good Thanks, everyone. afternoon to and morning and Darin,
financial will some call, and our provide outlook the start the during commentary After strategy I'll the over maximizing upcycle. the that, an market, our performance overview I hand awards and call during will the on today's During Chris for drilling shareholder value offshore then recent results of our contract quarter. highlight I providing for to discuss unfolding industry guidance. to
pleased These a these expect floaters that have us internal reactivated to our performance circumstances. efficiency during in amount This extremely efforts fourth customers resulted maintained the us attention. excellent for And the four of we in we levels is given XX% operational achieving like deliver by I'd XXXX. focus of operational high the year Valaris entire continuing projects are required to start of XX% year. which team, commendable and the revenue resources and of quarter full acknowledging from to significant and performance performance, under
what These as believe incident. dedicated a diverse rigs motivated, our milestones The organization, we our Warehouse the we do our most people safety and are of that element and reaching and crews is highly-skilled to success recognize of without performance. several recordable and personnel and quarter, the is workforce. years notable years six two onshore a of Broussard an and our result including some workforce core delivering high that achievements important essential achieving offshore of our We during the we engaged the at are achieved
continue offshore. people, invest we a onshore our result, in both and to As
Our XXXX. bold leadership training for XXX in approximately offshore by supervisors was attended personnel
leadership We workshops for and also new onshore of throughout recently be courses the in leadership two organization. pilot holding XXXX will to program our more senior develop completed we these
of one people is Development program. element just of our ESG our
our progress are our We advance and journey to sustainability place strong we to making efforts. committed have in a in framework
Our reducing from sustainability program efforts. operations customers partnering their own ESG is our primarily with on and emissions on our focused
will emissions, help solutions continue economic as it systems, fleet, where optimization do to engine already SCR implemented on-board we our have targeted several our and lower and to to We in so. make investments rigs sense such makes
Standards in the which we Sustainability disclosures Report, report. our we latest the During Sustainability enhancing our Board in further accordance fourth was prepared be with issued the Annual will Accounting XXXX quarter, and
both the Sustainability of Sustainalytics, XXXX Report, MSCI ESG upgraded leading two Following our the release by and rating agencies. ESG rating was of our
MSCI a and highest Sustainalytics. As rating drillers now ESG offshore the with have result, both we among
I'll discuss the higher quarter, and $XX line the the for back primarily million. ongoing generated performance in financial were to adjusted million $XX detail market, EBITDA due our a Adjusted more in third harsh and costs weakness quarter. to We than EBITDAR EBITDA reactivation were lower one-time in and adding the which adjusted in with than guidance, prior our of environment of respectively, moment. Moving but jackup EBITDAR
executed XXXX, with rigs and four reactivations During successfully time major budget. all work floater we on four largely returning on to
DS-XX the rigs in Brazil next we're in reactivations to within reactivating a The for DS-XX as to active starting our VALARIS contract will VALARIS expected XXXX, We XX a the year to money multi-year drillship cash are financial and this Offshore Equinor and with later reactivation and impact return spend regarding months. of further a project for advanced currently reactivation commence fleet. any additional results we discussions flow
point complete our any X begin re-contracting based contract we along with least contracts for market from XXXX. believe expected on at additional However, rigs be in we at profile, inflection to and reactivate contributions and for rates to with represent legacy drillships earnings, DS-XX that an will meaningful XXXX that available
XXXX, in contributed secure highlighted energy months We tight COVID million demand of a the million barrels nearly per to the XXX past to over sources are X past compared in energy. the X.X will Russia. approximately hydrocarbons from demand by half uncertainty, for XX the about floor Despite investment picture, increase oil of meeting in XXXX, gas brought to oil IEA repricing to following optimistic opportunities, increase. due the as and affordable years while of outlook remains from and day security declines the the to million need gas new per fundamental topic in our to importance barrels supply increased with IEA output The of the Meanwhile, industry these the that have over forecasts the because million events production supply for macroeconomic the and and world's barrels forecasts part for of constructive. to to expected slow attributed restrictions. to gain per X.X in lifting expected barrels in several per China lack A day demand growth day day continues has
the oil scale over investment years, carbon lower breakeven floaters most poised compared production intensity provided for to projects rig to to the due global to with these expected by upcycle rebuild in We the attractive industry required along several foundation for onshore A offshore to gas and reduction the with which offshore important increase thrive. in is as believe an reserves, fleet, significant a playing and will role, supplies, continue be prices in extraction. Valaris past significant especially factors, that a sustained global lay offshore
