LONDON, May 6, 2020 /PRNewswire/ -- Noble Corporation plc
(NYSE: NE, the Company) today reported a net loss attributable to
the Company for the three months ended March
31, 2020 (first quarter) of $1.1
billion, or $4.25 per diluted
share, on total revenues of $281
million.
Results for the first quarter included net after tax unfavorable
items totaling $977 million, or
$3.91 per diluted share – including a
pre-tax non-cash charge totaling $1.1
billion ($1.024 billion, or
$4.10 per diluted share on an
after-tax basis) relating to the impairment of the semisubmersible
rigs Noble Danny Adkins and
Noble Jim Day, the drillships
Noble Bully I and Noble Bully II, and certain capital
spares; partially offset by tax benefits totaling $47 million, or $0.19 per diluted share, including a benefit of
$43 million, relating primarily to
the application of the Coronavirus Aid, Relief, and Economic
Security Act (the "CARES Act") provisions passed by the US Congress
to address the adverse economic impact resulting from the COVID-19
pandemic. Excluding the impact of the aforementioned items, Noble
Corporation plc would have reported a net loss attributable to the
Company for the three months ended March 31,
2020, of $86 million, or
$0.34 per diluted share.
The adjusted results for the first quarter compared to 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. Excluding the
$50 million of net favorable items,
the adjusted net loss attributable to Noble Corporation plc for the
fourth quarter of 2019 would have been $83
million, or $0.33 per diluted
share, on total revenues of $287
million.
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 of revenues, net
loss, income tax and diluted earnings per share for the first
quarter of 2020 and the first and fourth quarters of 2019.
First quarter earnings before interest, taxes, depreciation and
amortization (EBITDA) totaled $91
million compared to $83
million in the fourth quarter, excluding the impact of the
Noble Bully II contract buyout, while contract drilling
margin improved to 40 percent from 36 percent over the period.
Julie J. Robertson, Chairman,
President and Chief Executive Officer of Noble Corporation plc,
noted, "Total fleet utilization and average daily revenues in the
first quarter were largely unchanged from the fourth quarter of
2019, with limited impact from the significant dislocation
experienced in the global oil and gas market.
"The first quarter results were aided by an exceptional effort
to manage our global operation in the face of mounting risks and
uncertainties created by the COVID-19 pandemic. The effort, which
included professionals throughout our Operations, HSE, Human
Resources and Supply Chain disciplines, and many among our offshore
personnel who agreed to extended crew rotation schedules,
demonstrates the commitment and dedication that characterizes the
entire Noble organization.
"Despite the challenges posed by the unprecedented crisis that
our industry currently faces, we remain customer focused and
committed to operational excellence and efficiency. We have
recently reduced our G&A and shore-based support burden by
approximately $25 million on an
annualized basis and continue to seek additional cost efficiency
measures to further streamline our organization for current market
activity.
"We also remain focused on addressing our capital
structure. To that end, we have engaged Evercore as a
financial advisor and are actively working with them to evaluate
alternatives to enhance our liquidity position and reduce our total
amount of debt and corresponding interest costs. These alternatives
include, but are not limited to, potential capital exchange
transactions as well as a more comprehensive debt
restructuring."
Contract drilling services revenues for the first quarter
totaled $267 million compared to
$441 million in the fourth quarter of
2019, or an adjusted $274 million
after the exclusion of $167 million
relating to the Noble Bully II contract buyout by Shell. The
slight decrease in revenues, when compared to the adjusted fourth
quarter result, was due largely to a decline in total fleet
operating days and a modest increase in fleet downtime. Fewer
available days in the first quarter, due to the retirement of the
Noble Joe Beall, and fewer calendar days kept total fleet
utilization flat at 77 percent when compared to the previous
quarter.
Contract drilling services costs for the first quarter were
$161 million compared to $182 million in the fourth quarter of 2019, which
had been adjusted to $175 million for
the $7 million of costs related to
the Noble Bully II contract buyout. The eight percent
decline from adjusted fourth quarter costs was driven primarily by
lower repair and maintenance costs and reduced expenditures
relating to operations support. These cost reductions were
partially offset by a full quarter of operations on the drillship
Noble Don Taylor following the rig's relocation to
Guyana.
