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Valaris hails ‘significant progress’ since Ensco-Rowan merger

Valaris has said it has made “significant progress” since the merger of Ensco and Rowan earlier this year.

The deal to amalgamate the two drilling companies completed in April, forming the largest rig operator in the world by fleet size.

Having rebranded as Valaris, the company has released its first set of financial results since the deal finished, announcing it has so far completed more than 50% of integration activities.

The firm also said it has made £66million in annual run rate expense synergies in the second quarter of 2019.

Valaris posted a £363.3m pre-tax profit for the period, compared to a £97m loss at the same time last year for the combined firms.

Meanwhile revenues jumped to £481.7m, compared to £378.2m in the same period last year, mainly thanks to additional revenues from “legacy” Rowan rigs.

CEO Tom Burke said: “Following the closing of our merger in April, our focus has been on executing our detailed integration plan to deliver at least $165 million of combinational synergies.

“We have made significant progress thus far, completing more than 50% of all integration-related activities and achieving approximately $80 million of annual run rate expense synergies by the end of the second quarter.

“We also recently changed the name of the company to Valaris to help accelerate cultural alignment as part of our broader organizational transition as a larger, more diverse company.

“Most importantly, we delivered strong operational and safety performance to customers with operational utilization of 98% for second quarter 2019 and a total recordable incident rate through the first half of 2019 that was nearly 20% better than the industry average.”

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Craigmill, Pitcaple, Inverurie, Aberdeenshire, United Kingdom, AB51 5HP
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