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April 30, 2020

Valaris to sell 11 ships and rigs with contracts below half of regular rate

By Matt Farmer

Drillship and jackup rig operator Valaris gave its first quarterly results earlier today. Executives did not take questions because, they said, of the “sensitivities” surrounding possible debt restructuring.

CEO and President Tom Burke said: “In an average month in 2019, we would expect to receive about 20 enquiries a month, with most leading to work. Last month, we received nine enquiries, and expect less than half to lead to work.”

Burke also said the company would “rationalise” its fleet by selling 11 drillships, semi-submersibles and jack-up rigs. It would also quickly move operational rigs to be maintained in stacks, instead of keeping them operational.

Despite this, the company expects to continue posting losses and negative cash flows for the remainder of the year.

On the reported bankruptcy filing, it said it was evaluating “various alternatives to address our capital structure, […] including, without limitation, a comprehensive debt restructuring”.

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