Noble Corporation plc Texas
07.08.2025 - 18:03:43NOBLE CORPORATION PLC ANNOUNCES FIRST QUARTER 2024 RESULTS
About Noble Corporation plc
Noble is a leading offshore drilling contractor for the oil and gas industry. The Company owns and operates one of the most modern, versatile, and technically advanced fleets in the offshore drilling industry. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. Noble performs, through its subsidiaries, contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities in both established and emerging regions worldwide. Additional information on Noble is available at www.noblecorp.com.
Dividend Details
Dividends payable to Noble shareholders will generally be paid in U.S. dollars (USD). However, holders of shares in the form of share entitlements admitted to trading on NASDAQ Copenhagen will receive an equivalent dividend payment in Danish krone (DKK) as determined by the exchange rate on a specified date. The holders of such share entitlements bear the risk of fluctuations in USD and DKK exchange rates.
Forward-looking Statements
This communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, as amended. All statements other than statements of historical facts included in this communication are forward looking statements, including those regarding future guidance, including revenue, adjusted EBITDA, the offshore drilling market and demand fundamentals, realization and timing of integration synergies, related costs to achieve, free cash flow expectations, capital expenditure, capital additions, capital allocation expectations including planned dividend and share repurchases, contract backlog, rig demand, expected future contracts, anticipated contract start dates, major project schedules, dayrates and duration, fleet condition and utilization, and 2024 financial guidance. Forward-looking statements involve risks, uncertainties and assumptions, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. When used in this communication, or in the documents incorporated by reference, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "on track," "plan," "possible," "potential," "predict," "project," "should," "would," "shall," "target," "will" and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. These forward-looking statements speak only as of the date of this communication and we undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law. Risks and uncertainties include, but are not limited to, those detailed in Noble's most recent Annual Report on Form 10-K, Quarterly Reports Form 10-Q and other filings with the U.S. Securities and Exchange Commission. We cannot control such risk factors and other uncertainties, and in many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements. You should consider these risks and uncertainties when you are evaluating us. With respect to our capital allocation policy, distributions to shareholders in the form of either dividends or share buybacks are subject to the Board of Directors' assessment of factors such as business development, growth strategy, current leverage and financing needs. There can be no assurance that a dividend will be declared or continued.
NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended March 31,
2024
2023
Operating revenues
Contract drilling services
$ 612,425
$ 575,290
Reimbursables and other
24,659
34,764
637,084
610,054
Operating costs and expenses
Contract drilling services
389,867
361,789
Reimbursables
17,680
26,006
Depreciation and amortization
86,698
69,942
General and administrative
25,961
30,037
Merger and integration costs
9,331
11,631
Hurricane losses and (recoveries), net
—
3,544
529,537
502,949
Operating income (loss)
107,547
107,105
Other income (expense)
Interest expense, net of amounts capitalized
(17,544)
(16,872)
Interest income and other, net
(4,735)
2,026
Income (loss) before income taxes
85,268
92,259
Income tax benefit (provision)
10,213
15,804
Net income (loss)
$ 95,481
$ 108,063
Per share data
Basic:
Net income (loss)
$ 0.67
$ 0.80
Diluted:
Net income (loss)
$ 0.66
$ 0.74
NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, 2024
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$ 212,467
$ 360,794
Accounts receivable, net
590,226
548,844
Prepaid expenses and other current assets
168,377
152,110
Total current assets
971,070
1,061,748
Intangible assets
7,367
10,128
Property and equipment, at cost
4,707,614
4,591,936
Accumulated depreciation
(552,511)
(467,600)
Property and equipment, net
4,155,103
4,124,336
Other assets
302,611
311,225
