- Full Year 2023 Net Income of $482
million, Adjusted EBITDA of $810
million, cash provided by operating activities of
$574 million, and Free Cash Flow of
$184 million.
- Fourth Quarter Net Income of $150
million, Adjusted EBITDA of $201
million, cash provided by operating activities of
$287 million, and Free Cash Flow of
$165 million.
- Maersk Drilling synergy target increased from $125 million to $150
million; integration process nearing a highly successful
conclusion.
- Over $500 million in new contract
awards since November, with total backlog at $4.6 billion.
- Full Year 2024 Guidance provided as follows: Total Revenue
$2,550 to $2,700 million, Adjusted EBITDA $925 to $1,025
million, Capital Additions (net of reimbursements)
$400 to $440
million.
SUGAR
LAND, Texas, Feb. 22,
2024 /PRNewswire/ -- Noble Corporation plc
(NYSE: NE, CSE: NOBLE, "Noble", or the "Company") today reported
fourth quarter and full year 2023 results.
|
|
Three Months
Ended
|
(in millions, except
per share amounts)
|
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
Total
Revenue
|
|
$
643
|
|
$
697
|
|
$
623
|
Contract Drilling
Services Revenue
|
|
609
|
|
671
|
|
586
|
Net Income
(Loss)
|
|
150
|
|
158
|
|
135
|
Adjusted
EBITDA*
|
|
201
|
|
283
|
|
157
|
Adjusted Net Income
(Loss)*
|
|
56
|
|
127
|
|
61
|
Basic Earnings (Loss)
Per Share
|
|
1.06
|
|
1.14
|
|
1.02
|
Diluted Earnings (Loss)
Per Share
|
|
1.03
|
|
1.09
|
|
0.92
|
Adjusted Diluted
Earnings (Loss) Per Share*
|
|
0.39
|
|
0.87
|
|
0.41
|
|
|
|
|
|
|
|
* 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
fourth quarter results brought full year 2023 revenue and Adjusted
EBITDA toward the upper end of our guidance range and capped a year
of strong operational performance and Free Cash Flow generation.
The Maersk Drilling integration, which is now substantially
complete, has been extremely successful, and I would like to
congratulate and thank our employees for this exceptional team
performance during 2023 which demonstrated the value and the
exciting potential of the new Noble."
Fourth Quarter Results
Contract drilling services
revenue for the fourth quarter of 2023 totaled $609 million compared to $671 million in the third quarter, with the
sequential decrease driven by lower utilization. Marketed fleet
utilization was 68% in the three months ended December 31,
2023, compared to 78% in the previous quarter. Contract drilling
services costs for the fourth quarter were $374 million, a slight increase versus
$354 million the third quarter. Net
income decreased to $150 million in
the fourth quarter, down from $158
million in the third quarter, and Adjusted EBITDA decreased
to $201 million in the fourth
quarter, down from $283 million in
the third quarter. Net cash provided by operating activities in
the fourth quarter was $287
million, net capital expenditures were $123 million, and free cash flow (non-GAAP) was
$165 million.
Balance Sheet and Capital Allocation
The Company's
balance sheet as of December 31, 2023, reflected total debt
principal value of $600 million and
cash (and cash equivalents) of $361
million. Share repurchases totaled $15 million during the fourth quarter, bringing
2023 year-to-date share repurchases to $95
million. Total capital returned to shareholders between
share repurchases (including the Maersk Drilling squeeze-out) and
dividends from the fourth quarter of 2022 through the fourth
quarter of 2023 equaled $283
million.
Today, Noble's Board of Directors declared a quarterly interim
dividend of $0.40 per share for the
first quarter of 2024. This dividend is expected to be paid on
March 21, 2024, to shareholders of record at close of business
on March 08, 2024. Future quarterly dividends and other
shareholder returns will be subject to, amongst other things,
approval by the Board of Directors, and may be modified as market
conditions dictate.
Operating Highlights and Backlog
Noble's marketed
fleet of sixteen floaters was 75% contracted through the fourth
quarter, compared with 92% in the prior quarter due to downtime
between contracts. Recent backlog additions have substantially
reduced the percentage of uncommitted days across our marketed
floater fleet in 2024 to approximately 20%, with most of Noble's
remaining availability for this year attributable to the Noble
Globetrotter I, Noble Globetrotter II, and Noble
Developer. With similarly limited industry capacity available
in 2024, leading edge floater dayrates have held firm in the
mid-to-high $400,000s range for
tier-1 drillships and low-to-mid $400,000s range for sixth generation units. The
bidding pipeline for 2025 contract commencements appears supportive
of a continuing upward trend in leading edge rates for high spec
rigs.
Utilization of Noble's thirteen marketed jackups was 61% in the
fourth quarter, consistent with 61% utilization during the third
quarter – jackup utilization is expected to improve progressively
through 2024 with contracts scheduled to commence this summer for
the Noble Regina Allen and
Noble Resolute following shipyard stays, while the near-term
visibility for the warm stacked jackups Noble Interceptor
and Noble Highlander remains limited at this time.
