Noble plc(NE) - 2025 Q2 - Quarterly Results

Press Release Announcement Noble Corporation plc announced its second quarter 2025 financial results on August 5, 2025 Company Announcement Noble Corporation plc reported its second quarter 2025 financial results on August 5, 2025 - Noble Corporation plc (NYSE: NE) reported second quarter 2025 results on August 5, 2025[2] Q2 2025 Financial Summary Noble Corporation reported total revenue of $849 million and net income of $43 million for Q2 2025, with Adjusted EBITDA at $282 million and diluted EPS at $0.27 Q2 2025 Key Financial Highlights | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | Q1 2025 (Millions $) | | :----------------------------- | :------------------- | :------------------- | :------------------- | | Total Revenue | 849 | 693 | 874 | | Contract Drilling Services Revenue | 812 | 661 | 832 | | Net Income (Loss) | 43 | 195 | 108 | | Adjusted EBITDA* | 282 | 271 | 338 | | Adjusted Net Income (Loss)* | 20 | 105 | 42 | | Basic Earnings (Loss) Per Share | 0.27 | 1.37 | 0.68 | | Diluted Earnings (Loss) Per Share | 0.27 | 1.34 | 0.67 | | Adjusted Diluted Earnings (Loss) Per Share* | 0.13 | 0.72 | 0.26 | CEO Commentary and Key Highlights CEO Robert W. Eifler highlighted resilient earnings, free cash flow, successful integration, and significant backlog expansion, with a Q3 cash dividend of $0.50 per share contributing to over $1.1 billion in capital returned to shareholders - CEO Robert W. Eifler noted resilient earnings and free cash flow, successful integration, and expanded backlog in H1 2025[4] - Approximately $380 million in new contract awards since April fleet status report, bringing backlog to $6.9 billion[4] - A $0.50 per share cash dividend was declared for Q3, contributing to over $1.1 billion in total capital returned to shareholders since Q4 2022[4] Detailed Second Quarter Results Noble Corporation's second quarter results detail financial performance, balance sheet position, operating highlights, and asset disposal activities Financial Performance Contract drilling services revenue for Q2 2025 totaled $812 million, a sequential decrease primarily driven by lower rig utilization, with net income and Adjusted EBITDA also declining from the prior quarter Q2 2025 vs. Q1 2025 Performance | Metric | Q2 2025 (Millions $) | Q1 2025 (Millions $) | Change (Sequential) | | :-------------------------------- | :------------------- | :------------------- | :------------------ | | Contract drilling services revenue | 812 | 832 | ↓ $20 million | | Marketed fleet utilization | 70% | 78% | ↓ 8 percentage points | | Contract drilling services costs | 502 | 462 | ↑ $40 million | | Net income | 43 | 108 | ↓ $65 million | | Adjusted EBITDA | 282 | 338 | ↓ $56 million | | Net cash from operating activities | 216 | N/A | N/A | | Capital expenditures | 117 | N/A | N/A | | Free cash flow | 107 | N/A | N/A | Balance Sheet & Capital Allocation As of June 30, 2025, Noble's balance sheet reflected total debt principal of $2 billion and cash of $338 million, with the Board approving an interim quarterly cash dividend of $0.50 per share for Q3 2025 Balance Sheet Snapshot (June 30, 2025) | Metric | Amount (Millions $) | | :-------------------------- | :------------------ | | Total debt principal value | 2,000 | | Cash (and cash equivalents) | 338 | - Noble's Board of Directors approved an interim quarterly cash dividend of $0.50 per share for Q3 2025, payable on September 25, 2025[7] Operating Highlights and Backlog Noble's marketed floater utilization was 75% and jackup utilization was 61% in Q2 2025, both decreasing sequentially, while new contract awards totaling approximately $380 million increased the total backlog to $6.9 billion Q2 2025 Fleet Utilization | Fleet Type | Q2 2025 Utilization | Q1 2025 Utilization | | :--------- | :------------------ | :------------------ | | Floaters | 75% | 80% | | Jackups | 61% | 74% | - New contract awards totaling approximately $380 million were secured, excluding unexercised extension options[10] - Total backlog as of August 5, 2025, stands at $6.9 billion, excluding mobilization and demobilization revenue[10] - Recent dayrate fixtures for Tier-1 drillships were in the low to mid $400,000s, with 6th generation floater fixtures between the low $300,000s to mid $400,000s[8] - Key new contracts include extensions for Noble Stanley Lafosse, and new contracts for Noble Viking, Noble Globetrotter I, Noble Innovator, Noble Resilient, and Noble Intrepid, with various durations and values[11] Asset Disposals Noble completed the sale of two cold stacked drillships for combined gross proceeds of $41 million, with an agreement to sell the Noble Highlander for $65 million expected to close in Q3, and two other rigs held for sale - Sale of