LONDON, Aug. 3, 2017 /PRNewswire/ -- Noble Corporation
plc (NYSE: NE) today reported a net loss attributable to the
Company for the three months ended June 30,
2017 of $93 million, or
$0.38 per diluted share, on revenues
of $278 million. The results include
net charges of approximately $16
million, or $0.07 per diluted
share, relating to the emergence from bankruptcy of Paragon
Offshore, with approximately $1
million, or less than $0.01
per diluted share, of such amount being accounted for as part of
discontinued operations. Excluding the impact of the
remaining amount, approximately $14
million, or $0.06 per diluted
share, the net loss attributable to Noble Corporation from
continuing operations for the three months ended June 30, 2017, would have been $79 million, or $0.32 per diluted share.
Results for the second quarter of 2017 compared to a first
quarter 2017 reported net loss attributable to Noble Corporation of
$302 million, or $1.24 per diluted share, on revenues of
$363 million. The first quarter 2017
results included a non-cash, discrete tax item totaling
$260 million, or $1.07 per diluted share, related to an internal
reorganization. Excluding the impact of the discrete tax
item, the net loss attributable to Noble Corporation for the first
quarter of 2017 would have been $42
million, or $0.17 per diluted
share.
For the second quarter of 2016, the Company reported net income
attributable to Noble Corporation of $323
million, or $1.28 per diluted
share, on revenues of $895 million.
Second quarter 2016 results included net favorable items totaling
$322 million, or $1.27 per diluted share, resulting primarily from
a contract cancellation agreement involving two of the Company's
drillships. Excluding the impact of the net favorable items in the
quarter, second quarter 2016 net income attributable to Noble
Corporation would have been $1
million, or $0.01 per diluted
share, on revenues of $502
million.
A Non-GAAP supporting schedule is available following the
financial information attached to this press release and at
www.noblecorp.com which provides a reconciliation for total
revenues, net income (loss), income tax and diluted earnings per
share for the second quarters of 2017 and 2016 and the first
quarter of 2017.
David W. Williams, Chairman,
President and Chief Executive Officer of Noble Corporation plc
stated, "Our second quarter results provided further evidence of
the Company's ability to successfully manage through the current
cycle. Our fleet downtime remained at historically low levels,
operating costs continued on a downward trajectory and we ended the
quarter with solid contract coverage and a healthy level of
liquidity."
Contract drilling services revenues for the second quarter of
2017 totaled $272 million compared to
$355 million in the preceding quarter
of the year. A decline in fleet operating days and downward dayrate
adjustments, primarily in the Company's floating rig fleet, were
largely responsible for the reduction in revenues. Also, revenues
in the second quarter were reduced by $6
million due to the write-off of a derivative instrument
relating to contingent payments associated with the contract
cancellation settlement reached in May
2016 with Freeport-McMoRan. The opportunity to collect these
contingent payments expired on June 30,
2017. The decline in operating days reduced fleet
utilization to 65 percent in the second quarter compared to 69
percent in the preceding quarter of the year, while unfavorable
dayrate adjustments reduced average daily revenues to $164,500 from $202,700 over the same period of comparison.
Contract drilling services costs for the second quarter totaled
$162 million, inclusive of the
$14 million charge relating to
Paragon Offshore. Excluding the charge, contract drilling services
costs for the second quarter of 2017 would have been $148 million, or an eight percent decrease when
compared to $160 million of operating
costs in the first quarter of the year. The favorable cost variance
was driven largely by the reduction in fleet operating days, along
with lower stacked rig and insurance costs, partially offset by an
increase in repair and maintenance costs and costs associated with
the reactivation of the drillship Noble Globetrotter II and
jackup rig Noble Tom Prosser
ahead of each rig's commencement of operations expected prior to
the conclusion of the third quarter of 2017. The Company concluded
the second quarter of 2017 with a contract drilling margin of 40
percent, or 46 percent, when adjusted for the $14 million charge relating to Paragon Offshore,
which compared to 55 percent in the preceding quarter of 2017.
