Valaris (NYSE: VAL) has landed a pair of North Sea rig deals with operators Harbour Energy (LON: HBR) and NEO Energy.
A two-year jackup extension has been announced – at a day rate of $95,000 – for the Valaris 92 with Harbour Energy.
Kicking off in Q1 2024 in direct continuation of an existing contract, the rig is “expected to be exclusively undertaking” plug and abandonment (P&A) work.
Harbour Energy also currently has the Valaris 92 working for it in the UK.
Elsewhere a one-well contract has been signed, also in the UK North Sea, with NEO Energy for the Valaris Norway.
The deal is expected to begin in July, with an estimated duration of 20 days, with an operating day rate of $105,000.
Valaris has a total contracted backlog of $1.63bn.
Currently, the Valaris Norway is on contract with Centrica Storage.
Also in the UK North Sea, Valaris also has the 247 on contract with Perenco, the 246 working for Neptune Energy, the 122 working for Shell and the 72 working for Eni.
Valaris released its Q1 2023 results today, showing adjusted EBITDA decreased to $24 million from $54 million in the fourth quarter, primarily due to increased repair and maintenance costs associated with special periodic surveys.
Contract backlog increased by $820m.
CEO Anton Dibowitz said: “We continue to be highly constructive on the outlook for the industry and our business, with increasing demand and constrained supply continuing to tighten the market.
“As a result of our strong business outlook and commitment to returning capital to shareholders, the Valaris Board of Directors has increased our share repurchase authorization to $300 million, and we intend to repurchase $150 million of shares by the end of the year. As we look ahead, we will continue executing our focused, value driven and responsible strategy to deliver value to all stakeholders.”
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