LONDON, Feb. 21, 2018 /PRNewswire/ -- Noble
Corporation plc (NYSE: NE, the Company) today reported a net loss
attributable to the Company for the three months ended December 31, 2017 (fourth quarter) of
$25 million, or $0.10 per diluted share, on revenues of
$330 million. The results included
net favorable items totaling $47
million, or $0.19 per diluted
share as follows:
- Payments totaling $38 million
accounted for in contract drilling services revenues. The payments
included $25 million ($12 million, or $0.05 per diluted share after noncontrolling
interests) resulting from the recovery of certain contractual cost
increases for the drillship Noble Bully II, which is owned
by a 50-50 joint venture with Royal Dutch
Shell and the final payment of $13
million, ($9 million net of
tax, or $0.04 per diluted share),
received under the 2013 Noble Jim
Day contract dispute settlement.
- Non-cash gains totaling $121
million, or $0.49 per diluted
share, resulting from a recalculation of deferred taxes following
significant U.S. tax law changes and internal reorganization
steps.
- A non-cash charge totaling $122
million ($95 million net of
tax, or $0.39 per diluted share),
relating to the impairment of certain rigs and capital spares.
Excluding the impact of these items, the net loss attributable
to Noble Corporation plc for the fourth quarter of 2017 would have
been $72 million, or $0.29 per diluted share, on revenues of
$292 million.
Julie J. Robertson, Chairman,
President and Chief Executive Officer of Noble Corporation plc,
stated, "Our fourth quarter results demonstrated the consistent
achievement of the key factors that ensure safe and efficient
execution on behalf of our customers. The results reflected a year
that was outstanding in many respects, even though industry
challenges continued to affect results. Of note, we posted the best
safety record in the history of our Company while reducing total
downtime across our fleet to just over three percent, also a
record."
For the twelve months ended December 31,
2017, Noble Corporation plc reported a net loss attributable
to the Company of $517 million, or
$2.11 per diluted share, on revenues
of $1.2 billion. Results for the year
included net unfavorable items totaling $237
million, or $0.97 per diluted
share. Excluding these items, the Company would have reported a net
loss attributable to Noble Corporation of $280 million, or $1.14 per diluted share.
Continuing, Ms. Robertson noted, "I am proud of our numerous
accomplishments in 2017. I believe these noteworthy operational
achievements, together with the late-2017 negotiation of a new
credit facility and the recent completion of a $750 million Senior Notes issue and tender offer,
reinforce our long history of strong operational execution and
sound financial strategy. They serve to strengthen Noble's
competitive posture as we enter 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 revenues,
net income (loss), income tax and diluted earnings per share for
the periods fourth quarter 2017, fourth quarter of 2016 and full
years 2017 and 2016.
Contract drilling services revenues for the fourth quarter of
2017 totaled $321 million, which
included the previously-noted payments totaling $38 million relating to the Noble Bully II
and Noble Jim Day.
Excluding those payments, contract drilling services revenues
in the fourth quarter would have been $283
million, compared to $260 in
the third quarter. The nine percent improvement was due primarily
to higher revenues from the floating rig fleet. These items were
partially offset by a modest decline in fleet operating days.
Contract drilling services costs in the fourth quarter totaled
$153 million compared to $165 million in the previous quarter, or
$151 million excluding a $14 million charge resulting from damage to two
cold-stacked semisubmersibles during Hurricane Harvey. Excluding
the third quarter charge, the modest increase in contract drilling
services costs was driven largely by higher costs on the drillships
Noble Globetrotter II and Noble Bob Douglas following
the commencement of contracts. These costs were partially offset by
fewer operating days in the jackup fleet, following the completion
of contracts on the Noble Mick O'Brien and Noble Houston Colbert.
Liquidity Position and Balance Sheet
During the fourth quarter, the Company entered into a new,
five-year unsecured credit facility with total borrowing capacity
of $1.5 billion and a maturity of
January 2023. In addition, the
Company retained an incremental $300
million in capacity under its previous credit facility for
total borrowing capacity of $1.8
billion until January 2020.