Net cash from operating activities was $112 million for the second quarter of 2017,
resulting in a total of $254 million
for the first six months of the year. Capital expenditures for the
second quarter of 2017 were $30
million, bringing total capital expenditures for the first
six months of 2017 to $49 million.
Given the pace of capital expenditures through June 30, 2017, the Company has lowered its
expected total capital expenditures for the year to $105 million, down from a previous estimate of
$115 million.
At June 30, 2017, the Company
reported total liquidity of $3.0
billion, comprised of cash and equivalents of $603 million, up from $520
million at March 31, 2017, and
a revolving credit facility with total capacity of $2.445 billion. The credit facility, which
matures in January of 2020, remains undrawn.
Operating Highlights
Utilization of the
Company's floating rig fleet, comprised of eight drillships and six
semisubmersibles, was 37 percent in the second quarter of 2017
compared to 46 percent in the preceding quarter. The decline in
utilization was due to fewer operating days in the drillship fleet
with both the Noble Bob Douglas and Noble Bully I
idle for all, or a significant portion of the second quarter,
following the completion of contracts. Average daily revenues
declined to $273,700 from
$363,100 over the same period of
comparison following the reduction in revenues on the Noble Bob
Douglas, Noble Bully I, and on the Noble Bully
II, which commenced an idle period of up to 365 days in April
at a dayrate of $200,000 under our
previously announced agreement with Shell, down from a previous
dayrate of $456,500. The Noble Bob
Douglas was awarded two contracts in the second quarter which
are expected to keep the rig utilized for a portion of the third
and fourth quarters of 2017. Also, in July the Noble
Globetrotter II, which has been idle and warm stacked since
late 2016, was awarded a contract for work offshore Bulgaria in the Black Sea with an expected
commencement of late-third quarter 2017. The rig, which possesses a
unique design and capabilities allowing for transit of the
Bosphorus strait in significantly less time than other rig designs,
will travel through the strait for the third time since 2015 in
route to its latest drilling assignment in the Black Sea. In
addition to the dayrate from the new assignment in the Black Sea,
the Noble Globetrotter II will continue to receive an idle
dayrate of $185,000 into late-2018
under the agreement with Shell.
The Company's jackup fleet, comprised of 14 units, recorded
utilization of 93 percent in the second quarter of 2017, unchanged
from the preceding quarter of the year. Average daily revenues in
the second quarter were $121,300
compared to $123,200 in the preceding
quarter. At present, 13 of the Company's 14 jackups are contracted,
including seven units with contracts extending into late-2018 and
beyond. The Noble Houston Colbert completed a program
offshore Qatar in late-July and is
currently idle while the Company evaluates contract opportunities
in and outside of the Middle East. Also, the Noble Regina
Allen concluded a contract in the North Sea in mid-July and has
since relocated to a shipyard in Scotland where it is completing contract
preparations ahead of the expected fourth quarter 2017 commencement
of an estimated two-year contract offshore Eastern Canada.
At June 30, 2017, the Company's
contract backlog totaled $3.2 billion
with an estimated $1.9 billion
derived from the floating rig fleet and $1.3
billion from the jackup rig fleet. Approximately 51 percent
of the available rig operating days remaining in 2017 are committed
to contracts, including 32 percent of the floating rig fleet and 69
percent of the jackup fleet, representing approximately
$468 million in gross revenues. In
2018, 37 percent of available operating days are committed to
contracts, including 29 percent and 46 percent of the floating and
jackup rig days, respectively, and equating to an estimated
$825 million in gross revenues.
Outlook
In closing, Williams focused on signs of
industry improvement: "Despite the recent crude oil price
volatility, our customers continue to evaluate offshore rig needs
covering the remainder of 2017 and 2018. The number of jackup
rigs under contract has risen steadily since the fourth quarter of
2016, while several contract awards in recent weeks provide
evidence of intermediate-term support for the industry's floating
rig capacity. Some of the recent floating contract awards and
others still pending are addressing new, emerging offshore
opportunities, such as the Black Sea, Guyana, Suriname, Mexico and Egypt, driven in many cases by the
confirmation of excellent hydrocarbon potential. We still expect a
meaningful decline in the industry's total supply of jackup and
floating rigs given the age, condition and state of preservation of
much of the global fleet. While our industry requires more time to
recover, we continue to show steady progress."
