02.08.2018 23:00:00

Noble Corporation plc Reports Second Quarter 2018 Results

LONDON, Aug. 2, 2018 /PRNewswire/ -- Noble Corporation plc (NYSE: NE, the Company) today reported a net loss attributable to the Company for the three months ended June 30, 2018 of $628 million, or $2.55 per diluted share, on revenues of $258 million. The results included a non-cash charge totaling $793 million, or $2.06 per diluted share, ($507 million, net of tax and noncontrolling interests) relating to the impairment of three rigs and certain capital spares. Excluding the non-cash charge, the Company's net loss attributable to Noble Corporation for the three months ended June 30, 2018 would have been $121 million, or $0.49 per diluted share.

During the second quarter, the Company conducted a review of its fleet. The review included an assessment of certain assumptions, including future marketability of each unit in light of its current technical specifications. Following this review, the Company recognized partial impairments on the drillship Noble Bully I and semisubmersible Noble Paul Romano, while the semisubmersible Noble Dave Beard was fully impaired. The Noble Dave Beard has been retired from service, along with the semisubmersible Noble Amos Runner and the standard duty jackup Noble Alan Hay, which were previously fully impaired. Following these three retirements and the divestiture in May of the standard duty jackup Noble David Tinsley, the Company's fleet is now comprised of 24 rigs, including 12 floating and 12 jackup units.

Julie J. Robertson, Chairman, President and Chief Executive Officer of Noble Corporation plc, stated, "Jackup fleet utilization grew to 70 percent in the quarter, well above the cyclical low experienced in the first quarter.   We have seen a noticeable increase in jackup demand, particularly among customers in the North Sea and Middle East regions. Following several recent awards, all 10 of our high-specification jackups are now contracted, with no availability before late-2018."

A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release and can also be found at www.noblecorp.com. It provides a reconciliation for net income (loss), income tax and diluted earnings per share for the second quarter 2018 and 2017 and first quarter 2018.

Contract drilling services revenues improved eight percent in the second quarter of 2018 to $248 million compared to revenues of $229 million in the first quarter of the year. The improvement was due largely to a 17 percent increase in total fleet operating days. The growth in fleet operating days improved total utilization in the second quarter to 54 percent, up from a cyclical low of 47 percent in the preceding quarter.

Contract drilling services costs in the second quarter were $151 million compared to $137 million in the preceding quarter, with the increase due primarily to the growth in fleet operating days and costs associated with rig reactivation projects, specifically the Noble Clyde Boudreaux and Noble Tom Madden. These items were partially offset by lower costs resulting from fleet retirements.

Fleet Overview

Utilization of the Company's floating rigs in the second quarter was 39 percent compared to 37 percent in the preceding quarter of the year. The improvement was due largely to modestly better utilization in the Company's drillship fleet, aided by a full quarter of operations for the Noble Bob Douglas offshore Guyana and partially offset by fewer operating days for the semisubmersible Noble Paul Romano following the completion of a contract in mid-May in the U.S. Gulf of Mexico. Average daily revenues improved to $268,600 in the second quarter compared to $259,300 in the previous quarter, due largely to increased revenues for the Noble Globetrotter I following the relocation of the rig to Egypt, and a dayrate adjustment on the Noble Bully II. Following the close of the second quarter, the drillship Noble Tom Madden was awarded a contract for work offshore Guyana, which includes two firm wells, plus three optional wells. Reactivation of the rig from its warm stacked status has begun, with the contract expected to commence in October 2018.

Utilization of the Company's jackup fleet improved to 70 percent in the second quarter compared to 56 percent in the preceding quarter of the year. A 23 percent rise in operating days was driven primarily by higher activity for the Noble Hans Deul, Noble Houston Colbert, Noble Tom Prosser and Noble Mick O'Brien. Also, utilization was further aided by the divestiture in May of the Noble David Tinsley. Average daily revenues were $130,300 in the second quarter compared to $153,700 in the preceding quarter. The decline was due in part to a reduction in demobilization revenues on the Noble Sam Hartley and downtime on the Noble Joe Beall, partially offset by the commencement of operations on the Noble Tom Prosser. Since the close of the second quarter, the Company secured a nine-month contract for the Noble Sam Hartley and an 18-month extension for the Noble Sam Turner. The contract and extension cover drilling assignments offshore the UK-sector of the North Sea.