XX% Commodity is XXXX. According an prices spending in and offshore supportive XXXX, remain exploration estimated to projects. investment at S&P that and XX% increase are of increase highly gas Global, following continued levels offshore production oil by in in expected to
In to should than to their in more capital highest for addition, in at levels expected several drive years and are XXXX expenditures offshore decade, be which come. project approvals help XXXX a
Active with contracted returned macro has above and and in environment steadily to to tendering The XX% rates meaningful XX environment drillships across currently is edge increases leading nearly has now has to above and The the led for have upstream utilization levels. pushing XX% day both constructive to led from than increased spending more pre-COVID XXX,XXXs. and mid number for lows has XXXX in increased low late of improvements in jackups. day activity rates been months, which the in and XXXX early floaters benign contracting and floaters
can to XX% last at year's is has years. next tender new floaters Brazil XXXX. As in Building seeking Petrobras ago, and BMS-XX we This to will that seeking XXXX, months end a keeping particularly the to that by were offshore rig on And production higher to several and deliver launched see economics, open been long-term or production Brazil is for pre-tender Búzios recently contracts demand tender than attractive significant market, Brazil. for of with driver offshore of floaters with the XXXX. for fields, we be reports eight continue resources stage opportunities XX a years of four at on that of demand up its commencing tender, rig offshore actively in over coming benign anticipate new and rigs double
mix term world's that We is The which exploration and this allocated see of offshore have in offshore West their budget discovery alone. highlighted largest the for of major continue by one longer short to announced development programs in is recently Namibia, market Africa, XX% term fact potential the estimated to a IOC exploration including XXXX. XXXX that Namibia was to
and to flow to with increased going demand the forward. along activity pickup lead of for other market parts discoveries, rig Africa West in could a New
in VALARIS DS-XX, to DS-XX. region drillship We Shell and have the XXXX the which of recently final the strong some fill time We're in we're footprint in a awarded extension VALARIS discussions working will also for with the through priced under the keep rig's rig and a contract. day for is XXX current available option XXXX, March
sites. in also Mexico, We U.S. on and both of Gulf Mexican the see opportunities the
at are Middle more of East. occurred the by On side the jackups from mid-XXXX. of past lows primarily since in business, contracted level by the increased jackup driven XXXX, of this the XX early from now demand the number than XX% months, highest increase over Most the has
to jackups As for most and of a for pre-tender by open XX at tender Trinidad. per as compared offshore ago. work constructive is trend recent years demonstrated at XX%, our for contract and year or and demand result, upwards outlook months as Australia rig utilization The day be awards to continues at end day stage rates with active higher continue above jackups $XXX,XXX higher XX% to
environment is past in improved the While uncertain. months, market the recovery timing the market has and benign environment meaningfully XX the of over harsh jackup pace the jackup
expect not to our third in opportunities XXXX. Norway on we materialize do call, highlighted until As quarter
as related are outlook by addition, also Sea customer now windfall seeing for policy the more uncertainty UK to siding the in taxes. rest with projects the the North to has fiscal created we In changes the of softened delayed
to stacking the is afield. costs result, to over on the half. This Viking months of XX The is as Norway the which with contracted Valaris projects are We special as survey, these Our a not in of periodic is our located all keep a UK sufficient only reduce as in we rigs, actively for ahead. preservation in North see Stavanger in idle. are in have negative And for prospects business are working. marketing three the three particularly expected the currently in Dundee operating all Keppel first to XX further Sea and the partially now year we Norway FELS rigs both Stavanger the impact next The and a do well uncertainty while N-Class rig capable to The Norway, undergoing are the XXXX,
Norway nature. discussions, market of see although Based the the term role expect in outside we most in the of on second customer the short present begin improving hydrocarbon at given demand Norway, half market jackup environment are in and opportunities we Moreover, year, in of European to the the sectors the expect offshore UK, create energy in countries' improve years. balanced North Sea future security, ensuring and harsh of XXXX play will other more that we should that a
renewed and our navigate like within environment this market a fleet few as our strategy sector, spend optimism upcycle. moments I'd Against industry a unfolding discussing of backdrop broadly constructive to we the
long-term We to strategy employ focus driving a continue a management disciplined shareholder value. with fleet on
Our longer fleet and duration priority approach having staggered fleet we to the means highly ideally active mix to remains a contracting of utilized, ensure a can with is large that pursue portfolio with rollovers. a that shorter contracts, while