Combined with cash and cash equivalents of $663 million, the Company's proforma total
liquidity (cash and equivalents plus available borrowing capacity
under credit facilities) at December 31,
2017, was $2.5 billion.
Total debt at December 31, 2017
was $4.0 billion compared to
$4.3 billion at December 31, 2016. During January 2018, Noble issued $750 million aggregate principle amount of 7.875%
senior unsecured guaranteed notes due 2026. Net proceeds from the
offering of approximately $737
million and existing cash on the balance sheet were used to
pay the purchase price and accrued interest, along with fees and
expenses, in a concurrent tender offer to purchase $750 million of Senior Notes due 2018 through
2024.
Operating Highlights
Utilization in the fourth quarter of the Company's floating rig
fleet, consisting of eight drillships and six semisubmersibles,
improved to 41 percent compared to 39 percent in the previous
quarter of 2017. The improvement was due primarily to an increase
in operating days on the Noble Bob Douglas following the
commencement in November of a contract in the U.S. Gulf of Mexico. Average daily revenues per
floating rig in the fourth quarter grew to $358,500, or $287,000 excluding the previously-noted payments
for the Noble Bully II and Noble
Jim Day. The adjusted average daily revenues for the
fourth quarter compared to $253,300
in the previous quarter, with the increase driven substantially by
the Noble Globetrotter II, which in September commenced a
contract in the Black Sea while continuing to collect a special
idle dayrate as defined by a previously-reported contract amendment
with our customer.
Utilization in the fourth quarter of the Company's 14 jackups
was 76 percent compared to 81 percent in the preceding quarter. The
completion of contracts during the quarter on the Noble Mick
O'Brien and Noble Houston
Colbert contributed to the lower utilization level while
these events were partially offset by the commencement in September
of a contract for the Noble Tom Prosser offshore
Australia. Average daily revenues
per jackup rig in the fourth quarter improved to $134,400 compared to $127,200 in the previous quarter, driven largely
by the commencement of operations on the Noble Regina Allen
offshore Eastern Canada.
Outlook
Ms. Robertson's comments assumed a confident tone following four
years of industry contraction. She stated, "The steady rise in
crude oil prices since June 2017 and
significant progress to date by our customers in reducing offshore
project costs are, in part responsible for a growing number of
offshore opportunities as project planning intensifies and new
programs commence. Although the market for offshore rigs remains
highly competitive, we are confident that a demonstrated preference
by customers for premium, high-specification jackups and floating
rigs with highly qualified crews will continue, leading to
improving opportunities across our premium fleet in 2018."
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 fourth quarter and full year 2017 results on Thursday, February 22, 2018, at 8:00 a.m. U.S. Central Standard Time. Interested
parties are invited to listen to the call by dialing
1-833-245-9653, or internationally 1-647-689-4225, using access
code: 7349879, 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
Thursday, February 22, 2018,
beginning at 11:00 a.m. U.S. Central
Standard Time, through Thursday, March 22,
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: 7349879. 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
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
