Good day, everyone, and welcome to Valaris plc's First Quarter 2020 Financial Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Mr. Nick Georgas, Vice President of Investor Relations and Corporate Communications, who will moderate the call today. Please go ahead, sir.

Welcome, everyone, to the Valaris First Quarter 2020 Conference Call. With me today are President and CEO, Tom Burke; and Executive Vice President and CFO, Jon Baksht. We issued our press release, which is available on our website at valaris.com. For today's call, as will be discussed in more detail, we will not have a question-and-answer session at the end of our prepared remarks. Any comments we make today about expectations are forward-looking statements and are subject to risks and uncertainties. Many factors could cause actual results to differ materially from our expectations. Please refer to our press release and SEC filings on our website that define forward-looking statements and list risk factors and other events that could impact future results. Also, please note that the company undertakes no duty to update forward-looking statements. During this call, we will refer to GAAP and non-GAAP financial measures. Please see the press release on our website for additional information and required reconciliations. We issued our most recent fleet status report, which provides details on contracts across our rig fleet on April 22 and filed our 10-Q earlier this morning. Now let me turn the call over to President and CEO, Tom Burke, for his remarks.

Thanks, Nick, and good morning, everyone. Welcome to the call, and thank you for your interest in Valaris. During today's call, I will briefly discuss the macro and industry environment that has developed over the last 2 months. I will then provide an update on how these events are impacting the demand for offshore drilling services and Valaris's operations. Finally, I will speak to the cost reduction initiatives that we have underway. Following my comments, I will hand the call over to Jon for his remarks on the first quarter financial results. The coronavirus pandemic has affected businesses and people around the world, creating a global economic crisis, of which we are all acutely aware. In response, world leaders and policymakers have deployed fiscal stimulus programs aimed at limiting the impact of this downturn. While it is uncertain how effective these programs will prove in jump-starting the global economy, it is clear that travel restrictions, quarantine orders and the altered consumer behaviors have had a dramatic impact on the demand for hydrocarbons. We expect commercial and consumer restrictions to be lifted soon in countries around the world. Still, we anticipate that it will take time for consumer behaviors to return to normal. Therefore, there is a highly uncertain picture of hydrocarbon demand, particularly in the near term. Unfortunately, in the face of these demand challenges, the energy industry has been simultaneously facing supply surpluses with competition for market share among producers over the last several weeks. This competitive intensity appears poised to subside following agreements by several oil-producing nations to reduce production, although it remains to be seen if this planned supply contraction will be sufficient. Collectively, these supply and demand pressures have created an excess of hydrocarbons to the point that there are storage capacity concerns, and operators are…

Thanks, Tom, and good morning, everyone. We issued a press release yesterday that provides detailed explanations of our first quarter 2020 results on a sequential quarter basis. Therefore, my commentary today will focus on more significant items included within our results, along with our cost reduction efforts and capital structure. Starting with our first quarter results, we reported an adjusted EBITDA of negative $40 million. From an operational perspective, our first quarter financial results were negatively impacted by the following: First, as Tom mentioned, we had a nondrilling incident on Valaris DS-8, where the rig's BOP became disconnected. And as a result, the rig did not earn a day rate for most of the month of March. In addition, we incurred some extra cost associated with remediating the situation. In total, this incident negatively impacted first quarter results by approximately $15 million, mostly in revenues. In addition, first quarter contract drilling expense included $14 million of higher repair and maintenance costs, inclusive of contract preparation and startup costs for jackups in the North Sea. Lastly, contract drilling expense also included a noncash charge of $5 million to write-off a receivable from a customer impacted by the drop in oil prices. Moving to other income. We repurchased $13 million of discounted 2021 maturities in early March prior to the significant decline in oil prices, which generated a $3 million gain in the first quarter. We reported a $152 million tax benefit for the quarter, primarily due to a $164 million benefit from discrete tax items. These discrete items occurred due to the release of certain liabilities as we received a favorable outcome on an uncertain tax matter, along with the benefit from the recently completed internal reorganization. However, the largest item in our first quarter results was a $2.8 billion noncash…

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect. End of Q&A: