LONDON, Feb. 19, 2020 /PRNewswire/ -- Noble Corporation
plc (NYSE: NE, the Company) today reported a net loss attributable
to the Company for the three months ended December 31, 2019 (fourth quarter) of
$33 million, or $0.13 per diluted share, on total revenues of
$454 million. Results for the fourth
quarter included net favorable items totaling $50 million, or $0.20 per diluted share, as follows:
- Contract drilling services revenues totaling $167 million ($80
million net of associated costs, taxes and noncontrolling
interests, or $0.32 per diluted
share) resulting from the previously announced Noble Bully
II contract buyout with Royal Dutch
Shell plc (Shell).
- Non-cash loss on impairment, net of taxes, totaling
$17 million, or $0.07 per diluted share, resulting from the
impairment of the semisubmersible Noble
Paul Romano and certain capital spares.
- Net expense of $13 million, or
$0.05 per diluted share, relating to
various non-cash discrete tax items.
Excluding the impact of the aforementioned items, Noble
Corporation plc generated an adjusted net loss attributable to the
Company for the three months ended December
31, 2019 of $83 million, or
$0.33 per diluted share, on total
revenues of $287 million.
For the twelve months ended December 31,
2019, Noble Corporation plc reported a net loss attributable
to the Company of $701 million, or
$2.81 per diluted share, of which a
loss of $4 million, or $0.02 per diluted share, is related to
discontinued operations. Total revenues for the year reached
$1.3 billion. Results for 2019
included net unfavorable items totaling $323
million, or $1.29 per diluted
share, net of tax and noncontrolling interests, including the above
mentioned fourth quarter items, in addition to previously announced
asset impairments, the legal contingency expense for the Paragon
litigation matter, gain on debt extinguishments and discrete tax
items recognized in the first three quarters. After
consideration of these net unfavorable items, Noble Corporation plc
generated an adjusted net loss from continuing operations
attributable to the Company for the twelve months ended
December 31, 2019, of $374 million, or $1.50 per diluted share, with total revenues of
$1.1 billion.
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 loss, income tax and diluted earnings per share for the fourth
quarter and full year of 2019, and for the fourth quarter and full
year of 2018.
Addressing the fourth quarter and full year performance,
Julie J. Robertson, Chairman,
President and Chief Executive Officer of Noble Corporation plc,
noted, "We closed another quarter with strong operational
performance, extending our record for consistency that remains
among the best in our industry. Our fleet uptime in the fourth
quarter exceeded 97 percent, while quarterly contract drilling
revenues and EBITDA were well ahead of our expectations.
"From an annual perspective, fleet operating days improved 18
percent when compared to 2018, due in part to the commencement of
operations on two recently acquired newbuild jackups, one of which,
the Noble Joe Knight, began its multi-year contract in
the Middle East during October.
Also, we completed several advantageous rig mobilizations over the
year, two of which allowed us to expand our footprint in the
prolific Guyana-Suriname basin. These rig moves have further
enhanced our global fleet positioning as we evaluate opportunities
across our premium floating and jackup fleets."
Contract drilling services revenues for the fourth quarter
totaled $441 million, including
$167 million related to the Noble
Bully II contract buyout with Shell. Excluding revenues from
the buyout, contract drilling services revenues for the fourth
quarter would have been $274 million
compared to $259 million in the
preceding quarter of 2019. The six percent improvement in revenues
was due largely to higher operating days in the jackup rig fleet,
which improved 11 percent compared to the previous quarter,
increased mobilization revenues, and higher average dayrates in the
floating rig fleet. These items were partially offset by reduced
operating days for the Noble Bully II.
Contract drilling service costs in the fourth quarter totaled
$182 million, including costs of
$7 million relating to the Noble
Bully II contract buyout. Excluding the buyout costs, adjusted
contract drilling service costs would have been $175 million or relatively flat when compared to
$176 million in the preceding
quarter.
Excluding the impact of the Noble Bully II buyout,
earnings before interest, taxes, depreciation and amortization
(EBITDA) in the fourth quarter reached $83
million compared to $68
million in the preceding quarter, while contract drilling
margin improved to 36 percent from 32 percent over the same period
of comparison.
