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Noble Corporation plc Announces Third Quarter 2022 Results and Share Repurchase Authorization

November 02, 2022

 

  • Business combination with Maersk Drilling closed on October 3, 2022. Consolidated results for the quarter reflect legacy Noble Corporation prior to the business combination.
  • Initiates shareholder return program with share repurchase authorization of up to $400 million.
  • Q3 Net Income of $34 million, EPS of $0.41 and Adjusted EBITDA of $97 million.
  • Q3 Cash Flow from Operations of $74 million and Free Cash Flow of $44 million.

SUGAR LAND, Texas, Nov. 2, 2022 /PRNewswire/ -- Noble Corporation plc (NYSE: NE, CSE: NOBLE, "Noble", or the "Company") today reported third quarter 2022 results. 

 

Three Months Ended

(in millions, except per share amounts)

September 30,
2022

 

September 30,
2021

 

June 30,
2022

Total Revenue

$                         306

 

$                        250

 

$                        275

Contract Drilling Services Revenue

289

 

231

 

262

Net Income (Loss)

34

 

(24)

 

37

Adjusted EBITDA*

97

 

47

 

84

Adjusted Net Income (Loss)*

41

 

7

 

33

Diluted Earnings (Loss) Per Share

0.41

 

(0.36)

 

0.45

Adjusted Diluted Earnings (Loss) Per Share*

0.50

 

0.10

 

0.40

 

 

 

 

 

 

* A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release.

Robert W. Eifler, President and Chief Executive Officer of Noble Corporation plc, stated "Our third quarter financial results showed continued improvement, driven by rising dayrates and consistently strong utilization. We are excited to have closed the business combination between Noble and Maersk Drilling in early October and are well underway with integration activities. Ensuring seamless service excellence for our customers, maintaining leadership in innovation and sustainability, and capturing $125 million in synergies within two years remain key priorities.We anticipate that the combination of our robust financial profile and high-quality backlog will position Noble very well going forward, and we are pleased to deliver on a key transaction rationale with today's announcement of a $400 million share repurchase authorization."

Third quarter results
Third quarter financial highlights for legacy Noble Corporation on a standalone basis are as follows. Contract drilling services revenue for the third quarter of 2022 totaled $289 million compared to $262 million in the second quarter. Marketed fleet utilization was 89% in the three months ended September 30, 2022 compared to 85% in the previous quarter.  Contract drilling services costs for the third quarter were $186 million, up from $178 million in the second quarter of 2022.  Adjusted EBITDA for the three months ended September 30, 2022 was $97 million compared to $84 million in the second quarter of 2022. Capital expenditures totaled $41 million in the third quarter and $117 million through the nine months ending September 30, 2022. Net cash provided by operating activities for the three months ended September 30, 2022 was $74 million and free cash flow was $44 million.

For additional reference, unaudited historical-basis financial highlights for legacy Maersk Drilling during the third quarter of 2022 included total revenue of $283 million, adjusted EBITDA of $63 million, and capital expenditures of $35 million.

Shareholder return authorization
Noble's Board of Directors has authorized a share repurchase program that allows the Company to repurchase up to $400 million of outstanding Company stock or warrants. The $400 million authorization does not have a fixed expiration, and may be modified, suspended or discontinued at any time. The program does not obligate the Company to acquire any particular amount of shares.

Balance sheet
The company's pro forma balance sheet as of September 30, 2022 when taking into consideration the Business Combination and proceeds from the sale of the five jackups had a net debt balance of approximately $190 million.  In November, we expect to complete the Compulsory Purchase for the remaining shares of Maersk Drilling that were not acquired during the voluntary tender exchange.

As recently disclosed, Noble has received preliminary commitments from a group of banks to enter into a $350 million, 3-year term loan to replace the existing Maersk Drilling syndicated facilities. Additionally, Noble has received a preliminary commitment for a $150 million, 3-year term loan to replace the existing Maersk Drilling loan with Danish Ship Finance. Each loan has an indicative initial interest rate of Term SOFR (secured overnight funding rate) plus 3.50%, with margin increases beginning in year two. The loans remain subject to final documentation and customary closing conditions, which Noble anticipates will be completed during the fourth quarter. 