Total assets
$ 5,436,151
$ 5,507,437
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$ 365,982
$ 395,165
Accrued payroll and related costs
61,872
97,313
Other current liabilities
175,521
149,202
Total current liabilities
603,375
641,680
Long-term debt
586,622
586,203
Other liabilities
305,382
307,451
Noncurrent contract liabilities
27,749
50,863
Total liabilities
1,523,128
1,586,197
Commitments and contingencies
Total shareholders' equity
3,913,023
3,921,240
Total liabilities and equity
$ 5,436,151
$ 5,507,437
NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March 31,
2024
2023
Cash flows from operating activities
Net income (loss)
$ 95,481
$ 108,063
Adjustments to reconcile net income (loss) to net cash flow from
operating activities:
Depreciation and amortization
86,698
69,942
Amortization of intangible assets and contract liabilities, net
(20,353)
(53,728)
Changes in components of working capital and other operating
activities
(33,137)
(187,357)
Net cash provided by (used in) operating activities
128,689
(63,080)
Cash flows from investing activities
Capital expenditures
(166,610)
(62,734)
Net cash provided by (used in) investing activities
(166,610)
(62,734)
Cash flows from financing activities
Repayments of debt
—
(152,215)
Warrants exercised
6
21
Share repurchases
—
(10,000)
Dividend payments
(59,418)
—
Taxes withheld on employee stock transactions
(53,431)
(8,327)
Net cash provided by (used in) financing activities
(112,843)
(170,521)
Net increase (decrease) in cash, cash equivalents and restricted cash
(150,764)
(296,335)
Cash, cash equivalents and restricted cash, beginning of period
367,745
485,707
Cash, cash equivalents and restricted cash, end of period
$ 216,981
$ 189,372
NOBLE CORPORATION plc AND SUBSIDIARIES
OPERATIONAL INFORMATION
(Unaudited)
Average Rig Utilization
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Floaters
64 %
63 %
77 %
Jackups
67 %
61 %
70 %
Total
65 %
62 %
74 %
Operating Days
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Floaters
1,101
1,101
1,314
Jackups
794
785
877
Total
1,895
1,886
2,191
Average Dayrates
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Floaters
$ 433,608
$ 437,827
$ 331,705
Jackups
144,187
147,954
97,940
Total
$ 312,502
$ 317,150
$ 238,130
Note: utilization statistics include all marketed and cold stacked rigs, including the Noble Explorer.
NOBLE CORPORATION plc AND SUBSIDIARIES
CALCULATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER SHARE
(In thousands, except per share amounts)
(Unaudited)
The following tables presents the computation of basic and diluted income (loss) per share:
Three Months Ended
March 31,
2024
2023
Numerator:
Net income (loss)
$ 95,481
$ 108,063
Denominator:
Weighted average shares outstanding - basic
141,954
134,751
Dilutive effect of share-based awards
1,574
3,271
Dilutive effect of warrants
1,703
7,971
Weighted average shares outstanding - diluted
145,231
145,993
Per share data
Basic:
Net income (loss)
$ 0.67
$ 0.80
Diluted:
Net income (loss)
$ 0.66
$ 0.74
NOBLE CORPORATION plc AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION
Certain non-GAAP measures and corresponding reconciliations to GAAP financial measures for the Company have been provided for meaningful comparisons between current results and prior operating periods. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles.
The Company defines "Adjusted EBITDA" as net income (loss) adjusted for interest expense, net of amounts capitalized; interest income and other, net; income tax benefit (provision); and depreciation and amortization expense, as well as, if applicable, gain (loss) on extinguishment of debt, net; losses on economic impairments; amortization of intangible assets and contract liabilities, net; restructuring and similar charges; costs related to mergers and integrations; and certain other infrequent operational events. We believe that the Adjusted EBITDA measure provides greater transparency of our core operating performance. We prepare Adjusted Net Income (Loss) by eliminating from Net Income (Loss) the impact of a number of non-recurring items we do not consider indicative of our on-going performance. We prepare Adjusted Diluted Earnings (Loss) per Share by eliminating from Diluted Earnings per Share the impact of a number of non-recurring items we do not consider indicative of our on-going performance. Similar to Adjusted EBITDA, we believe these measures help identify underlying trends that could otherwise be masked by the effect of the non-recurring items we exclude in the measure.