Operating Highlights
Fourth quarter utilization across the Company's 12 floating rigs
was 60 percent compared to 63 percent in the preceding quarter.
Excluding three cold-stacked rigs, active floating utilization was
80 percent compared to 83 percent over the same period of
comparison, with the modest decline due to a reduction in operating
days on the Noble Bully II following the previously noted
contract buyout. With regard to the Noble Bully II, the
Company recognized 63 operating days and $14
million of contract drilling revenues in the fourth quarter
due to a later-than-expected closing of the contract buyout with
Shell. Average daily revenues, adjusted for the contract buyout,
improved to $199,000 in the fourth
quarter compared to $190,000 in the
preceding quarter, with higher dayrates experienced for the
Noble Don Taylor, Noble Sam Croft and the Noble
Globetrotter II, which benefitted from enhanced daily revenues
with the utilization of its managed pressure drilling system.
The previously reported CEA with ExxonMobil enhances the
Company's presence in the Guyana-Suriname basin, with multi-year
contract visibility, strong fleet utilization, and important
economies of scale and logistical savings. Also, the agreement
includes an attractive commercial model and deepens Noble's
relationship with a valued client, while positioning the Company
for the possibility of further expansion in the basin. With regard
to expansion, the Company announced that the Noble Sam Croft
will be added to the CEA with a one-year contract award that is
expected to commence in August 2020,
following the conclusion of the rig's current drilling assignment
offshore Suriname. The addition of the Noble Sam Croft
increases the total rig years awarded under the CEA to 4.5, with
six additional years dependent on future development decisions and
government approvals. At December 31,
2019, seven of the Company's nine active floating rigs
remained under contract.
The Company's 13-rig jackup fleet experienced an 11 percent
increase in operating days during the fourth quarter, which
improved utilization in the quarter to 93 percent compared to 89
percent in the third quarter. The improvement in operating days
followed the commencement of operations on the Noble Joe
Knight offshore Saudi Arabia
and the Noble Houston Colbert in the UK North Sea, and a
full quarter of operations on the Noble Scott Marks
following the completion of a regulatory program during the third
quarter. These events were partially offset by fewer operating days
on the Noble Tom Prosser due to the rig's relocation to a
new drilling location offshore Australia. In December
2019, the Noble Regina Allen was awarded a contract
for operations offshore Trinidad and
Tobago, with contract commencement during the second half of
2020. Following the recent exercise of an option well, the expected
contract duration has increased to 190 days.
At December 31, 2019, all 13 of
the Company's jackup rigs remained under contract. An estimated 58
percent of the available jackup fleet rig days in 2020 were
committed to contracts, or 62 percent, excluding the Noble Joe
Beall, which the Company plans to dispose of at the completion
of its current contract.
Backlog, Capital and Balance Sheet
At December 31, 2019, the
Company's estimated revenue backlog totaled approximately
$1.5 billion and reflects a reduction
of $282 million following the
Noble Bully II contract buyout. Approximately $833 million of the backlog was associated with
the floating rig fleet and $622
million with the jackup fleet. An estimated $776 million of the revenue backlog is
attributable to the year 2020. The 4.5 years of contract term
awarded under the CEA with ExxonMobil are subject to periodically
adjusted market dayrates, and are excluded from the revenue
backlog, but would contribute an estimated $312 million if an illustrative dayrate of
$200,000 and discount, net of
performance bonus, of 5% were applied to the term.
Capital expenditures for the fourth quarter and full year of
2019 were $48 million and
$253 million, respectively, with the
full year total excluding the $54
million seller-financed portion of the Noble Joe
Knight purchase price. Expenditures for the full year were
comprised of $75 million for fleet
maintenance, $138 million for major
projects, including rig reactivations and subsea spares,
$30 million for the purchase of the
Noble Joe Knight, and $10
million of capitalized interest.
A strong liquidity position remains one of the Company's key
priorities. At December 31, 2019, the
Company maintained the ability to borrow up to an additional
$660 million under the Company's 2017
Credit Facility.