321,095
|
|
$
400,879
|
|
$
1,207,026
|
|
$
2,242,200
|
|
Reimbursables
and other
|
|
8,490
|
|
9,277
|
|
29,889
|
|
59,865
|
|
|
|
329,585
|
|
410,156
|
|
1,236,915
|
|
2,302,065
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
152,705
|
|
176,810
|
|
640,489
|
|
879,438
|
|
Reimbursables
|
|
5,061
|
|
6,053
|
|
18,435
|
|
45,499
|
|
Depreciation
and amortization
|
|
138,071
|
|
155,160
|
|
547,990
|
|
611,067
|
|
General and
administrative
|
|
21,765
|
|
14,912
|
|
71,634
|
|
69,258
|
|
Loss on
impairment
|
|
121,639
|
|
1,442,133
|
|
121,639
|
|
1,458,749
|
|
|
|
439,241
|
|
1,795,068
|
|
1,400,187
|
|
3,064,011
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(109,656)
|
|
(1,384,912)
|
|
(163,272)
|
|
(761,946)
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of amount capitalized
|
|
(72,446)
|
|
(55,940)
|
|
(291,989)
|
|
(222,915)
|
|
Gain on
extinguishment of debt, net
|
|
-
|
|
6,748
|
|
-
|
|
17,814
|
|
Interest income
and other, net
|
|
1,163
|
|
1,461
|
|
5,449
|
|
18
|
Loss from
continuing operations before income taxes
|
|
(180,939)
|
|
(1,432,643)
|
|
(449,812)
|
|
(967,029)
|
|
Income tax
benefit (provision)
|
|
167,960
|
|
149,473
|
|
(42,629)
|
|
109,156
|
Net loss from
continuing operations
|
|
(12,979)
|
|
(1,283,170)
|
|
(492,441)
|
|
(857,873)
|
Net loss from
discontinued operations, net of tax
|
|
-
|
|
-
|
|
(1,486)
|
|
-
|
Net
loss
|
|
(12,979)
|
|
(1,283,170)
|
|
(493,927)
|
|
(857,873)
|
|
Net income
attributable to noncontrolling interests
|
|
(11,696)
|
|
(19,680)
|
|
(22,584)
|
|
(71,707)
|
Net loss
attributable to Noble Corporation plc
|
|
$
(24,675)
|
|
$
(1,302,850)
|
|
$
(516,511)
|
|
$
(929,580)
|
|
|
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.10)
|
|
$
(3.82)
|
|
Loss from
discontinued operations
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.11)
|
|
$
(3.82)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Loss from
continuing operations
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.10)
|
|
$
(3.82)
|
|
Loss from
discontinued operations
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.11)
|
|
$
(3.82)
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
662,829
|
|
$
725,722
|
|
Accounts
receivable, net
|
|
204,696
|
|
319,152
|
|
Prepaid
expenses and other current assets
|
|
171,450
|
|
147,740
|
Total current
assets
|
|
1,038,975
|
|
1,192,614
|
|
|
|
|
|
|
Property and
equipment, at cost
|
|
12,034,331
|
|
12,364,888
|
|
Accumulated
depreciation
|
|
(2,545,091)
|
|
(2,302,940)
|
Property and
equipment, net
|
|
9,489,240
|
|
10,061,948
|
|
|
|
|
|
|
Other
assets
|
|
266,444
|
|
185,555
|
|
Total
assets
|
|
$
10,794,659
|
|
$
11,440,117
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current
maturities of long-term debt
|
|
$
249,843
|
|
$
299,882
|
|
Accounts
payable
|
|
84,032
|
|
108,224
|
|
Accrued payroll
and related costs
|
|
54,904
|
|
48,383
|
|
Other current
liabilities
|
|
204,245
|
|
176,804
|
Total current
liabilities
|
|
593,024
|
|
633,293
|
|
|
|
|
|
|
Long-term
debt
|
|
3,795,867
|
|
4,040,229
|
Other
liabilities
|
|
455,140
|
|
299,150
|
|
Total
liabilities
|
|
4,844,031
|
|
4,972,672
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Total
shareholders' equity
|
|
5,276,161
|
|
5,758,681
|
|
Noncontrolling
interests
|
|
674,467
|
|
708,764
|
|
Total
equity
|
|
5,950,628
|
|
6,467,445
|
|
Total
liabilities and equity
|
|
$
10,794,659
|
|
$
11,440,117
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
2017
|
|
2016
|
Cash flows
from operating activities
|
|
|
|
|
|
Net income
(loss)
|
|
$
