LONDON, Aug. 2, 2018 /PRNewswire/ -- Noble Corporation
plc (NYSE: NE, the Company) today reported a net loss attributable
to the Company for the three months ended June 30, 2018 of $628
million, or $2.55 per diluted
share, on revenues of $258 million.
The results included a non-cash charge totaling $793 million, or $2.06 per diluted share, ($507 million, net of tax and noncontrolling
interests) relating to the impairment of three rigs and certain
capital spares. Excluding the non-cash charge, the Company's net
loss attributable to Noble Corporation for the three months ended
June 30, 2018 would have been
$121 million, or $0.49 per diluted share.
During the second quarter, the Company conducted a review of its
fleet. The review included an assessment of certain assumptions,
including future marketability of each unit in light of its current
technical specifications. Following this review, the Company
recognized partial impairments on the drillship Noble Bully
I and semisubmersible Noble Paul
Romano, while the semisubmersible Noble Dave
Beard was fully impaired. The Noble Dave Beard has been
retired from service, along with the semisubmersible
Noble Amos Runner and the
standard duty jackup Noble Alan
Hay, which were previously fully impaired. Following
these three retirements and the divestiture in May of the standard
duty jackup Noble David Tinsley, the Company's fleet is now
comprised of 24 rigs, including 12 floating and 12 jackup
units.
Julie J. Robertson, Chairman,
President and Chief Executive Officer of Noble Corporation plc,
stated, "Jackup fleet utilization grew to 70 percent in the
quarter, well above the cyclical low experienced in the first
quarter. We have seen a noticeable increase in jackup
demand, particularly among customers in the North Sea and
Middle East regions. Following
several recent awards, all 10 of our high-specification jackups are
now contracted, with no availability before late-2018."
A Non-GAAP supporting schedule is included with the statements
and schedules attached to this press release and can also be found
at www.noblecorp.com. It provides a reconciliation for net income
(loss), income tax and diluted earnings per share for the second
quarter 2018 and 2017 and first quarter 2018.
Contract drilling services revenues improved eight percent in
the second quarter of 2018 to $248
million compared to revenues of $229
million in the first quarter of the year. The improvement
was due largely to a 17 percent increase in total fleet operating
days. The growth in fleet operating days improved total utilization
in the second quarter to 54 percent, up from a cyclical low of 47
percent in the preceding quarter.
Contract drilling services costs in the second quarter were
$151 million compared to $137 million in the preceding quarter, with the
increase due primarily to the growth in fleet operating days and
costs associated with rig reactivation projects, specifically the
Noble Clyde Boudreaux and Noble
Tom Madden. These items were partially offset by lower
costs resulting from fleet retirements.
Fleet Overview
Utilization of the Company's floating rigs in the second quarter
was 39 percent compared to 37 percent in the preceding quarter of
the year. The improvement was due largely to modestly better
utilization in the Company's drillship fleet, aided by a full
quarter of operations for the Noble Bob Douglas offshore
Guyana and partially offset by
fewer operating days for the semisubmersible Noble Paul Romano following the completion
of a contract in mid-May in the U.S. Gulf
of Mexico. Average daily revenues improved to $268,600 in the second quarter compared to
$259,300 in the previous quarter, due
largely to increased revenues for the Noble Globetrotter I
following the relocation of the rig to Egypt, and a dayrate adjustment on the
Noble Bully II. Following the close of the second quarter,
the drillship Noble Tom
Madden was awarded a contract for work offshore
Guyana, which includes two firm
wells, plus three optional wells. Reactivation of the rig from its
warm stacked status has begun, with the contract expected to
commence in October 2018.
Utilization of the Company's jackup fleet improved to 70 percent
in the second quarter compared to 56 percent in the preceding
quarter of the year. A 23 percent rise in operating days was driven
primarily by higher activity for the Noble Hans Deul,
Noble Houston Colbert,
Noble Tom Prosser and Noble Mick
O'Brien. Also, utilization was further aided by the
divestiture in May of the Noble David Tinsley. Average daily
revenues were $130,300 in the second
quarter compared to $153,700 in the
preceding quarter. The decline was due in part to a reduction in
demobilization revenues on the Noble Sam Hartley and
downtime on the Noble Joe Beall, partially offset by the
commencement of operations on the Noble Tom Prosser. Since
the close of the second quarter, the Company secured a nine-month
contract for the Noble Sam Hartley and an 18-month extension
for the Noble Sam Turner. The contract and extension cover
drilling assignments offshore the UK-sector of the North Sea.