About Noble Corporation plc
Noble is a leading
offshore drilling contractor for the oil and gas industry. The
Company owns and operates one of the most modern, versatile and
technically advanced fleets in the offshore drilling industry.
Noble performs, through its subsidiaries, contract drilling
services with a fleet of 28 offshore drilling units, consisting of
14 drillships and semisubmersibles and 14 jackups, focused largely
on ultra-deepwater and high-specification jackup drilling
opportunities in both established and emerging regions worldwide.
Noble is a public limited company registered in England and Wales with company number 08354954 and
registered office at Devonshire House, 1 Mayfair Place,
London, W1J 8AJ England. Additional information on Noble is
available at www.noblecorp.com.
Forward-looking Disclosure Statement
Statements
regarding contract backlog, future earnings, costs, expense
management, revenue, rig demand, fleet condition, operational or
financial performance, shareholder value, contract commitments,
dayrates, contract commencements, contract extensions, renewals or
renegotiations, letters of intent or award, industry fundamentals,
customer relationships and requirements, strategic initiatives,
future performance, growth opportunities, the offshore drilling
market, market outlook, capital allocation strategies, our
financial position, business strategy, taxes and tax rates,
liquidity, competitive position, capital expenditures, financial
flexibility, debt levels, debt repayment, the outcome of any
dispute, litigation, audit or investigation, as well as any other
statements that are not historical facts in this release, are
forward-looking statements that involve certain risks,
uncertainties and assumptions. These include but are not limited to
operating hazards and delays, risks associated with operations
outside of the U.S., actions or claims by regulatory authorities,
customers and other third parties, legislation and regulations
affecting drilling operations, compliance with regulatory
requirements, factors affecting the level of activity in the oil
and gas industry, supply and demand of drilling rigs, factors
affecting the duration of contracts, the actual amount of downtime,
factors that reduce applicable dayrates, violations of
anti-corruption laws, hurricanes and other weather conditions,
market conditions, the future price of oil and gas and other
factors detailed in the Company's most recent Form 10-K, Form
10-Q's and other filings with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated.
Conference Call
Noble also has scheduled a conference
call and webcast related to its second quarter 2017 results
on Friday, August 4, 2017, at
8:00 a.m. U.S. Central Daylight Time.
Interested parties are invited to listen to the call by dialing
1-877-201-0168, or internationally 1-647-788-4901, using access
code: 21883520, or by asking for the Noble Corporation plc
conference call. Interested parties may also listen over the
Internet through a link posted in the Investor Relations section of
the Company's Website.
A replay of the conference call will be available on
Friday, August 4, 2017, beginning at
11:00 a.m. U.S. Central Daylight
Time, through Monday, September 4,
2017, ending at 11:00 p.m.
U.S. Central Daylight Time. The phone number for the conference
call replay is 1-855-859-2056 or, for calls from outside of the
U.S., 1-404-537-3406, using access code: 21883520. The replay
will also be available on the Company's Website following the end
of the live call.
