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% 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.

Earnings before interest, taxes, depreciations and amortizations dropped by 29% 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% to 72% for rigs, 48% to 60% for floaters and 67% to 68% 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% as a result of intense pressure on crude oil prices. 

(This article was provided by our sister media ShippingWatch)