and morning to afternoon good and everyone. Darin Thanks
update our for During strategy, start and the an performance our offshore of outlook then by market on the today's newbuild quarter, drilling drillships and will VALARIS overview during I'll an for plans providing including comment I on DS-XX. call, our the fleet DS-XX
results that, financial I'll hand our the our update reiterate to guidance. share After to on returns provide discuss philosophy. I'll an our call Finally, repurchase program capital and Chris over and
XX%. strong performance, In quarter, the achieving revenue to second efficiency of continued operational we deliver
and entire driven for and Valaris our excellent want a and thank Our their efforts the I performance delivering onshore, is company for people, offshore our in customers. as success ongoing commitment by team, to
months contract in hallmarks following project our VALARIS commence Equinor fifth reactivation during month Valaris the to this floater proven XX with of second its Offshore builds customer project shipyard the execution track on record One marks and acceptance. our quarter, and ahead which Brazil, expected past our of of the is of DS-XX, departed execution. the is This
the and first specification Robotic in NOV's personnel of DS-XX the today, Atom highest drillships zone. be global the one red reducing Offshore, the fleet for the VALARIS need System is in rig to RTX deploy will
became to only VALARIS power operations plant ABS' System the Notation, Enhanced VALARIS in optimize The enabling world and system to DS-XX after second fewer DS- the is rig on reducing emissions. receive also EHS-E. generators rig's electrical XX designed performance, Electrical
the world. deliver our of safety targeted and These of the exemplify purpose and the improve energy company's to upgrades that solutions responsible to rig help efficiency providing
to turning financial million adjusted reactivation adding performance quarter. the costs onetime details results a further financial EBITDA, later. guidance $XX and on generated our for provide little Now, Chris our We EBITDA and million. $XX of will back of adjusted
our undeveloped are positive. outlook per $XX five-year barrel industry market. XX% above estimated than at for attention brent of barrel, more back has profitable. a Turning moved recently The Spot and Valaris per be forward level remain which the very offshore remains our crude to and to above reserves $XX prices
offshore most and offshore across in The projects customers increases expected are sanctioning projects to growth have and project in offshore contracting offshore commodity invest provide XXXX. floaters long-cycle both, jackups. and activity macro for and further to upstream CapEx and price the supportive in breakevens constructive upstream in with led both, environment spending The attractive confidence and increased tendering
on than seventh for has, utilization sixth more drillships XX% Active average, generation for months. and XX exceeded
and that durations, and a from an further cycle. demand, upward rates at to rates levels up strong tenders in trajectory continue day mid- we leading XXXs. high Looking provide fixtures on lead we day forward and to evidence in increased current sustainable the the expect Recent times edge are with
beyond These recognition offshore in appearing sanctioned a of customers projects five-plus be to for long-term that start rigs currently durations confidence contracting some the the These that of both opportunities high-spec to Mediterranean, positive Brazil with increasing Africa, of many Mexico opportunities West offshore over customers are scope all dates the time scarcity into years, years. Improvements in continues for months. past projects their are and economics the floaters. demand the include rigs the the demonstrate and ultra-deepwater are their seeking secure in have of widespread signs several the our Also XXXX. geographically Gulf and new a first of with of in
XX than Triangle, the expected we commence Across demand. East opportunities few ultra-deepwater with year strong of opportunities the an first the of the over XX Golden the to future growing are pipeline our and floaters, Africa to referenced from on represents that to next quarter greater years. see one call, duration for increase XX and XX currently This we demonstrating Mediterranean, anticipated
that seen Petrobras, result incremental likely demand demand are offshore in several the recent opportunities there Brazil. that and each Brazil, and to In incremental rigs appear XXXX We We ongoing in opportunities commencing Africa will are in require further have this additions to the for with Mediterranean West visibility future multiple three XXXX rigs. anticipate IOCs. and of requiring fleet with work rig
few retained newbuild which a likely customer. or see rigs existing by we either will stacked to many be expect anticipate demand don't we rigs total, sufficient region the this In see balanced the be of moving Gulf XX years next and of supply rigs to future opportunities we due contracts met active need of in demand complete the to expect Mexico, and by XX to and of keep to stranded as rigs be the these regions, In will to lot that occupied. incremental continues reactivations to over
available There be amongst demand new is than drillship drillships Korean rigs DS-XX. and pool build including South the remaining is there remaining the of eight and XX we increasing, a While to stacked Valaris more DS-XX further fleet. shrinking are shipyards, competitor at rigs believe no
given to Further, we limited is build either rigs flow have it high future and believe are eight lead cycle, these be of are for soon. contracted build selected highly will unlikely been three costs, another see shipyard and long contracted or to times availability. currently that we However, expected new work
for summary, duration, with tightening times market up sustained and outlook is developments contract point ultra-deepwater recent increasing In around demand very increased strong market. supply day rates the constrained and the and the lead a positive, Further, towards will cycle.
