<div id="readability-page-1"><div><ul> <li>Valaris Limited announced that it has been awarded a multi-year contract with Shell offshore Brazil for drillship VALARIS DS-8, expected to start in the first quarter of 2027, run for about 800 days and deliver an estimated total contract value of roughly US$300 million.</li> <li>This long-dated Shell contract adds further visibility to Valaris’s future workload at a time when some investors have exited the offshore sector, citing a pause in spending since 2024.</li> <li>We’ll now examine how this multi-year Shell contract, starting in 2027, may influence Valaris’s contract backlog and overall investment narrative.</li> </ul><p>We've found 12 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.</p><h2>Valaris Investment Narrative Recap</h2><p>To own Valaris, you generally need to believe that long cycle offshore drilling will remain an important part of global energy supply and that its high specification fleet can stay contracted at reasonable day rates despite sector cyclicality. The new multi year Shell contract meaningfully extends Valaris’s backlog into 2027 and beyond, modestly supporting the near term catalyst of backlog visibility, but it does little to reduce the key risk of future day rate and utilization softness if offshore spending remains uneven.</p> <p>Among recent announcements, the July 2025 awards for VALARIS DS-16 and DS-18, adding about US$760,000,000 of incremental backlog with Anadarko in the Gulf of Mexico, are most relevant here because they also lock in long dated work for high specification drillships. Taken together with the Shell DS-8 award, these contracts reinforce the current catalyst of a larger, longer dated backlog while still leaving investors exposed to longer term risks around offshore demand, fleet costs and customer concentration.</p> <p>Yet despite the expanding backlog, investors should be aware that concentrated exposure to a handful of major offshore customers could...</p> <p>Read the full narrative on Valaris (it's free!)</p><p>Valaris' narrative projects $2.4 billion revenue and $453.7 million earnings by 2028. This requires a 1.2% yearly revenue decline and about a $178 million earnings increase from $275.5 million today.</p><p>Uncover how Valaris' forecasts yield a $55.10 fair value, a 5% downside to its current price.</p><h2>Exploring Other Perspectives</h2><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/4224fe25-db7b-44d6-a8b3-d9b53d0a6584/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/4224fe25-db7b-44d6-a8b3-d9b53d0a6584/chart/quote-price"/><figcaption>VAL 1-Year Stock Price Chart</figcaption></figure> <p>Nine Simply Wall St Community fair value estimates for Valaris span roughly US$31.60 to US$336.52, underlining how differently investors can view the same cash flows. When you weigh that spread against the growing multi year contract backlog, it becomes clear why many investors compare several viewpoints before deciding how much of their own portfolio to tie to Valaris’s offshore cycle.</p><p>Explore 9 other fair value estimates on Valaris - why the stock might be worth over 5x more than the current price!</p><h2>Build Your Own Valaris Narrative</h2><p>Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.</p><ul><li>A great starting point for your Valaris research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.</li><li>Our free Valaris research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Valaris' overall financial health at a glance.</li></ul><h2>Ready To Venture Into Other Investment Styles?</h2><p>Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:</p><ul><li>The best AI stocks today may lie beyond giants like Nvidia and Microsoft. 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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

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<p>Valaris Limited has secured a multi-year contract with Shell for drillship VALARIS DS-8, starting in 2027, valued at approximately $300 million. This contract extends Valaris's backlog, providing visibility into future workload amid offshore sector spending pauses. Despite the backlog growth, risks remain due to potential day rate and utilization softness. Valaris projects $2.4 billion revenue and $453.7 million earnings by 2028, with a fair value estimate of $55.10, indicating a 5% downside to its current price.</p>

Does Shell’s 2027 Brazil Drillship Deal Change The Bull Case For Valaris (VAL)?