We recently published an article titled Why These Energy Stocks are Losing This Week. In this article, we are going to take a look at where Valaris Limited (NYSE:VAL) stands against the other energy stocks.
President Donald Trump’s 10% tariff on Canadian energy went back into effect today, and while the United States is a major energy producer itself, it is highly reliant on imports from its northern neighbor.
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Canada supplies 60% of America’s oil imports, about 4 million barrels a day, making it the largest crude oil supplier to the US. Canada is also responsible for nearly all of the US natural gas imports and the two countries even share an integrated electricity grid, significantly bolstering grid resilience and economic efficiency. Hence, President Trump’s tariffs are expected to have serious consequences on the energy prices in the US in the coming days, raising concerns about energy stability and inflation in the country.
The said tariffs are expected to significantly impact the American oil refining sector, especially in the Midwest, which is highly dependent on imports of heavy Canadian crude. The CEO of a major US oil refiner recently stated that the major brunt of the tariffs will be borne by the producers and then to a lesser extent by the consumers, further reducing margins for an industry that already struggled last year.
The broader energy sector has surged by 0.73% over the last year, significantly lagging behind gains of over 14% by the wider market, as of the close of March 3, despite the recent selloff on Monday.
Methodology:
To collect data for this article, we have referred to several stock screeners to find energy stocks that have fallen the most between February 24 to March 3, 2025. The stocks are ranked according to their YTD share prices. Following are the Energy Stocks that Lost the Most This Week.
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A closeup of an offshore oil rig in the international oil and gas industry in the Gulf of Mexico.
Valaris Limited (NYSE:VAL)
Share Price Decline Between Feb. 24 and Mar. 3: 19.66%
Valaris Limited (NYSE:VAL), together with its subsidiaries, provides offshore contract drilling services in Brazil, the United Kingdom, the US, Gulf of Mexico, Australia, Angola, and internationally.
Valaris Limited (NYSE:VAL) recently revealed its Q4 2024 results, with total earnings of $133.7 million. The figure beat market expectations but was far below the net income of $835.2 million in the same period of 2023.
Valaris Limited (NYSE:VAL) expects growth to slow down in Q1 of 2025, with total revenues in the range of $586 to $600 million compared to $584 million in Q4 2024. Revenues for the first quarter are expected to be flat to slightly higher as more operating days for Valaris DS-4 are largely offset by fewer operating days for DS-12. Moreover, the company announced that it has planned the retirement of semisubmersibles VALARIS DPS-3, DPS-5, and DPS-6, and the sale of jackup VALARIS 75 for $24 million in the first quarter of 2025.
Overall VAL ranks 7th our list of the energy stocks that are losing this week. While we acknowledge the potential of VAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