Subsequent to last quarter's earnings press release, new
contracts for Noble's fleet with total contract value of
approximately $530 million (including
mobilization payments) include the following:
- Noble Discoverer was awarded a 400-day contract with
Petrobras in Colombia, expected to
commence in early June 2024. The
contract includes an option to extend the duration by 390
days.
- Noble Voyager was awarded a one well contract (plus one
option well) with Petronas in Suriname which commenced in
February 2024 with an estimated firm
duration of 130 days excluding option.
- Noble Valiant was awarded a six-month contract extension
with LLOG in the U.S. Gulf of
Mexico, expected to commence in July
2024 in direct continuation of the rig's current contract.
The dayrate for this contract is $470,000, excluding additional fees for the use
of managed pressure drilling.
- Noble Gerry de Souza
received a 9-month extension with TotalEnergies in Nigeria, continuing the program out to
November 2024.
- Noble Intrepid had an option exercised by Harbour Energy
for a well intervention program in the U.K. North Sea which
commenced in January 2024 at a
dayrate of $120,000.
- Noble Innovator received a one well extension (estimated
90-day duration) from BP at a dayrate of $140,000 scheduled to commence in September 2024.
- Noble Resolute received a 60-day extension (from
March 2025) with Petrogas in the
Dutch North Sea.
Noble's backlog as of February 22,
2024, stands at $4.6 billion.
Outlook
For the full year 2024, today Noble announces
a guidance range for Total Revenue of $2,550 to $2,700
million, Adjusted EBITDA in the range of $925 to $1,025
million, and Capital Additions (net of reimbursements)
between $400 to $440 million.
Commenting on Noble's outlook, Mr. Eifler stated, "We expect
to realize improving financial results in 2024 compared to 2023,
with mid-year contract start-ups for several floaters and jackups
expected to drive stronger financial performance in the second half
of the year. Meanwhile, commercial visibility for 2025
and 2026 is highly encouraging based on recent months' step-change
increase in open demand, which is a positive indicator for future
backlog development. Against this favorable backdrop, we look
forward to growing our return of capital to shareholders as free
cash flow improves over the course of the cycle."
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. The unavailable information could have a
significant effect on Noble's full year 2024 GAAP financial
results.
Conference Call
Noble will host a conference call
related to its fourth quarter 2023 results on Friday,
February 23, 2024, 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.
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.
Dividend Details
Dividends payable to Noble
shareholders will generally be paid in U.S. dollars (USD). However,
holders of shares in the form of share entitlements admitted to
trading on NASDAQ Copenhagen will receive an equivalent dividend
payment in Danish krone (DKK) as determined by the exchange rate on
a specified date. The holders of such share entitlements bear the
risk of fluctuations in USD and DKK exchange rates.
Forward-looking Statements
This communication includes
"forward-looking statements" within the meaning of Section 27A of
the Securities Act and Section 21E of the Exchange Act, as amended.
All statements other than statements of historical facts included
in this communication are forward looking statements, including
those regarding future guidance, including revenue, adjusted EBITDA
and capital additions, the offshore drilling market and demand
fundamentals, realization and timing of integration synergies,
related costs to achieve, new technology and software platforms,
free cash flow expectations, capital allocation expectations
including planned dividend and share repurchases, contract backlog,
rig demand, expected future contracts, anticipated contract start
dates, dayrates and duration, fleet condition and utilization,
business, financial performance and position and our plans,
objectives, expectations and intentions related to the Noble-Maersk
merger. Forward-looking statements involve risks, uncertainties and
assumptions, and actual results may differ materially from any
future results expressed or implied by such forward-looking
statements. When used in this communication, or in the documents
incorporated by reference, the words "anticipate," "believe,"
"continue," "could," "estimate," "expect," "intend," "may,"
"might," "on track," "plan," "possible," "potential," "predict,"
"project," "should," "would," "shall," "target," "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. Risks and uncertainties include, but are
not limited to, those detailed in Noble's most recent Annual Report
on Form 10-K, Quarterly Reports Form 10-Q and other filings with
the U.S. Securities and Exchange Commission. 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. With respect to our
capital allocation policy, distributions to shareholders in the
form of either dividends or share buybacks are subject to the Board
of Directors' assessment of factors such as business development,
growth strategy, current leverage and financing needs. There can be
no assurance that a dividend will be declared or continued.
