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Valaris (VAL) Secures $519M Contract Extension in Brazil

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Valaris Limited (VAL - Free Report) , the offshore driller, recently announced a multi-year award for its drillship, VALARIS DS-4, offshore Brazil, carrying a value of around $519 million, including mobilization fees and additional services. This contract, which involves work for the Brazilian energy company Petrobras (PBR - Free Report) regarding their upcoming Búzios Program, follows a competitive bidding process.
 
The 1,064-day contract is anticipated to begin in the December quarter of 2024 and will be a follow-up to the rig’s ongoing contract with Petrobras, which ends in September. Between the two contracts, VALARIS DS-4 is expected to be out of service for around ninety days to undergo customer-required capital upgrades.
 
According to Valaris, these continued commitments reflect the confidence placed in the company's capabilities and the demand for its services offshore Brazil, which it anticipates to grow over time.
 
In conclusion, securing this multi-year contract for the drillship VALARIS DS-4 gives a positive outlook for Valaris in 2024 and places it in a favorable position for sustained profitability and future growth.

Zacks Rank and Key Picks

Currently, VAL carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector might take a look at some better-ranked stocks like Sunoco LP (SUN - Free Report) and The Williams Companies (WMB - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sunoco LP is one of the largest independent distributors of motor fuels to customers across the United States. 

SUN is currently valued at $5.72 billion. The company pays a dividend of $3.37 per share, or 5.92%, on an annual basis.

The Williams Companies Inc. is a leading energy infrastructure provider in North America. The company also ranks among the largest domestic transporters of natural gas by volume.

WMB is currently valued at $43.21 billion. The company pays investors $1.79 per share, or 5.04%, on an annual basis. The company has increased its dividend payment five times over the last five years.

Sunoco LP is one of the largest independent distributors of motor fuels to customers across the United States. SUN is currently valued at $5.72 billion. The company pays a dividend of $3.37 per share, or 5.92%, on an annual basis. 

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