Valaris Limited (NYSE: VAL) – Q3 2025 Results

Are we at the bottom of the cycle?

Valaris drills miles below the ocean floor to find oil and gas — a method that quietly delivers one-third of the world’s energy supply. It’s cheaper than drilling on land and can keep producing for decades.

Offshore drillers might soon be entering the tightest market since 2008.

Back then, demand for rigs surged, and companies like Valaris were generating billions in cash. Utilization was around 94%, meaning almost every rig was working and making money. If we consider that Valaris operates more than ten 7th-generation ultra-deepwater drillships, and there are zero new rigs being built, they could be in a strong position to dictate day rates once again.

But something strange is happening at Valaris. Valaris made a bold promise: every dollar of free cash flow goes back to shareholders. Then — suddenly, silence. Buybacks paused, no reason given. My guess? They’re building cash, strengthening the balance sheet while reactivating a few rigs for new contracts. Fine by me.

In Q2, management said buybacks would resume once the jackup VALARIS 247 was sold and liquidity improved. The sale’s done. The cash is in. So what now — buybacks, or something bigger quietly taking shape behind the scenes?

Let’s see if Valaris is drilling oil — or just holes in investors’ patience. 😄