to for highlighted pricing average at for up jackup the from strength in last of Now, the of to time to as customer year
today has harsh ago. of high-XXs see the in utilization this of Utilization in shallow-water to and operating particularly, across somewhat the back highest most mid-XXs the for of North Sea, continue rigs assets. from this pulled assets six the the class is months capable Jackups environment, modern in level
including While is during may be to that in contract months, region rollovers five number in seasonality expected this given Valaris coming upcoming winter are mindful jackups this utilization impact the months. we the the
new or these rigs for call, Valaris or largest harsh of have with a environment future the our XX assets, the million. which more with of and five of been of has than revenue $XXX extensions on backlog conference are contract these all awarded either Since work. contracts of ultra-harsh rigs we’ve modern, for last currently contract fleet
preference for We’re is benign benign Total than approximately jackups for in has for of of modern environments modern utilization environment and points in nearly for space XX seeing a the higher market position customers has in environments XX type environments addition the XX%, benign demonstrate every older a this modern by benign percentage Valaris a points modern as rigs also basin time utilization over increased this strong the well. utilization six percentage for has period. assets. rigs. XX with of major jackup presence operating rigs And these company despite leading
of contracts. contract middle modern have extended had In extended on along benign well ARO was JU-XXX’s leased now we into utilized contracts we’ll a East, the long-term jackups that JU-XXX this are Drilling Southeast see Asia, to contract In rig these the winning with year. five that and its
hemisphere, a Western begin absorb believe we VALARIS is contracts additional Moving region and modern contract for to two the supply in in a year for year expected a this this signed announce new complete. to additional take to years and that to that we JU-XXX the we will expect Mexico the market is jackup soon. Mexico job
in also rig quarter the signed a the that in is U.S. to We XX Gulf XXXX. fourth JU-XX contract the well of expected work Mexico
flow to the to we merger and delivering remain of over position increasing balance work demand. namely proactive commitments, development, levels emphasize for and fleet Drilling’s Jon, on our hand benefit our on continuing support to ARO I rigs sheet meet winning priorities, that I four cash call management focused before customer want that our to our integration and
and success. position priorities, executing improve for forward these Valaris’ competitiveness company on the will future successfully going we By
to the turn Jon. call over I’ll now