NOBLE CORPORATION
PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$ 271,532
|
|
$ 876,697
|
|
$
626,191
|
|
$
1,468,064
|
|
|
Reimbursables
|
|
6,599
|
|
17,933
|
|
14,903
|
|
38,539
|
|
|
Other
|
|
11
|
|
153
|
|
24
|
|
153
|
|
|
|
|
278,142
|
|
894,783
|
|
641,118
|
|
1,506,756
|
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
162,371
|
|
244,176
|
|
322,756
|
|
495,424
|
|
|
Reimbursables
|
|
4,394
|
|
14,298
|
|
9,540
|
|
30,304
|
|
|
Depreciation
and amortization
|
|
136,594
|
|
150,946
|
|
272,312
|
|
300,665
|
|
|
General and
administrative
|
|
18,658
|
|
19,033
|
|
34,538
|
|
38,573
|
|
|
Loss on
impairment
|
|
-
|
|
16,616
|
|
-
|
|
16,616
|
|
|
|
|
322,017
|
|
445,069
|
|
639,146
|
|
881,582
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
(43,875)
|
|
449,714
|
|
1,972
|
|
625,174
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of amount capitalized
|
|
(73,209)
|
|
(57,306)
|
|
(146,656)
|
|
(114,406)
|
|
|
Gain on
extinguishment of debt, net
|
|
-
|
|
11,066
|
|
-
|
|
11,066
|
|
|
Interest income
and other, net
|
|
2,664
|
|
(1,253)
|
|
3,897
|
|
(1,983)
|
|
Income
(loss) from continuing operations before income
taxes
|
|
(114,420)
|
|
402,221
|
|
(140,787)
|
|
519,851
|
|
|
Income tax
benefit (provision)
|
|
18,213
|
|
(56,822)
|
|
(239,194)
|
|
(50,319)
|
|
Net income
(loss) from continuing operations
|
|
(96,207)
|
|
345,399
|
|
(379,981)
|
|
469,532
|
|
Net loss from
discontinued operations, net of tax
|
|
(1,486)
|
|
-
|
|
(1,486)
|
|
-
|
|
Net income
(loss)
|
|
(97,693)
|
|
345,399
|
|
(381,467)
|
|
469,532
|
|
|
Net (income)
loss attributable to noncontrolling interests
|
|
4,343
|
|
(22,533)
|
|
(13,577)
|
|
(41,181)
|
|
Net income
(loss) attributable to Noble Corporation plc
|
|
$ (93,350)
|
|
$ 322,866
|
|
$
(395,044)
|
|
$
428,351
|
|
Net income
(loss) attributable to Noble Corporation plc
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
|
$ (91,864)
|
|
$ 322,866
|
|
$
(393,558)
|
|
$
428,351
|
|
|
Net loss from
discontinued operations, net of tax
|
|
(1,486)
|
|
-
|
|
(1,486)
|
|
-
|
|
|
Net income
(loss) attributable to Noble Corporation plc
|
|
$ (93,350)
|
|
$ 322,866
|
|
$
(395,044)
|
|
$
428,351
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
|
$
(0.37)
|
|
$
1.28
|
|
$
(1.61)
|
|
$
1.70
|
|
|
Loss from
discontinued operations
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
|
|
Net income
(loss) attributable to Noble Corporation
|
|
$
(0.38)
|
|
$
1.28
|
|
$
(1.62)
|
|
$
1.70
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
from continuing operations
|
|
$
(0.37)
|
|
$
1.28
|
|
$
(1.61)
|
|
$
1.70
|
|
|
Loss from
discontinued operations
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
|
|
Net income
(loss) attributable to Noble Corporation
|
|
$
(0.38)
|
|
$
1.28
|
|
$
(1.62)
|
|
$
1.70
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017
|
|
December
31,
2016
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
602,977
|
|
$
725,722
|
|
|
Accounts
receivable, net
|
|
242,657
|
|
319,152
|
|
|
Prepaid
expenses and other current assets
|
|
92,459
|
|
147,740
|
|
Total current
assets
|
|
938,093
|
|
1,192,614
|
|
|
|
|
|
|
|
|
Property and
equipment, at cost
|
|
12,410,857
