Noble plc(US:NE)2025-10-27 20:27Financial Performance - Total revenue for Q3 2025 was $798 million, a decrease from $849 million in Q2 2025[3] - Net loss for Q3 2025 was $21 million, compared to a net income of $43 million in Q2 2025, with adjusted diluted earnings per share at $0.19[6] - Adjusted EBITDA for Q3 2025 decreased to $254 million from $282 million in the prior quarter[7] - Operating revenues for Q3 2025 were $798.017 million, a slight decrease from $800.549 million in Q3 2024[22] - The company reported a loss of $21.095 million for Q3 2025, compared to a profit of $61.216 million in Q3 2024[29] - Adjusted EBITDA for Q3 2025 was $254,275 thousand, a decrease of 12.6% from $290,846 thousand in Q3 2024[38] - Adjusted net income for Q3 2025 was $30,240 thousand, compared to $89,102 thousand in Q3 2024, reflecting a decline of 66.1%[41] - The unadjusted diluted EPS for Q3 2025 was $(0.13), while the adjusted diluted EPS was $0.19, down from $0.58 in Q3 2024[42] Revenue Sources - Contract drilling services revenue was $757 million, down from $812 million in the previous quarter, primarily due to a decrease in rig utilization to 65% from 73%[5] - Average rig utilization for floaters was 65% in Q3 2025, down from 72% in Q3 2024, while jackups decreased from 83% to 54% in the same period[28] - The average dayrate for floaters in Q3 2025 was $423,489, slightly down from $424,199 in Q3 2024[28] Cash Flow and Capital Expenditures - Capital expenditures for Q3 2025 were $138 million, with free cash flow of $139 million[7] - Free cash flow for the nine months ended September 30, 2025, was $396.777 million, compared to $84.608 million in the same period of 2024[33] - The company generated free cash flow of $139,477 thousand in Q3 2025, down from $164,677 thousand in Q3 2024[43] - Capital expenditures for the nine months ended September 30, 2025, were $367.776 million, down from $434.653 million in the same period of 2024[26] - Capital expenditures for Q3 2025 were $137,659 thousand, an increase from $119,104 thousand in Q3 2024[43] Shareholder Returns and Guidance - The company declared a cash dividend of $0.50 per share for Q4 2025, bringing total shareholder capital returns for 2025 to $340 million[6] - Guidance for 2025 was narrowed to total revenue of $3,225 to $3,275 million and adjusted EBITDA of $1,100 to $1,125 million[12] Backlog and Contracts - Backlog increased to $7.0 billion, with approximately $740 million in new contract value added since the last fleet status report[6] - Recent contract awards include two-year extensions for Noble BlackLion and Noble BlackHornet valued at $310 million each, and a contract for Noble Venturer at a dayrate of $450,000[13] Asset and Tax Information - Total assets decreased to $7.639 billion as of September 30, 2025, from $7.965 billion at the end of 2024[24] - Cash and cash equivalents increased to $477.946 million as of September 30, 2025, compared to $247.303 million at the end of 2024[24] - The income tax benefit for Q3 2025 was $(31,731) thousand, slightly higher than $(31,608) thousand in Q3 2024[39] Impairment and Costs - The company incurred merger and integration costs of $2,145 thousand in Q3 2025, significantly lower than $69,214 thousand in Q3 2024[41] - The loss on impairment recorded in Q3 2025 was $60,702 thousand, indicating significant asset write-downs[41] - Total adjustments to net income for Q3 2025 amounted to $51,335 thousand, compared to $27,886 thousand in Q3 2024[41] Future Outlook - The company anticipates a deepwater utilization recovery by late 2026 or early 2027, despite expecting lower earnings and cash flow in H1 2026 compared to H2 2025[13]