continue to fleet also and for our assess candidates. regularly We divestiture retirement
rigs we our part to strategy, to a of economies basins in priority from fleet benefit As have aim scale. of critical of mass
Following have of operating the DS-XX, VALARIS each the of reactivation point at floaters Golden three Triangle. we'll
we contracts DS-XX VALARIS to higher expect drillships contracts their are day current mid-XXXX, Our see rate in growth. two other continued leaving in where onto to them well-positioned both to roll finish and DS-X a Brazil, expected region in
We we our see additional assets, and have attractive reactivation for to proven work preservation of to ability and drillships XXXX. commence opportunities stacked our reactivate in win
for returns additional meaningful that rigs operational returning disciplined only remain opportunities by the in exercising over will fleet to active stacked the contract. initial provide We our leverage
see available the our investing use that today, specification stack reactivating cash, we would attractive we drillships our in opportunities by Given is returns our our we expect as the for that believe these market investments an fleet high shareholders. in significant generate of
and similar in compared BOPs, recent $XXX is assets, preference million, customers have amongst year-end drillships, DS-XX price to DS-XX a $XXX addition recent our to two is drillships globally. approximately Both XXXX for a with VALARIS the and while highest fleet shipyard for DS-XX take delivery transactions. respectively. assets remains transactions newbuild by priced million VALARIS of are specification we in attractively DS-XX stack In which of global market to for fleet, have and line options the
over to see We the continue rigs regarding of year. as these our we the market evaluate evolve will options the course
as is pool stacked The of the available when supported supply active rigs absorbed are shrinking by fleet into demand.
remaining activities, recent announcement utilize owned the drilling competitive and for a contractors. Following on which stacked only are by their drillships other non-drilling major XX ships by two to sidelines, VALARIS the drill we of one competitor count of XX
positioned our Korean themselves. leaves that demonstrated newbuild at when eight drillships including VALARIS of to VALARIS rigs shipyards, successfully are reactivating DS-XX. remaining and We DS-XX present well benefit track further the record There opportunities right believe South
these expect market likely and rigs are We supply, incremental international staged of these to a manner, in rigs supports contractors. in the to come hands only demand when established if drilling
XX-XX unlikely we times build given to of demand to and unconsolidated the this joint the of current high Importantly, will was in VALARIS availability. will growth XXX, that believe long recently foreseeable we over newbuild for with which driven supply contracts. the with rig large has be and currently their through basis jackup leased will months it been that Saudi cycle, of following A awarded lead Saudi completion fleet is XX another that limited ARO significant the Drilling, And Therefore, Aramco we multi-year for XX portion Aramco. by anticipate venture ARO future. the Valaris Middle flow Arabia. ARO our costs, form particularly market to existing exposure East, market past contracts the shipyard has see
important expected with ARO the delivered. of year is growth be newbuild due to two to XXXX rigs an in be
to newbuilds price the payback by of each of Aramco rate Saudi at an day reminder, X-year a achieve the with on initial be set As total will EBITDA the a X-year rig. a backed contract
pricing years funding We the see financing in secured local the initial contract, a pricing market significant X newbuild to each for X more every least with for contracted expect will be appetite newbuilds, the mechanism. utilizing be in a years set Following we and market aggregate, prior at to delivery.
than the a both provide or financing Aramco oversubscribed Importantly, inherent an program. on Valaris to in value we raising successfully helped region in East focused more transactions $XXX businesses. driller and need million any We substantially will view. support attractive Furthermore, and Middle with investor that completed local in is believe a IPOs the remain to we interest significant what its IPO, year, significant valuation. do not to is offshore to for drilling expect offering ARO and there ARO newbuild at fund highlighting this additional onshore asset the rigs recent in Last the
I remarks. the by of some will conclude points key prepared reiterating from our
achieving efficiency fourth XX% excellent in XX% performance, deliver as for First, and we continue demonstrated operational to by the revenue quarter XXXX.
production including a for remains outlook opportunities third, see over will disciplined the And constructive, increased Second, in operational services. to to offshore meaningful expected the which the high-quality highly stacked additional returns. is we opportunities in spending years, we of our commence fleet And by fundamental and reactivation returning active to continue next demand increase with we rigs for that our drive to manner, exploration drillships which discussions. industry in for exercise several generate for XXXX, one our advanced attractive our will anticipated leverage to are
focused, cash and that during we drive will believe flow, our free meaningful strategy upcycle. our unfolding earnings continue will responsible value-driven industry we executing and summary, and the In strategy
over take you I'll the call to now financials. through to the hand Chris
