Why Valaris Stock Is Soaring Today

Shares of Valaris (NYSE: VAL) jumped more than 12% by 2:30 p.m. EST on Monday. Fueling the energy stock was an update it provided to investors on an arbitration award and its cost-savings plan.

Valaris announced that it has received a $200 million cash payment as a result of a previously disclosed arbitration proceeding with a vendor. An arbitration tribunal initially awarded the offshore driller $180 million in damages and the right to claim interest and costs as a result of a dispute with Samsung Heavy Industries. The parties have since settled the dispute, with Valaris receiving $200 million in cash, which will bolster its balance sheet.

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Source Fool.com