US oil rig company Valaris booked slightly better than expected revenue in the fourth quarter, though operating earnings faltered somewhat.

In the fourth quarter, the Houston-based company reported a 42-percent revenue increase in comparison with Q4’21 to EUR 433.6m whereas analysts polled by Bloomberg expected revenue to grow to EUR 430.1m.

This was just a small decrease from EUR 437m in the third quarter of 2022.

Adjusted operating earnings (EBITDA) dropped by 29 percent to EUR 54.3m compared to the third quarter, against analyst estimates of a decline of EUR 59.4m.

Utilization showed progress in all three primary segments with quarterly improvements from 66 percent to 72 percent for rigs, 48 percent to 60 percent for floaters and 67 percent to 68 percent for jackups.

”We reactivated four floaters, all of which returned to work largely on time and on budget. Reactivation of a fifth floater, Valaris DS-17, is well underway and we are in advanced discussions for a multi-year opportunity for one of our stacked drillships that is expected to deliver meaningful returns,” notes President and Chief Executive Officer of Valaris Anton Dibowitz in a statement on the financials.

Last Friday, Valaris’ share price fell by 6.1 percent as a result of intense pressure on crude oil prices. 

English edit: Christoffer Østergaard