cold stacked drillships Pacific Scirocco and Pacific Meltem completed in June and July, respectively, for combined gross proceeds of $41 million[12] - Definitive agreement to sell cold stacked jackup Noble Highlander for $65 million, expected to close in Q3[12] - Noble Globetrotter II and Noble Reacher are currently held for sale[12] Outlook Noble Corporation updated its full-year 2025 guidance, reflecting revised revenue expectations and an increased Adjusted EBITDA midpoint, while management anticipates increasing deepwater demand by late 2026 Full Year 2025 Guidance Update Noble updated its full-year 2025 guidance, reducing total revenue expectations while increasing Adjusted EBITDA and capital expenditures due to recent long-term contract awards Full Year 2025 Guidance Update | Metric | New Guidance (Millions $) | Previous Guidance (Millions $) | Change | | :-------------------------------- | :-------------------------- | :----------------------------- | :----- | | Total Revenue | $3,200 to $3,300 | $3,250 to $3,450 | Reduced | | Adjusted EBITDA | $1,075 to $1,150 | $1,050 to $1,150 | Increased midpoint | | Capital Expenditures (net of reimbursements) | $400 to $450 | $375 to $425 | Increased | Management Commentary on Market Outlook CEO Robert W. Eifler noted strong first-half financial results supported the Adjusted EBITDA guidance increase, despite near-term spot market softness, and anticipates increasing deepwater demand by late 2026 and into 2027 - Strong first-half financial results support raising the midpoint of full-year Adjusted EBITDA guidance[14] - Near-term spot market contracting activity shows softness, with increased instances of contract extension options lapsing due to upstream capital restraint[14] - Deepwater market indicators suggest increasing demand levels by late 2026 and into 2027, especially in South America and Africa[14] Corporate Information This section provides details on Noble Corporation's conference call, company overview, forward-looking statements, and contract backlog disclosures Conference Call Noble Corporation will host a conference call on August 6, 2025, at 8:00 a.m. U.S. Central Time to discuss its second quarter 2025 results - Conference call for Q2 2025 results scheduled for Wednesday, August 6, 2025, at 8:00 a.m. U.S. Central Time[15] About Noble Corporation plc Noble is a leading offshore drilling contractor for the oil and gas industry, operating one of the most modern, versatile, and technically advanced fleets focused on ultra-deepwater and high-specification jackup drilling opportunities - Noble is a leading offshore drilling contractor for the oil and gas industry[16] - The company operates one of the most modern, versatile, and technically advanced fleets, focusing on ultra-deepwater and high specification jackup drilling[16] Forward-looking Statements This section provides a disclaimer regarding forward-looking statements, highlighting inherent risks, uncertainties, and assumptions that could cause actual results to differ materially from projections, with no obligation to update these statements except as required by law - The communication includes forward-looking statements regarding 2025 guidance, market conditions, capital allocation, and other operational aspects[17] - Forward-looking statements involve risks, uncertainties, and assumptions, and actual results may differ materially[18] - The company undertakes no obligation to revise or update any forward-looking statement, except as required by law[18] Contract Backlog Disclosures The contract backlog represents estimated maximum contract drilling revenues based on contractual operating dayrates, but actual revenues may vary due to factors like rig downtime, suspensions, or reallocations, generally excluding mobilization, demobilization, and performance incentives with some exceptions - Contract backlog represents maximum contract drilling revenues based on contractual operating dayrate for the firm period[19] - Actual average dayrate depends on factors like rig downtime and operational suspensions, and contracts are subject to cancellation, suspension, or delays[19] - Dayrates generally exclude revenue for mobilizations, demobilizations, upgrades, and performance incentives, with exceptions for certain long-term contracts[19] Condensed Consolidated Statements of Operations This section presents Noble Corporation's condensed consolidated statements of operations, detailing revenues, costs, and net income for the second quarter and first half of 2025 and 2024 Statements of Operations Data Noble's Q2 2025 operating revenues were $848.65 million, with a net income of $42.87 million, while for the six months ended June 30, 2025, operating revenues reached $1,723.14 million and net income was $151.18 million Condensed Consolidated Statements of Operations (Selected Data) | Metric (in thousands $) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Operating revenues | $848,652 | $692,844 | $1,723,139 | $1,329,928 | | Contract drilling services | $812,077 | $660,710 | $1,644,505 | $1,273,135 | | Operating costs and expenses | $713,399 | $482,885 | $1,400,547 | $1,012,422 | | Operating income (loss) | $135,253 | $209,959 | $322,592 | $317,506 | | Net income (loss) | $42,872 | $195,008 | $151,175 | $290,489 | | Basic Net income (loss) per share | $0.27 | $1.37 | $0.95 | $2.04 | | Diluted Net income (loss) per share | $0.27 | $1.34 | $0.93 | $1.99 | Condensed Consolidated Balance Sheets This section presents Noble Corporation's condensed consolidated balance sheets, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Balance Sheet Data As of June 30, 2025, Noble reported total assets of $7.67 billion, a decrease from $7.96 billion at December 31, 2024, with total liabilities also decreasing to $3.04 billion from $3.31 billion over the same period Condensed Consolidated Balance Sheets (Selected Data) | Metric (in thousands $) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $338,185 | $247,303 | | Total current assets | $1,289,062 | $1,388,864 | | Property and equipment, net | $5,856,242 | $6,035,817 | | Total assets | $7,666,971 | $7,964,768 | | Total current liabilities | $715,973 | $940,362 | | Long-term debt | $1,978,027 | $1,980,186 | | Total liabilities | $3,038,644 | $3,313,382 | | Total shareholders' equity | $4,628,327 | $4,651,386 | Condensed Consolidated Statements of Cash Flows This section presents Noble Corporation's condensed consolidated statements of cash flows, detailing cash movements from operating, investing, and financing activities for the first half of 2025 and 2024 Cash Flow Data For the six months ended June 30, 2025, net cash provided by operating activities was $487.42 million, a significant increase from $235.48 million in the prior year period, with investing activities using $191.73 million and financing activities using $202.52 million Condensed Consolidated Statements of Cash Flows (Selected Data) | Metric (in thousands $) | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | | Net income (loss) | $151,175 | $290,489 | | Net cash provided by (used in) operating activities | $487,417 | $235,480 | | Net cash provided by (used in) investing activities | $(191,726) | $(299,813) | | Net cash provided by (used in) financing activities | $(202,517) | $(134,926) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $93,174 | $(199,259) | | Cash, cash equivalents and restricted cash, end of period | $345,453 | $168,486 | Operational Information This section provides Noble Corporation's operational information, including rig utilization, average dayrates, and operating days for floaters and jackups Rig Utilization and Dayrates In Q2 2025, average rig utilization for floaters was 70% and for jackups was 61%, both decreasing sequentially, while average dayrates increased for both fleet types Average Rig Utilization | Fleet Type | Q2 2025 Utilization | Q1 2025 Utilization | Q2 2024 Utilization | | :--------- | :------------------ | :------------------ | :------------------ | | Floaters | 70% | 74% | 70% | | Jackups | 61% | 74% | 77% | | Total | 67% | 74% | 73% | Average Dayrates (in thousands $) | Fleet Type | Q2 2025 (in thousands $) | Q1 2025 (in thousands $) | Q2 2024 (in thousands $) | | :--------- | :----------------------- | :----------------------- | :----------------------- | | Floaters | $400,802 | $381,161 | $435,677 | | Jackups | $176,503 | $159,527 | $155,585 | | Total | $333,960 | $308,898 | $310,962 | Operating Days | Fleet Type | Q2 2025 Days | Q1 2025 Days | Q2 2024 Days | | :--------- | :----------- | :----------- | :----------- | | Floaters | 1,705 | 1,800 | 1,138 | | Jackups | 724 | 871 | 914 | | Total | 2,429 | 2,671 | 2,052 | Calculation of Basic and Diluted Net Income/(Loss) Per Share This section details the calculation of Noble Corporation's basic and diluted net income per share, including weighted average shares outstanding, for Q2 2025 and prior periods Per Share Data Calculation For Q2 2025, basic and diluted net income per share were both $0.27, based on weighted average shares outstanding of 158.8 million and 161.5 million, respectively, representing a significant decrease from Q2 2024 Net Income Per Share Data | Metric | Q2 2025 (in thousands $) | Q2 2024 (in thousands $) | H1 2025 (in thousands $) | H1 2024 (in thousands $) | | :-------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Net income (loss) | $42,872 | $195,008 | $151,175 | $290,489 | | Weighted average shares outstanding - basic | 158,798 Shares | 142,854 Shares | 158,901 