Valaris Ltd
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
VAL$79.77+3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000314808-25-000126
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000314808-25-000149
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 153 previous paragraphs and 156 current paragraphs.
91 unchanged; 40 reworded; 24 added; 21 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 12 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Revenues decreased in the current quarter compared to the preceding quarter, primarily due to $40.8 million of lower revenues for VALARIS DS-18, VALARIS 247 and VALARIS DS-15, which completed their contracts during the current quarter. Upon completion of their contracts, VALARIS DS-18 and VALARIS DS-15 were warm stacked and VALARIS 247 was sold in August 2025. For the remainder of the fleet, there was a $13.6 million net increase from more operating days, largely driven by various rigs within our jackup fleet which were mobilizing between contracts during a portion of the preceding quarter, and a $10.5 million net increase in average daily revenues due to various rigs commencing new contracts at higher day rates than those earned in the preceding quarter.
Current report
Contract drilling expense increased in the current quarter compared to the preceding quarter, primarily driven by a favorable arbitration outcome related to previously disclosed patent license litigation, which resulted in a non-recurring $17.1 million accrual reversal in the preceding quarter.
Current report
Other income (expense), net, increased primarily due to an $88.4 million pre-tax gain recognized in the current quarter related to the sale of VALARIS 247, a $7.5 million increase from higher interest income and a $7.3 million decrease in net foreign currency exchange losses in the current quarter compared to preceding quarter. See "Note 5 -Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the rig sale.
Current report
Contract drilling expense decreased primarily due to lower operating costs of $68.1 million for certain of our floater rigs which have been warm stacked or retired after completing contracts since the end of the second quarter of 2024 and an $18.3 million decrease in expenses related to VALARIS DS-7, which was largely driven by reactivation costs incurred in the prior year period and were partially offset by incremental operating costs in the nine months ended September 30, 2025. For the remaining fleet, we had a decrease of $40.7 million from lower amortized mobilization costs compared to the prior year period, largely driven by VALARIS 247 and certain other rigs within the fleet which mobilized to commence new contracts in the prior year period. Further contributing to the decrease was the reversal of a 2024 accrual for a previously disclosed patent license litigation during the nine months ended September 30, 2025 due to a favorable outcome.
Current report
In connection with the retirement of VALARIS DPS-3, VALARIS DPS-5 and VALARIS DPS-6 (collectively, the "Retired Semis"), we recognized a loss on impairment of $7.8 million during the nine months ended September 30, 2025. See "Note 5 -Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the retirement of these assets.
Current report
(7)During the third quarter of 2025, we sold VALARIS 247.
Current report
Floater revenues decreased $26.7 million, or 8%, for the current quarter compared to the preceding quarter, primarily due to $27.6 million of lower revenues for VALARIS DS-18 and VALARIS DS-15, which completed their contracts in July and mid-September 2025, respectively, and were subsequently warm stacked. These decreases were partially offset by a net increase of $2.3 million from higher average daily revenues driven by various rigs commencing new contracts at higher day rates than those earned in the preceding quarter.
Current report
Floater contract drilling expense increased $11.4 million, or 6%, for the current quarter compared to the preceding quarter, primarily driven by a favorable arbitration outcome related to previously disclosed patent license litigation, which resulted in a non-recurring $17.1 million accrual reversal in the preceding quarter.
Current report
Jackup revenues increased $4.7 million, or 2%, for the current quarter compared to the preceding quarter. Excluding a $13.2 million decrease in revenue attributable to VALARIS 247 completing its contract and being sold in the current quarter, the jackup fleet had a $14.4 million net increase from more operating days, largely driven by VALARIS NORWAY and VALARIS 106, which were mobilizing between contracts during a portion of the preceding quarter, and a $3.5 million net increase from higher average daily revenues due to various jackups commencing new contracts at higher day rates than those earned in the preceding quarter. See "Note 5 -Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the sale of VALARIS 247.
Current report
ARO revenue increased $16.9 million, or 12%, for the current quarter compared to the preceding quarter, primarily due to a net increase of $11.9 million from more operating days resulting from certain rigs which underwent scheduled repairs in the preceding quarter and a net increase of $3.7 million from higher average daily revenues, largely driven by a full quarter of operations for four long-term contract extensions at higher day rates which commenced during the preceding quarter.
Current report
ARO contract drilling expense decreased $4.8 million, or 5%, for the current quarter compared to the preceding quarter, primarily due to lower repairs and maintenance costs.
Current report
Other contract drilling expense decreased $1.1 million, or 6%, for the current quarter compared to the preceding quarter, primarily due to lower repairs and maintenance on certain of our leased rigs in the current quarter.
Current report
Nine Months Ended September 30, 2025
Current report
Nine Months Ended September 30, 2024
Current report
Floater contract drilling expense decreased $151.5 million, or 21%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to lower operating costs of $68.1 million for certain of our floater rigs which have been warm stacked or retired after completing contracts since the end of the second quarter of 2024 and a $18.3 million decrease in expenses related to VALARIS DS-7, which was largely driven by reactivation costs incurred in the prior year period and was partially offset by incremental operating costs in the nine months ended September 30, 2025. For the remaining fleet, we had a decrease of $12.5 million from lower mobilization costs as a result of certain drillships which mobilized in the prior year period. Further contributing to the decrease was the reversal of a 2024 accrual for a previously disclosed patent license litigation recognized during the nine months ended September 30, 2025 due to a favorable outcome.
Current report
In connection with the retirement of the Retired Semis, we recognized a loss on impairment of $7.8 million during the nine months ended September 30, 2025. See "Note 5 - Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the retirement of these assets.
Current report
Jackup contract drilling expense remained relatively flat during the nine months ended September 30, 2025 compared to the prior year period, primarily due to higher personnel-related costs on various rigs as a result of more operating days during the nine months ended September 30, 2025, which were offset by lower mobilization costs, largely attributable to VALARIS 247, which mobilized from the United Kingdom to Australia during the prior year period.
Current report
Jackup depreciation expense increased $9.9 million, or 30%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to new assets placed in service for certain rigs that underwent capital upgrades.
