Valaris Looks Forward to Soon Emerging from Chapter 11

Valaris’ Chief Executive Officer and President, Tom Burke, outlined in the company’s first quarter results statement that the business looks forward to “soon emerging” from Chapter 11.

“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,” Burke said in a company statement.

“We look forward to soon emerging from Chapter 11 as a strong and stable company ready to take advantage of opportunities as they arise,” the Valaris head added.

Last month, Valaris announced that it had received approval from the United States Bankruptcy Court for the Southern District of Texas for its prearranged plan of reorganization. In a company statement at the time, Burke outlined that the path was clear for Valaris to emerge from Chapter 11 “early in the second quarter”. Upon emergence and implementation of the plan, Valaris will eliminate $7.1 billion of existing debt, according to the company statement.

Valaris reported a net loss $910 million, or $4.56 per share, for the first quarter of 2021, compared to a net loss of $71 million, or $0.36 per share, in the fourth quarter of 2020. The company reported adjusted EBITDA of $28 million in the first quarter of 2021 compared to negative $10 million in the fourth quarter of 2020, and an adjusted loss of $0.39 per share in the first quarter 2021 versus an adjusted loss of $0.65 per share in the prior quarter.

Valaris describes itself as the industry leader in offshore drilling services across all water depths and geographies. The company is based in London, UK.

Credit to www.rigzone.com