Valaris Limited reported strong second-quarter 2025 financial results, with net income of $114 million, a significant improvement from the net loss of $39 million in the first quarter of 2025. Adjusted EBITDA reached $201 million, surpassing the company's guidance range of $140 million to $160 million.
Revenues exclusive of reimbursable items decreased slightly to $572 million from $578 million in the first quarter, primarily due to fewer operating days for the floater fleet. However, the jackup fleet saw more operating days and higher average daily revenue.
Contract drilling expense decreased to $355 million from $374 million in the prior quarter, benefiting from a $17 million accrual reversal due to a favorable arbitration outcome related to patent license litigation. General and administrative expense also decreased to $19 million, including a $7 million benefit from this arbitration.
Valaris secured new contracts with associated revenue backlog of more than $1.0 billion since reporting first-quarter results, increasing its total backlog to approximately $4.7 billion. This includes attractive contracts for three seventh-generation drillships, securing work for three of its four drillships with near-term availability.
Cash and cash equivalents increased to $516 million as of June 30, 2025, from $454 million as of March 31, 2025, driven by cash flow from operations. Capital expenditures decreased to $67 million from $100 million in the first quarter, primarily due to lower contract-specific upgrade costs.
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