Valaris Market Overview and Strategic Positioning
Global Jackup Market
Total Utilization¹
90%
80%
70%
60%
50%
40%
2013
2014
2015
2016
2017
2018
2019
Avg Spot
136
139
96
77
61
65
Day Rates
$ Thousand
400
320
240
160
80
I
New Contracts²
0
2013
2014
2015
2016
Rig Years (L Axis)
VALARIS
2017
H
2018
20
20
18
16
14
12
10
2019A3
Average Contract Duration (R Axis, Months)
Source: IHS Markit RigPoint as of July 2019
• Utilization for the global
jackup fleet has also moved
higher since early 2017, as
a steady increase in rig
years awarded for new
contracts has led to a
modest improvement in
average spot day rates
In contrast to floaters, average
contract durations for jackups
have increased meaningfully in
2019, contributing to the
increase in rig years awarded
for new contracts
•
Both an increasing number
of new contracts and longer
average contract durations
are conducive to further
increases in average day
rates for new jackup
contracts
1Total utilization reflects rigs currently under contract and contracted for future work as a percentage of the global jackup fleet; includes benign &
harsh-environment rigs
2Fixtures data includes New Mutual contracts only
3Year-to-date 2019 annualized
9View entire presentation