The offshore drilling company has three new contracts for chartering its oil and gas drillships. Among Valaris' agreements are one with state-owned Petrobras, worth US$ 500 million, and one with TotalEnergies.

Starting the week off on the right foot, the multinational offshore contractor Valaris has three new contracts for chartering its drillships from drilling. The models in question are the Valaris DS-12, DS-8 and 107, with agreements with TotalEnergies, Petrobras and Beach Energy, respectively. The company hopes to take advantage of this month's customer base to expand its business in 2023.

Find out more about Valaris

With drillship charter agreements for TotalEnergies, Petrobras and Beach Energy, Valaris starts 2023 on the right foot in the offshore drilling market

The multinational drilling company oil and gas Valaris has big news for the global fuel market. It announced the signing of three new large contracts for the charter of its offshore drillships.

The first of these is the Valaris DS-8, which is being chartered by the Brazilian state-owned Petrobras for a three-year contract worth US$ 500 million, already including a mobilization fee of US$ 30 million.

Currently preserved in Las Palmas, Spain, the Valaris platform will need to undergo a reactivation process to start activities with the oil company.

The second of the contractor's three contracts was signed with TotalEnergies. It will have a total duration of 100 days, referring to the charter of the offshore drilling drillship Valaris DS-12.

Currently located in Angola, the Valaris rig will return to the energy company's charter in the second quarter of 2023.

In New Zealand, Valaris said it had secured a 70-day contract with Beach Energy for the modern VALARIS 107 jackup.

With a total value of US$ 26 million, the third of the company's contracts is expected to start in the third quarter of 2023.

President and CEO Anton Dibowitz said: “We are particularly pleased to have secured the award for the piled preservation drillship VALARIS DS-8 for a contract that is expected to generate a significant return over the firm term of the contract, and We remain focused on exercising our operating leverage in a disciplined manner.”

New charter contracts for offshore drilling drillships increase the company's expenditure expectations for the year 2023

Valaris' new contracts, especially with Petrobras, are warning investors about spending on the international market.

This is because one of its drillships, the Valaris DS-8, will have to be reactivated for chartering with the oil company.

In the press update, the company said contracted drilling expenses in the first quarter are expected to increase by approximately $5 million to $385 million and $395 million.

The company is expecting a decrease of up to US$5 million in its EBITDA due to the agreement. As for the company's revenue, it is not threatened and will continue on a good scale for the year 2023, with a forecast of US$ 1,9 billion by the end of the year.

Finally, regarding adjusted EBITDA, the company expects it to decrease by approximately US$ 60 million, to US$ 180 million and US$ 220 million.

Although positive for the 2023 business backlog, the new contracts for Valaris' offshore drilling drillships leave room for a warning about the company's financial situation.