SUGAR LAND, Texas, Jan. 21, 2023 /PRNewswire/ -- Noble Corporation
plc ("Noble") (CSE: NOBLE, NYSE: NE) today provides an operational
and financial update for the fourth quarter of 2022 as well as
recent operational and contracting highlights and updates on its
prior guidance for Adjusted EBITDA for the fourth quarter of
2022.
In accordance with Danish legal and stock exchange requirements,
Noble announced that, although Noble has not completed its
preparation of audited financial statements for the fourth quarter
of 2022, it has determined, based on preliminary results, that it
expects Adjusted EBITDA (a non-GAAP financial measure) to be
between $140 and $150 million, rather than between $155 and $175
million as previously disclosed. The reduction is primarily
related to the previously reported mechanical issues on the
Noble Regina Allen as discussed further below.
As of December 31, 2022 Noble's
debt was $673 million and cash and
cash equivalents was $470 million,
resulting in a net debt balance of $203
million. During the fourth quarter, Noble executed on over
$85 million of share repurchases
(including the compulsory purchase of legacy Maersk Drilling
shareholders in November and open market share repurchases
conducted during December pursuant to Noble's previously announced
share repurchase program).
Noble also provides the following operational and contracting
updates. The drillship Noble Gerry de
Souza is expected to commence a new contract in
Nigeria with an undisclosed
operator with a firm duration of nine months and with unpriced
options extending into Q3 2024.
The drillship Noble Stanley
Lafosse has received a commitment from an undisclosed
operator for a six-well work program in the US Gulf of Mexico. This
scope is expected to commence around June
2023 and is expected to keep the rig busy until mid-2024.
This contract also includes five, one-well operations options at
mutually agreed dayrates. The firm backlog associated with the
contract is estimated to be approximately $148 million.
The drillship Noble Faye
Kozak has been awarded a one-well contract with Kosmos
in the US Gulf of Mexico with a minimum duration of 50 days at a
dayrate of $450,000. This contract is
scheduled to commence in Q2 or Q3 2023 in direct continuation of
the rig's current work. Additionally, QuarterNorth Energy has
exercised one option well, with one option well remaining.
The drillship Noble Globetrotter I is expected to
commence its previously disclosed contract with Petronas in
Mexico in late January, later than
previously anticipated due to permitting delays.
Additionally, the rig has been awarded a new contract with an
undisclosed operator for 70 days of plug & abandonment work in
the US Gulf of Mexico, which is planned to commence in July 2023.
As previously reported, the jackup Noble Regina Allen
experienced a mechanical failure with the jacking system on one of
its legs. The rig has been safely demobilized to a port in
Trinidad with repair plans under
development. The rig has been off dayrate since mid-December and
its contract has been terminated due to extended downtime. While
the rig has standard insurance coverage pertaining to repairs,
there is no insurance for loss-of-hire. Noble's efforts are focused
on repairing and positioning the rig for potential redeployment in
the second half of 2023, although timing is uncertain.
Information regarding Adjusted EBITDA is based on preliminary
unaudited information and management estimates for the fiscal
quarter ended December 31, 2022 and
is subject to change. We have provided a range, rather than a
specific amount, for the preliminary results described above
because we have not completed our preparation of audited financial
statements for the fourth quarter of 2022 and, as a result, our
final results upon completion of our closing procedures may vary
from the preliminary estimates.
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 and its predecessors have been engaged in the
contract drilling of oil and gas wells since 1921. Noble
performs, through its subsidiaries, contract drilling services with
a fleet of offshore drilling units focused largely on
ultra-deepwater and high specification jackup drilling
opportunities in both established and emerging regions worldwide.
For further information visit www.noblecorp.com or email
investors@noblecorp.com.
NON-GAAP MEASURES
The Company defines "Adjusted
EBITDA" as income (loss) from continuing operations before income
taxes; interest income and other, net; gain (loss) on
extinguishment of debt, net; interest expense, net of amounts
capitalized; loss on impairment; pre-petition charges; merger and
integration costs; reorganization items, net; certain corporate
legal matters; and depreciation and amortization expense. We
believe the Company's Adjusted EBITDA measure provides greater
transparency of our core operating performance. Because we have not
completed the final preparation and audit of our financial
statements for the fourth quarter, we are unable to present a
quantitative reconciliation of Adjusted EBITDA to income (loss)
from continuing operations before income taxes, the most directly
comparable GAAP financial measure.
IMPORTANT INFORMATION
This announcement is for
information purposes only and does not constitute or contain any
invitation, solicitation, recommendation, offer or advice to any
person to subscribe for or otherwise acquire or dispose of any
securities of Noble.
Certain statements in this announcement, including statements
concerning future guidance, year-end financial expectations,
contract commencement dates and duration, rig deployments, and rig
repair timing, are, and other statements in this announcement,
including any attachments hereto, may constitute, forward-looking
statements. Forward-looking statements are statements (other than
statements of historical fact) relating to future events and Noble
and its subsidiaries's (collectively, the "Noble Group")
anticipated or planned financial and operational performance. The
words "targets", "believes", "continues", "expects", "aims",
"intends", "plans", "seeks", "will", "may", "might", "anticipates",
"would", "could", "should", "estimates", "projects", "potentially"
or similar expressions or the negatives thereof, identify certain
of these forward-looking statements. The absence of these words,
however, does not mean that the statements are not forward-looking.
Other forward-looking statements can be identified in the context
in which the statements are made.
Although Noble believes that the expectations reflected in these
forward-looking statements are reasonable as of the date of this
announcement, such forward-looking statements are based on Noble's
current expectations, estimates, forecasts, assumptions and
projections about the Noble Group's business and the industry in
which the Noble Group operates and/or which has been extracted from
publications, reports and other documents prepared by the Noble
Group and are not guarantees of future performance or development
and involve known and unknown risks, uncertainties and other
important factors beyond the Noble Group's control that could cause
the Noble Group's actual results, performance or achievements to
differ materially from any future results, performance or
achievements expressed or implied by such forward-looking
statements.
Any forward-looking statements included in this announcement,
including any attachment hereto, speak only as of today. Noble does
not intend, and does not assume, any obligations to update any
forward-looking statements contained herein, except as may be
required by law or the rules of the New York Stock Exchange or
Nasdaq Copenhagen. All subsequent written and oral forward-looking
statements attributable to Noble or to persons acting on its behalf
are expressly qualified in their entirety by the cautionary
statements referred to above and contained in this announcement,
including any attachment hereto.
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