Valaris has reported losses of $910million as one of the world’s largest offshore drillers hopes to soon re-emerge from bankruptcy.
The firm, this month marking two years since it was formed from the merger of Ensco and Rowan, has provided its first quarter results for 2021.
The reported net losses compare to a deficit of just $76m in the same period last year. Revenues totalled $307m, down from $456m in Q1 2020.
On a pre-tax basis, Valaris’ losses totalled $875.9m, far reduced from the deficit of more than $3bn in Q1 2020 as the firm took heavy impairments on its assets.
It comes after Valaris entered Chapter 11 bankruptcy in the US in August last year, following several rival drilling firms who were equally hit hard by Covid’s impact on the sector.
Valaris saw revenues and day-rates decline for its floater segment. However, revenues and day-rates increased for its jackup segment, while revenues were also up from ARO Drilling, its JV with Saudi Aramco.
CEO Tom Burke said: “We are beginning to see early signs of a recovery in customer demand following the downturn caused by the Covid-19 pandemic, for which we have been reactivating rigs, including most recently one of our high-specification heavy duty harsh environment jackup rigs in advance of a long-term contract commencing later this year.
“We look forward to soon emerging from chapter 11 as a strong and stable company ready to take advantage of opportunities as they arise.”