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Get filing alertsValaris reports Q2 net income of $47M, adds $160M+ North Sea backlog, merger on track
Filed August 5, 2026 · Period ending August 5, 2026 · ~1 min read
Key Changes
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high
Q2 net income $47M vs. Q1 loss of $18M; Adjusted EBITDA $97M (up from $67M) despite ~$30M Middle East conflict headwinds (war-risk insurance, delays); revenues $539M driven by three drillship startups.
Exhibit 99.1 view on EDGAR → -
high
Successfully started drillships DS-12 and DS-10 on new contracts during Q2, on schedule and on budget; combined with late-Q1 DS-17 startup, drove 17% sequential revenue increase to $502M (ex-reimbursables).
Exhibit 99.1 view on EDGAR → -
medium
Added $160M+ of North Sea jackup backlog, strengthening contract coverage through 2027; sold two long-term stacked jackups (VALARIS 104, 109) for $74M total proceeds.
Exhibit 99.1 view on EDGAR → -
high
Transocean merger remains on track for Q4 2026 close; Q2 merger expenses $11M (down from $14M in Q1); company will not hold future earnings calls or provide forward guidance due to pending transaction.
Exhibit 99.1 view on EDGAR →
Summary
Valaris reported a strong operational and financial quarter, swinging to $47 million net income from an $18 million Q1 loss. The turnaround was driven by three drillship startups (DS-17 late in Q1, DS-12 and DS-10 in Q2) that lifted revenues 17% sequentially to $502 million excluding reimbursables.
Adjusted EBITDA climbed to $97 million despite absorbing roughly $30 million in Middle East conflict-related costs—primarily higher war-risk insurance premiums and project delays—demonstrating underlying operational strength.
The company added more than $160 million of North Sea jackup backlog during the quarter, reinforcing its contract coverage through 2027, and monetized two long-term stacked jackups for $74 million in cash proceeds. The pending Transocean merger remains on schedule for a fourth-quarter 2026 close. Valaris incurred $11 million in merger-related professional fees during Q2, down from $14 million in Q1, and has suspended future earnings calls and forward guidance in light of the transaction. For holders, the quarter validates the operational execution underpinning the merger thesis—drillship reactivations are proceeding on time and on budget, the jackup fleet is securing incremental work, and the company is generating positive earnings despite external headwinds. Two additional drillships are expected to commence contracts before year-end, which should sustain the revenue trajectory into the combined entity.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Valaris announced Q2 2026 financial results and operational updates.
Added in current filing · verify on EDGAR →
Item 2.02 Results of Operations and Financial Condition
Valaris disclosed its second quarter 2026 results of operations and financial condition. The filing indicates the company is providing quarterly financial results, though the specific financial metrics are not included in the provided excerpt.
Event · Exhibit 99.1
Valaris reports Q2 2026 net income of $47M, Adjusted EBITDA of $97M, and adds $160M+ in North Sea jackup backlog.
Added in current filing · view on EDGAR →
Added more than $160 million of backlog for the North Sea jackup fleet, further enhancing Valaris' industry-leading contract coverage for jackups across 2026 and 2027
Valaris added more than $160 million of contract backlog for its North Sea jackup fleet during Q2 2026, strengthening its contract coverage for jackups through 2026 and 2027. This demonstrates continued customer demand for the company's harsh-environment jackup assets in the North Sea market.
Added in current filing · view on EDGAR →
High-graded the fleet through the sale of long-term stacked jackups VALARIS 104 and 109 in June and July 2026, respectively, for total cash proceeds of $74 million ... Other income of $30 million compared to other expense of $10 million in the first quarter 2026, primarily due to a gain on the sale of jackup VALARIS 104.
Valaris sold two long-term stacked jackups (VALARIS 104 in June and VALARIS 109 in July 2026) for total cash proceeds of $74 million, generating a gain on the sale of VALARIS 104 that contributed to $30 million in other income for Q2. These sales represent fleet optimization, removing older stacked assets and generating cash.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 6, 2026 · How we verify