At June 30, 2018, the Company's contract backlog totaled $2.6 billion, including $1.6 billion attributable to the floating fleet and $1.0 billion to the jackup fleet. Approximately 58 percent of the available rig operating days remaining in 2018 were committed to contracts, including 42 percent of the floating fleet and 76 percent of the jackup fleet. The total backlog and estimate of committed days exclude the previously noted contracts and extension that occurred after the close of the second quarter.

Liquidity Position

Noble concluded the second quarter of 2018 with a total liquidity position of $2.2 billion, comprised of cash and equivalents of $411 million and availability under revolving credit facilities of $1.8 billion.

Capital expenditures for the second quarter totaled $47 million, of which $20 million was devoted to fleet maintenance and $27 million to projects and other expenditures. The projects included further progress on the Noble Clyde Boudreaux reactivation and upgrade program, which was completed in late-July. The rig is now expected to commence an estimated 220-day primary term contract offshore Myanmar by the end of August 2018. For the six months ended June 30, 2018, capital expenditures were $84 million, and the Company's expectation for full-year 2018 total capital expenditures of $150 million is unchanged.

Outlook

In closing, Ms. Robertson noted, "The offshore drilling industry is benefitting from certain dynamics that have traditionally supported an increase in customer spending. These include higher, sustained crude oil prices which lead to increased project sanctioning, geologic success, and greater access to promising basins.  With these dynamics in place, expanding contract opportunities should be increasingly evident in our industry."

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 performs, through its subsidiaries, contract drilling services with a fleet of 24 offshore drilling units, consisting of 12 drillships and semisubmersibles and 12 jackups, focused largely on ultra-deepwater and high-specification jackup drilling opportunities in both established and emerging regions worldwide. Noble is a public limited company registered in England and Wales with company number 08354954 and registered office at Devonshire House, 1 Mayfair Place, London, W1J 8AJ England. Additional information on Noble is available at www.noblecorp.com.

Forward-looking Disclosure Statement

Statements regarding contract backlog, future earnings, costs, expense management, revenue, rig demand, fleet condition, operational or financial performance, shareholder value, contract commitments, dayrates, contract commencements, contract extensions, renewals or renegotiations, letters of intent or award, industry fundamentals, customer relationships and requirements, strategic initiatives, future performance, growth opportunities, the offshore drilling market, market outlook, capital allocation strategies, our financial position, business strategy, taxes and tax rates, liquidity, competitive position, capital expenditures, financial flexibility, debt levels, debt repayment, the outcome of any dispute, litigation, audit or investigation, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with operations outside of the U.S., actions or claims by regulatory authorities, customers and other third parties, legislation and regulations affecting drilling operations, compliance with regulatory requirements, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, the actual amount of downtime, factors that reduce applicable dayrates, violations of anti-corruption laws, hurricanes and other weather conditions, market conditions, the future price of oil and gas and other factors detailed in the Company's most recent Form 10-K, Form 10-Q's and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

Conference Call

Noble also has scheduled a conference call and webcast related to its second quarter 2018 results on Friday, August 3, 2018, at 8:00 a.m. U.S. Central Daylight Time. Interested parties are invited to listen to the call by dialing 1-877-680-4232, or internationally 1-647-689-5432, using access code: 2865178, or by asking for the Noble Corporation plc conference call. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Website. 

A replay of the conference call will be available on Friday, August 3, 2018, beginning at 11:00 a.m. U.S. Central Daylight Time, through Monday, September 3, 2018, ending at 11:00 p.m. U.S. Central Daylight Time. The phone number for the conference call replay is 1-800-585-8367 or, for calls from outside of the U.S., 1-416-621-4642, using access code: 2865178.  The replay will also be available on the Company's Website following the end of the live call.

