Noble Corp. Results Miss Estimates

(RTTNews) - Noble Corp (NE), the offshore drilling contractor, on Wednesday reported fourth-quarter net loss of $609.6 million or $2.44 per share compared with $174 million or $0.68 per share last year.

Results for the recent quarter included an after-tax charge of $713 million, or $2.86 per share, relating to the impairment of three rigs and the total goodwill balance.

Excluding items, adjusted earnings from continuing operations for the quarter were $0.47 per share.

Analysts polled by Thomson Reuters estimated earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

The company's revenues for the quarter were $804.7 million compared with $725 million in the prior year. Analysts estimated revenues of $807.8 million.

David Williams, CEO of Noble Corp, said, "Rapidly declining crude oil prices during the fourth quarter further aggravated the offshore supply imbalance and contributed to an increasingly difficult environment for securing new contract commitments from our customers. Our financial performance in the quarter included an increase in idle time on several rigs, lower average daily revenues and margin contraction."

Williams further said, "We face this period of market uncertainty with 81 percent of our fleet operating days under contract in 2015 and a $10.1 billion backlog that is expected to provide almost $3 billion in gross revenues over the year. We possess a sound balance sheet and ample liquidity and we will continue to focus on capital discipline and preservation of liquidity through the cycle. Finally, an opportune and significant decline in capital expenditures compared to levels experienced over the past three years is expected to allow for positive free cash flow in 2015, providing financial flexibility during a period of increased market uncertainty."