Valaris Q3 revenue reaches $594 million as rig utilization climbs

what happened

Offshore drilling contractor Valaris has published its third quarter 2026 results. Revenue came to $594 million, net income to $47 million, and adjusted EBITDA to $151 million. The company said Middle East conflicts weighed on EBITDA by about $24 million. Revenue efficiency reached 97% in the quarter and 98% year to date, and all ten of its active drillships are now under contract.

During the year Valaris returned four drillships to work after long idle periods. Its contract backlog rose by about $600 million to roughly $4.8 billion. The Transocean merger has received the required regulatory approvals, and closing is expected on or about December 1, 2026.

why it matters

Two points matter for markets. First, company management points to higher day rates for deepwater rigs, reflecting demand for high-specification drillships. Second, the planned merger with Transocean will reshape the sector. Valaris said the impact of Middle East conflicts began to ease as war-risk insurance costs fell.

market impact

Valaris and Transocean: the near-term merger close and rising rig rates weigh on both stocks

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instruments