first demand recently jackup the business, mid-XXXX. jackups of On since for the of time side contracted and the above increase to number continues the moved XXX steadily
a utilization of $XXX,XXX As fixture recent day. evidenced XX%, a jackups with above leading-edge to by upwards, Australia at average per rate trend our and is as active both continuing day rates for result, offshore
months, rig jackups environment East being seen UAE, Vietnam, including primarily Malaysia, and which also by More XX we past have demand growth of Qatar supply absorb will help in duration increasing the Thailand their to Southeast Asia, with driven Arabia, in benign for this a the return recently, all counts. Over Saudi opportunities and is Middle the longer region.
continues an being the activity, harsh delayed. half the jackup more sufficient challenging ways appealing the through been promote While yet for for UK, we the in tax regulators continue Sea to has to make environment the and it North We in at this in looking are to the of to regime in increase see -- the be and opportunities current while not strong, benign the operators, to second market outlook year jackups end continues XXXX. of outlook environment to be
of such XX, XXX and some into Fortunately, and XXX Sea are North our XXXX rigs, Valaris beyond. contracted as
offshore to XXX regions, our such Australia. continue recent Valaris for will environment as We jackups seek attractive contract high-spec for our harsh opportunities in other
will completion quarter mobilize on in two-well While UK, of later commence current contract Australia the to for a first expected Sea to its XXXX. CCS undertaking that North a year, of the contract in rig project the late this is
rig is see its operating receive for is rigs for demand a in we contract will this follow-on and and the contract. $XXX,XXX The as anticipate moving and mobilization Valaris beyond day, fee while will the that in operating transit. We costs be the XXX, high-specification and there covers initial region work a strong such dayrate demobilization all we the
recently a very into tender Norway that exemplified was in opportunities be continued Jackup XXXX. to by deferred limited,
result, expect we rigs of offshore our XXXX. Norway be during any a As in-class working do not to
and are many their or Out jackup less remaining. of stacked. we idle, jackups fleet the rankings. lives not approximately age XX age are than with side, is that current the On have global years the the years fleet more within than half that idle been limited useful top of are supply jackups age, are the are currently time less that One-third we either three XX only than to of due of believe of of XX length competitive, that currently stacked for XX of years count
rigs stacked to believe many return we fleet. that these result, the a As will active never of
shipyards, rigs supply China. to only XX are XX there ARO's are many of remaining excluding expected which shipyards in these built newbuild Chinese and local of the at Further, program, new jackups are enter
In summary, East, improving we the such a in Southeast as Latin see Middle Asia strong regions market for and modern, continue high-specification to and America. jackups
Norway in any meaningful and harsh we see Sea to North and expect the continues jackup However, XXXX. not environment to in market disappoint, do the improvement
long-term proud unchanged remains speaks the announce of strategy our new shareholder award anticipated over awarded excellence basins stack represents the be which our Africa, contract long-term of customers. a of one contract key value. since floaters for DS-X operational for This demonstrated delivering And Earlier fleet floater week, execution we this for recent is VALARIS most Our volumes West focused offshore and to about next demand rigs reactivating our several when to years. were and on the record one track project seventh mid-XXXX. high-quality to driving
DS-X contract. of disciplined leverage prime initial for be remarks. provide and fleet to stack operational this active to exercising continue will VALARIS further firm only his returns provide details will contract approach, rigs of prepared a the Chris that The meaningful over that We the economics the compelling this returning in highlight example our opportunities during is by
priority strategy, to critical we mass part of rigs a have of in our want basins scale. As fleet benefit to from economies of
have reactivations, Following of our the Golden XX three the with will working the Mexico. four offshore ongoing Triangle Gulf floaters offshore Africa, four and across completion of in we Brazil,
of stated that contracts the year, to optimistic secure able of beginning two I about for I was stacked At in the our XXXX. drillships being