Operating Highlights
The Company's 12 floating rigs achieved utilization of 58
percent in the first quarter compared to 60 percent in the fourth
quarter. Excluding three cold stacked units, utilization in the
first and fourth quarters was 78 percent and 80 percent,
respectively. In addition to the effect of fewer calendar days in
the first quarter, there was a four percent decline in operating
days when compared to the fourth quarter, due largely to reduced
days for the drillship Noble Bully II, which spent the
quarter mobilizing to a new stacking location. Partially offsetting
the decline in operating days was a full quarter of operations on
the Noble Don Taylor offshore Guyana. At the conclusion of the first
quarter, seven of the Company's nine actively marketed rigs were
contracted. In April, operations on the Noble Tom Madden
offshore Guyana were placed on
standby for up to 90 days at a reduced dayrate.
The Company's 13 jackup rigs (before the retirement of the
Noble Joe Beall) experienced marginally fewer operating days
when compared to the fourth quarter. A reduction in operating days
on each of the rigs Noble Joe Beall, Noble Regina Allen, Noble Johnny Whitstine and Noble Hans
Deul, was largely offset by increased activity on the Noble
Tom Prosser, Noble Houston
Colbert and Noble Joe
Knight. Due to the retirement of the Noble Joe
Beall and fewer calendar days in the quarter, utilization
finished the first quarter at 94 percent compared to 93 percent in
the fourth quarter. During the first quarter, the Noble Hans
Deul and Noble Sam Turner
completed contracts in the UK North Sea and have been warm stacked.
Following the conclusion of the quarter, the Noble Sam
Hartley and Noble Houston
Colbert were warm stacked after completing work
assignments in April 2020 and
operations on the Noble Tom Prosser offshore Australia were placed on standby at a reduced
dayrate for up to 365 days.
The jackup rig Noble Scott
Marks, located offshore Saudi
Arabia, will be suspended at the request of its client. The
contract suspension, which covers a period of up to 365 days, is
expected to commence during the first half of May 2020, following the conclusion of the well in
progress. During the suspension period, no dayrate will be paid.
However, the Company has the right to market the rig in pursuit of
other work opportunities in the region.
Backlog, Capital and Balance Sheet
At March 31, 2020, the Company
reported an estimated revenue backlog of $1.5 billion, including $1.0 billion resulting from the floating fleet
and $500 million from the jackup
fleet. An estimated 51 percent of the available days remaining in
2020 were contracted, including 48 percent and 55 percent of the
floating and jackup fleet days, respectively.
Capital expenditures for the three months ended March 31, 2020 totaled $25
million compared to $48
million in the fourth quarter of 2019.
The Company concluded the first quarter with cash and
equivalents of $176 million and
maintained the ability to borrow up to an additional $397 million under its 2017 Credit Facility.
Borrowings outstanding on the 2017 Credit Facility at March 31, 2020 were $445
million.
The Company recognized an income tax benefit of $43 million as a result of the application of the
CARES Act in the first quarter of 2020, which is comprised
primarily of a current income tax receivable of $151 million, which we expect to receive within
the next 12 months, partially offset by non-cash deferred tax
expense of $108 million related to
net operating loss utilization.
In April 2020, the Company reached
an agreement with the lender under the seller-financed secured
loans associated with the February
2019 and September 2018
purchases of the jackups Noble Joe
Knight and Noble Johnny
Whitstine, respectively, to pay off the loans in
exchange for a discount to the outstanding loan balance. The
Company made a payment in the amount of 85% of the outstanding
principal amount of the loans plus accrued and unpaid interest, and
upon the lender's receipt of such payment, the remaining principal
balance under each loan was reduced to $1, interest ceased accruing, and the financial
covenants ceased to apply. As long as certain events
specified in the related deed of release do not occur within the
90-day period following the payment date, then the loans will be
terminated, and all security interests will be released. The
payoff amount including the amount paid for principal and all
outstanding interest payable was approximately $102 million. The Company borrowed $100 million on its 2017 Credit Facility,
increasing pro forma borrowings outstanding to $545 million, with the ability to borrow up to an
additional $297 million.
