Offshore drilling contractor Valaris reported net income of $187 million for the third quarter of 2025, a significant increase from $114 million in the second quarter.
The quarter's results included a $90 million gain on the sale of the jackup Valaris 247, which was sold for $108 million. Total operating revenues for the quarter were $596 million, down slightly from $615 million in the prior quarter.
Adjusted EBITDA for the third quarter was $163 million, compared to $201 million in the second quarter. The company generated $198 million in cash from operating activities and $237 million in adjusted free cash flow. During the quarter, Valaris repurchased $75 million of its shares.
Anton Dibowitz, President and CEO, stated that the team's safe and efficient operations led to another quarter of strong financial results. He highlighted the recent contract award for the drillship Valaris DS-12 with BP in Egypt, noting that all four of the company's active drillships with near-term availability are now contracted for work beginning next year.
Dibowitz added, “Despite near-term commodity price uncertainty, demand for offshore drilling services is developing as we expected, with customers increasingly looking to offshore projects to meet future energy needs.”
He noted a solid pipeline of deepwater opportunities and advanced customer discussions for drillships scheduled to complete contracts in the second half of 2026.
Revenues exclusive of reimbursable items decreased to $556 million from $572 million in the second quarter. This was primarily due to fewer operating days for the floater fleet, as Valaris DS-15 and DS-18 completed contracts without immediate follow-on work.
However this was partially offset by more operating days for the jackup fleet and higher bareboat charter revenue from rigs leased to ARO Drilling.