Current report
ARO contract drilling expense decreased $12.6 million, or 4%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to lower operating costs for VALARIS 143, VALARIS 147 and VALARIS 148, partially offset by incremental operating costs for Kingdom 2 and VALARIS 108. Further contributing to the offset were increased bareboat charter lease expenses for four of our leased rigs which commenced long-term bareboat charter lease extensions at higher rates in the nine months ended September 30, 2025.
Current report
During the nine months ended September 30, 2024, ARO recorded non-cash losses on impairment totaling $28.4 million with respect to the contract terminations for VALARIS 143, VALARIS 147 and VALARIS 148. See "Note 3 - Equity Method Investment in ARO" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the impairment.
Current report
Other revenue increased $12.3 million, or 11%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to higher revenue earned from lease agreements with ARO of $10.0 million.
Current report
Net gains on sale of property in the current quarter primarily related to the sale of VALARIS 247, which resulted in a pre-tax gain of $88.4 million (see "Note 5 -Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the rig sale).
Current report
Interest income increased $7.5 million in the current quarter compared to the preceding quarter, primarily due to higher interest earned on our outstanding Notes Receivable with ARO, including the impact of certain adjustments recognized during the current quarter, and higher interest income earned on cash and cash equivalents as a result of higher average balances.
Current report
In the third quarter of 2025, we sold VALARIS 247, a rig within our Jackups segment, and collected cash proceeds of approximately $108.0 million. We recognized a pre-tax gain of $88.4 million in connection with the sale.
Removed paragraphs (21)
Previous report
Revenues decreased in the current quarter compared to the preceding quarter, primarily due $27.9 million of lower revenues for VALARIS DS-12, which completed its contract in March 2025 and was subsequently warm stacked, largely offset by $18.2 million of revenues for VALARIS 144, which commenced a contract following its mobilization during the preceding quarter. Further contributing to the decrease was the recognition of a non-recurring $7.3 million termination fee in the preceding quarter related to the cancellation of a short-term contract for VALARIS 247. These net decreases were partially offset by a $10.3 million net increase in average daily revenues for the remaining fleet, primarily driven by various jackups commencing new contracts at higher day rates than those earned in the preceding quarter, reduced in part by lower amortized mobilization and upgrade revenue for VALARIS DS-17, which completed its initial contract term late in the preceding quarter.
Previous report
Contract drilling expense decreased in the current quarter compared to the preceding quarter, primarily driven by a partial reversal of $17.1 million for a previously accrued legal matter in the current quarter. Further contributing to the decrease was a $6.3 million decrease in amortized mobilization costs, largely attributable to VALARIS DS-17, and a $4.3 million decrease in expenses for the Retired Semis (as defined below), which were sold in April 2025, and VALARIS DS-12, which was warm stacked upon the completion of its contract in the preceding quarter. These decreases were partially offset by a $6.7 million increase in costs associated with VALARIS 144, which commenced a new contract in late March 2025.
Previous report
During the preceding quarter, we approved a plan to retire VALARIS DPS-3, VALARIS DPS-5 and VALARIS DPS-6 rigs (collectively, the "Retired Semis") and the rigs were subsequently sold for recycling and removed from service in April 2025. In connection with this plan, we recognized a loss on impairment of $7.8 million during the preceding quarter. See "Note 5 -Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the retirement of these assets.
Previous report
Other income (expense), net, decreased primarily due to an aggregate $27.0 million of pre-tax gains recognized in the preceding quarter related to the sales of VALARIS 75 and an office in Angola.
Previous report
Contract drilling expense decreased primarily due to $24.0 million of lower costs for the Retired Semis, which were sold in April 2025, a $17.8 million decrease related to VALARIS DS-7, largely driven by reactivation costs incurred in the prior year period which were partially offset by incremental operating costs in the six months ended June 30, 2025, and $13.5 million of lower operating costs for VALARIS DS-10 and VALARIS DS-12, which operated in the prior year period but are now warm stacked. For the remaining fleet, we had a decrease of $17.2 million from lower mobilization costs for certain rigs compared to the prior year period and a decrease of $17.1 million for the partial reversal of a previously accrued legal matter in the second quarter of 2025.
Previous report
In connection with the retirement of the Retired Semis, we recognized a loss on impairment of $7.8 million during the six months ended June 30, 2025. See "Note 5 -Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the retirement of these assets.
Previous report
Floater revenues decreased $36.3 million, or 10%, for the current quarter compared to the preceding quarter, primarily due to $27.9 million of lower revenues for VALARIS DS-12, which completed its contract in March 2025 and was subsequently warm stacked. Further contributing to the decrease was a net decline in average daily revenues, largely attributable to $9.6 million of lower amortization of mobilization and upgrade revenues for VALARIS DS-17, which completed its initial contract term late in the preceding quarter.
Previous report
Floater contract drilling expense decreased $27.7 million, or 14%, for the current quarter compared to the preceding quarter, primarily driven by a partial reversal of $17.1 million for a previously accrued legal matter in the current quarter. Further contributing to the decrease were $5.5 million of lower amortized mobilization costs, largely attributable to VALARIS DS-17, and a $4.3 million decrease in expenses for the Retired Semis, which were sold in April 2025, and VALARIS DS-12, which was warm stacked upon the completion of its contract in the preceding quarter.
Previous report
In connection with our plan to sell the Retired Semis, we recognized a loss on impairment of $7.8 million during the preceding quarter. See "Note 5 - Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the retirement of these assets.
Previous report
Jackup revenues increased $26.1 million, or 14%, for the current quarter compared to the preceding quarter, primarily driven by $18.2 million of incremental revenue related to the commencement of a contract for VALARIS 144 following its mobilization during the preceding quarter. For the remainder of the jackup fleet, there was a net increase of $10.3 million from higher average daily revenues, largely due to various jackups in our fleet commencing new contracts at higher day rates than those earned in the preceding quarter. These increases were partially offset by a $7.3 million decrease from the recognition of a non-recurring termination fee in the preceding quarter related to the cancellation of a short-term contract for VALARIS 247.
