Valaris Ltd VAL disclosed winning a 12-well contract in offshore West Africa for a total value of $364 million and also raised its 2023 share repurchase target.
The company will reactivate its drillship VALARIS DS-7 for this contract, which is expected to start in Q2 2024 and has an estimated duration of 850 days.
"This most recent award represents the seventh contract awarded to one of our high-quality floaters requiring reactivation since mid-2021 and speaks volumes about our demonstrated track record of project execution when reactivating rigs and delivering operational excellence for our customers. We continue to take a disciplined approach to rig reactivations, and we expect this contract to generate a meaningful return over the initial firm term," said Anton Dibowitz, President and Chief Executive Officer.
Apart from this, the company boosted its 2023 share repurchase target to $200 million from $150 million.
In May, the company disclosed an increase in its share repurchase authorization to $300 million, expecting to repurchase around $150 million by year-end 2023.
Year-to-date, the company has bought back shares worth $91 million.
Price Action: VAL shares are trading higher by 1.97% at $77.24 on the last check Monday.
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