(493,927)
|
|
$
(857,873)
|
|
Adjustments to
reconcile net income to net cash flow from operating
activities:
|
|
|
|
|
|
Depreciation
and amortization
|
|
547,990
|
|
611,067
|
|
Other long-term
asset write-off
|
|
29,032
|
|
-
|
|
Loss on
impairment
|
|
121,639
|
|
1,458,749
|
|
Gain on
extinguishment of debt, net
|
|
-
|
|
(17,814)
|
|
Net change in
operating activities
|
|
249,204
|
|
(68,053)
|
|
Net cash
provided by operating activities
|
|
453,938
|
|
1,126,076
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
New
construction
|
|
-
|
|
(435,064)
|
|
Capital
expenditures
|
|
(111,140)
|
|
(202,428)
|
|
Change in
accrued capital expenditures
|
|
(46,830)
|
|
(34,814)
|
|
Capitalized
interest
|
|
-
|
|
(22,433)
|
|
Proceeds from
disposal of assets
|
|
2,382
|
|
24,808
|
|
Net cash used
in investing activities
|
|
(155,588)
|
|
(669,931)
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
Issuance of
senior notes
|
|
-
|
|
980,100
|
|
Repayments of
debt
|
|
(300,000)
|
|
(1,049,338)
|
|
Debt issuance
costs on senior notes and credit facility
|
|
(42)
|
|
(12,111)
|
|
Premiums paid
on early repayment of long-term debt
|
|
-
|
|
(24,649)
|
|
Dividend
payments
|
|
-
|
|
(47,534)
|
|
Dividends paid
to noncontrolling interests
|
|
(56,881)
|
|
(85,944)
|
|
Other financing
activities
|
|
(4,320)
|
|
(3,192)
|
|
Net cash used
in financing activities
|
|
(361,243)
|
|
(242,668)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(62,893)
|
|
213,477
|
Cash and
cash equivalents, beginning of period
|
|
725,722
|
|
512,245
|
Cash and
cash equivalents, end of period
|
|
$
662,829
|
|
$
725,722
|
NOBLE
CORPORATION PLC AND SUBSIDIARIES
|
|
FINANCIAL
AND OPERATIONAL INFORMATION BY SEGMENT
|
|
(In thousands,
except operating statistics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Three Months Ended
September 30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
Contract
|
|
|
|
|
|
Contract
|
|
|
|
|
|
Contract
|
|
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
Drilling
|
|
|
|
|
|
|
|
Services
|
|
Other
|
|
Total
|
|
Services
|
|
Other
|
|
Total
|
|
Services
|
|
Other
|
|
Total
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
321,095
|
|
$
-
|
|
$
321,095
|
|
$
400,879
|
|
$
-
|
|
$
400,879
|
|
$ 259,740
|
|
$
-
|
|
$
259,740
|
|
Reimbursables
and other
|
|
8,490
|
|
-
|
|
8,490
|
|
9,277
|
|
-
|
|
9,277
|
|
6,472
|
|
-
|
|
6,472
|
|
|
|
$
329,585
|
|
$
-
|
|
$
329,585
|
|
$
410,156
|
|
$
-
|
|
$
410,156
|
|
$ 266,212
|
|
$
-
|
|
$
266,212
|
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$
152,705
|
|
$
-
|
|
$
152,705
|
|
$
176,810
|
|
$
-
|
|
$
176,810
|
|
$ 165,028
|
|
$
-
|
|
$
165,028
|
|
Reimbursables
|
|
5,061
|
|
-
|
|
5,061
|
|
6,053
|
|
-
|
|
6,053
|
|
3,834
|
|
-
|
|
3,834
|
|
Depreciation
and amortization
|
|
132,392
|
|
5,679
|
|
138,071
|
|
149,335
|
|
5,825
|
|
155,160
|
|
131,819
|
|
5,788
|
|
137,607
|
|
General and
administrative
|
|
21,765
|
|
-
|
|
21,765
|
|
14,912
|
|
-
|
|
14,912
|
|
15,331
|
|
-
|
|
15,331
|
|
Loss on
impairment
|
|
121,639
|
|
-
|
|
121,639
|
|
1,442,133
|
|
-
|
|
1,442,133
|
|
-
|
|
-
|
|
-
|
|
|
|
$
433,562
|
|
$
5,679
|
|
$
439,241
|
|
$
1,789,243
|
|
$
5,825
|
|
$
1,795,068
|
|
$ 316,012
|
|
$
5,788
|
|
$
321,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
$
(103,977)
|
|
$ (5,679)
|
|
$
(109,656)
|
|
$
(1,379,087)
|
|
$ (5,825)
|
|
$
(1,384,912)
|
|
$ (49,800)
|
|
$ (5,788)
|
|
$
(55,588)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
76%
|
|
|
|
|
|
86%
|
|
|
|
|
|
81%
|
|
|
|
|
|
Operating
Days
|
|
971
|
|
|
|
|
|
1,050
|
|
|
|
|
|
1,043
|
|
|