During December 2019, the Company
used cash on hand to repay $100
million of borrowings on the 2017 Credit Facility.
Subsequently, the Company terminated its 2015 Credit Facility
following the repayment of $300
million of borrowings outstanding, utilizing borrowing
capacity available on its 2017 Credit Facility to do so. At
December 31, 2019, borrowings
outstanding on the 2017 Credit Facility were $335 million.
Outlook
In closing, Ms. Robertson noted, "Offshore drilling activity
continued to trend favorably during 2019 with the contracted
floating and jackup rig counts, when compared to measures at
December 2018, improving seven
percent and 12 percent, respectively. As global fleet utilization
rose through the year, meaningful dayrate appreciation was
experienced across the industry's active rig fleet. As we enter
2020, early concerns for crude oil demand, due largely to the
Coronavirus, have led to a decline in oil prices. Although we
currently see no evidence of our customers altering their spending
plans, we recognize the heightened risk for reduced spending should
the weakness persist. At present, the prospects for further
industry gains are encouraging, With the exception of the UK North
Sea, where some sluggishness is expected through the first half of
2020, opportunities for premium jackups remain healthy in the
Middle East, Asia and Pacific Rim. In the floating
rig fleet, evidence continues to mount in support of a heightened
interest in offshore oil and gas resources among the industry's
exploration and production companies, especially in regions such as
Guyana, Suriname, Brazil and Mexico. These regions, as well as others in
the Eastern Hemisphere, continue to demonstrate strong oil and gas
resource potential, leading to incremental rig needs as exploration
and development campaigns commence."
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 25 offshore drilling units,
consisting of 12 drillships and semisubmersibles and 13 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 10 Brook Street, London, W1S 1BG England. Additional information on Noble is
available at www.noblecorp.com.
Forward-looking Disclosure Statement
Statements regarding contract backlog, costs, revenue, rig
demand, fleet condition, operational or financial performance,
contract commitments, dayrates, contract commencements, contract
extensions, renewals or renegotiations, rig reactivations, letters
of intent or award, industry fundamentals, customer relationships
and requirements, strategic initiatives, future performance, growth
opportunities, the offshore drilling market, market outlook, our
financial position, business strategy, taxes and tax rates,
liquidity, competitive position, capital expenditures, debt levels,
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 has scheduled a conference call and webcast related to its
fourth quarter and full year 2019 results on Thursday, February 20, 2020, 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: 4828326, 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 20, 2020,
beginning at 11:00 a.m. U.S. Central
Standard Time, through Friday, March 20,
2020, 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: 4828326. 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
December 31, 2019
|
|
Twelve Months
Ended December 31, 2019
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating
revenues
