Valaris Ltd Reports Contract Backlog Increase

By Chris Stiles • Wednesday, February 18 11:56 • Permanent Link

Valaris Limited has reported new contracts and contract extensions with a contract backlog of nearly $900 million since its previous fleet status report on October 23, 2025. The contract backlog has increased to approximately $4.7 billion from approximately $4.5 billion as of October 23, 2025.

There have been significant changes in the contract backlog across different asset categories. For drillships, the contract backlog increased to $3,030.8 million from $2,462 million in 2026. In the same category, the contracted days increased to 2,927 from 2,462 in 2026. For harsh environment assets, the contract backlog increased to $367.2 million from $204.3 million in 2026. The contracted days also increased to 933 from 1,635 in 2026. Additionally, for jackups, the contract backlog increased to $1,125.8 million from $520.0 million in 2026. The contracted days increased to 3,356 from 4,115 in 2026.

Looking at average day rates, owned rigs in the drillship category saw an increase from $170.8 in 2026 to $491.7 in 2028. Leased rigs also saw a significant increase from $244.0 in 2026 to $697.5 in 2028. In the harsh environment category, the day rates increased from $125,000 in 2026 to $137,000 in 2028. For benign environment assets, the day rates increased from $137,000 in 2026 to $131,000 in 2027.

Several new contracts and extensions were awarded, including a two-year contract extension for drillship Valaris DS-9 with Essso Exploration Angola, a multi-year contract for drillship Valaris DS-8 with Shell Offshore Brazil, and an eight-well contract for jackup Valaris 106 with BP Indonesia.

The company also provided details on specific rigs, such as the contract start and end dates, day rates, and customer locations for each asset category, including drillships, semisubmersibles, harsh environment jackups, and benign environment jackups. Additionally, there were updates on rigs that were classified as held for sale and rigs that were sold for recycling.

The market has reacted to these announcements by moving the company's shares -1.33% to a price of $53.99. If you want to know more, read the company's complete 8-K report here.

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