We continually monitor compliance with the covenants under our
2017 Credit Facility and our senior notes. While we are in
compliance with all covenants today, the negative impact on our
financial condition of the oversupply of oil, and the substantial
decline in demand for oil as a result of COVID-19 and related
mitigation steps, raises significant uncertainty as to whether we
can remain in compliance throughout 2020.
Outlook
Commenting on the state of the offshore drilling industry, Ms.
Robertson added, "The reduction in demand as a result of the
COVID-19 pandemic and the precipitous escalation in global crude
oil supplies have placed the oil and gas industry in a state of
heightened duress. The consequences of this combination of
detrimental events are increasingly visible, and the offshore
drilling industry will endure another period of depressed business
activity for a duration of time that remains difficult to
forecast.
"We are committed to continuing our efforts to establish and
enforce the most effective measures for maintaining the health and
safety of our global offshore and shore-based employees, service
providers and customers. Our dedication to strong and consistent
operational excellence will be of paramount importance through this
challenging time. As we have for the duration of this
extended downturn, we will continue to engage with and support our
customers as they execute on their current drilling plans as well
as evaluate their offshore drilling requirements for 2020 and
beyond."
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 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, capital markets transactions, debt restructurings,
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,
public health threats including the COVID-19 (Coronavirus Disease
2019) pandemic, our ability to comply with the covenants under our
credit facility and other indebtedness, our ability to continue as
a going concern, 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
first quarter 2020 results on Thursday, May
7, 2020, 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: 2375493, 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, May 7, 2020, beginning at
11:00 a.m. U.S. Central Daylight
Time, through Thursday, June 4, 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: 2375493. 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
March 31,
|
|
|
2020
|
|
2019
|
Operating
revenues
|
|
|
|
|
Contract drilling
services
|
|
$
|
267,364
|
|
|
$
|
270,501
|
|
Reimbursables and
other
|
|
13,947
|
|
|
12,387
|
|
|
|
281,311
|
|
|
282,888
|
|
Operating costs
and expenses
|
|
|
|
|
Contract drilling
services
|
|
161,145
|
|
|
171,728
|
|
Reimbursables
|
|
11,684
|
|
|
9,395
|
|
Depreciation and
amortization
|
|
103,681
|
|
|
109,578
|
|
General and
administrative
|
|
17,839
|
|
|
15,999
|
|
Loss on
impairment
|
|
1,119,517
|
|
|
—
|
|
|
|
1,413,866
|
|
|
306,700
|
|
Operating
loss
|
|
(1,132,555)
|
|
|
(23,812)
|
|
Other income
(expense)
|
|
|
|
|
Interest expense, net
of amounts capitalized
|
|
(70,880)
|
|
|
(70,244)
|
|
Gain on
extinguishment of debt, net
|
|
—
|
|
|
31,266
|
|
Interest income and
other, net
|
|
(2,282)
|
|
|
2,506
|
|
Loss from
continuing operations before income taxes
|
|
(1,205,717)
|
|
|
(60,284)
|
|
Income tax benefit
(provision)
|
|
143,040
|
|
|
(2,865)
|
|
Net loss from
continuing operations
|
|
(1,062,677)
|
|
|
(63,149)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
(3,821)
|
|
Net
loss
|
|
(1,062,677)
|
|
|
(66,970)
|
|
Net income
attributable to noncontrolling interests
|
|
—
|
|
|