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
441,312
|
|
|
$
|
292,049
|
|
|
$
|
1,246,058
|
|
|
$
|
1,036,082
|
|
Reimbursables and
other
|
|
12,776
|
|
|
17,843
|
|
|
59,380
|
|
|
46,744
|
|
|
|
454,088
|
|
|
309,892
|
|
|
1,305,438
|
|
|
1,082,826
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
181,821
|
|
|
178,666
|
|
|
698,343
|
|
|
629,937
|
|
Reimbursables
|
|
10,506
|
|
|
14,761
|
|
|
49,061
|
|
|
37,084
|
|
Depreciation and
amortization
|
|
106,740
|
|
|
114,226
|
|
|
440,221
|
|
|
486,530
|
|
General and
administrative
|
|
18,976
|
|
|
14,694
|
|
|
168,792
|
|
|
73,216
|
|
Loss on
impairment
|
|
19,784
|
|
|
9,290
|
|
|
615,294
|
|
|
802,133
|
|
|
|
337,827
|
|
|
331,637
|
|
|
1,971,711
|
|
|
2,028,900
|
|
Operating income
(loss)
|
|
116,261
|
|
|
(21,745)
|
|
|
(666,273)
|
|
|
(946,074)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense, net
of amounts capitalized
|
|
(71,224)
|
|
|
(73,741)
|
|
|
(279,435)
|
|
|
(297,611)
|
|
Gain (loss) on
extinguishment of debt, net
|
|
—
|
|
|
6,866
|
|
|
30,616
|
|
|
(1,793)
|
|
Interest income and
other, net
|
|
1,785
|
|
|
1,488
|
|
|
6,007
|
|
|
8,302
|
|
Income (loss) from
continuing operations before income taxes
|
|
46,822
|
|
|
(87,132)
|
|
|
(909,085)
|
|
|
(1,237,176)
|
|
Income tax
benefit
|
|
1,378
|
|
|
56,307
|
|
|
38,540
|
|
|
106,641
|
|
Net income (loss)
from continuing operations
|
|
48,200
|
|
|
(30,825)
|
|
|
(870,545)
|
|
|
(1,130,535)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(3,821)
|
|
|
—
|
|
Net income
(loss)
|
|
48,200
|
|
|
(30,825)
|
|
|
(874,366)
|
|
|
(1,130,535)
|
|
Net (income) loss
attributable to noncontrolling interests
|
|
(81,070)
|
|
|
(2,237)
|
|
|
173,776
|
|
|
245,485
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(32,870)
|
|
|
$
|
(33,062)
|
|
|
$
|
(700,590)
|
|
|
$
|
(885,050)
|
|
Net loss attributable
to Noble Corporation plc
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(32,870)
|
|
|
$
|
(33,062)
|
|
|
$
|
(696,769)
|
|
|
$
|
(885,050)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(3,821)
|
|
|
—
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(32,870)
|
|
|
$
|
(33,062)
|
|
|
$
|
(700,590)
|
|
|
$
|
(885,050)
|
|
Per share
data
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.79)
|
|
|
$
|
(3.59)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.81)
|
|
|
$
|
(3.59)
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.79)
|
|
|
$
|
(3.59)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.81)
|
|
|
$
|
(3.59)
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
104,621
|
|
|
$
|
375,232
|
|
Accounts receivable,
net
|
|
198,665
|
|
|
200,722
|
|
Prepaid expenses and
other current assets
|
|
118,821
|
|
|
83,102
|
|
Total current
assets
|
|
422,107
|
|
|
659,056
|
|
Property and
equipment, at cost
|
|
10,306,625
|
|
|
10,956,412
|
|
Accumulated
depreciation
|
|
(2,572,701)
|
|
|
(2,475,694)
|
|
Property and
equipment, net
|
|
7,733,924
|
|
|
8,480,718
|
|
Other
assets
|
|
128,467
|
|
|
125,149
|
|
Total
assets
|
|
$
|
8,284,498
|
|
|
$
|
9,264,923
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
|
62,505
|
|
|
$
|
—
|
|
Accounts
payable
|
|
108,208
|
|
|
125,557
|
|
Accrued payroll and
related costs
|
|
56,056
|
|
|
50,284
|
|
Other current
liabilities
|
|
290,159
|
|
|
189,616
|
|
Total current
liabilities
|
|
516,928
|
|
|
365,457
|
|
Long-term
debt
|
|
3,779,499
|