|
|
|
Average
Dayrate
|
|
$
134,413
|
|
|
|
|
|
$
124,470
|
|
|
|
|
|
$ 127,163
|
|
|
|
|
|
Semisubmersibles:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
17%
|
|
|
|
|
|
13%
|
|
|
|
|
|
17%
|
|
|
|
|
|
Operating
Days
|
|
92
|
|
|
|
|
|
92
|
|
|
|
|
|
92
|
|
|
|
|
|
Average
Dayrate
|
|
$
261,661
|
|
|
|
|
|
$
166,253
|
|
|
|
|
|
$ 104,028
|
|
|
|
|
|
Drillships:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
60%
|
|
|
|
|
|
73%
|
|
|
|
|
|
56%
|
|
|
|
|
|
Operating
Days
|
|
440
|
|
|
|
|
|
537
|
|
|
|
|
|
410
|
|
|
|
|
|
Average
Dayrate
|
|
$
378,709
|
|
|
|
|
|
$
474,462
|
|
|
|
|
|
$ 286,819
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
58%
|
|
|
|
|
|
62%
|
|
|
|
|
|
60%
|
|
|
|
|
|
Operating
Days
|
|
1,503
|
|
|
|
|
|
1,679
|
|
|
|
|
|
1,545
|
|
|
|
|
|
Average
Dayrate
|
|
$
213,664
|
|
|
|
|
|
$
238,704
|
|
|
|
|
|
$ 168,127
|
|
|
|
|
|
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
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Noble -UK
|
|
|
$ (24,675)
|
|
$
(1,302,850)
|
|
$
(516,511)
|
|
$
(929,580)
|
|
Net loss from
discontinued operations, net of tax
|
|
|
-
|
|
-
|
|
1,486
|
|
-
|
|
Earnings allocated to
unvested share-based payment awards (1)
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net loss
from continuing operations to common shareholders -
basic
|
|
|
$ (24,675)
|
|
$
(1,302,850)
|
|
$
(515,025)
|
|
$
(929,580)
|
|
|
|
|
|
|
|
|
|
|
-
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Noble -UK
|
|
|
$ (24,675)
|
|
$
(1,302,850)
|
|
$
(516,511)
|
|
$
(929,580)
|
|
Net loss from
discontinued operations, net of tax
|
|
|
-
|
|
-
|
|
1,486
|
|
-
|
|
Net loss
from continuing operations to common shareholders -
diluted
|
|
|
$ (24,675)
|
|
$
(1,302,850)
|
|
$
(515,025)
|
|
$
(929,580)
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic
|
|
|
244,970
|
|
243,238
|
|
244,743
|
|
243,127
|
|
Incremental shares
issuable from assumed exercise of stock options and unvested
share-based payment awards outstanding
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Weighted
average shares outstanding - diluted
|
|
|
244,970
|
|
243,238
|
|
244,743
|
|
243,127
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.10)
|
|
$
(3.82)
|
|
Discontinued
operations
|
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
Net loss to
Noble Corporation plc
|
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.11)
|
|
$
(3.82)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.10)
|
|
$
(3.82)
|
|
Discontinued
operations
|
|
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
Net loss to
Noble Corporation plc
|
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.11)
|
|
$
(3.82)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For
the quarters and years ended December 31, 2017 and 2016, we
experienced net losses from continuing operations, as such,
unvested share-based payment awards were excluded from the loss per
share calculation during these periods, 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 February 21,
2018, and discussed in the related conference call on February 22,
2018, are appropriate measures of the continuing and normal
operations of the Company:
|
|
|
|
(i)
|
In the second and
third quarter of 2017, a discrete tax item;
|
|
|
|
|
|
|
(ii)
|
In the second quarter
of 2017, the Noble Max Smithwrite-off of
receivables;
|
|
|
|
|
|
|
(iii)
|
In the third quarter
of 2017, the Noble Danny Adkins and Noble Jim Day
related cost damage; and
|
|
|
|
|
|
|
(iv)
|
In the fourth quarter
of 2017, the Noble Jim Day and Noble Bully II special
payments
received.
