Valaris Secures Nearly $900M in New Contracts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Should l Buy VAL?
Source: seekingalpha
- Contract Extension: The Valaris DS-7 drillship secured a five-well contract extension with Azule Energy offshore Angola, expected to commence in October 2026 and last for 325 days, adding approximately $125 million to the contracted revenue backlog, indicating sustained demand in the deepwater drilling market.
- Long-term Partnership: The Valaris DS-9 drillship received a two-year contract extension from Exxon Mobil, set to begin in July 2026 at an operating dayrate aligned with recent market rates, further solidifying the long-term partnership with a key client.
- New Contract Wins: The Valaris 106 jackup secured an eight-well contract with BP in Indonesia, expected to start in Q3 2026 and last for two years, contributing around $74 million to the contracted revenue backlog, reflecting the company's market expansion capabilities in the Asia-Pacific region.
- Backlog Growth: The total contracted revenue backlog increased from $4.5 billion to $4.7 billion due to all new contracts, showcasing Valaris's significant business growth potential in a competitive offshore drilling market.
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Analyst Views on VAL
Wall Street analysts forecast VAL stock price to fall
6 Analyst Rating
1 Buy
4 Hold
1 Sell
Hold
Current: 95.850
Low
49.00
Averages
56.50
High
65.00
Current: 95.850
Low
49.00
Averages
56.50
High
65.00
About VAL
Valaris Limited is an offshore contract drilling company, which is engaged in providing offshore contract drilling services to the international oil and gas industry with operations on the offshore market on approximately six continents. The Company operates a rig fleet of ultra-deepwater drill ships, semisubmersibles, and shallow water jackups. The Company operates through four segments: Floaters, which includes its drill ships and semisubmersible rigs; Jackups; ARO, and Other, which consists of management services on rigs owned by third parties and the activities associated with its arrangements with ARO. Its customers include many of the offshore exploration and production companies, including integrated energy companies, national oil companies, and independent operators. The Company owns approximately 52 rigs, including 13 drill ships, four dynamically positioned semisubmersible rigs, one moored semisubmersible rig, and 34 jackup rigs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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