At June 30, 2018, the Company's
contract backlog totaled $2.6
billion, including $1.6
billion attributable to the floating fleet and $1.0 billion to the jackup fleet. Approximately
58 percent of the available rig operating days remaining in 2018
were committed to contracts, including 42 percent of the floating
fleet and 76 percent of the jackup fleet. The total backlog and
estimate of committed days exclude the previously noted contracts
and extension that occurred after the close of the second
quarter.
Liquidity Position
Noble concluded the second quarter of 2018 with a total
liquidity position of $2.2 billion,
comprised of cash and equivalents of $411
million and availability under revolving credit facilities
of $1.8 billion.
Capital expenditures for the second quarter totaled $47 million, of which $20
million was devoted to fleet maintenance and $27 million to projects and other expenditures.
The projects included further progress on the Noble Clyde
Boudreaux reactivation and upgrade program, which was completed
in late-July. The rig is now expected to commence an estimated
220-day primary term contract offshore Myanmar by the end of August 2018. For the six months ended
June 30, 2018, capital expenditures
were $84 million, and the Company's
expectation for full-year 2018 total capital expenditures of
$150 million is unchanged.
Outlook
In closing, Ms. Robertson noted, "The offshore drilling
industry is benefitting from certain dynamics that have
traditionally supported an increase in customer spending. These
include higher, sustained crude oil prices which lead to increased
project sanctioning, geologic success, and greater access to
promising basins. With these dynamics in place, expanding
contract opportunities should be increasingly evident in our
industry."
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 24 offshore drilling units,
consisting of 12 drillships and semisubmersibles and 12 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 2018 results on Friday, August 3, 2018, at 8:00 a.m. U.S. Central Daylight Time. Interested
parties are invited to listen to the call by dialing
1-877-680-4232, or internationally 1-647-689-5432, using access
code: 2865178, 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 3, 2018, beginning at
11:00 a.m. U.S. Central Daylight
Time, through Monday, September 3,
2018, ending at 11:00 p.m.
U.S. Central Daylight Time. The phone number for the conference
call replay is 1-800-585-8367 or, for calls from outside of the
U.S., 1-416-621-4642, using access code: 2865178. 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
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
247,689
|
|
$
271,532
|
|
$
476,795
|
|
$
626,191
|
|
Reimbursables
and other
|
|
10,680
|
|
6,610
|
|
16,731
|
|
14,927
|
|
|
|
258,369
|
|
278,142
|
|
493,526
|
|
641,118
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
151,437
|
|
162,781
|
|
288,286
|
|
323,550
|
|
Reimbursables
|
|
8,297
|
|
4,394
|
|
12,647
|
|
9,540
|
|
Depreciation
and amortization
|
|
129,681
|
|
136,594
|
|
258,436
|
|
272,312
|
|
General and
administrative
|
|
21,717
|
|
18,658
|
|
43,800
|
|
34,538
|
|
Loss on
impairment
|
|
792,843
|
|
-
|
|
792,843
|
|
-
|
|
|
|
1,103,975
|
|
322,427
|
|
1,396,012
|
|
639,940
|
Operating
income (loss)
|
|
(845,606)
|
|
(44,285)
|
|
(902,486)
|
|
1,178
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of amounts capitalized
|
|
(74,130)
|
|
(73,209)
|
|
(150,145)
|
|
(146,656)
|
|
Loss on
extinguishment of debt, net
|
|
-
|
|
-
|
|
(8,768)
|
|
-
|
|
Interest income
and other, net
|
|
2,865
|
|
3,074
|
|
4,204
|
|
4,691
|
Loss from
continuing operations before income taxes
|
|
(916,871)
|
|
(114,420)
|
|
(1,057,195)
|
|
(140,787)