|
|
12,364,888
|
|
|
Accumulated
depreciation
|
|
(2,572,562)
|
|
(2,302,940)
|
|
Property and
equipment, net
|
|
9,838,295
|
|
10,061,948
|
|
|
|
|
|
|
|
|
Other
assets
|
|
248,709
|
|
185,555
|
|
|
Total
assets
|
|
$
11,025,097
|
|
$
11,440,117
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Current
maturities of long-term debt
|
|
$
249,475
|
|
$
299,882
|
|
|
Accounts
payable
|
|
86,643
|
|
108,224
|
|
|
Accrued payroll
and related costs
|
|
38,326
|
|
48,383
|
|
|
Other current
liabilities
|
|
274,010
|
|
176,804
|
|
Total current
liabilities
|
|
648,454
|
|
633,293
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
3,793,894
|
|
4,040,229
|
|
Other
liabilities
|
|
510,332
|
|
299,150
|
|
|
Total
liabilities
|
|
4,952,680
|
|
4,972,672
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Total
shareholders' equity
|
|
5,376,369
|
|
5,758,681
|
|
|
Noncontrolling
interests
|
|
696,048
|
|
708,764
|
|
|
Total
equity
|
|
6,072,417
|
|
6,467,445
|
|
|
Total
liabilities and equity
|
|
$
11,025,097
|
|
$
11,440,117
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
June
30,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Cash flows
from operating activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(381,467)
|
|
$ 469,532
|
|
|
Adjustments to
reconcile net income to net cash flow from operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
272,312
|
|
300,665
|
|
|
Other long-term
asset write-off
|
|
14,419
|
|
-
|
|
|
Loss on
impairment
|
|
-
|
|
16,616
|
|
|
Gain on
extinguishment of debt, net
|
|
-
|
|
(11,066)
|
|
|
Net change in operating
activities
|
|
349,021
|
|
83,476
|
|
|
Net cash
provided by operating activities
|
|
254,285
|
|
859,223
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
|
New
construction
|
|
-
|
|
(20,059)
|
|
|
Capital
expenditures
|
|
(48,957)
|
|
(93,045)
|
|
|
Change in
accrued capital expenditures
|
|
(18,651)
|
|
(38,378)
|
|
|
Capitalized
interest
|
|
-
|
|
(7,427)
|
|
|
Net change
in investing activities
|
|
314
|
|
21,190
|
|
|
Net cash used in
investing activities
|
|
(67,294)
|
|
(137,719)
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
|
Repayments of
debt
|
|
(300,000)
|
|
(322,207)
|
|
|
Debt issuance
costs on senior notes and credit facility
|
|
(42)
|
|
-
|
|
|
Premiums paid
on early repayment of long-term debt
|
|
-
|
|
(1,781)
|
|
|
Dividend
payments
|
|
-
|
|
(42,542)
|
|
|
Dividends paid
to noncontrolling interests
|
|
(5,393)
|
|
(41,088)
|
|
|
Employee stock
transactions
|
|
(4,301)
|
|
(3,153)
|
|
|
Net cash used in
financing activities
|
|
(309,736)
|
|
(410,771)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(122,745)
|
|
310,733
|
|
Cash and
cash equivalents, beginning of period
|
|
725,722
|
|
512,245
|
|
Cash and
cash equivalents, end of period
|
|
$
602,977
|
|
$ 822,978
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT (In
thousands, except operating statistics)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Three Months Ended
March 31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
Contract
|
|
|
|
|
|
Contract
|
|
|
|
|
|
Contract
|
|
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
|
|
Services
|
|
Other
|
|
Total
|
|
Services
|
|
Other
