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VALARIS www.valaris.com Press Release Valaris plc Reports First Quarter 2021 Results London , England , April 28 , 2021 ... Valaris plc ( " Valaris " or the " Company " ) today reported a net loss attributable to the Company of $ 910 million , or $ 4.56 per share , for the first quarter 2021 compared to a net loss of $ 71 million , or $ 0.36 per share , in the fourth quarter 2020. The Company reported adjusted EBITDA of $ 28 million in the first quarter 2021 compared to negative $ 10 million in the fourth quarter 2020 , and an adjusted loss of $ 0.39 per share in the first quarter 2021 versus an adjusted loss of $ 0.65 per share in the prior quarter . Chief Executive Officer and President Tom Burke said , " This month marks two years since the Valaris merger . We successfully integrated the two predecessor companies during this period , then subsequently transformed our Company to improve its service delivery capabilities and cost structure . As a result of these efforts , Valaris now has a higher focus on safe and reliable operations with a leaner and more flexible cost structure that is fit for purpose and complements its high - quality modern fleet of rigs and highly skilled workforce . " Burke concluded , " We are beginning to see early signs of a recovery in customer demand following the downturn caused by the COVID - 19 pandemic , for which we have been reactivating rigs , including most recently one of our high - specification heavy duty harsh environment jackup rigs in advance of a long - term contract commencing later this year . We look forward to soon emerging from chapter 11 as a strong and stable company ready to take advantage of opportunities as they arise . " First Quarter Results Revenues increased to $ 307 million in the first quarter 2021 from $ 297 million in the fourth quarter 2020. Excluding reimbursable items , revenues increased to $ 277 million in the first quarter 2021 from $ 250 million in the fourth quarter 2020 primarily due to a negative adjustment in the prior quarter resulting from the modification of our charter agreements with ARO Drilling . Contract drilling expense declined to $ 252 million in the first quarter 2021 from $ 305 million in the prior quarter . Excluding reimbursable items , contract drilling expense declined to $ 237 million in the first quarter 2021 from $ 274 million in the prior quarter primarily due to fewer operating days across the fleet and lower holding costs for our stacked and marketed assets that are currently without contracts . First quarter 2021 results included a non - cash asset impairment charge of $ 757 million related to two floaters . Depreciation expense of $ 122 million in the first quarter 2021 was in line with the prior quarter . General and administrative expense declined to $ 24 million from $ 27 million in the prior quarter primarily due to expense reduction initiatives . Other expense increased to $ 30 million in the first quarter 2021 from $ 25 million in the prior quarter . First quarter 2021 other expense included $ 52 million related to reorganization items compared with $ 30 million in the prior quarter . The sequential quarter increase was primarily due to losses on lease rejections in the first quarter 2021 compared to a gain on lease rejections in the prior quarter , and higher professional fees as we approach our expected emergence date . This was partially offset by other income of $ 21 million in the first quarter 2021 , compared to $ 2 million in the prior quarter , mostly related to foreign currency gains . 1