|
|
3,877,402
|
|
Other
liabilities
|
|
329,099
|
|
|
367,490
|
|
Total
liabilities
|
|
4,625,526
|
|
|
4,610,349
|
|
Commitments and
contingencies
|
|
|
|
|
Equity
|
|
|
|
|
Total shareholders'
equity
|
|
|
3,658,972
|
|
|
|
4,253,171
|
|
Noncontrolling
interests
|
|
—
|
|
|
401,403
|
|
Total
equity
|
|
3,658,972
|
|
|
4,654,574
|
|
Total liabilities
and equity
|
|
$
|
8,284,498
|
|
|
$
|
9,264,923
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Twelve Months
Ended December 31,
|
|
|
2019
|
|
2018
|
Cash flows from
operating activities
|
|
|
|
|
Net loss
|
|
$
|
(874,366)
|
|
|
$
|
(1,130,535)
|
|
Adjustments to
reconcile net loss to net cash flow from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
440,221
|
|
|
486,530
|
|
Loss on
impairment
|
|
615,294
|
|
|
802,133
|
|
(Gain) loss on
extinguishment of debt, net
|
|
(30,616)
|
|
|
1,793
|
|
Changes in components
of working capital:
|
|
|
|
|
Change in taxes
receivable
|
|
(11,225)
|
|
|
84,847
|
|
Net changes in other
operating assets and liabilities
|
|
47,463
|
|
|
(72,917)
|
|
Net cash provided by
operating activities
|
|
186,771
|
|
|
171,851
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(268,783)
|
|
|
(194,779)
|
|
Proceeds from
disposal of assets, net
|
|
12,753
|
|
|
5,402
|
|
Net cash used in
investing activities
|
|
(256,030)
|
|
|
(189,377)
|
|
Cash flows from
financing activities
|
|
|
|
|
Issuance of senior
notes
|
|
—
|
|
|
750,000
|
|
Borrowings on credit
facilities
|
|
755,000
|
|
|
—
|
|
Repayments of credit
facilities
|
|
(420,000)
|
|
|
—
|
|
Repayments of senior
notes
|
|
(400,000)
|
|
|
(972,708)
|
|
Debt issuance
costsre
|
|
(1,092)
|
|
|
(15,639)
|
|
Purchase of
noncontrolling interest
|
|
(106,744)
|
|
|
—
|
|
Dividends paid to
noncontrolling interests
|
|
(25,109)
|
|
|
(27,579)
|
|
Taxes withheld on
employee stock transactions
|
|
(2,779)
|
|
|
(3,470)
|
|
Net cash used in
financing activities
|
|
(200,724)
|
|
|
(269,396)
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
(269,983)
|
|
|
(286,922)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
375,907
|
|
|
662,829
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
105,924
|
|
|
$
|
375,907
|
|
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,
|
|
|
2019
|
|
2018
|
|
2019
|
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
441,312
|
|
|
$
|
—
|
|
|
$
|
441,312
|
|
|
$
|
292,049
|
|
|
$
|
—
|
|
|
$
|
292,049
|
|
|
$
|
259,428
|
|
|
$
|
—
|
|
|
$
|
259,428
|
|
Reimbursables and
other
|
|
12,776
|
|
|
—
|
|
|
12,776
|
|
|
17,843
|
|
|
—
|
|
|
17,843
|
|
|
16,098
|
|
|
—
|
|
|
16,098
|
|
|
|
$
|
454,088
|
|
|
$
|
—
|
|
|
$
|
454,088
|
|
|
$
|
309,892
|
|
|
$
|
—
|
|
|
$
|
309,892
|
|
|
$
|
275,526
|
|
|
$
|
—
|
|
|
$
|
275,526
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
181,821
|
|
|
$
|
—
|
|
|
$
|
181,821
|
|
|
$
|
178,666
|
|
|
$
|
—
|
|
|
$
|
178,666
|
|
|
$
|
175,929
|
|
|
$
|
—
|
|
|
$
|
175,929
|
|
Reimbursables
|
|
10,506
|
|
|
—
|
|
|
10,506
|
|
|
14,761
|
|
|
—
|
|
|
14,761
|
|
|
13,779
|
|
|
—
|
|
|
13,779
|
|
Depreciation and
amortization
|
|
103,778
|
|
|
2,962
|
|
|
106,740
|
|
|
110,372
|
|
|
3,854
|
|
|
114,226
|
|
|
109,616
|
|
|
3,139
|
|
|
112,755
|
|
General and
administrative
|
|
18,976
|
|
|
—
|
|
|
18,976
|
|
|
14,694
|
|
|
—
|
|
|
14,694
|
|
|
17,565
|
|
|
—
|
|
|
17,565
|
|
Loss on
impairment
|
|
19,784
|
|
|
—
|
|
|
19,784
|
|
|
9,290
|