|
|
Total
|
|
Services
|
|
Other
|
|
Total
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$ 271,532
|
|
$
-
|
|
$ 271,532
|
|
$
876,697
|
|
$
-
|
|
$ 876,697
|
|
$ 354,659
|
|
$
-
|
|
$ 354,659
|
|
Reimbursables
|
|
6,599
|
|
-
|
|
6,599
|
|
17,933
|
|
-
|
|
17,933
|
|
8,304
|
|
-
|
|
8,304
|
|
Other
|
|
-
|
|
11
|
|
11
|
|
153
|
|
-
|
|
153
|
|
-
|
|
13
|
|
13
|
|
|
|
$ 278,131
|
|
$
11
|
|
$ 278,142
|
|
$
894,783
|
|
$
-
|
|
$ 894,783
|
|
$ 362,963
|
|
$
13
|
|
$ 362,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$ 162,371
|
|
$
-
|
|
$ 162,371
|
|
$
244,176
|
|
$
-
|
|
$ 244,176
|
|
$ 160,385
|
|
$
-
|
|
$ 160,385
|
|
Reimbursables
|
|
4,394
|
|
-
|
|
4,394
|
|
14,298
|
|
-
|
|
14,298
|
|
5,146
|
|
-
|
|
5,146
|
|
Depreciation and
amortization
|
|
130,763
|
|
5,831
|
|
136,594
|
|
145,237
|
|
5,709
|
|
150,946
|
|
129,778
|
|
5,940
|
|
135,718
|
|
General and
administrative
|
|
18,658
|
|
-
|
|
18,658
|
|
19,033
|
|
-
|
|
19,033
|
|
15,880
|
|
-
|
|
15,880
|
|
Loss on
impairment
|
|
-
|
|
-
|
|
-
|
|
16,616
|
|
-
|
|
16,616
|
|
-
|
|
-
|
|
-
|
|
|
|
$ 316,186
|
|
$
5,831
|
|
$ 322,017
|
|
$
439,360
|
|
$
5,709
|
|
$ 445,069
|
|
$ 311,189
|
|
$
5,940
|
|
$ 317,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
$ (38,055)
|
|
$ (5,820)
|
|
$ (43,875)
|
|
$
455,423
|
|
$ (5,709)
|
|
$ 449,714
|
|
$
51,774
|
|
$ (5,927)
|
|
$
45,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
93%
|
|
|
|
|
|
83%
|
|
|
|
|
|
93%
|
|
|
|
|
|
Operating
Days
|
|
1,183
|
|
|
|
|
|
981
|
|
|
|
|
|
1,170
|
|
|
|
|
|
Average
Dayrate
|
|
$ 121,284
|
|
|
|
|
|
$
136,041
|
|
|
|
|
|
$ 123,154
|
|
|
|
|
|
Semisubmersibles:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
17%
|
|
|
|
|
|
16%
|
|
|
|
|
|
17%
|
|
|
|
|
|
Operating
Days
|
|
91
|
|
|
|
|
|
115
|
|
|
|
|
|
90
|
|
|
|
|
|
Average
Dayrate
|
|
$ 126,106
|
|
|
|
|
|
$
290,106
|
|
|
|
|
|
$ 131,015
|
|
|
|
|
|
Drillships:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
52%
|
|
|
|
|
|
86%
|
|
|
|
|
|
68%
|
|
|
|
|
|
Operating
Days
|
|
377
|
|
|
|
|
|
626
|
|
|
|
|
|
490
|
|
|
|
|
|
Average Dayrate
(1)
|
|
$ 309,313
|
|
|
|
|
|
$
1,134,011
|
|
|
|
|
|
$ 405,719
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
65%
|
|
|
|
|
|
65%
|
|
|
|
|
|
69%
|
|
|
|
|
|
Operating
Days
|
|
1,651
|
|
|
|
|
|
1,722
|
|
|
|
|
|
1,750
|
|
|
|
|
|
Average Dayrate
(1)
|
|
$ 164,475
|
|
|
|
|
|
$
509,145
|
|
|
|
|
|
$ 202,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The
second quarter of 2016 includes the contract cancellation and the
termination date valuation of the contingent payments relating to
the Noble Sam Croft and Noble Tom Madden contract
settlement and termination with Freeport, and all periods presented
include the valuation of these contingent payments. Exclusive of
these items, the average dayrate for the second quarter of 2016
would have been $506,146 and $280,884 for drillships and the total
fleet, respectively; the average dayrate for the first quarter of
2017 would have been $421,843 and $207,184 for drillships and the
total fleet, respectively; and the average dayrate for the second
quarter of 2017 would have been $326,559 and $168,413 for
drillships and the total fleet, respectively.
