Valaris Limited reported a first-quarter 2026 net loss of $18 million as the Bermudian-domiciled offshore drilling company faced lower operating activity and higher costs tied to ongoing conflicts in the Middle East, while continuing to build its long-term contract backlog.

The company posted total operating revenues of $465 million for the quarter, with adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) of $67 million and revenue efficiency of 98 per cent, according to its earnings release Monday. The results compared with net income of $717 million and adjusted Ebitda of $97 million in the fourth quarter of 2025.

Revenue excluding reimbursable items fell to $430 million from $502 million in the previous quarter, largely due to fewer operating days across both its floater and jackup drilling fleets. Contract drilling expenses also declined, though the company said costs were partly offset by an $8 million increase linked to war-risk insurance coverage for rigs operating in the Middle East.

Anton Dibowitz, chief executive officer, said the company expects a “meaningful improvement” in financial performance through the remainder of 2026, supported by operational execution and the return of several drillships to service.

Valaris said it added more than $500 million in new contract backlog since reporting fourth-quarter results, lifting total backlog to approximately $4.9 billion — its highest level in nearly a decade. Among the new awards was a multi-year extension for the Valaris DS-4 drillship offshore Brazil, securing work for the rig into 2030.

The company also highlighted its pending all-stock merger with Transocean Ltd, announced during the quarter. Valaris said the transaction is expected to generate operational synergies and strengthen the combined company’s global offshore drilling capabilities.

• This story was generated by machine and edited by The Royal Gazette newsroom