|
|
|
|
|
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,
|
|
Twelve Months
Ended,
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
$ 329,585
|
|
$
410,156
|
|
$
1,236,915
|
|
$
2,302,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Noble Tom
Prosser-cancellation agreement
|
|
-
|
|
(16,375)
|
|
-
|
|
(16,375)
|
|
|
|
Noble Jim
Day-Marathon Settlement
|
|
(12,709)
|
|
-
|
|
(12,709)
|
|
-
|
|
|
|
Noble Bully
II-Shell escalation Provision
|
|
(25,326)
|
|
-
|
|
(25,326)
|
|
-
|
|
|
|
Cancellations with
Freeport:
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
-
|
|
-
|
|
(379,143)
|
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
-
|
|
-
|
|
(13,900)
|
|
|
Total
Adjustments
|
|
(38,035)
|
|
(16,375)
|
|
(38,035)
|
|
(409,418)
|
|
|
Adjusted total
revenue
|
|
$ 291,550
|
|
$
393,781
|
|
$
1,198,880
|
|
$
1,892,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income tax provision
|
|
Three Months
Ended,
|
|
Twelve Months
Ended,
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Income tax
provision
|
|
$ 167,960
|
|
$
149,473
|
|
$
(42,629)
|
|
$
109,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Noble Tom
Prosser-cancellation agreement
|
|
-
|
|
334
|
|
-
|
|
334
|
|
|
|
Noble Danny Adkins
and Noble Jim Day rig damages
|
|
-
|
|
-
|
|
(4,845)
|
|
-
|
|
|
|
Noble Jim
Day-Marathon Settlement
|
|
4,003
|
|
-
|
|
4,003
|
|
-
|
|
|
|
Noble Bully
II-Shell escalation Provision
|
|
380
|
|
-
|
|
380
|
|
-
|
|
|
|
Cancellations with
Freeport:
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
-
|
|
-
|
|
32,035
|
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
-
|
|
-
|
|
1,211
|
|
|
|
Loss on
impairment
|
|
(26,819)
|
|
(144,103)
|
|
(26,819)
|
|
(145,551)
|
|
|
|
Debt
retirement
|
|
-
|
|
(762)
|
|
-
|
|
202
|
|
|
|
Discrete tax
items
|
|
(120,821)
|
|
(8,472)
|
|
139,264
|
|
(13,985)
|
|
|
Total
Adjustments
|
|
(143,257)
|
|
(153,003)
|
|
111,983
|
|
(125,754)
|
|
|
Adjusted income tax
provision
|
|
$
24,703
|
|
$
(3,530)
|
|
$
69,354
|
|
$
(16,598)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net loss attributable to Noble Corporation plc
|
|
Three Months
Ended,
|
|
Twelve Months
Ended,
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Noble Corporation plc
|
|
$ (24,675)
|
|
$
(1,302,850)
|
|
$
(516,511)
|
|
$
(929,580)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Noble Tom
Prosser-cancellation agreement, net of tax
|
|
-
|
|
(16,041)
|
|
-
|
|
(16,041)
|
|
|
|
Noble Max
