Key Highlights

  • Total operating revenues for VAL were $594 million in the third quarter, with Net Income of $47 million, equal to $0.66 a diluted share.
  • Adjusted EBITDA increased 56% on a sequential basis, rising from $97 million to $151 million.
  • Backlog now totals close to $4.8 billion, following roughly $600 million of additional bookings since the second-quarter release.
  • Revenue efficiency reached 97% in the quarter and 98% for the year to date, with every one of the ten active drillships under contract.
  • Middle East hostilities reduced adjusted EBITDA by about $24 million, versus about $30 million in the previous quarter.

Redeployed Drillships Drive a 56% Jump in Adjusted EBITDA

Valaris (NYSE:VAL) released third quarter 2026 figures on Nov 2, 2026 for the period ending Sep 30, 2026. Revenue for the quarter reached $594 million against $539 million for the second quarter, and the $47 million net income figure held close to the earlier period.

Adjusted EBITDA rose from $97 million to $151 million. Revenue net of reimbursables went from $502 million to $556 million, helped by three rigs that resumed contracts following idle stretches.

Valaris is an offshore driller running deepwater drillships and jackups in shallow waters across major basins globally. Diluted Earnings came to $0.66 a share, down from $0.72 in the second quarter.

Floater Sales Reach $346 Million While Jackup Income Dips

Revenue from the floater ships hit $346 million, compared with $279 million, as two drillships whose work started in April and June operated for a full quarter. Another drillship launched a new contract in September following a shipyard stint, while a fourth secured a higher day rate.

Jackup revenue dipped to $171 million, against $183 million previously, as one rig spent most of the period in a shipyard for scheduled maintenance ahead of its next job. Jackup contract drilling costs came in at $129 million, versus $144 million earlier, thanks to smaller mobilization and war-risk insurance bills.

The joint venture ARO Drilling, formed with Saudi Aramco, lifted its Top Line to $145 million from $127 million after two jackups returned to bareboat contracts in July and September. Nonetheless, the company's share of ARO produced a $3.5 million Equity loss, compared with $10.6 million of earnings during the second quarter.

Tax Expense, Capital Spending and Lower Cash Shape the Balance Sheet

Income tax expense climbed to $55 million, up from $34 million, and that includes a $23 million one-off item, mostly non-cash, linked to rig disposals. Stripping out such one-off items, the tax line decreased to $32 million compared with $40 million. Other income shrank to $20 million, against $30 million previously, because gains on asset sales were smaller.

Capital outlays rose to $122 million, having been $106 million before. Cash and equivalents closed the period at $525 million, versus $541 million, because spending exceeded the $67 million of Operating Cash Flow and asset sale receipts.

Contract Backlog reached nearly $4.8 billion. Valaris also disposed of a semisubmersible destined for scrap and a long-idle jackup set for conversion into a mobile offshore production unit.

Regulatory Clearance in Hand for the Transocean Tie-Up, With Closing Penciled In for Dec 1, 2026

Leadership reported that regulators have already signed off on the planned combination with Transocean, which is slated to finalize on or around Dec 1, 2026. Merger and integration costs totaled $16 million this quarter, up from $11 million in the second quarter. Since the deal is underway, the company will hold no further earnings calls and will not update guidance.