year. contracted seven months now the into we have that see one the at good year, end least delivered for We and be the opportunities of more to by on
contract DS-X, drillship award uncontracted only DS-XX. the to we remaining, the have one Following
the Beyond for through our ultra-deepwater build new options this, our operating attractive floater DS-XX. and DS-XX active fleets existing to drillships recontracting and is market strong purchase leverage our
assets Korean both South capable on and the the drillships Based only progress rigs. current rankings. Korean shipyards rig to for intend add with global only still amongst we it exercise Both to and approximately that options all the million the technically these DS-XX cost specification a remaining highest most They the of ship South DS-XX available estimate drillships are at with would and third-party fleet the in contracting that our view, market two and $XX BOP the shipyards BOPs, per one. is second are available to equipped a we at
outlook, We third-party market on interest higher, second not to the rigs most, brokers, And of $XXX by needed estimates stacked based see customer BOP. supply we or rigs. be the when will newbuild meet in million remaining of for current clearing likely the a Based believe on shipyard the fleet of are prices growing that future to strong demand. including cost global and drillships our these all, be in if rig
representing the rate $XXX DS-XX comparable for and By XX%, for for discount million prices of a the a shipyard XX% current to of comparison, attractive, market the million are and asset. very DS-XX respectively, $XXX
a will compelling that lives. opportunities attractive and purchase represent returns generate their the options both DS-XX DS-XX result, believe we investment As for over
our reactivation the for over a reactivate to in will disciplined on we initial term. will and our and return only contracts continue that expected said, reactivating meaningful DS-XX to firm being approach DS-XX That are be rigs, to the generate costs
Moving Saudi Drilling, update on XX-XX an venture now unconsolidated Aramco. to with our ARO joint
end will October. be newbuild We start-up in September expect that delivered expected rig of the one by with contract
be delivered quarter before with anticipated is first to in startup rig the of expected XXXX. Newbuild contract two year-end still
will its for financing the first an growth Saudi of of is to newbuild the newbuilds, XX both sustainable ARO. ARO and The rig be newbuilds in we place is story well rigs. expect continues progress ARO start-up market delivery two program. in the prior of growing attractive, delivery to which with the milestone important to positioned and mark and an Arabia
program have announced $XXX we now an our repurchase an Moving by on $XXX an and May, update share in to shares In shares our year-end we share million, repurchase $XX. repurchased price authorization to of to-date, and in million intend We of the at increase May program. of $XX XXXX. to I began average repurchased repurchase million
XXXX continued VALARIS result payment awarded returning As and $XXX contract upfront shareholders million. recent repurchase capital our a includes we target to meaningful to the to our to of million $XXX have share DS-X, which a commitment increased from
to growth day as years, rate free next earnings reactivated work expect rates We rigs higher sustained flow meaningful and significant to and few on from achieve generate the to legacy contracts over cash contracts. return market rigs attractive transition and
what We shareholder for more free to capital it. is intend flow our philosophy better this allocation our do to consistent simple. future there value to with on it returns. a shareholders and unless use Our accretive maximizing value-driven to goal cash philosophy This with is return long-term approach is or of all
remarks. conclude I points of reiterating my prepared key will some by the from
in second evidenced achieving operational of year. the and excellent deliver quarter XX% half efficiency the first the revenue to continue we performance First, through XX% by
Valaris for constrained contract times the tightening strong sustained see which to with Further, duration, increasing supply and lead rates, cycle. up our Second, very outlook day the industry we demand towards and a increases remained all market. positive, of point and continue and in
outlook customer in generate and strong we interest that these DS-XX And and on newbuild to drillships, returns. the intend purchase positive options will VALARIS investments assets, exercise the high-spec DS-XX believe to finally, due and we as attractive market these
continue ahead, look maximizing leverage we to will disciplined long-term our shareholder we in exercising and As on laser-focused be operational value.
the hand Chris you take through to call financials. now the over I'll to
