Noble plc(US:NE)2025-10-28 17:12Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of $21.1 million, or $(0.13) per diluted share, on operating revenues of $798.0 million, compared to a net income of $61.2 million, or $0.40 per diluted share, on operating revenues of $800.5 million for the same period in 2024[113]. - For the nine months ended September 30, 2025, net income was $130.1 million, or $0.80 per diluted share, on operating revenues of $2.5 billion, compared to net income of $351.7 million, or $2.37 per diluted share, on operating revenues of $2.1 billion for the same period in 2024[129]. - Operating income decreased by 14% to $373.0 million in 2025 from $433.0 million in 2024[130]. - Operating revenues for the nine months ended September 30, 2025, were $2.521 billion, while operating costs and expenses totaled $2.148 billion[170]. Revenue and Costs - Contract drilling services revenues for floaters increased to $630.2 million in Q3 2025 from $605.3 million in Q3 2024, primarily due to additional floaters acquired[116]. - Jackups revenue decreased to $127.3 million in Q3 2025 from $158.2 million in Q3 2024, mainly due to a $51.8 million decline from changes in operating days[117]. - Total operating costs for contract drilling services increased to $747.6 million in Q3 2025 from $685.1 million in Q3 2024, reflecting a rise in costs associated with the Diamond Transaction[115]. - Operating costs for contract drilling services increased to $2.1 billion in 2025, up 27% from $1.7 billion in 2024[130]. Utilization and Backlog - As of September 30, 2025, Noble's contract drilling services backlog totaled approximately $7.1 billion, with 61% of available days committed for floaters and 59% for jackups[107][109]. - Average rig utilization decreased to 61% in Q3 2025 from 76% in Q3 2024, with floaters at 65% and jackups at 54%[114]. - Total contract drilling services backlog as of September 30, 2025, was approximately $7.1 billion, with 61% of available days committed for the remainder of 2025[152]. Fleet and Market Conditions - The fleet consists of 36 drilling rigs, including 25 floaters and 11 jackups, following the sale of the Noble Reacher on October 6, 2025[98]. - Global rig demand has recovered to exceed pre-pandemic levels, although recent spot prices for Brent crude are in the mid to high $60s per barrel, down from an average of $80 per barrel in 2024[100]. - The majority of the jackup fleet is positioned in the North Sea, where overall activity levels remain subdued compared to historical levels[103]. - The ultra-deepwater floater market remains a focus, with customers prioritizing high-specification floaters, potentially leading to lower utilization for lower specification units[102]. Financial Position and Debt - As of September 30, 2025, total debt amounted to $1.976 billion, with total current liabilities at $779.272 million[167]. - Noble Finance II issued $600 million in 8.000% Senior Notes due 2030 in April 2023, with an additional $800 million issued in August 2024, bringing the total to $1.4 billion[157]. - The Company assumed $550 million in 8.500% Senior Secured Second Lien Notes due October 2030 as part of the Diamond Transaction[158]. - Interest expense increased to $121.0 million in 2025 from $54.5 million in 2024, primarily due to the Diamond Transaction[142]. Cash Flow and Investments - Net cash provided by operating activities increased to $764.6 million in 2025 from $519.3 million in 2024, driven by improved cash flows from operating assets[149]. - Capital additions for the nine months ended September 30, 2025, totaled $339.0 million, with an estimated range of $425.0 million to $450.0 million for the full year[152]. - Capital expenditures for the same period were $(367.776) million, indicating significant investment in operations[170]. Impairments and Expenses - The company recorded a loss on impairment of $60.7 million in Q3 2025, with no impairments noted in Q3 2024[124]. - Depreciation and amortization rose to $147.3 million in Q3 2025 from $109.9 million in Q3 2024, primarily due to the Diamond Transaction[120]. - General and administrative expenses decreased to $33.3 million in Q3 2025 from $43.6 million in Q3 2024, attributed to reductions in corporate charges[121]. Shareholder Returns - The most recent quarterly dividend declared was approximately $79.4 million, or $0.50 per share, with an interim dividend of $0.50 per share expected to be paid on December 18, 2025[160]. - Noble's Board of Directors authorized an increased share repurchase program of up to $400 million, with approximately $370 million remaining as of October 2024[163].