Operating highlights and backlog
Noble's marketed fleet of nine floaters was 96% contracted through the third quarter, similar to the legacy Maersk Drilling floater fleet which had full contracted utilization across seven marketed floaters.  Contracting activity remains firm, reflecting the tight condition of the high-end drillship market segment, with leading edge dayrates for deepwater rigs well into the low to mid $400,000s per day range.

Noble's jackup utilization was 82% in the third quarter, and current utilization (following the significant transaction-related changes to the composition of our jackup fleet) is now 92% with 12 out of 13 jackups currently under contract. The jackup Noble Resilient was recently awarded a contract for a four well intervention scope in the UK North Sea at a dayrate of $87,500.

Per our fleet status report dated November 2, 2022, Noble's current backlog stands at $3.9 billion.

Outlook
For the fourth quarter of 2022, Noble today announces a guidance range for Adjusted EBITDA of $155 to $175 million. Capital expenditures are expected to range between $65 and $85 million. These estimates reflect the October 3, 2022 closing date of the Maersk Drilling business combination and the October 5, 2022 sale of five jackups to Shelf Drilling.(1)

Commenting on Noble's outlook, Mr. Eifler stated, "Our leadership team's extensive worldwide travel to meet with employees and customers in recent weeks has only reinforced our confidence in the talent that we have assembled and the tremendous opportunity at hand for Noble.  Despite global macroeconomic uncertainty, the fundamentals in our business, particularly in the deepwater segment, remain very promising, and Noble is poised and ready to execute as a new and dynamic leader in offshore drilling."

1 Due to the forward-looking nature of Adjusted EBITDA, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure. Accordingly, the company is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure without unreasonable effort.

Conference call
Noble will host a conference call related to its third quarter 2022 results on Thursday, November 3, 2022, at 8:00 a.m. U.S. Central Time.  Interested parties may dial +1 929-203-0901 and refer to conference ID 31391 approximately 15 minutes prior to the scheduled start time.  Additionally, a live webcast link will be available on the Investor Relations section of the Company's website.  A webcast replay will be accessible for a limited time following the scheduled call. 

For additional information, visit www.noblecorp.com or email investors@noblecorp.com

Successor reporting
Upon emergence from our restructuring on February 5, 2021, Noble adopted fresh-start accounting which resulted in Noble becoming a new reporting entity for accounting and financial reporting purposes.  Accordingly, financial statements and notes after February 5, 2021 are not comparable to financial statements and notes prior to that date. As required by GAAP, results are labelled as "Predecessor" for the period up to February 5, 2021 and "Successor" for all dates after.

Cautionary and Forward-looking statements
The shares may be repurchased under the new repurchase program in open market purchases, privately negotiated transactions, through plans, instructions or contracts established under applicable rules under the Securities Exchange Act of 1934, as amended, through block trades, by effecting a tender offer, by way of accelerated share repurchase transactions or other derivative transactions, or by any combination of the foregoing. The manner, timing, pricing and amount of any repurchases will determined by the Company at its discretion and may be based upon a number of factors, including market conditions, the Company's stock price, earnings, capital requirements, financial conditions, available liquidity and competing uses for cash that may arise in the future, compliance with the Company's debt and other agreements, applicable legal requirements, and other considerations. Noble will effect a capital reduction connection with the repurchase program through a legal sanctioning process that is expected to conclude in November. 

This communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical facts included in this communication, including those regarding future guidance, the offshore drilling market and momentum, contract commitments, commencements, novations, extensions or renewals, contract tenders, share repurchases, plans and objectives of management for future operations, rig mobilizations and scheduling, industry conditions, capital reductions, worldwide economic conditions,  and benefits or results of acquisitions or dispositions are forward-looking statements. When used in this communication, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "prepare," "project," "schedule," "should," "shall" and "will" and similar expressions are intended to be among the statements that identify forward-looking statements.  Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct.  These forward-looking statements speak only as of the date of this communication and we undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law.  We have identified factors, including, but not limited to, the business combination with Maersk Drilling (including but not limited to the  effect of the announcement or the completion of the Business Combination on Noble's business relationships, performance and business generally, the risk that the Business Combination disrupts current plans and potential difficulties in employee retention as a result of the Business Combination, the outcome of any legal proceedings that may be instituted against related to the Business Combination, requirements, conditions or costs that may be imposed in connection with obtaining regulatory approvals in connection with the Business Combination, the ability to implement business plans, forecasts, and other expectations (including with respect to synergies and financial and operational metrics, such as EBITDA and free cash flow) in connection with the Business Combination, and to identify and realize additional opportunities, the failure to realize anticipated benefits of the  Business Combination, the impact of the consummation of the Business Combination on relationships with third parties, and risks associated with assumptions that parties make in connection with the parties' critical accounting estimates and other judgments), the effects of public health threats, such as the ongoing outbreak of COVID-19, and the adverse impact thereof on our business, financial condition and results of operations (including but not limited to our operating costs, supply chain, availability of labor, logistical capabilities, customer demand for our services and industry demand generally, our liquidity, the price of our securities, our ability to access capital markets, and the global economy and financial markets generally), the effects of actions by, or disputes among OPEC+ members with respect to production levels or other matters related to the price of oil, market conditions, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting our drilling contracts, including duration, downtime, dayrates, operating hazards and delays, risks associated with operations outside the US, actions by regulatory authorities, credit rating agencies, customers, joint venture partners, contractors, lenders and other third parties, legislation and regulations affecting drilling operations, compliance with regulatory requirements, violations of anti-corruption laws, shipyard risk and timing, delays in mobilization of rigs, hurricanes and other weather conditions, and the future price of oil and gas, that could cause actual plans or results to differ materially from those included in any forward-looking statements. These factors include those "Risk Factors" referenced or described in the Company's most recent Form 10-K, Form 10-Q's, and other filings with the SEC.  We cannot control such risk factors and other uncertainties, and in many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements.  You should consider these risks and uncertainties when you are evaluating us.

 

NOBLE CORPORATION   plc   (formerly known as Noble   Finco   Limited) AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

 

 

Successor

 

 

Three Months Ended September 30,

 

 

2022

 

2021

Operating revenues

 

 

 

 

Contract drilling services

 

$            289,494

 

$            231,154

Reimbursables and other

 

16,378

 

19,217

 

 

305,872

 

250,371

Operating costs and expenses

 

 

 

 

Contract drilling services

 

186,482

 

188,552

Reimbursables

 

13,284

 

16,462

Depreciation and amortization

 

24,868

 

25,248

General and administrative

 

18,089

 

14,982

Merger and integration costs

 

9,338

 

5,033

(Gain) loss on sale of operating assets, net

 

354

 

3,146

Hurricane losses and (recoveries), net

 

1,896

 

10,441

 

 

254,311

 

263,864

Operating income (loss)

 

51,561

 

(13,493)

Other income (expense)

 

 

 

 

Interest expense, net of amounts capitalized

 

(7,943)

 

(8,870)

Loss on extinguishment of debt, net

 

(196)

 

--

Interest income and other, net

 

3,235

 

973

Income (loss) before income taxes

 

46,657

 

(21,390)

Income tax provision

 

(13,072)

 

(2,275)

Net income (loss)

 

$              33,585

 

$             (23,665)

Per share data

 

 

 

 

Basic:

 

 

 

 

Net income (loss)

 

$                  0.48

 

$                 (0.36)

Diluted:

 

 

 

 

Net income (loss)

 

$                  0.41

 