 

 NOBLE CORPORATION PLC AND SUBSIDIARIES 

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

 (In thousands, except per share amounts) 

 (Unaudited) 














Three Months Ended

Six Months Ended




June 30,


June 30, 




2018


2017


2018


2017

 Operating revenues 










 Contract drilling services 


$   247,689


$  271,532


$    476,795


$   626,191


 Reimbursables and other 


10,680


6,610


16,731


14,927




258,369


278,142


493,526


641,118

 Operating costs and expenses 










 Contract drilling services 


151,437


162,781


288,286


323,550


 Reimbursables 


8,297


4,394


12,647


9,540


 Depreciation and amortization 


129,681


136,594


258,436


272,312


 General and administrative 


21,717


18,658


43,800


34,538


 Loss on impairment 


792,843


-


792,843


-




1,103,975


322,427


1,396,012


639,940

 Operating income (loss) 


(845,606)


(44,285)


(902,486)


1,178

 Other income (expense) 










 Interest expense, net of amounts capitalized 


(74,130)


(73,209)


(150,145)


(146,656)


 Loss on extinguishment of debt, net 


-


-


(8,768)


-


 Interest income and other, net 


2,865


3,074


4,204


4,691

 Loss from continuing operations before income taxes 


(916,871)


(114,420)


(1,057,195)


(140,787)


 Income tax benefit (provision) 


38,839


18,213


35,843


(239,194)

 Net loss from continuing operations 


(878,032)


(96,207)


(1,021,352)


(379,981)

 Net loss from discontinued operations, net of tax 


-


(1,486)


-


(1,486)

 Net  loss 


(878,032)


(97,693)


(1,021,352)


(381,467)


 Net (income) loss attributable to noncontrolling interests 


249,969


4,343


250,955


(13,577)

 Net loss attributable to Noble Corporation plc 


$  (628,063)


$  (93,350)


$   (770,397)


$  (395,044)

 Per share data 









 Basic: 










 Loss from continuing operations 


$        (2.55)


$      (0.37)


$         (3.13)


$        (1.61)


 Loss from discontinued operations 


-


(0.01)


-


(0.01)


 Net loss attributable to Noble Corporation plc 


$        (2.55)


$      (0.38)


$         (3.13)


$        (1.62)

 Diluted: 










 Loss from continuing operations 


$        (2.55)


$      (0.37)


$         (3.13)


$        (1.61)


 Loss from discontinued operations 


-


(0.01)


-


(0.01)


 Net  loss attributable to Noble Corporation plc 


$        (2.55)


$      (0.38)


$         (3.13)


$        (1.62)

 

 NOBLE CORPORATION PLC AND SUBSIDIARIES 

 CONDENSED CONSOLIDATED BALANCE SHEETS 

 (In thousands) 

 (Unaudited) 










 June 30 


 December 31, 




2018


2017

 ASSETS 





 Current assets 






 Cash and cash equivalents 


$    411,492


$           662,829


 Accounts receivable, net 


212,229


204,696


 Prepaid expenses and other current assets 


73,532


171,450

 Total current assets 


697,253


1,038,975







 Property and equipment, at cost 


10,924,509


12,034,331


 Accumulated depreciation 


(2,403,099)


(2,545,091)

 Property and equipment, net 


8,521,410


9,489,240







 Other assets 


175,024


266,444


 Total assets 


$ 9,393,687


$      10,794,659







 LIABILITIES AND  EQUITY 





 Current liabilities 






 Current maturities of long-term debt 


$              -


$           249,843


 Accounts payable 


93,612


84,032


 Accrued payroll and related costs 


41,852


54,904


 Other current liabilities 


201,772


204,245

 Total current liabilities 


337,236


593,024







 Long-term debt  


3,842,617


3,795,867

 Other liabilities 


440,784


455,140


 Total liabilities 


4,620,637


4,844,031







 Commitments and contingencies 











 Equity 






 Total shareholders' equity 


4,362,232


5,276,161


 Noncontrolling interests 


410,818


674,467


 Total equity 


4,773,050


5,950,628


 Total liabilities and equity 


$ 9,393,687


$      10,794,659

 

 NOBLE CORPORATION PLC AND SUBSIDIARIES 

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

 (In thousands) 

 (Unaudited) 










Six Months Ended




June 30, 




2018


2017

 Cash flows from operating activities 






 Net loss 


$ (1,021,352)


$ (381,467)


 Adjustments to reconcile net loss to net cash flow from operating activities: 






 Depreciation and amortization 


258,436


272,312


 Loss on impairment 


792,843


-


 Deferred income tax provision 


(51,724)


303,084


 Loss on extinguishment of debt, net 


8,768


-


 Other long-term asset write-off 


-


14,419


 Changes in components of working capital: 






 Change in taxes receivable 


84,486


-


 Net changes in other operating assets and liabilities 


(17,563)


