Valaris Limited, the Bermudian-based offshore drilling services company, has reported third-quarter net income of $17 million.

That compares with a net loss of $27 million in the second quarter of the year.

The company said adjusted earnings before interest, taxes, depreciation and amortisation increased to $40 million from $15 million in the second quarter owing primarily to two jack-ups and one floater commencing contracts during the quarter after not working in the second quarter, as well as an increase in average daily revenue for both the floater and jack-up fleets.

These items were partially offset by higher reactivation expense and an increase in unplanned downtime related to several floaters.

Revenues increased to $455 million from $415 million in the second quarter.

President and chief executive Anton Dibowitz said: “We are pleased that Valaris DS-17 commenced its contract offshore Brazil during the quarter and expect that it will contribute meaningful earnings and cashflow going forward.

“While our floater revenue efficiency for the quarter was below our expectations, our year-to-date fleet-wide revenue efficiency remains strong at 97 per cent, and we remain committed to delivering safe and efficient operations.

“During the third quarter, we were awarded new contracts and extensions with associated contract backlog of approximately $465 million.

“Our long-term contract for Valaris DS-7 was the seventh contract awarded to our previously stacked floaters since mid-2021. Following this reactivation, we will have ten drill ships working and will remain disciplined in exercising our operational leverage with only one stacked drill ship and two new build drill ship options remaining.”

Mr Dibowitz added: “The outlook for Valaris is positive, with increasing demand and constrained supply tightening the market.

“We are confident in the strength and duration of this up cycle, and we expect to deliver meaningfully improved earnings in both 2024 and 2025 due to the impact of recent and ongoing drill ship reactivations at attractive day rates, as well as the repricing of rigs from legacy day rate contracts to higher markets rates.”