Jul. 31 at 6:27 PM
$RIG Valaris delivered a strong Q2 performance, beating expectations on both earnings and revenue:
Earnings per share (EPS):
$1.61 vs.
$1.16 expected — a 38.8% surprise
Revenue:
$615.2 million vs.
$578 million expected — up 6.4%
Adjusted EBITDA:
$201 million, up from
$181 million in Q1
Net income:
$114 million, a sharp turnaround from a
$39 million loss in Q1
🛠️ Operational Highlights
Revenue efficiency held at 96%, reflecting solid rig utilization
Secured
$1.0 billion in new contracts, boosting backlog to
$4.7 billion
Sold jackup rig VALARIS 247 for
$108 million to optimize fleet and liquidity
But wait! A turd was found in the punchbowl:
📉 Market Sentiment Despite the beat, Valaris received a Zacks Rank #5 (Strong Sell) due to unfavorable earnings estimate revisions.
Zacks are a bunch of morons, but it doesn't matter. Even on a good earnings report,
$VAL stock is currently flat as a result. Calibrate your RIG earnings expectations accordingly.