45,937


 Net cash provided by operating activities 


53,894


254,285







 Cash flows from investing activities 






 Capital expenditures 


(75,874)


(67,608)


 Proceeds from disposal of assets, net 


3,755


314


 Net cash used in investing activities 


(72,119)


(67,294)







 Cash flows from financing activities 






 Issuance of senior notes 


750,000


-


 Repayments of debt 


(952,209)


(300,000)


 Debt issuance costs on senior notes and credit facilities 


(14,802)


(42)


 Dividends paid to noncontrolling interests 


(12,694)


(5,393)


 Other financing activities 


(3,407)


(4,301)


 Net cash used in financing activities 


(233,112)


(309,736)


 Net decrease in cash and cash equivalents 


(251,337)


(122,745)

 Cash and cash equivalents, beginning of period 


662,829


725,722

 Cash and cash equivalents, end of period 


$     411,492


$  602,977

 

 NOBLE CORPORATION PLC AND SUBSIDIARIES 

 FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT 

 (In thousands, except operating statistics) 

 (Unaudited) 






















Three Months Ended June 30,


Three Months Ended March 31,



2018


2017


2018



Contract






Contract






Contract







Drilling






Drilling






Drilling







Services


Other


Total


Services


Other


Total


Services


Other


Total

 Operating revenues 



















 Contract drilling services 


$    247,689


$        -


$    247,689


$ 271,532


$          -


$ 271,532


$ 229,106


$          -


$ 229,106

 Reimbursables and other 


10,680


-


10,680


6,610


-


6,610


6,051


-


6,051



$    258,369


$        -


$    258,369


$ 278,142


$          -


$ 278,142


$ 235,157


$          -


$ 235,157

 Operating costs and expenses 



















 Contract drilling services 


$    151,437


$        -


$    151,437


$ 162,781


$          -


$ 162,781


$ 136,849


$          -


$ 136,849

 Reimbursables 


8,297


-


8,297


4,394


-


4,394


4,350


-


4,350

 Depreciation and amortization 


124,223


5,458


129,681


130,763


5,831


136,594


123,215


5,540


128,755

 General and administrative 


21,717


-


21,717


18,658


-


18,658


22,083


-


22,083

 Loss on impairment 


792,843


-


792,843


-


-


-


-


-


-



$ 1,098,517


$  5,458


$ 1,103,975


$ 316,596


$  5,831


$ 322,427


$ 286,497


$  5,540


$ 292,037




















 Operating income (loss) 


$  (840,148)


$ (5,458)


$  (845,606)


$ (38,454)


$ (5,831)


$  (44,285)


$ (51,340)


$ (5,540)


$ (56,880)




















 Operating statistics 



















 Jackups: 



















 Average Rig Utilization 


70%






93%






56%





 Operating Days 


872






1,183






706





Average Dayrate


$    130,332






$ 121,284






$ 153,662





 Semisubmersibles: 



















 Average Rig Utilization 


8%






17%






17%





 Operating Days 


44






91






90





Average Dayrate


$    126,278






$ 126,106






$   98,766





 Drillships: 



















 Average Rig Utilization 


63%






52%






52%





 Operating Days 


455






377






375





Average Dayrate


$    282,412






$ 309,313






$ 297,833





 Total: 



















 Average Rig Utilization 


54%






65%






47%





 Operating Days 


1,371






1,651






1,171





Average Dayrate


$    180,689






$ 164,475






$ 195,633





 

 NOBLE CORPORATION PLC AND SUBSIDIARIES 

 CALCULATION OF BASIC AND DILUTED NET INCOME PER SHARE 

 (In thousands, except per share amounts) 

 (Unaudited) 











 The following table presents the computation of basic and diluted net income per share: 





















Three Months Ended


Six Months Ended




 June 30, 


 June 30, 




2018


2017


2018


2017


 Numerator:  










 Basic 










 Net loss from continuing operations 


$ (628,063)


$ (91,864)


$ (770,397)


$ (393,558)


 Net loss from discontinued operations, net of tax  


-


(1,486)


-


(1,486)


 Net loss attributable to Noble Corporation plc 


$ (628,063)


$ (93,350)


$ (770,397)


$ (395,044)












 Diluted 










 Net loss from continuing operations 


$ (628,063)


$ (91,864)


$ (770,397)