|
|
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
CALCULATION
OF BASIC AND DILUTED NET INCOME PER SHARE
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
The following
table sets forth the computation of basic and diluted net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Numerator:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Noble -UK
|
|
$ (93,350)
|
|
$ 322,866
|
|
$
(395,044)
|
|
$ 428,351
|
Net loss from
discontinued operations, net of tax
|
|
1,486
|
|
-
|
|
1,486
|
|
-
|
Earnings allocated to
unvested share-based payment awards (1)
|
|
-
|
|
(11,577)
|
|
-
|
|
(15,371)
|
Net income
(loss) from continuing operations to common shareholders -
basic
|
|
$ (91,864)
|
|
$ 311,289
|
|
$
(393,558)
|
|
$ 412,980
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Noble -UK
|
|
$ (93,350)
|
|
$ 322,866
|
|
$
(395,044)
|
|
$ 428,351
|
Net loss from
discontinued operations, net of tax
|
|
1,486
|
|
-
|
|
1,486
|
|
-
|
Net income
(loss) from continuing operations to common shareholders -
diluted
|
|
$ (91,864)
|
|
$ 322,866
|
|
$
(393,558)
|
|
$ 428,351
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic
|
|
244,828
|
|
243,217
|
|
244,527
|
|
243,021
|
Incremental shares
issuable from assumed exercise of stock options and unvested
share-based payment awards outstanding
|
|
-
|
|
9,045
|
|
-
|
|
9,045
|
Weighted
average shares outstanding - diluted
|
|
244,828
|
|
252,262
|
|
244,527
|
|
252,066
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(0.37)
|
|
$
1.28
|
|
$
(1.61)
|
|
$
1.70
|
Discontinued
operations
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
Net income
(loss) to Noble Corporation plc
|
|
$
(0.38)
|
|
$
1.28
|
|
$
(1.62)
|
|
$
1.70
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(0.37)
|
|
$
1.28
|
|
$
(1.61)
|
|
$
1.70
|
Discontinued
operations
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
Net income
(loss) to Noble Corporation plc
|
|
$
(0.38)
|
|
$
1.28
|
|
$
(1.62)
|
|
$
1.70
|
|
|
|
|
|
|
|
|
|
(1) For
the quarter and year ended June 30, 2017, we experienced net losses
from continuing operations. As such, unvested share-based payment
awards were excluded from the loss per share calculation at June
30, 2017, as such awards were anti-dilutive.
|
Non-GAAP
Reconciliation
|
|
Certain non-GAAP
performance measures and corresponding reconciliations to GAAP
financial measures for the Company have been provided for
meaningful comparisons between current results and prior operating
periods. Generally, a non-GAAP financial measure is a numerical
measure of a company's performance, financial position, or cash
flows that excludes or includes amounts that are not normally
included or excluded in the most directly comparable measure
calculated and presented in accordance with generally accepted
accounting principles. In order to fully assess the financial
operating results, management believes that the results of
operations, adjusted to exclude the following items, which are
included in the Company's press release issued on August 3, 2017,
and discussed in the related conference call on August 4, 2017, are
appropriate measures of the continuing and normal operations of the
Company:
|
(i) In
the first and second quarter of 2017, a discrete tax
item;
|
(ii) In
the second quarter of 2017, the Noble Max Smithwrite-off of
receivables; and
|
(iii) In the
second quarter of 2016, the Noble Sam Croft and Noble Tom
Madden contract cancellations with Freeport-McMoRan Inc. and
its subsidiary, Freeport-McMoRan Oil & Gas ("Freeport"),
including the contract termination date valuation of a derivative
instrument pertaining to future contingent payments from Freeport,
the early retirement of debt in connection with the Company's
tender offers on its Senior Notes due in 2020 and 2021, the
impairment of certain capital spares and second quarter discrete
tax items.
|
|
These non-GAAP
adjusted measures should be considered in addition to, and not as a
substitute for, or superior to, contract drilling revenue, contract
drilling cost, contract drilling margin, average daily revenue,
operating income, cash flows from operations, or other measures of
financial performance prepared in accordance with GAAP. Please see
the following Non-GAAP Financial Measures and Reconciliations for a
complete description of the adjustments.