|
|
Income tax
benefit (provision)
|
|
38,839
|
|
18,213
|
|
35,843
|
|
(239,194)
|
Net loss from
continuing operations
|
|
(878,032)
|
|
(96,207)
|
|
(1,021,352)
|
|
(379,981)
|
Net loss from
discontinued operations, net of tax
|
|
-
|
|
(1,486)
|
|
-
|
|
(1,486)
|
Net
loss
|
|
(878,032)
|
|
(97,693)
|
|
(1,021,352)
|
|
(381,467)
|
|
Net (income)
loss attributable to noncontrolling interests
|
|
249,969
|
|
4,343
|
|
250,955
|
|
(13,577)
|
Net loss
attributable to Noble Corporation plc
|
|
$
(628,063)
|
|
$
(93,350)
|
|
$
(770,397)
|
|
$
(395,044)
|
Per share
data
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations
|
|
$
(2.55)
|
|
$
(0.37)
|
|
$
(3.13)
|
|
$
(1.61)
|
|
Loss from
discontinued operations
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
(2.55)
|
|
$
(0.38)
|
|
$
(3.13)
|
|
$
(1.62)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations
|
|
$
(2.55)
|
|
$
(0.37)
|
|
$
(3.13)
|
|
$
(1.61)
|
|
Loss from
discontinued operations
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
(2.55)
|
|
$
(0.38)
|
|
$
(3.13)
|
|
$
(1.62)
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June
30
|
|
December
31,
|
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
411,492
|
|
$
662,829
|
|
Accounts
receivable, net
|
|
212,229
|
|
204,696
|
|
Prepaid
expenses and other current assets
|
|
73,532
|
|
171,450
|
Total current
assets
|
|
697,253
|
|
1,038,975
|
|
|
|
|
|
|
Property and
equipment, at cost
|
|
10,924,509
|
|
12,034,331
|
|
Accumulated
depreciation
|
|
(2,403,099)
|
|
(2,545,091)
|
Property and
equipment, net
|
|
8,521,410
|
|
9,489,240
|
|
|
|
|
|
|
Other
assets
|
|
175,024
|
|
266,444
|
|
Total
assets
|
|
$
9,393,687
|
|
$
10,794,659
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current
maturities of long-term debt
|
|
$
-
|
|
$
249,843
|
|
Accounts
payable
|
|
93,612
|
|
84,032
|
|
Accrued payroll
and related costs
|
|
41,852
|
|
54,904
|
|
Other current
liabilities
|
|
201,772
|
|
204,245
|
Total current
liabilities
|
|
337,236
|
|
593,024
|
|
|
|
|
|
|
Long-term
debt
|
|
3,842,617
|
|
3,795,867
|
Other
liabilities
|
|
440,784
|
|
455,140
|
|
Total
liabilities
|
|
4,620,637
|
|
4,844,031
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Total
shareholders' equity
|
|
4,362,232
|
|
5,276,161
|
|
Noncontrolling
interests
|
|
410,818
|
|
674,467
|
|
Total
equity
|
|
4,773,050
|
|
5,950,628
|
|
Total
liabilities and equity
|
|
$
9,393,687
|
|
$
10,794,659
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
2018
|
|
2017
|
Cash flows
from operating activities
|
|
|
|
|
|
Net
loss
|
|
$
(1,021,352)
|
|
$
(381,467)
|
|
Adjustments to
reconcile net loss to net cash flow from operating
activities:
|
|
|
|
|
|
Depreciation
and amortization
|
|
258,436
|
|
272,312
|
|
Loss on
impairment
|
|
792,843
|
|
-
|
|
Deferred income
tax provision
|
|
(51,724)
|
|
303,084
|
|
Loss on
extinguishment of debt, net
|
|
8,768
|
|
-
|
|
Other long-term
asset write-off
|
|
-
|
|
14,419
|
|
Changes in
components of working capital:
|
|
|
|
|
|
Change in taxes
receivable
|
|
84,486
|
|
-
|
|
Net changes in
other operating assets and liabilities
|
|
(17,563)
|
|
45,937
|
|
Net cash
provided by operating activities
|
|
53,894
|
|
254,285
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
Capital
expenditures
|
|
(75,874)
|
|
(67,608)
|
|
Proceeds from
disposal of assets, net
|
|
3,755
|
|
314
|
|
Net cash used
in investing activities
|
|
(72,119)
|
|
(67,294)
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
Issuance of
senior notes
|
|
750,000
|
|
-
|
|
Repayments of
debt
|
|
(952,209)
|
|
(300,000)
|
|
Debt issuance
costs on senior notes and credit facilities
|
|
(14,802)
|
|
(42)
|
|
Dividends paid
to noncontrolling interests
|
|
(12,694)
|
|