$ (393,558)


 Net loss from discontinued operations, net of tax  


-


(1,486)


-


(1,486)


 Net loss attributable to Noble Corporation plc 


$ (628,063)


$ (93,350)


$ (770,397)


$ (395,044)












 Denominator: 










 Weighted average shares outstanding - basic 


246,740


244,828


246,438


244,527


 Weighted average shares outstanding - diluted 


246,740


244,828


246,438


244,527


  Loss per share  










 Basic: 










 Loss from Continuing operations 


$       (2.55)


$     (0.37)


$       (3.13)


$       (1.61)


 Loss from Discontinued operations 


-


(0.01)


-


(0.01)


 Net loss to Noble Corporation plc 


$       (2.55)


$     (0.38)


$       (3.13)


$       (1.62)












 Diluted: 










 Loss from Continuing operations 


$       (2.55)


$     (0.37)


$       (3.13)


$       (1.61)


 Loss from Discontinued operations 


-


(0.01)


-


(0.01)


 Net loss to Noble Corporation plc 


$       (2.55)


$     (0.38)


$       (3.13)


$       (1.62)













For the quarters and years ended June 30, 2018 and 2017, we experienced net losses from continuing operations, as such, unvested share-based payment awards were excluded from the loss per share calculation, as the awards were anti-dilutive.

 

Non-GAAP Reconciliation


Certain non-GAAP performance 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. In order to fully assess the financial operating results, management believes that the results of operations, adjusted to exclude the following items, which are included in the Company's press release issued on August 2, 2018, and discussed in the related conference call on August 3, 2018, are appropriate measures of the continuing and normal operations of the Company: 





(i)

In the second quarter of 2018, an impairment of three of our rigs and certain capital spare equipment; 





(ii)

In the first quarter of 2018, a loss on debt extinguishment; and





(iii)

In the second quarter of 2017, a discrete tax item and the Noble Max Smithwrite-off of receivables.


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 cost, 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 

(In thousands, except per share amounts)

(Unaudited)

























Reconciliation of Income tax provision



Three Months Ended


Three Months Ended








June 30,


March 31,








2018


2017


2018


Income tax benefit (provision)



$        38,839


$        18,213


$                            (2,996)














Adjustments










Loss on impairment



(35,613)


-


-



Loss on debt extinguishment 



-


-


(1,841)


Total Adjustments



(35,613)


-


(1,841)


Adjusted income tax benefit (provision)



$          3,226


$        18,213


$                            (4,837)

























Reconciliation of net loss attributable to Noble Corporation plc



Three Months Ended


Three Months Ended








June 30,


March 31,








2018


2017


2018














Net loss attributable to Noble Corporation plc



$    (628,063)


$      (93,350)


$                        (142,334)














Adjustments










Loss on impairment, net of tax



757,230


-


-



Noble Max Smith-write-off of receivables



-


14,419


-



Loss on extinguishment of debt, net



-


-


6,927


Net loss attributable to noncontrolling interests



(250,348)


-


-


Total Adjustments



506,882


14,419


6,927


Adjusted net loss attributable to Noble Corporation plc



$    (121,181)


$      (78,931)


$                        (135,407)

























Reconciliation of diluted EPS attributable to Noble Corporation plc



Three Months Ended


Three Months Ended








June 30,


March 31








2018


2017


2018














Unadjusted diluted EPS attributable to Noble Corporation plc



$          (2.55)


$          (0.38)


$                              (0.58)














Adjustments










Loss on impairment, net of tax



2.06


-


-



Noble Max Smith-write-off of receivables



-


0.06


-



Loss on extinguishment of debt, net of tax



-


-


0.03


Total Adjustments



2.06


0.06


0.03


Adjusted diluted EPS



$          (0.49)


$          (0.32)


$                              (0.55)

 

Cision View original content:http://www.prnewswire.com/news-releases/noble-corporation-plc-reports-second-quarter-2018-results-300691390.html

SOURCE Noble Corporation

Eintrag hinzufügen
Hinweis: Sie möchten dieses Wertpapier günstig handeln? Sparen Sie sich unnötige Gebühren! Bei finanzen.net Brokerage handeln Sie Ihre Wertpapiere für nur 5 Euro Orderprovision* pro Trade? Hier informieren!
Es ist ein Fehler aufgetreten!