Smith-write-off of receivables
|
|
-
|
|
-
|
|
14,419
|
|
-
|
|
|
|
Noble Danny Adkins
and Noble Jim Day rig damages
|
|
-
|
|
-
|
|
9,425
|
|
-
|
|
|
|
Noble Jim
Day-Marathon Settlement
|
|
(8,706)
|
|
-
|
|
(8,706)
|
|
-
|
|
|
|
Noble Bully
II-Shell escalation Provision
|
|
(12,473)
|
|
-
|
|
(12,473)
|
|
-
|
|
|
|
Cancellations with
Freeport, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
-
|
|
-
|
|
(335,578)
|
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
-
|
|
-
|
|
(12,689)
|
|
|
|
Loss on impairment,
net of tax
|
|
94,820
|
|
1,298,030
|
|
94,820
|
|
1,313,198
|
|
|
|
Gain on
extinguishment of debt, net of tax
|
|
-
|
|
(7,510)
|
|
-
|
|
(17,612)
|
|
|
|
Discrete tax
items
|
|
(120,821)
|
|
(8,472)
|
|
139,264
|
|
(13,985)
|
|
|
Total
Adjustments
|
|
(47,180)
|
|
1,266,007
|
|
236,749
|
|
917,293
|
|
|
Adjusted net loss
attributable to Noble Corporation plc
|
|
$ (71,855)
|
|
$
(36,843)
|
|
$
(279,762)
|
|
$
(12,287)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
diluted EPS attributable to Noble Corporation plc
|
|
Three Months
Ended,
|
|
Twelve Months
Ended,
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unadjusted diluted
EPS attributable to Noble Corporation plc
|
|
$
(0.10)
|
|
$
(5.36)
|
|
$
(2.11)
|
|
$
(3.82)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Noble Tom
Prosser-cancellation agreement
|
|
-
|
|
(0.07)
|
|
-
|
|
(0.07)
|
|
|
|
Noble Max
Smith-write-off of receivables
|
|
-
|
|
-
|
|
0.06
|
|
-
|
|
|
|
Noble Danny Adkins
and Noble Jim Day rig damages
|
|
-
|
|
-
|
|
0.04
|
|
-
|
|
|
|
Noble Jim
Day-Marathon Settlement
|
|
(0.04)
|
|
-
|
|
(0.04)
|
|
-
|
|
|
|
Noble Bully
II-Shell escalation Provision
|
|
(0.05)
|
|
-
|
|
(0.05)
|
|
-
|
|
|
|
Cancellations with
Freeport, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
items
|
|
-
|
|
-
|
|
-
|
|
(1.38)
|
|
|
|
|
Termination date
valuation of contingent payments
|
|
-
|
|
-
|
|
-
|
|
(0.05)
|
|
|
|
Loss on impairment,
net of tax
|
|
0.39
|
|
5.34
|
|
0.39
|
|
5.40
|
|
|
|
Gain on
extinguishment of debt, net of tax
|
|
-
|
|
(0.03)
|
|
-
|
|
(0.07)
|
|
|
|
Discrete tax
items
|
|
(0.49)
|
|
(0.03)
|
|
0.57
|
|
(0.06)
|
|
|
Total
Adjustments
|
|
(0.19)
|
|
5.21
|
|
0.97
|
|
3.77
|
|
|
Adjusted diluted
EPS
|
|
$
(0.29)
|
|
$
(0.15)
|
|
$
(1.14)
|
|
$
(0.05)
|
|
View original
content:http://www.prnewswire.com/news-releases/noble-corporation-plc-reports-fourth-quarter-and-full-year-2017-results-300602276.html
SOURCE Noble Corporation