(5,393)
|
|
Other financing
activities
|
|
(3,407)
|
|
(4,301)
|
|
Net cash used
in financing activities
|
|
(233,112)
|
|
(309,736)
|
|
Net decrease in
cash and cash equivalents
|
|
(251,337)
|
|
(122,745)
|
Cash and
cash equivalents, beginning of period
|
|
662,829
|
|
725,722
|
Cash and
cash equivalents, end of period
|
|
$
411,492
|
|
$
602,977
|
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,
|
|
|
2018
|
|
2017
|
|
2018
|
|
|
Contract
|
|
|
|
|
|
Contract
|
|
|
|
|
|
Contract
|
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
|
Services
|
|
Other
|
|
Total
|
|
Services
|
|
Other
|
|
Total
|
|
Services
|
|
Other
|
|
Total
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
247,689
|
|
$
-
|
|
$
247,689
|
|
$ 271,532
|
|
$
-
|
|
$ 271,532
|
|
$ 229,106
|
|
$
-
|
|
$ 229,106
|
Reimbursables
and other
|
|
10,680
|
|
-
|
|
10,680
|
|
6,610
|
|
-
|
|
6,610
|
|
6,051
|
|
-
|
|
6,051
|
|
|
$
258,369
|
|
$
-
|
|
$
258,369
|
|
$ 278,142
|
|
$
-
|
|
$ 278,142
|
|
$ 235,157
|
|
$
-
|
|
$ 235,157
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
151,437
|
|
$
-
|
|
$
151,437
|
|
$ 162,781
|
|
$
-
|
|
$ 162,781
|
|
$ 136,849
|
|
$
-
|
|
$ 136,849
|
Reimbursables
|
|
8,297
|
|
-
|
|
8,297
|
|
4,394
|
|
-
|
|
4,394
|
|
4,350
|
|
-
|
|
4,350
|
Depreciation
and amortization
|
|
124,223
|
|
5,458
|
|
129,681
|
|
130,763
|
|
5,831
|
|
136,594
|
|
123,215
|
|
5,540
|
|
128,755
|
General and
administrative
|
|
21,717
|
|
-
|
|
21,717
|
|
18,658
|
|
-
|
|
18,658
|
|
22,083
|
|
-
|
|
22,083
|
Loss on
impairment
|
|
792,843
|
|
-
|
|
792,843
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
$
1,098,517
|
|
$
5,458
|
|
$
1,103,975
|
|
$ 316,596
|
|
$
5,831
|
|
$ 322,427
|
|
$ 286,497
|
|
$
5,540
|
|
$ 292,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
$
(840,148)
|
|
$ (5,458)
|
|
$
(845,606)
|
|
$ (38,454)
|
|
$ (5,831)
|
|
$
(44,285)
|
|
$ (51,340)
|
|
$ (5,540)
|
|
$ (56,880)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
70%
|
|
|
|
|
|
93%
|
|
|
|
|
|
56%
|
|
|
|
|
Operating
Days
|
|
872
|
|
|
|
|
|
1,183
|
|
|
|
|
|
706
|
|
|
|
|
Average
Dayrate
|
|
$
130,332
|
|
|
|
|
|
$ 121,284
|
|
|
|
|
|
$ 153,662
|
|
|
|
|
Semisubmersibles:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
8%
|
|
|
|
|
|
17%
|
|
|
|
|
|
17%
|
|
|
|
|
Operating
Days
|
|
44
|
|
|
|
|
|
91
|
|
|
|
|
|
90
|
|
|
|
|
Average
Dayrate
|
|
$
126,278
|
|
|
|
|
|
$ 126,106
|
|
|
|
|
|
$
98,766
|
|
|
|
|
Drillships:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
63%
|
|
|
|
|
|
52%
|
|
|
|
|
|
52%
|
|
|
|
|
Operating
Days
|
|
455
|
|
|
|
|
|
377
|
|
|
|
|
|
375
|
|
|
|
|
Average
Dayrate
|
|
$
282,412
|
|
|
|
|
|
$ 309,313
|
|
|
|
|
|
$ 297,833
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
54%
|
|
|
|
|
|
65%
|
|
|
|
|
|
47%
|
|
|
|
|
Operating
Days
|
|
1,371
|
|
|
|
|
|
1,651
|
|
|
|
|
|
1,171
|
|
|
|
|
Average
Dayrate
|
|
$
180,689
|
|
|
|
|
|
$ 164,475
|
|
|
|
|
|
$ 195,633
|
|
|
|
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CALCULATION
OF BASIC AND DILUTED NET INCOME PER SHARE
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
The following
table presents the computation of basic and diluted net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
(628,063)
|
|
$ (91,864)
|
|
$
(770,397)
|
|
$
(393,558)
|
|
Net loss from
discontinued operations, net of tax
|
|
-
|
|
(1,486)
|
|
-
|
|
(1,486)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
(628,063)
|
|
$ (93,350)
|
|
$
(770,397)
|
|
$
(395,044)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
(628,063)
|
|
$ (91,864)
|
|
$
(770,397)
|
|
$
(393,558)
|
|
Net loss from
discontinued operations, net of tax
|
|
-
|
|
(1,486)
|
|
-
|
|
(1,486)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
(628,063)