$                 (0.36)

 

NOBLE CORPORATION   plc   (formerly known as Noble   Finco   Limited) AND   SUBSIDIARIES
CONDENSED   CONSOLIDATED STATEMENTS OF OPERATIONS - CONTINUED
(In thousands, except per share amounts)
(Unaudited)

 

 

 

Successor

 

 

Predecessor

 

 

 

 

Period from

 

 

Period from

 

 

 

 

February 6, 2021

 

 

January 1, 2021

 

 

Nine Months Ended

 

through

 

 

through

 

 

September 30, 2022

 

September 30, 2021

 

 

February 5, 2021

Operating revenues

 

 

 

 

 

 

 

Contract drilling services

 

$            746,992

 

$            515,680

 

 

$              74,051

Reimbursables and other

 

44,263

 

46,467

 

 

3,430

 

 

791,255

 

562,147

 

 

77,481

Operating costs and expenses

 

 

 

 

 

 

 

Contract drilling services

 

530,710

 

456,853

 

 

46,965

Reimbursables

 

37,095

 

41,577

 

 

2,737

Depreciation and amortization

 

77,109

 

64,831

 

 

20,622

General and administrative

 

52,300

 

47,939

 

 

5,727

Merger and integration costs

 

27,916

 

13,786

 

 

--

(Gain) loss on sale of operating assets, net

 

(3,105)

 

3,146

 

 

--

Hurricane losses and (recoveries), net

 

4,701

 

10,441

 

 

--

 

 

726,726

 

638,573

 

 

76,051

Operating income (loss)

 

64,529

 

(76,426)

 

 

1,430

Other income (expense)

 

 

 

 

 

 

 

Interest expense, net of amounts capitalized

 

(23,338)

 

(23,628)

 

 

(229)

Gain on bargain purchase

 

--

 

64,479

 

 

--

Loss on extinguishment of debt, net

 

(196)

 

--

 

 

--

Interest income and other, net

 

4,766

 

7,490

 

 

399

Reorganization items, net

 

--

 

--

 

 

252,051

Income (loss) before income taxes

 

45,761

 

(28,085)

 

 

253,651

Income tax benefit (provision)

 

(11,775)

 

6,631

 

 

(3,423)

Net income (loss)

 

$              33,986

 

$             (21,454)

 

 

$            250,228

Per share data

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

Net income (loss)

 

$                  0.49

 

$                 (0.35)

 

 

$                  1.00

Diluted:

 

 

 

 

 

 

 

Net income (loss)

 

$                  0.42

 

$                 (0.35)

 

 

$                  0.98

 

NOBLE CORPORATION   plc   (formerly known as Noble   Finco   Limited) AND   SUBSIDIARIES
CONDENSED   CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 

 

 

Successor

 

 

September 30, 2022

 

December 31, 2021

ASSETS

 

 

 

 

Current assets

 

 

 

 

Cash and cash equivalents

 

$            422,486

 

$            194,138

Accounts receivable, net

 

274,175

 

200,419

Prepaid expenses and other current assets

 

57,965

 

61,089

Total current assets

 

754,626

 

455,646

Intangible assets

 

25,324

 

61,849

Property and equipment, at cost

 

1,341,132

 

1,555,975

Accumulated depreciation

 

(119,442)

 

(77,275)

Property and equipment, net

 

1,221,690

 

1,478,700

Assets held for sale

 

299,016

 

--

Other assets

 

84,853

 

77,247

Total assets

 

$          2,385,509

 

$          2,073,442

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$             144,498

 

$             120,389

Accrued payroll and related costs

 

36,402

 

48,346

Other current liabilities

 

87,919

 

79,659

Total current liabilities

 

268,819

 

248,394

Long-term debt

 

434,368

 

216,000

Other liabilities

 

133,761

 

108,421

Total liabilities

 

836,948

 

572,815

Commitments and contingencies

 

 

 

 

Total shareholders' equity

 