Previous report
Jackup contract drilling expense increased $7.6 million, or 7%, for the current quarter compared to the preceding quarter, primarily due to a $6.7 million increase in costs associated with VALARIS 144, which commenced a new contract following its mobilization during the preceding quarter.
Previous report
ARO revenue increased $5.2 million, or 4%, for the current quarter compared to the preceding quarter, primarily due to an increase of $7.8 million from higher average daily revenues resulting from the commencement of four long-term contract extensions at higher day rates than those earned in the preceding quarter. This increase was partially offset by a net decrease of $2.3 million from fewer operating days in the current quarter for certain rigs that underwent scheduled repairs.
Previous report
ARO contract drilling expense increased $10.8 million, or 13%, for the current quarter compared to the preceding quarter, primarily due to higher repairs and maintenance costs of $4.9 million related to scheduled repairs and an increase of $4.3 million from higher bareboat charter lease expenses resulting from the commencement of four long-term bareboat charter lease extensions at higher rates than the preceding quarter.
Previous report
Six Months Ended June 30, 2025
Previous report
Six Months Ended June 30, 2024
Previous report
Floater contract drilling expense decreased $104.0 million, or 21%, during the six months ended June 30, 2025 compared to the prior year period, primarily due to $24.0 million of lower costs for the Retired Semis, which were sold in April 2025, a $17.8 million decrease in expenses related to VALARIS DS-7, largely driven by reactivation costs incurred in the prior year period which were partially offset by incremental operating costs in the six months ended June 30, 2025, and $13.5 million of lower operating costs for VALARIS DS-10 and VALARIS DS-12, which operated in the prior year period but are now warm stacked. Further contributing to the decrease were a $17.1 million partial reversal of a previously accrued legal matter in the second quarter of 2025, $10.8 million of lower personnel-related costs, primarily driven by incremental headcount requirements for VALARIS DS-17 while working in Argentina in the prior year period, and $10.4 million from lower amortized mobilization costs attributable to certain rigs in the floater fleet.
Previous report
In connection with the retirement of the Retired Semis, we recognized a loss on impairment of $7.8 million during the six months ended June 30, 2025. See "Note 5 - Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the retirement of these assets.
Previous report
Jackup contract drilling expense increased $14.7 million, or 6%, during the six months ended June 30, 2025 compared to the prior year period, primarily due to $11.1 million of incremental costs related to VALARIS 247, which returned to work in the second half of 2024.
Previous report
ARO contract drilling expense decreased $10.4 million, or 5%, during the six months ended June 30, 2025 compared to the prior year period, primarily due to lower personnel-related costs of $5.5 million and a $3.3 million net decrease in bareboat charter lease expense, both of which are primarily related to the terminations of contracts and corresponding bareboat charter lease agreements for VALARIS 143, VALARIS 147 and VALARIS 148.
Previous report
Other revenue remained relatively flat during the six months ended June 30, 2025 compared to the prior year period.
Previous report
In May 2025, we entered into an agreement to sell VALARIS 247, a rig within our Jackups segment, for approximately $108.0 million, subject to certain customary closing conditions and the completion of its current drilling contract. In accordance with the agreement, a $21.5 million deposit was made by the buyer into an escrow account held by a third party during the second quarter of 2025. We expect to collect the deposit and remaining proceeds and to recognize a pre-tax gain of approximately $87.0 million upon completion of the sale, which is expected to occur during the second half of 2025.
Reworded paragraphs (40)
Previous wording
We are a leading provider of offshore contract drilling services to the international oil and gas industry with operations in almost every major offshore market across six continents. We own the world's largest offshore drilling rig fleet, including one of the newest ultra-deepwater fleets in the industry and a leading premium jackup fleet. As of July 31, 2025, we own 49 rigs, including 13 drillships, two semisubmersible rigs, 34 jackup rigs and a 50% equity interest in ARO, our 50/50 unconsolidated joint venture with Saudi Aramco, which owns an additional nine rigs.
Current wording
We are a leading provider of offshore contract drilling services to the international oil and gas industry with operations in almost every major offshore market across six continents. Our fleet of offshore drilling rigs is among the largest in the world and includes one of the highest specification ultra-deepwater fleets, as well as a leading premium jackup fleet. As of October 30, 2025, we own 48 rigs, including 13 drillships, two semisubmersible rigs, 33 jackup rigs and a 50% equity interest in ARO, our 50/50 unconsolidated joint venture with Saudi Aramco, which owns an additional nine rigs.
Previous wording
Demand for offshore drilling is primarily influenced by fundamental supply and demand dynamics for hydrocarbons. In recent months, the macroeconomic outlook grew more uncertain, with concerns that increased trade tariffs and corresponding increased supply chain costs could lead to a slowdown in global economic growth and a reduction in demand for hydrocarbons. Additionally, OPEC+ announced larger-than-expected reversals of oil production cuts, which could increase global crude oil supply. As a result, the average price of Brent crude oil declined to approximately $68 per barrel in the second quarter, more than 10% lower than the prior quarter. While near-term prices have been volatile, longer-dated Brent crude oil prices have remained relatively stable, with the five-year forward price remaining above $65 per barrel. At this level, nearly 90% of undeveloped offshore reserves are expected to be profitable according to Rystad Energy estimates. However, if oil prices continue to decline, demand and pricing for our services could be negatively impacted, which may have a material adverse effect on our business, results of operations and financial condition.
Current wording
Demand for offshore drilling is primarily influenced by fundamental supply and demand dynamics for hydrocarbons. Although global hydrocarbon consumption continues to rise, crude oil supply is projected to outpace demand in 2025 and 2026 as OPEC+ unwinds prior production cuts and non-OPEC+ supply grows. This supply imbalance, coupled with macroeconomic uncertainty stemming from trade policies and tariffs, has contributed to the spot Brent crude oil price declining from the mid $70s per barrel to the low $60s per barrel during 2025. While near-term prices have declined, longer-dated Brent crude oil prices have remained relatively stable, with the five-year forward price remaining above $65 per barrel. At this level, more than 80% of undeveloped offshore reserves are expected to be profitable according to Rystad Energy estimates. However, if oil prices continue to decline, demand and pricing for our services could be negatively impacted, which may have a material adverse effect on our business, results of operations and financial condition.
Previous wording
(1)The increase for Floaters is primarily due to multi-year contracts executed for VALARIS DS-16 and VALARIS DS-18 in the Gulf of America, a two-year contract award for VALARIS DS-10 offshore West Africa and a 250-day contract for VALARIS DS-15 offshore West Africa, which resulted in incremental aggregate backlog of approximately $1.2 billion, partially offset by revenues realized.
Current wording
(1)The increase for Floaters is primarily due to multi-year contracts executed for VALARIS DS-16 and VALARIS DS-18 in the Gulf of America, a two-year contract award for VALARIS DS-10 offshore West Africa, a one-year contract award for VALARIS DS-12 offshore North Africa and a 250-day contract for VALARIS DS-15 offshore West Africa, which resulted in incremental aggregate backlog of approximately $1.4 billion, partially offset by revenues realized.
Previous wording
(2)The increase for Jackups is primarily due to various contract awards and extensions executed, which resulted in incremental aggregate backlog of approximately $345.0 million, partially offset by revenues realized. In June 2025, we received a suspension notice for our current contract on VALARIS 120, which becomes effective upon the completion of its current well, currently estimated to be during September 2025. The table above includes approximately $130.0 million of backlog for the period after the expected suspension date in mid-September.
Current wording
(2)The decrease for Jackups is primarily due to revenues realized, partially offset by various contract awards and extensions executed, which resulted in incremental aggregate backlog of approximately $400.0 million. In June 2025, we received a suspension notice for our current contract on VALARIS 120, which becomes effective upon the completion of its current well, currently estimated to be in November 2025. The table above includes approximately $125.0 million of backlog for the period after the expected suspension date in November.
Previous wording
After several years of increasing global floater utilization and day rates, the pace of contracting began to slow in mid-2024 with customer demand for 2024 and 2025 being deferred to future periods. As a consequence, we have seen a decline in the number of contracted benign environment floaters from a recent peak of 128 in April 2024 to 119 at June 30, 2025, representing 86% utilization of the global marketed fleet, which has put some pressure on day rates in the near term. While the macroeconomic outlook remains uncertain, both Valaris and the broader industry have seen a recent uptick in contracting activity for work commencing in mid-2026 and beyond, and we remain in active discussions with customers on additional opportunities for our floater fleet.
Current wording
After several years of increasing global floater utilization and day rates, the pace of contracting began to slow in mid-2024 with customer demand for 2024 and 2025 being deferred to future periods. Our floater fleet is comprised of benign environment floaters, and within this segment we have seen a decline in the number of contracted rigs from a recent peak of 128 in April 2024 to 118 at September 30, 2025, representing 85% utilization of the global marketed fleet, which has put some pressure on day rates in the near term. While the macroeconomic outlook is uncertain, both Valaris and the broader industry have seen a recent uptick in contracting activity for work commencing in mid-2026 and beyond. Since the first quarter of 2025, we have signed contracts for work beginning next year for our four active drillships with near-term availability and we remain in active discussions with customers on additional opportunities for our floater fleet.
Previous wording
From a supply perspective, as of June 30, 2025, there were 159 benign environment floaters in the global fleet. Since the beginning of 2025, there have been six benign environment floaters retired, including three Valaris rigs, and we could see further rigs removed from the global floater fleet in response to the recent decline in global utilization. Also, given the expected high construction cost and lack of shipyard capacity, we do not believe that market conditions are supportive of floater newbuild construction for the foreseeable future.
Current wording
From a supply perspective, as of September 30, 2025, there were 155 benign environment floaters in the global fleet. Since the beginning of 2025, there have been 10 such rigs retired, including three Valaris semisubmersible rigs. An additional five rigs have been announced as held for sale for recycling or alternative use and further retirements may occur in response to the recent decline in global utilization. Also, given the expected high construction cost and lack of shipyard capacity, we do not believe that market conditions are supportive of floater newbuild construction for the foreseeable future.
Previous wording
Global jackup utilization and day rates increased for several years but started to moderate following Saudi Arabia's announcement in early 2024 that they plan to maintain maximum sustainable capacity at 12 million barrels per day. Since this announcement, Saudi Aramco has suspended contracts for 37 rigs, which represents 8% of the marketed jackup fleet, including VALARIS 143, VALARIS 147 and VALARIS 148. To date, 18 of the 37 suspended rigs have been contracted in other regions and one rig has been retired from the offshore drilling fleet. We believe that less than half of the remaining suspended rigs are likely to be competitive in other higher-specification, benign environment regions.
Current wording
Global jackup utilization and day rates increased for several years but started to moderate following Saudi Arabia's announcement in early 2024 that they plan to maintain maximum sustainable capacity at 12 million barrels per day. Since this announcement, Saudi Aramco has suspended contracts for 37 rigs, which represents 9% of the marketed jackup fleet, including VALARIS 143, VALARIS 147 and VALARIS 148. To date, 17 of the 37 suspended rigs have been contracted in other countries and one rig has been retired from the offshore drilling fleet. We believe that less than half of the remaining uncontracted rigs are likely to be competitive in other higher-specification, benign environment regions.
Previous wording
Utilization for the global marketed jackup fleet was 90% at June 30, 2025, compared to 94% in early 2024. This decrease in global utilization has put some downward pressure on day rates in certain benign environment regions. However, other benign environment markets where we operate, such as Australia and Trinidad, have been largely insulated from this and day rates in these regions have remained relatively firm.
Current wording
Utilization for the global marketed jackup fleet was 91% at September 30, 2025, compared to 94% in early 2024. This decrease in global utilization has put some downward pressure on day rates in certain benign environment regions. However, other benign environment markets where we operate, such as Australia and Trinidad, have been largely insulated from this and day rates in these regions have remained relatively firm.
Previous wording
From a supply perspective, as of June 30, 2025, there were 500 jackups in the global fleet, with 28% of the current jackup fleet being more than 40 years of age with limited useful lives remaining. Further, we believe that some of the jackups that are currently idle are not competitive, either due to their age or the length of time stacked. Expenditures required to reactivate some of these rigs may prove cost prohibitive and drilling contractors may instead elect to scrap certain rigs. We believe there are only 11 newbuild jackups remaining at shipyards, of which eight are at Chinese shipyards, some of which are expected to be used locally in China.