|
|
$ (93,350)
|
|
$
(770,397)
|
|
$
(395,044)
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic
|
|
246,740
|
|
244,828
|
|
246,438
|
|
244,527
|
|
Weighted
average shares outstanding - diluted
|
|
246,740
|
|
244,828
|
|
246,438
|
|
244,527
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Loss from
Continuing operations
|
|
$
(2.55)
|
|
$
(0.37)
|
|
$
(3.13)
|
|
$
(1.61)
|
|
Loss from
Discontinued operations
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
Net loss to
Noble Corporation plc
|
|
$
(2.55)
|
|
$
(0.38)
|
|
$
(3.13)
|
|
$
(1.62)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Loss from
Continuing operations
|
|
$
(2.55)
|
|
$
(0.37)
|
|
$
(3.13)
|
|
$
(1.61)
|
|
Loss from
Discontinued operations
|
|
-
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
Net loss to
Noble Corporation plc
|
|
$
(2.55)
|
|
$
(0.38)
|
|
$
(3.13)
|
|
$
(1.62)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarters and
years ended June 30, 2018 and 2017, we experienced net losses from
continuing operations, as such, unvested share-based payment awards
were excluded from the loss per share calculation, as the 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 2, 2018,
and discussed in the related conference call on August 3, 2018, are
appropriate measures of the continuing and normal operations of the
Company:
|
|
|
|
|
(i)
|
In the second quarter
of 2018, an impairment of three of our rigs and certain capital
spare equipment;
|
|
|
|
|
(ii)
|
In the first quarter
of 2018, a loss on debt extinguishment; and
|
|
|
|
|
(iii)
|
In the second quarter
of 2017, a discrete tax item and the Noble Max
Smithwrite-off of receivables.
|
|
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
Income tax provision
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
Income tax benefit
(provision)
|
|
|
$
38,839
|
|
$
18,213
|
|
$
(2,996)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Loss on
impairment
|
|
|
(35,613)
|
|
-
|
|
-
|
|
|
Loss on debt
extinguishment
|
|
|
-
|
|
-
|
|
(1,841)
|
|
Total
Adjustments
|
|
|
(35,613)
|
|
-
|
|
(1,841)
|
|
Adjusted income tax
benefit (provision)
|
|
|
$
3,226
|
|
$
18,213
|
|
$
(4,837)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net loss attributable to Noble Corporation plc
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Noble Corporation plc
|
|
|
$
(628,063)
|
|
$
(93,350)
|
|
$
(142,334)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Loss on impairment,
net of tax
|
|
|
757,230
|
|
-
|
|
-
|
|
|
Noble Max
Smith-write-off of receivables
|
|
|
-
|
|
14,419
|
|
-
|
|
|
Loss on
extinguishment of debt, net
|
|
|
-
|
|
-
|
|
6,927
|
|
Net loss attributable
to noncontrolling interests
|
|
|
(250,348)
|
|
-
|
|
-
|
|
Total
Adjustments
|
|
|
506,882
|
|
14,419
|
|
6,927
|
|
Adjusted net loss
attributable to Noble Corporation plc
|
|
|
$
(121,181)
|
|
$
(78,931)
|
|
$
(135,407)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
diluted EPS attributable to Noble Corporation plc
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
March
31
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted diluted
EPS attributable to Noble Corporation plc
|
|
|
$
(2.55)
|
|
$
(0.38)
|
|
$
(0.58)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
Loss on impairment,
net of tax
|
|
|
2.06
|
|
-
|
|
-
|
|
|
Noble Max
Smith-write-off of receivables
|
|
|
-
|
|
0.06
|
|
-
|
|
|
Loss on
extinguishment of debt, net of tax
|
|
|
-
|
|
-
|
|
0.03
|
|
Total
Adjustments
|
|
|
2.06
|
|
0.06
|
|
0.03
|
|
Adjusted diluted
EPS
|
|
|
$
(0.49)
|
|
$
(0.32)
|
|
$
(0.55)
|
View original
content:http://www.prnewswire.com/news-releases/noble-corporation-plc-reports-second-quarter-2018-results-300691390.html
SOURCE Noble Corporation