good morning and to afternoon Darin, everyone. Thanks, and
then I During we overview by refinancing our an comment recently will executed an along I'll on providing strategy. on start allocation today's our capital with the performance call, of update quarter. during the
outlook commentary our hand discuss After fleet provide strategy. on I'll to Finally, to the over the and market guidance. offshore our results and call Chris I'll drilling that, for the financial discuss
our we During achieved success upon for commend their remains our strong I of and team XX%, Valaris skills outlook entire the and the expertise operations the to we first The for customers. employees. and delivering strong, excellent dedication quarter, our recognize revenue performance our that efficiency the depends business of for of
industry. order in and We best people in invest to recruit, train continue our our in to retain the talent
to including, innovative in training, hire Group well provide on are mentioned ICM initiatives and control. to partnering course, addition and to conference University high-quality employees, such leadership Aberdeen Robert our I've the of previous we Gordon and orientation enhanced In calls, as BOLD our offshore on training new with
personal with industry, work that and at acknowledge and safe of all work is I incident us to any priority our us those that keeping is impacts work who our on hazardous men Valaris. women the people also employees that our me always one and and want number all our rigs the in to brave
have We the share Valaris, are to of and we rigs. proud work safety and we individuals continue help incidents protect understand, the processes will learn our when on occur and built at culture of all who systems, to
the EBITDA million Turning EBITDAR, costs generated of to quarter. back of million. We better and $XX for one-time and adding EBITDAR adjusted performance financial $XX adjusted Adjusted EBITDA our provide were due than to projects, the a our of guidance consequently, our update guidance on XXXX and later. year largely little will guidance, our more timing prior remains unchanged. full detailed reactivation Chris
conference we enhance quarter And an addition our refinancing including $XXX last to a the achieves transaction the structure. call, outlined On we objective credit facility. same, our of revolving capital month, fourth completed million a that
a have a and banking We to our to strength secured return is money to including of million, in increased liquidity ability revolver the are very this new pleased by our time outlook. sector, shareholders. the almost capital flexibility, capital challenging allocation our and business enhancing our its the during refinancing to $XXX testament The
our increased business the for to of we have million end the $XXX and Given from to and the repurchase million, returning our to to shareholders, repurchase year. million share outlook capital our commitment we by shares $XXX authorization of strong $XXX intend
and we're commitment start this. consistently of have We the stated to return on our capital, executing excited to
flow should contract recontracted on go As rates. Reactivated generating at sustained as are to under market begin meaningful business reactivation spend current our future, contracts and we cash legacy the ramps rigs look and free down. rigs
future is this cash free what to flow do with simple. on philosophy Our
to and with long-term This value-driven of philosophy returns. is to our shareholder value We shareholders for our approach return allocation capital to maximizing all better intend unless there accretive use is more it a or consistent it. goal
with including develop by XXXX published our report. reduce XX% day this sustainability respect to to target Scope XX% XXXX We’ve X compared a XXXX to a active intensity continued We've emissions by sustainability setting per our emissions, to recently year, baseline. overall to program
our We and believe to a we available. advance our with today target and new continued and increase place may making we in sustainability targeted range the become as is on achievable customers, technologies technologies that efforts. based framework collaboration journey, our We're our on in committed strong progress have exist to
oil market. continues Valaris and our our Demand to Turning IEA hydrocarbons increase forecasting The industry demand attention the increase with will by for very positive. that to for and remains gas the non-OECD from X XXX traffic. million per growth as approximately day XXXX, by and air well per other countries as million barrels continued barrels China demand day in in driven increased to primarily outlook
announced cuts foundation over price are year, price attractive to commodity OPEC the are the supportive resulting for course supply the environment. additional plus balance the for most of commodity a and supportive projects in This CapEx. lay expected tighten expected in continued breakevens Meanwhile, upstream offshore increase to by supply-demand a
