Noble plc(NE) - 2023 Q2 - Quarterly Report

Financial Performance - Operating revenues for Q2 2023 reached $638.5 million, a significant increase of 132.5% compared to $275.2 million in Q2 2022[11] - Net income for the six months ended June 30, 2023, was $173.9 million, compared to a mere $401,000 in the same period of 2022, reflecting a substantial improvement[10] - Operating income for Q2 2023 was $109.1 million, up from $47.6 million in Q2 2022, showcasing operational efficiency improvements[11] - The net income for the second quarter of 2023 was $65,816,000, compared to a net income of $108,063,000 in the first quarter of 2023, indicating a decrease of about 39.3%[18] - The net income for the three months ended June 30, 2023, was $65,816,000, compared to $37,057,000 for the same period in 2022, representing an increase of 77.6%[35] - Comprehensive income for the three months ended June 30, 2023, was $65,857,000, compared to $35,894,000 in 2022, marking an increase of 83.4%[13] - For the six months ended June 30, 2023, net income reached $173,879,000, a significant increase from $401,000 in the same period of 2022[16] Assets and Liabilities - Total assets as of June 30, 2023, were $5.2 billion, slightly down from $5.23 billion at the end of 2022[9] - Total liabilities decreased to $1.48 billion as of June 30, 2023, from $1.63 billion at the end of 2022, indicating improved financial stability[9] - Cash and cash equivalents decreased to $255.4 million from $476.2 million at the end of 2022, highlighting cash flow challenges[9] - Shareholders' equity increased to $3.72 billion as of June 30, 2023, from $3.61 billion at the end of 2022, indicating a strengthening balance sheet[9] - The total current liability of the company was $514.2 million as of June 30, 2023, down from $667.1 million at the end of 2022[9] - The total debt of the company was $585.4 million, with an estimated fair value of $608.1 million[83] Capital Expenditures and Investments - Capital expenditures for the six months ended June 30, 2023, were $169.5 million, significantly higher than $79.5 million in the same period of 2022, indicating ongoing investment in growth[16] - Capital expenditures for the three months ended June 30, 2023, totaled $115,900,000, significantly up from $31,300,000 in the same period of 2022[42] - The company issued $600 million in debt during the first half of 2023, reflecting a strategy to leverage financing for expansion[16] Shareholder Activities - The company repurchased shares worth $60,000,000 during the second quarter of 2023, following a repurchase of $10,000,000 in the first quarter[18] - The company repurchased 1.6 million Ordinary Shares during Q2 2023, totaling 1.8 million for the six months ended June 30, 2023[38] - Noble Corporation declared a quarterly cash interim dividend of $0.30 per share, payable on September 14, 2023, to shareholders of record as of August 17, 2023[18] Mergers and Acquisitions - The total consideration for the acquisition of Maersk Drilling was $2.0 billion, which included $5.6 million in net cash paid and $2.0 billion in non-cash consideration[29] - The merger with Maersk Drilling was completed on October 3, 2022, enhancing Noble's position in the offshore drilling market[28] - The total purchase price consideration for the acquisition was $2,000,873,000, which includes cash paid and fair value of shares and awards[31] - Goodwill recognized in the merger was $14,626,000, attributed to anticipated synergies from the acquisition[32] Revenue Streams - Contract drilling revenue for the three months ended June 30, 2023, was $606.2 million, a significant increase from $262.5 million in the same period of 2022[87] - Floaters generated $493.98 million in revenue for the three months ended June 30, 2023, compared to $202.69 million in the same period of 2022[87] - Jackups contributed $112.2 million in revenue for the three months ended June 30, 2023, up from $59.77 million in the same period of 2022[87] Debt and Credit Facilities - The 2023 Revolving Credit Facility provides commitments of $550 million with a maturity in 2028[52] - As of June 30, 2023, there were no loans outstanding and $19.1 million of letters of credit issued under the 2023 Revolving Credit Agreement[52] - The 2030 Notes issued on April 18, 2023, have an aggregate principal amount of $600 million and an interest rate of 8.000% per annum[62] - The financial covenants under the 2023 Revolving Credit Agreement include a minimum Interest Coverage Ratio of 2.50 to 1.00 and a maximum Consolidated Total Net Leverage Ratio of 3.00 to 1.00[66] Deferred Revenue and Contract Liabilities - Current deferred revenue decreased to $26.2 million as of June 30, 2023, compared to $40.2 million at the end of 2022[89] - The net balance of contract liabilities as of June 30, 2023, stands at $(40,891,000), down from $(59,797,000) at the end of 2022, reflecting a decrease of approximately 32%[89] - Future revenue expected to be recognized from deferred revenue totals $40,891,000, with $20,722,000 anticipated in 2023[91] Tax and Regulatory Matters - The reserves for uncertain tax positions increased to $196.9 million as of June 30, 2023, up from $175.9 million at December 31, 2022[98] - During the three months ended June 30, 2023, the company recognized additional discrete deferred tax benefits of $50.7 million, primarily from adjustments in Guyana, Norway, Switzerland, and Luxembourg[96] Miscellaneous - The company has a notional value of foreign currency derivative contracts amounting to $194,424,000 (DKK to USD), $22,494,000 (AUD to USD), and $4,327,000 (GBP to USD) as of June 30, 2023[108] - The company did not enter into any interest rate swap contracts during the six months ended June 30, 2023[107]