(3,919)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(1,062,677)
|
|
|
$
|
(70,889)
|
|
Net loss attributable
to Noble Corporation plc
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(1,062,677)
|
|
|
$
|
(67,068)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
(3,821)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(1,062,677)
|
|
|
$
|
(70,889)
|
|
Per share
data
|
|
|
|
|
Basic:
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(4.25)
|
|
|
$
|
(0.27)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
(0.02)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(4.25)
|
|
|
$
|
(0.29)
|
|
Diluted:
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(4.25)
|
|
|
$
|
(0.27)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
(0.02)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(4.25)
|
|
|
$
|
(0.29)
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In
thousands)
(Unaudited)
|
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
ASSETS
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
175,927
|
|
|
$
|
104,621
|
|
Accounts receivable,
net
|
|
208,817
|
|
|
198,665
|
|
Prepaid expenses and
other current assets
|
|
236,569
|
|
|
118,821
|
|
Total current
assets
|
|
621,313
|
|
|
422,107
|
|
Property and
equipment, at cost
|
|
8,692,837
|
|
|
10,306,625
|
|
Accumulated
depreciation
|
|
(2,157,499)
|
|
|
(2,572,701)
|
|
Property and
equipment, net
|
|
6,535,338
|
|
|
7,733,924
|
|
Other
assets
|
|
104,448
|
|
|
128,467
|
|
Total
assets
|
|
$
|
7,261,099
|
|
|
$
|
8,284,498
|
|
|
LIABILITIES AND
EQUITY
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
|
260,958
|
|
|
$
|
62,505
|
|
Accounts
payable
|
|
87,871
|
|
|
108,208
|
|
Accrued payroll and
related costs
|
|
40,265
|
|
|
56,056
|
|
Other current
liabilities
|
|
270,511
|
|
|
290,159
|
|
Total current
liabilities
|
|
659,605
|
|
|
516,928
|
|
Long-term
debt
|
|
3,692,479
|
|
|
3,779,499
|
|
Other
liabilities
|
|
312,483
|
|
|
329,099
|
|
Total
liabilities
|
|
4,664,567
|
|
|
4,625,526
|
|
Commitments and
contingencies
|
|
|
|
|
Total shareholders'
equity
|
|
2,596,532
|
|
|
3,658,972
|
|
Total liabilities
and equity
|
|
$
|
7,261,099
|
|
|
$
|
8,284,498
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
Net loss
|
|
$
|
(1,062,677)
|
|
|
$
|
(66,970)
|
|
Adjustments to
reconcile net loss to net cash flow from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
103,681
|
|
|
109,578
|
|
Loss on
impairment
|
|
1,119,517
|
|
|
—
|
|
Gain on
extinguishment of debt, net
|
|
—
|
|
|
(31,266)
|
|
Changes in components
of working capital:
|
|
|
|
|
Change in taxes
receivable
|
|
(120,838)
|
|
|
4,204
|
|
Net changes in other
operating assets and liabilities
|
|
(40,493)
|
|
|
(56,321)
|
|
Net cash used in
operating activities
|
|
(810)
|
|
|
(40,775)
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(36,461)
|
|
|
(96,793)
|
|
Proceeds from
disposal of assets, net
|
|
—
|
|
|
7,930
|
|
Net cash used in
investing activities
|
|
(36,461)
|
|
|
(88,863)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings on credit
facilities
|
|
110,000
|
|
|
350,000
|
|
Repayments of senior
notes
|
|
—
|
|
|
(400,000)
|
|
Debt issuance
costs
|
|
—
|
|
|
(90)
|
|
Dividends paid to
noncontrolling interests
|
|
—
|
|
|
(5,020)
|
|
Cash paid to settle
equity awards
|
|
(1,010)
|
|
|
—
|
|
Taxes withheld on
employee stock transactions
|
|
(413)
|
|
|
(2,763)
|
|
Net cash provided by
(used in) financing activities
|
|
108,577
|
|
|
(57,873)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
71,306
|
|
|
(187,511)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
105,924