with spending XXXX increases in growth jackups. in anticipated and by and and increase environment production spending to upstream The is macro According led approximately Rystad, have contracting activity and exploration tendering XXXX floaters to to both and further constructive XXXX. increased in forecasted offshore XX% across
returned The floaters XXXX has the to pre-COVID benign increased in steadily environment contracted from late lows and early of and has levels. XXXX number the recently
increase XXX,XXX active from the than over doubled than more years. day approximately As the drillship more to this a XXX,XXX seen average today. XX% approximately And from have XX% rates result, to of past we over couple have around utilization period,
is change current the fixtures to in rate While day the new moderated the has for mid-XXs. rate range low healthy, generally recently,
been the customer conversations, rigs due higher. average will in be and While some existing by than ultra-deepwater move Improvements customer. many demand contracts this on few years complete the likely based band, geographically be their be anticipate we over fixtures outside steadily every has widespread, will the that continues to will retained to next not and last, fixture higher
than one East XX or regions, We commence moving next see to year to incremental greater of Mediterranean a of ultra-deepwater XX that opportunities new for to which of will the of. the not need Golden we by couple to either do we XX are expected reactivations see the rigs Triangle, that with anticipated Across build opportunities of years. Africa duration floaters, stacked XX and active lot over met these expect stranded to and be anticipate rigs currently
count these Brazil, we months opportunities grow including the currently and Offshore opportunities Mozambique offshore continue majority Africa over the are and basins, tenders We Africa, anticipate Namibia, the incremental contracted of several In next Angola, Brazil. see and to months. to we expected, the see Mediterranean. in XX that XX rig will consequently, further
indicating leaving incremental of remain There Gulf demand in are opportunities few this seen expected We've to that is the region, Mexico. a very strong. few ultra-deepwater also floaters
increasing, their also have yet high-specification term. to some starting planning Average We beginning durations for access times future in customers are signs and some are are engage to projects that opportunities conversations for are that see longer-term are plans, to the for contract for about including they drillships future contracts ensure sanctioned. customers and longer not drilling to lead that
a for conditions. is sign market This future positive
increasing, demand shrinking. is the is available pool rigs of While
than their recent the activities, a there a believe use amongst the drillship Following fleet. drillships no of by stacked be remaining announcement to we competitor competitive stacked rigs XX more potentially further non-drilling for to two
and and we currently will newbuild believe drillships Further, unlikely high to newbuild times lead availability. eight DS-XX are their remaining with is another that of these VALARIS established cycle, drilling costs, number and at it highly shipyards, a we limited of see few a aligned are DS-XX, South long flow including given Korean There contractors. shipyard build
In summary, the outlook very for market positive. is the ultra-deepwater
from contracted XX% has in lows the jackup and number increased XXXX by the approximately the since of On mid-XXXX. side jackups business, is at of level the early highest
of jackups for jackups low continuing that of utilization rates rates believe approximately idle lives competitive, to XXX,XXX, or active in age age are the more stacked. is either that their than jackup result, to is currently day time XX and with not are the are with a current useful limited As of We XX%, fleet length remaining. upwards. One-third to mid of leading-edge many due trend years the
currently and less age, the are of years XXX only for are fleet count than global half within stacked less that been of top than idle, XX Out that approximately are years three rankings. XX we of have the jackups
rigs fleet. As result, of will believe return many the a these stacked active never we that to
program, which jackups at Chinese China. rigs and side, are remaining many shipyards XX these excluding On newbuild are are expected newbuild supply there of in only the to supply the only shipyards, XX of local ARO's enter
outlook we for benign Sea North to environment the jackups not do a be meaningful While and see strong, the XXXX. challenging, continues market to remains recovery until expect jackup
for some our we of to jackups environment region. outside harsh As a of work the market are result, continuing
through are of in remainder in U.K. short-term the opportunities Contracting nature. North generally the Sea XXXX
survey rigs of jackups projects in the of higher in However, see improvement return contracts the commenced North work we in following at to and special expect second several our first to the the do new as year year, half half Sea financial conducted results day rates. an
and on remains focused driving strategy shareholder Our fleet long-term unchanged value.