1,548,561

 

1,500,627

Total liabilities and equity

 

$          2,385,509

 

$          2,073,442

 

NOBLE CORPORATION   plc   (formerly known as Noble   Finco   Limited) AND   SUBSIDIARIES
CONDENSED   CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 

 

Successor

 

 

Predecessor

 

 

 

Period from

 

 

Period from

 

Nine Months Ended

 

February 6, 2021

 

 

January 1, 2021

 

 

through

 

 

through

 

September 30, 2022

 

September 30, 2021

 

 

February 5, 2021

Cash flows from operating activities

 

 

 

 

 

 

Net income (loss)

$             33,986

 

$           (21,454)

 

 

$       250,228

Adjustments to reconcile net income (loss) to net cash flow from operating activities:

 

 

 

 

 

 

Depreciation and amortization

77,109

 

64,831

 

 

20,622

Amortization of intangible assets

36,525

 

37,127

 

 

--

Gain on bargain purchase

--

 

(64,479)

 

 

--

Reorganization items, net

--

 

--

 

 

(280,790)

Changes in components of working capital

 

 

 

 

 

 

Change in taxes receivable

118

 

13,810

 

 

(1,789)

Net changes in other operating assets and liabilities

(37,932)

 

(5,807)

 

 

(33,719)

Net cash provided by (used in) operating activities

109,806

 

24,028

 

 

(45,448)

Cash flows from investing activities

 

 

 

 

 

 

Capital expenditures

(109,235)

 

(117,750)

 

 

(14,629)

Cash acquired in stock-based business combination

--

 

54,970

 

 

--

Proceeds from disposal of assets, net

15,756

 

31,247

 

 

194

Net cash provided by (used in) investing activities

(93,479)

 

(31,533)

 

 

(14,435)

Cash flows from financing activities

 

 

 

 

 

 

Issuance of second lien notes

--

 

--

 

 

200,000

Borrowings on credit facilities

220,000

 

40,000

 

 

177,500

Repayments of debt

(1,828)

 

(27,500)

 

 

(545,000)

Debt issuance costs

--

 

--

 

 

(23,664)

Warrants exercised

784

 

647

 

 

--

Taxes withheld on employee stock transactions

(4,926)

 

--

 

 

(1)

Net cash provided by (used in) financing activities

214,030

 

13,147

 

 

(191,165)

Net increase (decrease) in cash, cash equivalents and restricted cash

230,357

 

5,642

 

 

(251,048)

Cash, cash equivalents and restricted cash, beginning of period

196,722

 

113,993

 

 

365,041

Cash, cash equivalents and restricted cash, end of period

$           427,079

 

$           119,635

 

 

$      113,993

 

NOBLE CORPORATION   plc   (formerly known as Noble   Finco   Limited) AND SUBSIDIARIES
OPERATIONAL INFORMATION
(Unaudited)

 

 

Average Rig Utilization

 

 

 

 

 

 

 

Successor

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

September 30, 2022

 

June 30, 2022

 

September 30, 2021

Floaters

78 %

 

81 %

 

73 %

Jackups

82 %

 

68 %

 

75 %

Total

80 %

 

76 %

 

74 %

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Days

 

 

 

 

 

 

 

Successor

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

September 30, 2022

 

June 30, 2022

 

September 30, 2021

Floaters

792

 

813

 

806

Jackups

606

 

495

 

828

Total

1,398

 

1,308

 

1,634

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Dayrates

 

 

 

 

 

 

 

Successor

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

September 30, 2022

 

June 30, 2022

 

September 30, 2021

Floaters

$           285,362

 

$           266,887

 

$           214,304

Jackups

118,209

 

120,824

 

87,972

Total

$           212,958

 

$           211,626

 

$           150,287

 

NOBLE CORPORATION   plc   (formerly known as Noble   Finco   Limited) AND SUBSIDIARIES
CALCULATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER SHARE
(In thousands, except per share amounts)
(Unaudited)

 

The following tables presents the computation of basic and diluted income (loss) per share:

 

 

 

Successor

 

 

Predecessor

 

 

 

 

 

 

 

 

Period from

 

 

Period from

 

 

Three Months Ended September 30,

 

Nine Months

 

February 6, 2021

 

 

January 1, 2021

 

 

 

Ended

 

through

 

 

through

 

 

2022

 

2021

 

September 30, 2022

 

September 30, 2021

 

 

February 5, 2021

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$        33,585

 

$        (23,665)

 

$          33,986

 

$         (21,454)

 

 

$       250,228

Diluted

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$        33,585

 

$        (23,665)

 

$          33,986

 

$         (21,454)

 

 

$       250,228

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

70,318

 

66,623

 

69,260

 

61,847

 

 

251,115

Dilutive effect of share-based awards

 

3,388

 

--

 

3,388

 

--

 

 

5,456

Dilutive effect of warrants

 

8,220

 

--

 

8,718

 

--

 

 

--

Weighted average shares outstanding - diluted

 

81,926

 

66,623

 

81,366

 

61,847

 

 

256,571

 

 

 

 

 

 

 

 

 

 

 

 

Per share data

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$            0.48

 

$           (0.36)

 

$              0.49

 

$             (0.35)

 

 

$             1.00

Diluted:

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$            0.41

 

$           (0.36)

 

$              0.42

 

$             (0.35)

 

 

$             0.98

 

NOBLE CORPORATION plc (formerly known as Noble Finco Limited) AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION

Certain non-GAAP 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. The Company defines "Adjusted EBITDA" as net income (loss); interest income and other, net; gain (loss) on extinguishment of debt, net; interest expense, net of amounts capitalized; loss on impairment; reorganization items, net; certain corporate projects and legal matters; certain infrequent operational events; and depreciation and amortization expense. We believe that the Adjusted EBITDA measure provides greater transparency of our core operating performance. We prepare Adjusted Diluted Earnings (Loss) per Share by eliminating from Diluted Earnings per Share the impact of a number of non-recurring items we do not consider indicative of our on-going performance. We prepare Adjusted Net Income (Loss) by eliminating from Net Income (Loss) the impact of a number of non-recurring items we do not consider indicative of our on-going performance.

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 November 2, 2022, are appropriate measures of the continuing and normal operations of the Company:

(i)

In the second and third quarter of 2022 and the third quarter of 2021, merger and integration costs; (gain) loss on sale of operating assets, net; hurricane losses and (recoveries), net; intangible contract amortization and discrete tax items.

 

 

(ii)

In addition, the third quarter of 2022 included loss on extinguishment of debt.

 

 

(iii) 

The quarters also included professional services costs related to corporate initiatives.

For the quarter ended September 30, 2022, the Company disclosed free cash flow as a non-GAAP liquidity measure. Free cash flow of $44 million was calculated as Net cash provided by operating activities of $74 million less cash paid for capital expenditures of $30 million for the quarter ended September 30, 2022. 

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   (formerly known as Noble   Finco   Limited) AND   SUBSIDIARIES
NON-GAAP   MEASURES
(In thousands, except per share amounts)
(Unaudited) 

 

Reconciliation of Adjusted EBITDA

 

Successor

 

 

Three Months Ended September 30,

 

Three Months Ended

 

 

2022

 

2021

 

June 30, 2022

Net income (loss)

 

$               33,585

 

$              (23,665)

 

$               37,057

Income tax provision

 

13,072

 

2,275

 

3,908

Interest expense, net of amounts capitalized

 

7,943

 

8,870

 

7,715

Interest income and other, net

 

(3,235)

 

(973)

 

(1,081)

Depreciation and amortization

 

24,868

 

25,248

 

26,636

Intangible contract amortization

 

8,170

 

14,412

 

14,256

Loss on extinguishment of debt

 

196

 

--

 

--

Professional services - corporate projects

 