The Company also discloses free cash flow as a non-GAAP liquidity measure. Free cash flow is calculated as Net cash provided by (used in) operating activities less cash paid for capital expenditures. We believe Free Cash Flow is useful to investors because it measures our ability to generate or use cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management team for financial and operational decision-making. We are presenting these non-GAAP financial measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
These non-GAAP adjusted measures should be considered in addition to, and not as a substitute for, or superior to, contract drilling revenue, contract drilling costs, contract drilling margin, average daily revenue, operating income, cash flows from operations, or other measures of financial performance prepared in accordance with GAAP. Please see the following non-GAAP Financial Measures and Reconciliations for a complete description of the adjustments.
NOBLE CORPORATION plc AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)
Reconciliation of Adjusted EBITDA
Three Months Ended March 31,
Three Months Ended
2024
2023
December 31, 2023
Net income (loss)
$ 95,481
$ 108,063
$ 149,700
Income tax (benefit) provision
(10,213)
(15,804)
(4,843)
Interest expense, net of amounts capitalized
17,544
16,872
14,600
Interest income and other, net
4,735
(2,026)
(1,777)
Depreciation and amortization
86,698
69,942
82,933
Amortization of intangible assets and contract
liabilities, net
(20,353)
(53,728)
(11,236)
Merger and integration costs
9,331
11,631
13,286
Hurricane losses and (recoveries), net
—
3,544
(41,823)
Adjusted EBITDA
$ 183,223
$ 138,494
$ 200,840
Reconciliation of Income Tax Benefit (Provision)
Three Months Ended March 31,
Three Months Ended
2024
2023
December 31, 2023
Income tax benefit (provision)
$ 10,213
$ 15,804
$ 4,843
Adjustments
Amortization of intangible assets and contract
liabilities, net
58
3,501
6,508
Discrete tax items
(18,528)
(45,631)
(60,116)
Total Adjustments
(18,470)
(42,130)
(53,608)
Adjusted income tax benefit (provision)
$ (8,257)
$ (26,326)
$ (48,765)
NOBLE CORPORATION plc AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)
Reconciliation of Net Income (Loss)
Three Months Ended March 31,
Three Months Ended
2024
2023
December 31, 2023
Net income (loss)
$ 95,481
$ 108,063
$ 149,700
Adjustments
Amortization of intangible assets and contract
liabilities, net
(20,295)
(50,227)
(4,728)
Merger and integration costs
9,331
11,631
13,286
Hurricane losses and (recoveries), net
—
3,544
(41,823)
Discrete tax items
(18,528)
(45,631)
(60,116)
Total Adjustments
(29,492)
(80,683)
(93,381)
Adjusted net income (loss)
$ 65,989
$ 27,380
$ 56,319
Reconciliation of Diluted EPS
Three Months Ended March 31,
Three Months Ended
2024
2023
December 31, 2023
Unadjusted diluted EPS
$ 0.66
$ 0.74
$ 1.03
Adjustments
Amortization of intangible assets and contract
liabilities, net
(0.14)
(0.34)
(0.03)
Merger and integration costs
0.06
0.08
0.09
Hurricane losses and (recoveries), net
—
0.02
(0.29)
Discrete tax items
(0.13)
(0.31)
(0.41)
Total Adjustments
(0.21)
(0.55)
(0.64)
Adjusted diluted EPS
$ 0.45
$ 0.19
$ 0.39
Reconciliation of Free Cash Flow
Three Months Ended March 31,
Three Months Ended
2024
2023
December 31, 2023
Net cash provided by (used in) operating activities
$ 128,689
$ (63,080)
$ 287,489
Capital expenditures, net of proceeds from
insurance claims
(166,610)
(62,734)
(122,641)
Free cash flow
$ (37,921)
$ (125,814)
$ 164,848
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