Current wording
From a supply perspective, as of September 30, 2025, there were 497 jackups in the global fleet, with 28% of the current jackup fleet being more than 40 years of age with limited useful lives remaining. Further, we believe that some of the jackups that are currently idle are not competitive, either due to their age or the length of time stacked. Expenditures required to reactivate some of these rigs may prove cost prohibitive and drilling contractors may instead elect to scrap certain rigs. We believe there are only 11 newbuild jackups remaining at shipyards, of which eight are at Chinese shipyards, some of which are expected to be used locally in China.
Previous wording
Management believes the comparison of the most recently completed quarter to the immediately preceding quarter provides more relevant information needed to understand and analyze the business. As such, as permitted under applicable SEC rules, we have elected to discuss any material changes in our results of operations by including a comparison of our most recently completed fiscal quarter ended June 30, 2025 (the "current quarter") to the immediately preceding fiscal quarter ended March 31, 2025 (the "preceding quarter"). We also discuss any material changes in our results of operations for the six months ended June 30, 2025 compared to the corresponding period of the preceding fiscal year (the "prior year period"), as required under the applicable SEC rules.
Current wording
Management believes the comparison of the most recently completed quarter to the immediately preceding quarter provides more relevant information needed to understand and analyze the business. As such, as permitted under applicable SEC rules, we have elected to discuss any material changes in our results of operations by including a comparison of our most recently completed fiscal quarter ended September 30, 2025 (the "current quarter") to the immediately preceding fiscal quarter ended June 30, 2025 (the "preceding quarter"). We also discuss any material changes in our results of operations for the nine months ended September 30, 2025 compared to the corresponding period of the preceding fiscal year (the "prior year period"), as required under the applicable SEC rules.
Previous wording
General and administrative expense decreased in the current quarter compared to the preceding quarter, primarily driven by a $7.4 million cost recovery award recognized in the current quarter for fees incurred related to a legal matter.
Current wording
General and administrative expense increased in the current quarter compared to the preceding quarter, primarily driven by a non-recurring $7.4 million cost recovery award for legal fees incurred in relation to the above-mentioned patent license litigation in the preceding quarter.
Previous wording
The consolidated effective tax rate, excluding the impact of immaterial discrete tax items for the current quarter, was 15.2%. The consolidated effective tax rate, excluding the impact of discrete tax items for the preceding quarter, was 15.1%. Discrete tax items for the preceding quarter were primarily attributable to the establishment of a $168.8 million valuation allowance in connection with the retirement of the Retired Semis.
Current wording
The consolidated effective tax rates, excluding the impact of discrete tax items, for the current quarter and preceding quarter were 14.1% and 15.2%, respectively.
Previous wording
The following table summarizes our Condensed Consolidated Results of Operations for the six months ended June 30, 2025 and 2024 (in millions, except percentages):
Current wording
The following table summarizes our Condensed Consolidated Results of Operations for the nine months ended September 30, 2025 and 2024 (in millions, except percentages):
Previous wording
Revenues increased compared to the prior year period in part due to incremental revenues of $69.9 million for VALARIS DS-7, following its reactivation and commencement of a contract in May 2024, and $35.8 million for VALARIS 247, which returned to work in the second half of 2024 following contract preparation and mobilization. For the remaining fleet, we had a net increase of $115.4 million from higher average daily revenues, primarily due to various rigs working under higher day rate contracts during the six months ended June 30, 2025. These increases were partially offset by a net decrease of $142.5 million from fewer operating days in the current quarter, largely driven by certain of our floater rigs, including VALARIS DPS-5, which completed its contract in the third quarter of 2024 and was sold in April 2025, and VALARIS DS-10 and VALARIS DS-12, which completed their contracts and were warm stacked since the prior year period.
Current wording
Revenues increased compared to the prior year period in part due to incremental revenues of $70.4 million for VALARIS DS-7, following its reactivation and commencement of a contract in May 2024. For the remaining fleet, we had a net increase of $135.7 million from higher average daily revenues, primarily due to various rigs working under higher day rate contracts during the nine months ended September 30, 2025. The increase in revenue was partially offset by a net decrease of $178.8 million from fewer operating days relative to the prior year period, largely driven by certain floaters which completed their contracts since the end of the second quarter of 2024 and have been either warm stacked or retired.
Previous wording
General and administrative expenses decreased primarily due to a $7.4 million cost recovery award recognized in the second quarter of 2025 for fees incurred related to a legal matter, combined with lower professional fees and lower compensation related to our long-term incentive plans compared to the prior year period.
Current wording
General and administrative expenses decreased primarily due to $17.2 million of lower professional fees, partially related to a non-recurring $7.4 million cost recovery award recognized in the second quarter of 2025 related to fees incurred for the patent license litigation discussed above, combined with lower compensation related to our long-term incentive plans compared to the prior year period.
Previous wording
Other income (expense), net, decreased primarily due to lower interest income of $22.5 million, unfavorable foreign currency exchange rate fluctuations of $22.2 million and an $8.8 million increase in interest expense. These decreases were partially offset by an aggregate $27.0 million of pre-tax gains recognized in the six months ended June 30, 2025 related to the sales of VALARIS 75 and an office in Angola.
Current wording
Other income, net, increased primarily due to an aggregate $115.4 million of pre-tax gains recognized in the nine months ended September 30, 2025 related to the sales of VALARIS 247, VALARIS 75 and an office in Angola. This increase was partially offset by lower interest income of $17.4 million, unfavorable foreign currency exchange rate fluctuations of $20.5 million and a $11.3 million increase in interest expense.
Previous wording
The consolidated effective tax rate, excluding the impact of discrete tax items for the six months ended June 30, 2025, was 15.2%. Discrete tax items during this period were primarily attributable to the establishment of a $168.8 million valuation allowance in connection with the retirement of the Retired Semis. Discrete income tax benefit for the prior year period was $70.5 million and was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years, including the reversal of a liability associated with tax assessments received from the Luxembourg tax authorities (see "Note 10 -Income Taxes" to our consolidated financial statements included in "Item 1. Financial Statements" for information on this matter), and the resolution of other prior period tax matters. Excluding the aforementioned discrete tax items, income tax expense for the prior year period was $53.4 million.
