Valaris Market Overview and Strategic Positioning
ARO Drilling Joint Venture
ARO
DRILLING
أرامكو روان للحفر
EBITDA
Generation
Future
Growth
50/50 joint venture with Saudi Aramco, the largest
customer for jackups in the world
Financing
Opportunities
⚫ARO Drilling is expected to generate $160 - $180 million.
of EBITDA in 2019, of which Valaris recognizes 50% of net
earnings
.
⚫ Nine leased rigs contribute additional revenue through
bareboat charter agreements, e.g. expected 3Q19 leased
revenue from ARO Drilling of $21 million.
.
•
• Strong organic growth from 20-rig newbuild program, with
each rig backed by long-term contracts
⚫ Newbuild program expected to be self-funded by ARO
Drilling
• Valaris holds ~$450 million of shareholder notes, which
generate interest income
Fully contracted fleet with strong counterparty and long-
term contracts create opportunities to access external
financing
VALARIS
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