Valaris Limited (VAL) Stock Analysis

Valaris’ primary competitive advantage is its scale and fleet quality. As of Q2 2025, it operates the world’s largest offshore drilling fleet, with 49 rigs, including 15 high-specification floaters (92% of its drillships are seventh-generation) and 34 jackups.¹ This breadth allows Valaris to serve a wide range of customer needs across geographies and water depths, reducing dependency on any single market.

Fleet modernization is a differentiator. Most of Valaris’ floaters are among the most technically advanced globally, supporting higher day rates—recent contracts for seventh-generation drillships have reached $480,000–$500,000 per day, outpacing many peers.² By comparison, Transocean and Noble also field modern fleets, but Valaris’ larger jackup presence and recent reactivations provide greater operating leverage as demand recovers.³

Contract backlog is another strength. As of April 2025, Valaris reported a $4.2 billion backlog⁴, exceeding its market capitalization and providing revenue visibility through 2027. This backlog is diversified by geography and customer, including national oil companies and supermajors⁵.

Operational efficiency and safety performance further distinguish Valaris. The company has delivered revenue efficiency above 96% for four consecutive years⁶ and claims safety metrics over 50% better than the offshore peer average⁷.

Valaris’ post-bankruptcy balance sheet is less leveraged than some competitors, supporting ongoing investment and share buybacks.⁸ However, the company remains exposed to cyclical industry risks and must continually manage reactivation costs and utilization.⁹