Valaris Stock Gains Aftermarket As Q4 Revenue Tops Estimates: Retail Chatter Rises

The offshore drilling company’s net income more than doubled to $133.7 million, compared to the third quarter.

Valaris Ltd (VAL) stock gained 2.7% after the bell on Wednesday as the company’s fourth-quarter revenue topped Wall Street’s estimates.

The company’s total operating revenue rose to $584.4 million during the quarter ended on Dec. 31, compared with $483.8 million in the year-ago quarter. Analysts, on average, expected the company to post $577.6 million in revenue, according to Koyfin data.

The offshore drilling company’s net income more than doubled to $133.7 million, compared to the third quarter but was lower than its earnings last year when it benefited from favorable income tax gains.

Valaris said revenue in its Floaters segment fell to $328 million from $375 million in the third quarter due to lower utilization of the floater fleet.

Revenue from its Jackups segment fell to $188 million from $193 million in the third quarter, primarily due to lower amortized mobilization revenue associated with one of its rigs.

The company’s capital expenditures rose to $112 million from $82 million in the third quarter, primarily due to higher rig upgrade expenditures.

“The contracting outlook for 2026 and beyond remains strong for high-specification assets, and we are focused on securing attractive, long-term programs for our active rigs,” Valaris CEO Anton Dibowitz said.

During the quarter, the company secured a backlog of $120 million, including a contract extension with TotalEnergies in the UK North Sea.

Valaris also recently sold a 25-year-old jack-up that had been stacked in the U.S. Gulf for five years for $24 million.

In January, the three largest U.S. oilfield services firms Baker Hughes, SLB, and Halliburton had flagged subdued demand for drilling activity in 2025.

Retail sentiment on Stocktwits remained in the ‘neutral’ (47/100) territory, while retail chatter rose to ‘high’ from ‘low’.’

Over the past year, Valaris stock has fallen nearly 32%.

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