|
|
|
375,907
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
177,230
|
|
|
$
|
188,396
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
FINANCIAL AND
OPERATIONAL INFORMATION BY SEGMENT
(In thousands,
except operating statistics)
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
Three Months Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2019
|
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
267,364
|
|
|
$
|
—
|
|
|
$
|
267,364
|
|
|
$
|
270,501
|
|
|
$
|
—
|
|
|
$
|
270,501
|
|
|
$
|
441,312
|
|
|
$
|
—
|
|
|
$
|
441,312
|
|
Reimbursables and
other
|
|
13,947
|
|
|
—
|
|
|
13,947
|
|
|
12,387
|
|
|
—
|
|
|
12,387
|
|
|
12,776
|
|
|
—
|
|
|
12,776
|
|
|
|
$
|
281,311
|
|
|
$
|
—
|
|
|
$
|
281,311
|
|
|
$
|
282,888
|
|
|
$
|
—
|
|
|
$
|
282,888
|
|
|
$
|
454,088
|
|
|
$
|
—
|
|
|
$
|
454,088
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
161,145
|
|
|
$
|
—
|
|
|
$
|
161,145
|
|
|
$
|
171,728
|
|
|
$
|
—
|
|
|
$
|
171,728
|
|
|
$
|
181,821
|
|
|
$
|
—
|
|
|
$
|
181,821
|
|
Reimbursables
|
|
11,684
|
|
|
—
|
|
|
11,684
|
|
|
9,395
|
|
|
—
|
|
|
9,395
|
|
|
10,506
|
|
|
—
|
|
|
10,506
|
|
Depreciation and
amortization
|
|
101,108
|
|
|
2,573
|
|
|
103,681
|
|
|
106,086
|
|
|
3,492
|
|
|
109,578
|
|
|
103,778
|
|
|
2,962
|
|
|
106,740
|
|
General and
administrative
|
|
17,839
|
|
|
—
|
|
|
17,839
|
|
|
15,999
|
|
|
—
|
|
|
15,999
|
|
|
18,976
|
|
|
—
|
|
|
18,976
|
|
Loss on
impairment
|
|
1,119,517
|
|
|
—
|
|
|
1,119,517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,784
|
|
|
—
|
|
|
19,784
|
|
|
|
$
|
1,411,293
|
|
|
$
|
2,573
|
|
|
$
|
1,413,866
|
|
|
$
|
303,208
|
|
|
$
|
3,492
|
|
|
$
|
306,700
|
|
|
$
|
334,865
|
|
|
$
|
2,962
|
|
|
$
|
337,827
|
|
Operating income
(loss)
|
|
$
|
(1,129,982)
|
|
|
$
|
(2,573)
|
|
|
$
|
(1,132,555)
|
|
|
$
|
(20,320)
|
|
|
$
|
(3,492)
|
|
|
$
|
(23,812)
|
|
|
$
|
119,223
|
|
|
$
|
(2,962)
|
|
|
$
|
116,261
|
|
|
|
Operating
statistics
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
94%
|
|
93%
|
|
93%
|
Operating
Days
|
|
1,082
|
|
923
|
|
1,096
|
Average
Dayrate
|
|
$131,253
|
|
$127,150
|
|
$129,898
|
Floaters(1):
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
58%
|
|
60%
|
|
60%
|
Operating
Days
|
|
637
|
|
647
|
|
664
|
Average
Dayrate
|
|
$196,759
|
|
$236,715
|
|
$450,362
|
Total(1):
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
77%
|
|
76%
|
|
77%
|
Operating
Days
|
|
1,719
|
|
1,570
|
|
1,760
|
Average
Dayrate
|
|
$155,526
|
|
$172,305
|
|
$250,760
|
|
(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
March 31,
|
|
|
2020
|
|
2019
|
Numerator:
|
|
|
|
|
Basic
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(1,062,677)
|
|
|
$
|
(67,068)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
(3,821)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(1,062,677)
|
|
|
$
|
(70,889)
|
|
Diluted
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(1,062,677)
|
|
|
$
|
(67,068)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
(3,821)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(1,062,677)
|
|
|
$
|
(70,889)
|
|
Denominator:
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
250,047
|
|
|
248,251
|
|
Weighted average
shares outstanding - diluted
|
|
250,047
|
|
|
248,251
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
Basic:
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(4.25)
|
|
|
$
|
(0.27)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
(0.02)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(4.25)
|
|
|
$
|
(0.29)
|
|
Diluted:
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(4.25)
|
