UK headquartered offshore drilling contractor Valaris announced on Monday that it has received a $200 million cash payment resulting from a settled dispute with South Korean shipbuilder Samsung Heavy Industries (SHI).
Earlier this year, an arbitration tribunal awarded the offshore driller $180 million plus interest for losses incurred from a deal involving the SHI-built drillship DS-5 that was cancelled by Petrobras due to corruption.
Tom Burke, President and Chief Executive Officer, said, “We concluded arbitration proceedings against Samsung Heavy Industries and have received a $200 million cash payment that immediately bolsters the company’s financial position.”
Burke also provided an update on contracting for the company’s rig fleet and cost savings plans.
“We also won new contracts and extensions for our rig fleet over the past month that have added approximately $100 million of contracted revenue backlog and will benefit our future operating cash flows,” he said.
“Further, we recently announced plans for at least $100 million of annual run rate cost savings that are incremental to $165 million of targeted merger synergies, which we are well on our way to realizing.
“We will continue to take decisive actions to achieve sustainable success and drive value for Valaris shareholders.”