Shares | 142,404 Shares | | Weighted average shares outstanding - diluted | 161,528 Shares | 146,060 Shares | 161,772 Shares | 145,614 Shares | | Basic Net income (loss) per share | $0.27 Per Share | $1.37 Per Share | $0.95 Per Share | $2.04 Per Share | | Diluted Net income (loss) per share | $0.27 Per Share | $1.34 Per Share | $0.93 Per Share | $1.99 Per Share | Non-GAAP Measures and Reconciliations This section provides explanations and reconciliations for Noble Corporation's non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Diluted EPS, and Free Cash Flow Explanation of Non-GAAP Measures Noble provides non-GAAP financial measures like Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Diluted EPS, and Free Cash Flow to offer greater transparency into core operating performance and liquidity, excluding non-recurring items, as supplements to GAAP measures - Non-GAAP measures (Adjusted EBITDA, Adjusted Net Income/Loss, Adjusted Diluted EPS, Free Cash Flow) are provided for meaningful comparisons and greater transparency of core operating performance[32][35] - Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, depreciation, amortization, and certain other infrequent operational events and merger/integration costs[33] - Free cash flow is calculated as Net cash provided by (used in) operating activities less cash paid for capital expenditures, measuring the ability to generate or use cash for growth or shareholder returns[34] Reconciliation of Adjusted EBITDA Adjusted EBITDA for Q2 2025 was $281.97 million, a decrease from $337.95 million in Q1 2025, but an increase from $271.49 million in Q2 2024, with key adjustments including depreciation and amortization, and merger and integration costs Adjusted EBITDA Reconciliation | Metric (in thousands $) | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------------------- | :------ | :------ | :------ | | Net income (loss) | $42,872 | $195,008 | $108,303 | | Income tax (benefit) provision | $57,096 | $(5,228) | $40,406 | | Interest expense, net | $39,997 | $11,996 | $40,467 | | Depreciation and amortization | $147,085 | $90,770 | $143,137 | | Merger and integration costs | $5,302 | $10,618 | $14,920 | | Adjusted EBITDA | $281,974 | $271,493 | $337,946 | Reconciliation of Adjusted Income Tax Benefit (Provision) The income tax provision for Q2 2025 was $(57.10) million, which, after adjustments primarily for discrete tax items, resulted in an Adjusted income tax benefit (provision) of $(79.23) million Adjusted Income Tax Benefit (Provision) Reconciliation | Metric (in thousands $) | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------------------- | :------ | :------ | :------ | | Income tax benefit (provision) | $(57,096) | $5,228 | $(40,406) | | Discrete tax items | $(22,129) | $(63,067) | $(73,295) | | Adjusted income tax benefit (provision) | $(79,225) | $(55,238) | $(113,701) | Reconciliation of Adjusted Net Income (Loss) Adjusted Net Income for Q2 2025 was $20.38 million, down from $42.48 million in Q1 2025 and $105.31 million in Q2 2024, with adjustments primarily including discrete tax items, merger and integration costs, and gain/loss on asset sales Adjusted Net Income (Loss) Reconciliation | Metric (in thousands $) | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------------------- | :------ | :------ | :------ | | Net income (loss) | $42,872 | $195,008 | $108,303 | | Total Adjustments | $(22,493) | $(89,702) | $(65,825) | | Adjusted net income (loss) | $20,379 | $105,306 | $42,478 | Reconciliation of Adjusted Diluted EPS Adjusted Diluted EPS for Q2 2025 was $0.13, a decrease from $0.26 in Q1 2025 and $0.72 in Q2 2024, accounting for non-recurring items such as discrete tax items and merger costs Adjusted Diluted EPS Reconciliation | Metric | Q2 2025 EPS | Q2 2024 EPS | Q1 2025 EPS | | :-------------------------------- | :---------- | :---------- | :---------- | | Unadjusted diluted EPS | $0.27 | $1.34 | $0.67 | | Total Adjustments | $(0.14) | $(0.62) | $(0.41) | | Adjusted diluted EPS | $0.13 | $0.72 | $0.26 | Reconciliation of Free Cash Flow Free Cash Flow for Q2 2025 was $106.59 million, a significant improvement from a negative free cash flow of $(25.72) million in Q2 2024, but lower than $172.92 million in Q1 2025, driven by net cash from operating activities less capital expenditures, offset by insurance proceeds Free Cash Flow Reconciliation | Metric (in thousands $) | Q2 2025 | Q2 2024 | Q1 2025 | | :-------------------------------- | :------ | :------ | :------ | | Net cash provided by (used in) operating activities | $216,357 | $106,791 | $271,060 | | Capital expenditures | $(116,581) | $(132,513) | $(113,536) | | Proceeds from insurance claims | $6,810 | $0 | $15,391 | | Free cash flow | $106,586 | $(25,722) | $172,915 |