priority ensure Our Egypt active its between project fleet the Offshore that contract, Recently, remains fourth Angola DS-XX. we that work to drillship a is will the commence secured for gap Africa utilized. most to that longer-term in quarter. current West highly to of bridge the offshore is offshore expected
Brazil, to a our announced three-year be sixth floaters for since rig mid-XXXX. reactivated. the contract preservation-stacked which This represents awarded VALARIS DS-X, for also of offshore the We one contract will
the floaters we We DS-X of across and following the Brazil. DS-XX, reactivation Golden including -- XX VALARIS offshore Triangle, DS will four have working
see and DS-X VALARIS are day expected contracts where the on in DS-XX to leaving higher a in to to in current expect roll region to them drillships both two other contracts positioned mid-XXXX well Our finish and we growth. continued rate
our drillships work attractive we We for XXXX. commence win and opportunities our to preservation to and additional of reactivate reactivation have proven stacked ability assets, in see
fleet our initial provide rigs will that for contract. over remain the disciplined firm in the active We only returning by leverage stacked opportunities operational meaningful returns exercising
fleet, year-end have in Both and of the addition a DS-XX VALARIS amongst our In highest assets DS-XX for to specification stacked global customers options fleet two by both are newbuild BOPs, and take preference drillships we the have to drillships, remains delivery globally. which XXXX.
to DS-XX on very for The $XXX more assets. we this price attractive. shipyard line VALARIS And in million The current rig. VALARIS the price transactions for with DS-XX other is option $XXX recent our clearly million similar outlook, market is for based of market expect exercise
evaluate to uses other We of against capital. will this continue
XX-year-old jackup regularly to contract its closed with and fleet announced continue divestiture Aramco. VALARIS approximately XX after candidates. sale $XX previously for of we Finally, completed April, we In we for Saudi our million the retirement assess
they a returns-focused divestitures Fleet to We believe approach if we opportunistic Management, will continue including take to and are value accretive. rational
we an on on one for to expect continues now Aramco, the to Moving XX-XX Joint Venture financing update funding to with year. Saudi to this newbuilds, continue that two be our and to unconsolidated will project progress prior we ARO delivery. be delivered secured newbuild and ARO rigs Drilling make expect
provide to ARO need additional will Aramco nor newbuild the financing fund Valaris neither program. to any that expect to continue We to
role sustainable I'm an period. will mark following in experience an as announce brings startup been of Mohamed is Arabia the newbuild that ARO Middle ARO Derek its Kent, has also leadership attractive, oilfield delivery of capital rig growth a to Drilling, be with The Saudi Mohamed pleased of and growing to the attractively important ARO. working who first milestone as XX handover the Hegazi strong in the replacing and markets positioned knowledge story East. appointed and and newbuilds CEO is retiring program. market, well extensive will skills, as service of two
of I who growth very thank to realization. as forward and Derek right to best look for significant I ARO, forwards wish with take his skills we the retirement. chapter ARO the Valaris predecessor like companies, to and Mohamed, to Derek for we his experience contributions also its chart its and would value has next and working
of key three remarks. prepared our from will I reiterating the by points conclude
first of First, approximately and winning achieving to revenue $XXX contracts extensions strong performance, quarter. with contract we backlog in continue the million deliver new associated efficiency XX% and of
industry remains liquidity to And allocation more million, rig our our growth, very $XXX is combined third, with by capital expected our Second, Demand the our supply completed to refinancing has tighten continue increased the flexibility. enhancing positive. almost outlook market. for constrained recently
to upsized increased program. our liquidity, our share of through return a are business shareholders repurchase planning the result we strong and capital As to outlook
value As will we meaningful executing our deliver we all being responsible stakeholders. to look order our value focused, driven strategy ahead, continue and of in to
financials. over will hand the now the take Chris I through you call to Chris? to