|
|
$
|
(0.27)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
(0.02)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(4.25)
|
|
|
$
|
(0.29)
|
|
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
May 6, 2020, and discussed in the related conference call on
May 7, 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 fourth quarter of 2019, an
impairment of a rig and capital spares and the contract buyout with
Shell; and
(iii) In the first quarter of 2020, an impairment
on four of our rigs and certain capital spare equipment, and
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
RECONCILIATION
(In thousands,
except per share amounts)(Unaudited)
|
|
Reconciliation of
Total Revenue
|
|
Three months
ended
March
31,
|
|
Three months
ended
December
31,
|
|
|
2020
|
|
2019
|
|
2019
|
Total
revenue
|
|
$
|
281,311
|
|
|
$
|
282,888
|
|
|
$
|
454,088
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Noble Bully II
- Shell contract buyout
|
|
—
|
|
|
—
|
|
|
(166,858)
|
|
Total
Adjustments
|
|
—
|
|
|
—
|
|
|
(166,858)
|
|
Adjusted total
revenue
|
|
$
|
281,311
|
|
|
$
|
282,888
|
|
|
$
|
287,230
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Benefit (Provision)
|
|
Three Months
Ended
March
31,
|
|
Three Months
Ended
December
31,
|
|
|
2020
|
|
2019
|
|
2019
|
Income tax benefit
(provision)
|
|
$
|
143,040
|
|
|
$
|
(2,865)
|
|
|
$
|
1,378
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Loss on
impairment
|
|
(95,630)
|
|
|
—
|
|
|
(2,630)
|
|
Gain on debt
extinguishment
|
|
—
|
|
|
6,566
|
|
|
—
|
|
Discrete tax
items
|
|
(47,240)
|
|
|
—
|
|
|
12,485
|
|
Noble Bully
II - Shell contract buyout
|
|
—
|
|
|
—
|
|
|
2,452
|
|
Total
Adjustments
|
|
(142,870)
|
|
|
6,566
|
|
|
12,307
|
|
Adjusted income tax
benefit
|
|
$
|
170
|
|
|
$
|
3,701
|
|
|
$
|
13,685
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Loss Attributable to Noble Corporation plc
|
|
Three Months
Ended
March
31,
|
|
Three Months
Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2019
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(1,062,677)
|
|
|
$
|
(70,889)
|
|
|
$
|
(32,870)
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Loss on impairment,
net of tax
|
|
1,023,887
|
|
|
—
|
|
|
17,154
|
|
Gain on debt
extinguishment
|
|
—
|
|
|
(24,700)
|
|
|
—
|
|
Net income
attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
78,019
|
|
Discrete tax
items
|
|
(47,240)
|
|
|
—
|
|
|
12,485
|
|
Noble Bully II
- Shell contract buyout
|
|
—
|
|
|
—
|
|
|
(157,647)
|
|
Total
Adjustments
|
|
976,647
|
|
|
(24,700)
|
|
|
(49,989)
|
|
Adjusted net loss
attributable to Noble Corporation plc
|
|
$
|
(86,030)
|
|
|
$
|
(95,589)
|
|
|
$
|
(82,859)
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted EPS Attributable to Noble Corporation plc
|
|
Three Months
Ended
March
31,
|
|
Three Months
Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2019
|
Unadjusted diluted
EPS attributable to Noble Corporation plc
|
|
$
|
(4.25)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Loss on
impairment
|
|
4.10
|
|
|
—
|
|
|
0.07
|
|
Gain on debt
extinguishment
|
|
—
|
|
|
(0.10)
|
|
|
—
|
|
Discrete tax
items
|
|
(0.19)
|
|
|
—
|
|
|
0.05
|
|
Noble Bully
II - Shell contract buyout
|
|
—
|
|
|
—
|
|
|
(0.32)
|
|
Total
Adjustments
|
|
3.91
|
|
|
(0.10)
|
|
|
(0.20)
|
|
Adjusted diluted EPS
attributable to Noble Corporation plc
|
|
$
|
(0.34)
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.33)
|
|
View original
content:http://www.prnewswire.com/news-releases/noble-corporation-plc-reports-first-quarter-2020-results-301054239.html
SOURCE Noble Corporation