Overview

* Valaris ( VAL ) Q3 net income rises to $187 mln, driven by asset sale gains

* Adjusted EBITDA falls to $163 mln from $201 mln in Q2

* Company repurchased $75 mln of shares, indicating strategic financial management

Outlook

* Valaris ( VAL ) sees solid pipeline of deepwater opportunities for its high-specification fleet

* Company in advanced discussions for drillships contracts starting in second half of 2026

* Valaris ( VAL ) focused on managing fleet and costs amid commodity price uncertainty

Result Drivers

* CONTRACT AWARD - Secured contract for VALARIS DS-12 with bp offshore Egypt, contributing to strategic execution

* OFFSHORE DEMAND - Despite commodity price uncertainty, demand for offshore drilling services is developing as expected

* DEEPWATER OPPORTUNITIES - Solid pipeline of deepwater opportunities for high-specification fleet

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net $187 mln

Income

Q3 $163 mln

Adjusted

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the oil & gas drilling peer group is "buy."

* Wall Street's median 12-month price target for Valaris Ltd ( VAL ) is $51.50, about 9.7% below its October 28 closing price of $56.50

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)