Valaris Limited reported fourth-quarter 2024 net income of $131 million, an increase from $63 million in the third quarter of 2024. Adjusted EBITDA for the quarter was $142 million, a slight decrease from $150 million in the previous quarter, primarily due to lower utilization for the floater fleet.
Revenues exclusive of reimbursable items decreased to $548 million from $600 million in the third quarter. For the full year 2024, Valaris achieved total revenues of $2.36 billion, up 32% from 2023, and net income of $295 million, an increase of 108% from 2023.
The company generated $13 million in free cash flow during the fourth quarter, contributing to $124 million in free cash flow for the second half of 2024, all of which was returned to shareholders through share repurchases. Capital expenditures increased to $112 million from $82 million in the third quarter, mainly due to rig upgrade expenditures.
Valaris announced the retirement of three semisubmersible rigs, VALARIS DPS-3, DPS-5, and DPS-6, to high-grade its fleet and reduce costs for idle assets. Additionally, the jackup VALARIS 75 was sold for $24 million, further focusing the fleet on high-specification assets.
New contracts and extensions were secured, adding approximately $120 million to the contract backlog. This included a multi-year contract for the VALARIS Stavanger in the North Sea, and additional backlog for VALARIS 247 offshore Australia and VALARIS 249 offshore Trinidad, with day rates in the mid- to high-$100,000s.
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