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Valaris posts higher Q2 net income YOY as revenue increases

Offshore driller Valaris PLC reported net income attributable to the company of $405.5 million, or $2.09 per share, for the second quarter, up from a loss of $151.0 million, or a loss of $1.31 per share, a year ago.

Revenue reached $583.9 million for the quarter, up 27% from $458.5 million in the prior-year period, according to a July 31 news release. The company attributed the better performance to the additional $147 million revenue from legacy Rowan rigs, which was partially offset by the sale of the Ensco 6001 and Ensco 80 rigs that were operating a year ago.

The floater segment was the biggest contributor to revenue at $295.6 million, topping $284.9 million a year earlier.

The jackup segment brought in $229.2 million, jumping from $158.7 million in the prior-year period.

"The recovery for the offshore drilling industry continues to steadily progress, albeit at a slower pace than we expected when we began the year," CEO and President Tom Burke said in the release. "This is due to a more gradual improvement in the global floater market where, despite higher spot utilization, we anticipate limited further pricing improvement in the near-term due to a number of rigs completing contracts and recontracting opportunities with relatively short durations."

"By contrast, we have observed broad-based modest improvements in the jackup market as evidenced by our recent contracting success for harsh and benign environment assets across a wide range of geographies," Burke said.

Adjusted EBITDA totaled $59.0 million for the quarter, down from $85.2 million a year earlier.

Valaris is the new name of Ensco Rowan PLC, which is the merged entity of Ensco PLC and Rowan Cos. PLC. The two companies completed a merger of equals in April.