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
NON-GAAP
MEASURES
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Reconciliation of
total revenue
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services revenue
|
|
$ 271,532
|
|
$ 876,697
|
|
|
$
354,659
|
|
|
Reimbursables
|
|
6,599
|
|
17,933
|
|
|
8,304
|
|
|
Other
|
|
|
11
|
|
153
|
|
|
13
|
|
Total
revenue
|
|
$ 278,142
|
|
$ 894,783
|
|
|
$
362,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Cancellations with
Freeport:
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
(379,143)
|
|
|
-
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
(13,900)
|
|
|
-
|
|
Total
Adjustments
|
|
-
|
|
(393,043)
|
|
|
-
|
|
Adjusted total
revenue
|
|
$ 278,142
|
|
$ 501,740
|
|
|
$
362,976
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income tax benefit (provision)
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
Income tax benefit
(provision)
|
|
$
18,213
|
|
$ (56,822)
|
|
|
$
(257,407)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Cancellations with
Freeport:
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
32,035
|
|
|
-
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
1,211
|
|
|
-
|
|
|
Loss on
impairment
|
|
-
|
|
(1,448)
|
|
|
-
|
|
|
Gain on
extinguishment of debt
|
|
-
|
|
964
|
|
|
-
|
|
|
Discrete tax
items
|
|
-
|
|
21,771
|
|
|
260,085
|
|
Total
Adjustments
|
|
-
|
|
54,533
|
|
|
260,085
|
|
Adjusted income tax
benefit (provision)
|
|
$
18,213
|
|
$
(2,289)
|
|
|
$
2,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income (loss) attributable to Noble Corporation
plc
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Noble Corporation plc
|
|
$ (93,350)
|
|
$ 322,866
|
|
|
$
(301,694)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Noble Max
Smithwrite-off of receivables
|
|
14,419
|
|
-
|
|
|
-
|
|
|
Cancellations with
Freeport, net of tax:
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
(335,578)
|
|
|
-
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
(12,689)
|
|
|
-
|
|
|
Loss on impairment,
net of tax
|
|
-
|
|
15,168
|
|
|
-
|
|
|
Gain on
extinguishment of debt, net of tax
|
|
-
|
|
(10,102)
|
|
|
-
|
|
|
Discrete tax
items
|
|
-
|
|
21,771
|
|
|
260,085
|
|
Total
Adjustments
|
|
14,419
|
|
(321,430)
|
|
|
260,085
|
|
Adjusted net income
(loss) attributable to Noble Corporation plc
|
|
$ (78,931)
|
|
$
1,436
|
|
|
$
(41,609)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
diluted EPS attributable to continuing operations
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted diluted
EPS
|
|
$
(0.38)
|
|
$
1.28
|
|
|
$
(1.24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noble Max
Smithwrite-off of receivables
|
|
0.06
|
|
-
|
|
|
-
|
|
|
Cancellations with
Freeport, net of tax:
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
(1.33)
|
|
|
-
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
(0.05)
|
|
|
-
|
|
|
Loss on impairment,
net of tax
|
|
-
|
|
0.06
|
|
|
-
|
|
|
Gain on
extinguishment of debt, net of tax
|
|
-
|
|
(0.04)
|
|
|
-
|
|
|
Discrete tax
items
|
|
-
|
|
0.09
|
|
|
1.07
|
|
Total
Adjustments
|
|
0.06
|
|
(1.27)
|
|
|
1.07
|
|
Adjusted diluted
EPS
|
|
$
(0.32)
|
|
$
0.01
|
|
|
$
(0.17)
|
View original
content:http://www.prnewswire.com/news-releases/noble-corporation-plc-reports-second-quarter-2017-results-300499536.html
SOURCE Noble Corporation