Current wording
The consolidated effective tax rate, excluding the impact of discrete tax items, for the nine months ended September 30, 2025 was 14.8%. Discrete tax items during this period were primarily attributable to the establishment of a $168.8 million valuation allowance in connection with the retirement of the Retired Semis. Discrete income tax benefit for the prior year period was $70.0 million and was primarily attributable to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years, including the reversal of a liability associated with tax assessments received from the Luxembourg tax authorities (see "Note 10 -Income Taxes" to our consolidated financial statements included in "Item 1. Financial Statements" for information on this matter), and the resolution of other prior period tax matters. Excluding the aforementioned discrete tax items, income tax expense for the prior year period was $77.2 million.
Previous wording
(2)During the fourth quarter of 2024, the contracts with ARO for VALARIS 147 and VALARIS 148 were terminated and these two rigs have since been preservation stacked. During the first quarter of 2025, we sold VALARIS 75.
Current wording
(2)During the fourth quarter of 2024, the contracts with ARO for VALARIS 147 and VALARIS 148 were terminated and these two rigs have since been preservation stacked. During the first and third quarters of 2025, we sold VALARIS 75 and VALARIS 247, respectively.
Previous wording
Other contract drilling expense remained relatively flat for the current quarter compared to the preceding quarter.
Current wording
Jackup contract drilling expense remained relatively flat for the current quarter compared to the preceding quarter.
Previous wording
Other revenue increased $4.7 million, or 13%, for the current quarter compared to the preceding quarter, primarily due to an increase in lease revenue resulting from the commencement of four long-term bareboat charter lease extensions at higher rates for our leased rigs to ARO in the current quarter.
Current wording
Other revenue increased $5.3 million, or 13%, for the current quarter compared to the preceding quarter, primarily due to an increase in lease revenue resulting from a full quarter of operations for four long-term bareboat charter lease extensions at higher rates for our leased rigs to ARO which commenced during the preceding quarter.
Previous wording
Segment information for the six months ended June 30, 2025 and 2024 is as follows (in millions):
Current wording
Segment information for the nine months ended September 30, 2025 and 2024 is as follows (in millions):
Previous wording
Floater revenues decreased $4.5 million, or 1%, during the six months ended June 30, 2025 compared to the prior year period, primarily due to a $150.2 million decrease resulting from fewer operating days largely driven by VALARIS DPS-5, which completed its contract in the second half of 2024 and was sold in April 2025, and VALARIS DS-10 and VALARIS DS-12, which completed their contracts and were warm stacked since the prior year period, partially offset by $69.9 million of incremental revenue for VALARIS DS-7, following its reactivation and commencement of a new contract in May 2024. The decline in operating days was partially offset by a net increase of $75.5 million from higher average daily revenues, driven by certain rigs working under higher day rate contracts during the six months ended June 30, 2025 compared to the prior year period, partially offset by lower amortization of mobilization and upgrade revenues.
Current wording
Floater revenues decreased $86.4 million, or 8%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to a $256.9 million net decrease from fewer operating days, largely driven by certain floaters which operated in the prior year period but completed their contracts since the end of the second quarter of 2024 and have either been warm stacked or retired. This decrease was partially offset by $70.4 million of incremental revenue for VALARIS DS-7, following its reactivation and commencement of a new contract in May 2024, and a $92.0 million net increase from higher average daily revenues for the remaining fleet. The increase from higher average daily revenues was primarily due to various rigs working under higher day rate contracts during the nine months ended September 30, 2025.
Previous wording
Jackup revenues increased $91.8 million, or 30%, during the six months ended June 30, 2025 compared to the prior year period, primarily due to incremental revenues of $35.8 million from VALARIS 247, which returned to work in the second half of 2024 following contract preparation and mobilization from the United Kingdom to Australia. Further contributing to the increase were higher average daily revenues of $31.2 million, largely due to various jackups in our fleet commencing new contracts at higher day rates relative to those earned in the prior year period, and a $17.5 million net increase from more operating days, primarily attributable to rigs which were preparing for new contracts or undergoing scheduled maintenance activities in the prior year period.
Current wording
Jackup revenues increased $115.9 million, or 23%, during the nine months ended September 30, 2025 compared to the prior year period, largely driven by a net increase of $91.4 million from more operating days, primarily attributable to rigs which were preparing for new contracts or undergoing scheduled maintenance activities in the prior year period. Further contributing to the increase in revenues was a net increase of $17.3 million from higher average daily revenues, primarily due to various rigs working under higher day rate contracts during the nine months ended September 30, 2025.
Previous wording
ARO revenue increased $12.1 million, or 5%, during the six months ended June 30, 2025 compared to the prior year period, primarily driven by an increase of $33.6 million from Kingdom 2, which commenced operations in August 2024, and VALARIS 108, which we began leasing to ARO late in the first quarter of 2024. Further contributing to the increase were higher average daily revenues of $12.2 million resulting from the commencement of four long-term contract extensions at higher day rates than those earned in the prior year period, and a net increase of $10.5 million from more operating days as a result of certain rigs which were undergoing maintenance projects in the prior year period. These increases were partially offset by a decrease of $45.6 million related to the contract terminations for VALARIS 143, VALARIS 147 and VALARIS 148 during 2024.
Current wording
ARO revenue increased $55.2 million, or 15%, during the nine months ended September 30, 2025 compared to the prior year period, primarily driven by incremental revenues of $46.0 million from Kingdom 2, which commenced operations in August 2024, and VALARIS 108, which we began leasing to ARO late in the first quarter of 2024. Further contributing to the increase were net increases of $32.4 million from more operating days, largely driven by certain rigs which were undergoing maintenance projects in the prior year period, and $30.6 million from higher average daily revenues, driven by the commencement of four long-term contract extensions at higher day rates than those earned in the prior year period. These increases were partially offset by a decrease of $57.7 million related to the contract terminations for VALARIS 143, VALARIS 147 and VALARIS 148 during 2024.
