Noble plc(US:NE)2025-02-18 12:56Financial Performance - Fourth quarter total revenue reached $927 million, up 15.7% from $801 million in the previous quarter and 44.2% from $643 million year-over-year[2] - Net income for Q4 2024 increased to $97 million, compared to $61 million in Q3 2024, while adjusted EBITDA rose to $319 million from $291 million[4] - Operating revenues for Q4 2024 reached $927.3 million, a 44.3% increase from $643.0 million in Q4 2023[19] - Net income for the twelve months ended December 31, 2024, was $448.4 million, compared to $481.9 million in 2023, reflecting a decrease of 6.9%[19] - Adjusted net income for the twelve months ended December 31, 2024, was $348,816 thousand, compared to $266,712 thousand in 2023, marking a 31% increase[39] - Unadjusted diluted EPS for Q4 2024 was $0.59, up from $0.40 in Q3 2024, a 48% increase[40] - Adjusted diluted EPS for the twelve months ended December 31, 2024, was $2.30, compared to $1.84 in 2023, representing a 25% growth[40] Revenue Sources - Contract drilling services revenue for Q4 2024 was $882 million, a sequential increase of 15.4% from $764 million in Q3 2024[4] - New contract awards since November totaled approximately $525 million, contributing to a total backlog of $5.8 billion[4] Guidance and Future Outlook - Full year 2025 guidance includes total revenue of $3,250 to $3,450 million and adjusted EBITDA of $1,050 to $1,150 million[11] Capital Expenditures and Cash Flow - Capital expenditures for 2024 totaled $575.3 million, compared to $409.6 million in 2023, indicating a 40.5% increase[23] - Free cash flow for Q4 2024 was $2,423 thousand, a significant decrease from $164,677 thousand in Q3 2024[41] - Cash flows from operating activities for the twelve months ended December 31, 2024, were $655.5 million, compared to $574.3 million in 2023, an increase of 14.1%[23] Debt and Assets - Long-term debt rose significantly to $1.98 billion in 2024, compared to $586.2 million in 2023, marking an increase of 237.5%[21] - Total assets increased to $7.86 billion in 2024, up from $5.51 billion in 2023, representing a growth of 42.5%[21] Shareholder Returns - Share repurchases totaled $50 million in Q4 2024, bringing the full year total to $300 million, alongside $278 million in dividends paid[6] - A quarterly interim dividend of $0.50 per share was approved for Q1 2025, expected to be paid on March 20, 2025[7] Market Conditions - The marketed fleet utilization was 77% in Q4 2024, down from 82% in Q3 2024, primarily due to idle time on certain rigs[4] - Recent dayrate fixtures for Tier-1 drillships have been in the mid-to-high $400,000s, indicating strong market demand[8] - Average rig utilization for floaters was 68% in Q4 2024, up from 63% in Q4 2023, while jackups increased to 82% from 61%[25] - The average dayrate for floaters in Q4 2024 was $419,909, a decrease from $437,827 in Q4 2023[25] Costs and Expenses - The company incurred merger and integration costs of $109.4 million for the twelve months ended December 31, 2024, compared to $60.3 million in 2023[19] - The company reported a total of $20,261 thousand in merger and integration costs for Q4 2024, down from $69,214 thousand in Q3 2024[39] - Interest expense for Q4 2024 was $39,720 thousand, compared to $24,951 thousand in Q3 2024, a 59% increase[36] - The income tax provision for Q4 2024 was $(27,814) thousand, compared to $(31,608) thousand in Q3 2024, indicating a decrease in tax expense[37] Synergies and Integration - The company realized over half of the targeted $100 million synergies from the Diamond acquisition to date[3]