|
|
—
|
|
|
9,290
|
|
|
595,510
|
|
|
—
|
|
|
595,510
|
|
|
|
$
|
334,865
|
|
|
$
|
2,962
|
|
|
$
|
337,827
|
|
|
$
|
327,783
|
|
|
$
|
3,854
|
|
|
$
|
331,637
|
|
|
$
|
912,399
|
|
|
$
|
3,139
|
|
|
$
|
915,538
|
|
Operating income
(loss)
|
|
$
|
119,223
|
|
|
$
|
(2,962)
|
|
|
$
|
116,261
|
|
|
$
|
(17,891)
|
|
|
$
|
(3,854)
|
|
|
$
|
(21,745)
|
|
|
$
|
(636,873)
|
|
|
$
|
(3,139)
|
|
|
$
|
(640,012)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
statistics
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
93%
|
|
94%
|
|
89%
|
Operating
Days
|
|
1,096
|
|
1,037
|
|
985
|
Average
Dayrate
|
|
$129,898
|
|
$121,949
|
|
$130,339
|
Floaters
(1):
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
60%
|
|
56%
|
|
63%
|
Operating
Days
|
|
664
|
|
618
|
|
691
|
Average
Dayrate
|
|
$450,362
|
|
$267,737
|
|
$189,773
|
Total
(1):
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
77%
|
|
75%
|
|
76%
|
Operating
Days
|
|
1,760
|
|
1,655
|
|
1,676
|
Average
Dayrate
|
|
$250,760
|
|
$176,443
|
|
$154,827
|
|
|
(1)
|
The fourth quarter of
2019 includes the impact of the Noble Bully II contract
buyout. Exclusive of this item, the average dayrate for the three
months ended December 31, 2019 would have been $198,956 for
floaters and $155,940 for total rigs.
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
CALCULATION OF
BASIC AND DILUTED NET INCOME/(LOSS) PER SHARE
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
The following table
presents the computation of basic and diluted loss per
share:
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Numerator:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(32,870)
|
|
|
$
|
(33,062)
|
|
|
$
|
(696,769)
|
|
|
$
|
(885,050)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(3,821)
|
|
|
—
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(32,870)
|
|
|
$
|
(33,062)
|
|
|
$
|
(700,590)
|
|
|
$
|
(885,050)
|
|
Diluted
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(32,870)
|
|
|
$
|
(33,062)
|
|
|
$
|
(696,769)
|
|
|
$
|
(885,050)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
(3,821)
|
|
|
—
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(32,870)
|
|
|
$
|
(33,062)
|
|
|
$
|
(700,590)
|
|
|
$
|
(885,050)
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
249,198
|
|
|
246,793
|
|
|
248,949
|
|
|
246,614
|
|
Weighted average
shares outstanding - diluted
|
|
249,198
|
|
|
246,793
|
|
|
248,949
|
|
|
246,614
|
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.79)
|
|
|
$
|
(3.59)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.81)
|
|
|
$
|
(3.59)
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.79)
|
|
|
$
|
(3.59)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.81)
|
|
|
$
|
(3.59)
|
|
NOBLE CORPORATION PLC AND
SUBSIDIARIES
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 19, 2020, and discussed in the related conference
call on February 20, 2020, are appropriate measures of the
continuing and normal operations of the Company:
(i) In the first quarter of
2019, a gain on debt extinguishment;
(ii) In the second quarter of
2019, charge related to the Paragon litigation and a discrete tax
item;
(iii) In the third quarter of
2019, an impairment on one of our rigs and a loss on debt
extinguishment; and
(iv) In the fourth quarter of
2019, an impairment of a rig and capital spares, discrete tax items
and the contract buyout with Shell.