Previous wording
ARO depreciation expense increased $19.5 million during the six months ended June 30, 2025 compared to the prior year period, primarily due to the additions of Kingdom 1 and Kingdom 2 to the fleet.
Current wording
ARO depreciation expense increased $26.8 million, or 45%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to the addition of Kingdom 2 to the fleet and new assets placed in service for certain rigs that underwent capital upgrades.
Previous wording
Other contract drilling expense increased $2.4 million, or 8%, during the six months ended June 30, 2025 compared to the prior year period, primarily due to increased repairs and maintenance costs of $1.6 million.
Current wording
Other contract drilling expense increased $3.8 million, or 8%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to increased repairs and maintenance costs.
Previous wording
Net foreign currency exchange losses were $9.1 million in the current quarter compared to $5.2 million in the preceding quarter, primarily driven by unfavorable exchange rate movements in euros and Australian dollars relative to the preceding quarter.
Current wording
Net foreign currency exchange losses were $1.8 million in the current quarter compared to $9.1 million in the preceding quarter, primarily driven by favorable exchange rate movements in euros, British pounds and Australian dollars relative to the preceding quarter.
Previous wording
Net gains on sale of property for the six months ended June 30, 2025 related to the sales of VALARIS 75 and an office in Angola in the first quarter of 2025, which resulted in pre-tax gains of $23.0 million and $4.0 million, respectively.
Current wording
Net gains on sale of property for the nine months ended September 30, 2025 primarily related to the sales of VALARIS 247 during the current quarter, which resulted in a pre-tax gain of $88.4 million, and VALARIS 75 and an office in Angola during the first quarter of 2025, which resulted in pre-tax gains of $23.0 million and $4.0 million, respectively. See "Note 5 -Property and Equipment" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for information regarding the rig sales.
Previous wording
Interest income decreased $22.5 million, or 43%, during the six months ended June 30, 2025 compared to the prior year period, primarily due to a $19.5 million decrease in interest income earned on our outstanding Notes Receivable from ARO, which was largely driven by the recognition of $13.9 million of non-cash interest income related to an adjustment to the discount on our outstanding Notes Receivable with ARO as part of a net settlement agreement in the prior year period and lower interest rates as a result of an annual interest rate reset that occurred at the end of 2024. Further contributing to the decrease was lower interest income on cash equivalents of $3.0 million as a result of lower average balances during the current quarter.
Current wording
Interest income decreased $17.4 million, or 25%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to a $15.7 million decrease in interest income earned on our outstanding Notes Receivable from ARO, which was largely driven by the recognition of $13.9 million of non-cash interest income related to an adjustment to the discount on our outstanding Notes Receivable with ARO as part of a net settlement agreement in the prior year period and a lower interest rate as a result of an annual interest rate reset that occurred at the end of 2024. Further contributing to the decrease was lower interest income on cash and cash equivalents of $1.7 million as a result of lower average balances during the current quarter.
Previous wording
Interest expense increased $8.8 million, or 22%, during the six months ended June 30, 2025 compared to the prior year period, primarily due to lower capitalized interest for VALARIS DS-13 and VALARIS DS-14, which were delivered at the end of 2023 and mobilized to the shipyard in the prior year period.
Current wording
Interest expense increased $11.3 million, or 18%, during the nine months ended September 30, 2025 compared to the prior year period, primarily due to lower capitalized interest for VALARIS DS-13 and VALARIS DS-14, which were delivered at the end of 2023 and mobilized to the shipyard in the prior year period.
Previous wording
Net foreign currency exchange losses were $14.3 million during the six months ended June 30, 2025 compared to $7.9 million of gains in the prior year period, primarily driven by unfavorable exchange rate movements in euros, Brazilian real and British pounds relative to the prior year period.
Current wording
Net foreign currency exchange losses were $16.1 million during the nine months ended September 30, 2025 compared to $4.4 million of gains in the prior year period, primarily driven by unfavorable exchange rate movements in euros, Brazilian real and Mexican pesos relative to the prior year period.
Previous wording
Our cash and cash equivalents as of June 30, 2025 and December 31, 2024 were $503.4 million and $368.2 million, respectively. We have no debt principal payments due until 2030 and had $375.0 million available for borrowing, including up to $150.0 million for the issuance of letters of credit, under the 2028 Credit Agreement as of July 25, 2025. See below and "Note 8 -Debt" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for additional information on the 2028 Credit Agreement and the 8.375% Second Lien Notes due 2030.
Current wording
Our cash and cash equivalents as of September 30, 2025 and December 31, 2024 were $662.7 million and $368.2 million, respectively. We have no debt principal payments due until 2030 and had $375.0 million available for borrowing, including up to $150.0 million for the issuance of letters of credit, under the 2028 Credit Agreement as of October 24, 2025. See below and "Note 8 -Debt" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for additional information on the 2028 Credit Agreement and the 8.375% Second Lien Notes due 2030.
Previous wording
During the six months ended June 30, 2025, we generated $275.9 million of cash flow from operating activities primarily due to operating income for the period of$307.1 million and approximately$26.0 millionof tax refunds received from the Australian tax authority during the first quarter of 2025, partially offset by other changes in working capital. An additional source of cash was $24.0 million of cash proceeds related to the sale of VALARIS 75 and the sale of the Retired Semis. Our primary uses of cash were $167.4 million for maintenance and upgrades of our drilling rigs.
Current wording
During the nine months ended September 30, 2025, we generated $474.0 million of cash flow from operating activities primarily due to operating income for the period of$437.6 million and approximately$26.0 million of tax refunds received from the Australian tax authority during the first quarter of 2025. An additional source of cash was $132.0 million of cash proceeds related to the sales of VALARIS 247, VALARIS 75 and the Retired Semis. Our primary uses of cash were $237.2 million for maintenance and upgrades of our drilling rigs and $75.0 million for our share repurchase program, which is discussed further below.