400

 

1,787

 

145

Merger and integration costs

 

9,338

 

5,033

 

9,057

(Gain) loss on sale of operating assets, net

 

354

 

3,146

 

1,103

Hurricane losses and (recoveries), net

 

1,896

 

10,441

 

(14,407)

Adjusted EBITDA

 

$               96,587

 

$               46,574

 

$               84,389

 

 

Reconciliation of Income Tax (Provision) Benefit

 

Successor

 

 

Three Months Ended September 30,

 

Three Months Ended

 

 

2022

 

2021

 

June 30, 2022

Income tax provision

 

$              (13,072)

 

$                (2,275)

 

$                (3,908)

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

Intangible contract amortization

 

(1,716)

 

(3,027)

 

(2,994)

Hurricane losses and (recoveries), net

 

(398)

 

--

 

(164)

Discrete tax items

 

(10,628)

 

(1,483)

 

(11,105)

Total Adjustments

 

(12,742)

 

(4,510)

 

(14,263)

Adjusted income tax provision

 

$              (25,814)

 

$                (6,785)

 

$              (18,171)

 

NOBLE CORPORATION   plc   (formerly known as Noble   Finco   Limited) AND SUBSIDIARIES
NON-GAAP RECONCILIATION
(In thousands, except per share amounts)
(Unaudited) 

 

Reconciliation of Net Income (Loss)

 

Successor

 

 

Three Months Ended September 30,

 

Three Months Ended

 

 

2022

 

2021

 

June 30, 2022

Net income (loss)

 

$               33,585

 

$              (23,665)

 

$               37,057

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

Intangible contract amortization, net of tax

 

6,454

 

11,385

 

11,262

Professional services - corporate projects

 

400

 

1,787

 

145

Merger and integration costs

 

9,338

 

5,033

 

9,057

(Gain) loss on sale of operating assets, net

 

354

 

3,146

 

1,103

Hurricane losses and (recoveries), net

 

1,498

 

10,441

 

(14,571)

Loss on extinguishment of debt

 

196

 

--

 

--

Discrete tax items

 

(10,628)

 

(1,483)

 

(11,105)

Total Adjustments

 

7,612

 

30,309

 

(4,109)

Adjusted net income (loss)

 

$               41,197

 

$                 6,644

 

$               32,948

 

 

 

 

 

 

 

Reconciliation of Diluted EPS

 

Successor

 

 

Three Months Ended September 30,

 

Three Months Ended

 

 

2022

 

2021

 

June 30, 2022

Unadjusted diluted EPS

 

$                   0.41

 

$                  (0.36)

 

$                   0.45

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

Intangible contract amortization

 

0.08

 

0.17

 

0.14

Professional services - corporate projects

 

--

 

0.02

 

--

Merger and integration costs

 

0.12

 

0.08

 

0.11

(Gain) loss on sale of operating assets, net

 

--

 

0.05

 

0.01

Hurricane losses and (recoveries), net

 

0.02

 

0.16

 

(0.18)

Loss on extinguishment of debt

 

--

 

--

 

--

Discrete tax items

 

(0.13)

 

(0.02)

 

(0.13)

Total Adjustments

 

0.09

 

0.46

 

(0.05)

Adjusted diluted EPS

 

$                   0.50

 

$                   0.10

 

$                   0.40

 

 

 

 

 

 

 

Reconciliation of Free Cash Flow

 

Successor

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 2022

 

June 30, 2022

 

September 30, 2022

Net cash provided by operating activities

 

$               73,507

 

$               88,112

 

$             109,806

Capital expenditures

 

(29,710)

 

(32,480)

 

(109,235)

Free cash flow

 

$               43,797

 

$               55,632

 

$                    571

 

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Contact Noble Corporation plc
Ian Macpherson
Vice President - Investor Relations
+1 713-239-6507
imacpherson@noblecorp.com

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. Additional information on Noble is available at www.noblecorp.com.

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