45.57
0.93%
-0.43
Why is Valaris Ltd (VAL) Stock down?
We've noticed a 5.93% decline in Valaris Ltd (VAL) stock during the 2024-09-03 trading session. While this could be attributed to normal volatility or various internal and external factors, please be aware that we are actively monitoring the situation, and we'll provide timely updates as soon as possible!
30 Jan, 2024:
Valaris Ltd (VAL) stock declined by 6.17% due to the announcement from Saudi Aramco, the Middle East energy giant, regarding the suspension of its plans to expand oil production capacity.
- Saudi Aramco's Decision: Saudi Aramco, the world's largest oil exporter, was instructed by the Saudi government to halt further expansion of its oil production capacity. Instead of proceeding to increase capacity to 13 million barrels per day, the company will maintain its maximum sustainable capacity at 12 million barrels per day.
- Industry Impact: Valaris, a New York-listed driller, has exposure to Saudi Arabia through eight jack-up rigs contracted to the country. Other drilling companies with ties to Saudi Arabia's offshore operations include Ades, SinoOcean, Arabian Drilling, China Merchants, China National Offshore Corporation, and Aro Drilling.
- Onshore Drilling: In addition to offshore drilling, Saudi Arabia hosts a substantial number of onshore drilling rigs. International companies with a Saudi presence include Nabors, which has 51 rigs in Saudi Arabia, and Saipem, with 28 rigs. Nabors traded slightly higher in New York, while Saipem experienced a 12% decline on the Milan Stock Exchange. Saudi Aramco's decision to pause expansion plans is expected to have ripple effects on various players in the oil and drilling industry, including Valaris, impacting VAL stock performance.
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