Previous wording
During the six months ended June 30, 2024, we generated $37.8 million of cash flow from operating activities primarily due to operating income for the period of $138.2 million, partially offset by changes in working capital. Our primary uses of cash were $261.5 million for maintenance and upgrades of our drilling rigs, reactivation costs and costs related to the mobilization of VALARIS DS-13 and VALARIS DS-14 to their stacking location in early 2024.
Current wording
During the nine months ended September 30, 2024, we generated $230.8 million of cash flow from operating activities primarily due to operating income for the period of $233.1 million and U.S. income tax refunds totaling $35.9 million received during the third quarter of 2024, partially offset by changes in working capital. Our primary uses of cash were $343.4 million for maintenance and upgrades of our drilling rigs, reactivation costs and costs related to the mobilization of VALARIS DS-13 and VALARIS DS-14 to their stacking location in early 2024. Additionally, we spent $100.0 million under our share repurchase program.
Previous wording
Based on our current projections, we expect capital expenditures during 2025 to approximate $375.0 million to $415.0 million primarily relating to maintenance and upgrade projects, including contract-specific capital expenditures. Depending on market conditions, contracting activity and future opportunities, we may make additional capital expenditures to upgrade rigs for customer requirements and acquire additional rigs.
Current wording
Based on our current projections, we expect capital expenditures during 2025 to approximate $380.0 million to $400.0 million primarily relating to maintenance and upgrade projects, including contract-specific capital expenditures. Depending on market conditions, contracting activity and future opportunities, we may make additional capital expenditures to upgrade rigs for customer requirements and acquire additional rigs.
Previous wording
The distribution of earnings to the joint-venture partners is at the discretion of the ARO board of managers, consisting of 50/50 membership of managers appointed by Saudi Aramco and managers appointed by us, with approval required by both shareholders. The timing and amount of any cash distributions to the joint venture partners cannot be predicted with certainty and will be influenced by various factors, including the liquidity position and long-term capital requirements of ARO. ARO has not made a cash distribution of earnings to its partners since its formation. ARO had cash and cash equivalents of $73.0 million as of June 30, 2025.
Current wording
The distribution of earnings to the joint-venture partners is at the discretion of the ARO board of managers, consisting of 50/50 membership of managers appointed by Saudi Aramco and managers appointed by us, with approval required by both shareholders. The timing and amount of any cash distributions to the joint venture partners cannot be predicted with certainty and will be influenced by various factors, including the liquidity position and long-term capital requirements of ARO. ARO has not made a cash distribution of earnings to its partners since its formation. ARO had cash and cash equivalents of $116.0 million as of September 30, 2025.
Previous wording
Our board of directors has authorized a share repurchase program under which we may purchase up to $600.0 million of our outstanding common shares. As of June 30, 2025, we had approximately $275.0 million available for share repurchases pursuant to the program. There were no share repurchases under this program during the three and six months ended June 30, 2025 and 2024. See "Note 9 -Shareholders' Equity" to our condensed consolidated financial statements included in "Item 1. Financial Statements" for additional information on our share repurchase program.
Current wording
Our board of directors has authorized a share repurchase program under which we may purchase up to $600.0 million of our outstanding common shares. The following table summarizes shares repurchased, aggregate cost and the average per share price (in millions, except average per share price):
Previous wording
We have other commitments that we are contractually obligated to fulfill with cash under certain circumstances. As of June 30, 2025, we were contingently liable for an aggregate amount of $30.0 million under outstanding letters of credit, which guarantee our performance as it relates to our drilling contracts, contract bidding, customs duties, tax appeals and other obligations in various jurisdictions. Obligations under these letters of credit are not normally called, as we typically comply with the underlying performance requirements. As of June 30, 2025, we had collateral deposits in the amount of $11.2 million with respect to these agreements.
Current wording
We have other commitments that we are contractually obligated to fulfill with cash under certain circumstances. As of September 30, 2025, we were contingently liable for an aggregate amount of $30.4 million under outstanding letters of credit, which guarantee our performance as it relates to our drilling contracts, contract bidding, customs duties, tax appeals and other obligations in various jurisdictions. Obligations under these letters of credit are not normally called, as we typically comply with the underlying performance requirements. As of September 30, 2025, we had collateral deposits in the amount of $11.2 million with respect to these agreements.
Previous wording
Our business strategy has been to focus on ultra-deepwater floater and premium jackup operations and de-emphasize other assets and operations that no longer meet our standards for economic returns. As part of our strategy, we may act opportunistically from time to time to monetize assets to enhance shareholder value and improve our liquidity profile, in addition to reduce holding costs by selling or disposing of lower-specification or non-core rigs. See "Note 8 - Debt" to our condensed consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2024 for additional information on certain restrictions on the sales of assets.
Current wording
Our business strategy has been to focus on ultra-deepwater floater and premium jackup operations and de-emphasize other assets and operations that no longer meet our standards for economic returns. As part of our strategy, we may act opportunistically from time to time to monetize assets to enhance shareholder value and improve our liquidity profile, in addition to reduce holding costs by selling or disposing of lower-specification or non-core rigs. See "Note 8 - Debt" to our consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2024 for additional information on certain restrictions on the sales of assets.
Previous wording
During the first quarter of 2025 we sold VALARIS 75, a rig within our Jackups segment, for net proceeds of $24.0 million, resulting in the recognition of a pre-tax gain on sale of approximately $23.0 million. Of the proceeds, $14.0 million was collected upon closing, with the remaining $10.0 million expected to be received in equal installments on the first and second anniversaries of the closing.
Current wording
During the first quarter of 2025 we sold VALARIS 75, a rig within our Jackups segment, for net proceeds of $24.0 million, resulting in the recognition of a pre-tax gain on sale of $23.0 million. Of the proceeds, $14.0 million was collected upon closing, with the remaining $10.0 million expected to be received in equal installments on the first and second anniversaries of the closing.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
As of September 30, 2025, we had approximately $200.0 million available for share repurchases pursuant to the Share Repurchase Program.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Net gains on sale of property in the preceding quarter related to the sales of VALARIS 75 and an office in Angola, which resulted in pre-tax gains of $23.0 million and $4.0 million, respectively.