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
RECONCILIATION
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
Reconciliation of
Total Revenue
|
|
Three months ended
December 31,
|
|
Twelve months
ended December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Total
revenue
|
|
$
|
454,088
|
|
|
$
|
309,892
|
|
|
$
|
1,305,438
|
|
|
$
|
1,236,915
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Noble Bully II
- Shell contract buyout
|
|
(166,858)
|
|
|
—
|
|
|
(166,858)
|
|
|
—
|
|
Total
Adjustments
|
|
(166,858)
|
|
|
—
|
|
|
(166,858)
|
|
|
—
|
|
Adjusted total
revenue
|
|
$
|
287,230
|
|
|
$
|
309,892
|
|
|
$
|
1,138,580
|
|
|
$
|
1,236,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Benefit (Provision)
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Income tax benefit
(provision)
|
|
$
|
1,378
|
|
|
$
|
56,307
|
|
|
$
|
38,540
|
|
|
$
|
106,641
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Loss on
impairment
|
|
(2,630)
|
|
|
—
|
|
|
(2,630)
|
|
|
(35,613)
|
|
Gain (loss) on debt
extinguishment
|
|
—
|
|
|
1,442
|
|
|
6,566
|
|
|
(399)
|
|
Discrete tax
items
|
|
12,485
|
|
|
(60,568)
|
|
|
(21,178)
|
|
|
(85,492)
|
|
Noble Bully II
- Shell contract buyout
|
|
2,452
|
|
|
—
|
|
|
2,452
|
|
|
—
|
|
Total
Adjustments
|
|
12,307
|
|
|
(59,126)
|
|
|
(14,790)
|
|
|
(121,504)
|
|
Adjusted income tax
benefit (provision)
|
|
$
|
13,685
|
|
|
$
|
(2,819)
|
|
|
$
|
23,750
|
|
|
$
|
(14,863)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Loss Attributable to Noble Corporation plc
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(32,870)
|
|
|
$
|
(33,062)
|
|
|
$
|
(700,590)
|
|
|
$
|
(885,050)
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Loss on impairment,
net of tax
|
|
17,154
|
|
|
9,290
|
|
|
612,664
|
|
|
766,520
|
|
(Gain) loss on debt
extinguishment
|
|
—
|
|
|
(5,424)
|
|
|
(24,050)
|
|
|
1,503
|
|
Net loss attributable
to noncontrolling interests
|
|
78,019
|
|
|
—
|
|
|
(186,969)
|
|
|
(250,348)
|
|
Discrete tax
items
|
|
12,485
|
|
|
(60,568)
|
|
|
(21,178)
|
|
|
(85,492)
|
|
Legal
contingencies
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|
—
|
|
Noble Bully
II - Shell contract buyout
|
|
(157,647)
|
|
|
—
|
|
|
(157,647)
|
|
|
—
|
|
Total
Adjustments
|
|
(49,989)
|
|
|
(56,702)
|
|
|
322,820
|
|
|
432,183
|
|
Adjusted net loss
attributable to Noble Corporation plc
|
|
$
|
(82,859)
|
|
|
$
|
(89,764)
|
|
|
$
|
(377,770)
|
|
|
$
|
(452,867)
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted EPS Attributable to Noble Corporation plc
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Unadjusted diluted
EPS attributable to Noble Corporation plc
|
|
$
|
(0.13)
|
|
|
$
|
(0.13)
|
|
|
$
|
(2.81)
|
|
|
$
|
(3.59)
|
|
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Loss on
impairment
|
|
0.07
|
|
|
0.04
|
|
|
1.40
|
|
|
2.09
|
|
(Gain) loss on debt
extinguishment
|
|
—
|
|
|
(0.02)
|
|
|
(0.10)
|
|
|
0.01
|
|
Discrete tax
items
|
|
0.05
|
|
|
(0.25)
|
|
|
(0.09)
|
|
|
(0.35)
|
|
Legal
contingencies
|
|
—
|
|
|
—
|
|
|
0.40
|
|
|
—
|
|
Noble Bully
II - Shell contract buyout
|
|
(0.32)
|
|
|
—
|
|
|
(0.32)
|
|
|
—
|
|
Total
Adjustments
|
|
(0.20)
|
|
|
(0.23)
|
|
|
1.29
|
|
|
1.75
|
|
Adjusted diluted EPS
attributable to Noble Corporation plc
|
|
$
|
(0.33)
|
|
|
$
|
(0.36)
|
|
|
$
|
(1.52)
|
|
|
$
|
(1.84)
|
|
View original
content:http://www.prnewswire.com/news-releases/noble-corporation-plc-reports-fourth-quarter-and-full-year-2019-results-301007836.html
SOURCE Noble Corporation