NOBLE CORPORATION
plc AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating
revenues
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
609,241
|
|
$
585,849
|
|
$ 2,461,715
|
|
$ 1,332,841
|
Reimbursables and
other
|
|
33,738
|
|
36,743
|
|
127,303
|
|
81,006
|
|
|
642,979
|
|
622,592
|
|
2,589,018
|
|
1,413,847
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
373,760
|
|
366,386
|
|
1,452,281
|
|
897,096
|
Reimbursables
|
|
24,158
|
|
27,332
|
|
91,642
|
|
64,427
|
Depreciation and
amortization
|
|
82,933
|
|
69,770
|
|
301,345
|
|
146,879
|
General and
administrative
|
|
32,985
|
|
29,877
|
|
128,413
|
|
82,177
|
Merger and integration
costs
|
|
13,286
|
|
56,752
|
|
60,335
|
|
84,668
|
(Gain) loss on sale of
operating assets, net
|
|
—
|
|
(87,125)
|
|
—
|
|
(90,230)
|
Hurricane losses and
(recoveries), net
|
|
(41,823)
|
|
(4,641)
|
|
(19,703)
|
|
60
|
|
|
485,299
|
|
458,351
|
|
2,014,313
|
|
1,185,077
|
Operating income
(loss)
|
|
157,680
|
|
164,241
|
|
574,705
|
|
228,770
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense, net
of amount capitalized
|
|
(14,600)
|
|
(19,384)
|
|
(59,139)
|
|
(42,722)
|
Gain (loss) on
extinguishment of debt, net
|
|
—
|
|
(8,716)
|
|
(26,397)
|
|
(8,912)
|
Interest income and
other, net
|
|
1,777
|
|
9,599
|
|
18,069
|
|
14,365
|
Gain on bargain
purchase
|
|
—
|
|
—
|
|
5,005
|
|
—
|
Income (loss) before
income taxes
|
|
144,857
|
|
145,740
|
|
512,243
|
|
191,501
|
Income tax benefit
(provision)
|
|
4,843
|
|
(10,778)
|
|
(30,341)
|
|
(22,553)
|
Net income
(loss)
|
|
$
149,700
|
|
$
134,962
|
|
$
481,902
|
|
$
168,948
|
Per share
data
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
1.06
|
|
$
1.02
|
|
$
3.48
|
|
$
1.99
|
Diluted:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
1.03
|
|
$
0.92
|
|
$
3.32
|
|
$
1.73
|
NOBLE CORPORATION
plc AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
360,794
|
|
$
476,206
|
Accounts receivable,
net
|
|
548,844
|
|
468,802
|
Prepaid expenses and
other current assets
|
|
152,110
|
|
106,782
|
Total current
assets
|
|
1,061,748
|
|
1,051,790
|
Intangible
assets
|
|
10,128
|
|
34,372
|
Property and equipment,
at cost
|
|
4,591,936
|
|
4,163,205
|
Accumulated
depreciation
|
|
(467,600)
|
|
(181,904)
|
Property and equipment,
net
|
|
4,124,336
|
|
3,981,301
|
Goodwill
|
|
—
|
|
26,016
|
Other assets
|
|
311,225
|
|
141,385
|
Total
assets
|
|
$
5,507,437
|
|
$
5,234,864
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
—
|
|
$
159,715
|
Accounts
payable
|
|
395,165
|
|
290,690
|
Accrued payroll and
related costs
|
|
97,313
|
|
76,185
|
Other current
liabilities
|
|
149,202
|
|
140,508
|
Total current
liabilities
|
|
641,680
|
|
667,098
|
Long-term
debt
|
|
586,203
|
|
513,055
|
Other
liabilities
|
|
307,451
|
|
265,743
|
Noncurrent contract
liabilities
|
|
50,863
|
|
181,883
|
Total
liabilities
|
|
1,586,197
|
|
1,627,779
|
Commitments and
contingencies
|
|
|
|
|
Total shareholders'
equity
|
|
3,921,240
|
|
3,607,085
|
Total liabilities
and equity
|
|
$
5,507,437
|
|
$
5,234,864
|
NOBLE CORPORATION
plc AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Twelve Months Ended
December 31,
|
|
2023
|
|
2022
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
481,902
|
|
$
168,948
|
Adjustments to
reconcile net income (loss) to net cash flow from
operating activities:
|
|
|
|
Depreciation and
amortization
|
301,345
|
|
146,879
|
Amortization of
intangible assets and contract liabilities, net
|
(106,776)
|
|
(5,352)
|
Gain on bargain
purchase
|
(5,005)
|
|
—
|
(Gain) loss on
extinguishment of debt, net
|
26,397
|
|
8,912
|
(Gain) loss on sale of
operating assets, net
|
—
|
|
(90,230)
|
Changes in components
of working capital and other operating
activities
|
(123,526)
|
|
51,828
|
Net cash provided by
(used in) operating activities
|
574,337
|
|
280,985
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(409,581)
|
|
(174,319)
|
Proceeds from
insurance claims
|
18,809
|
|
—
|
Cash acquired in
stock-based business combinations, net
|
—
|
|
166,607
|
Proceeds from disposal
of assets, net
|
24,264
|
|
381,026
|
Other investing
activities
|
—
|
|
2,458
|
Net cash provided by
(used in) investing activities
|
(366,508)
|
|
375,772
|
Cash flows from
financing activities
|
|
|
|
Issuance of
debt
|
600,000
|
|
350,000
|
Repayments of
debt
|
(673,411)
|
|
(627,323)
|
Borrowing on credit
facilities
|
—
|
|
220,000
|
Repayments of credit
facilities
|
—
|
|
(220,000)
|
Debt issuance
costs
|
(24,914)
|
|
(641)
|
Debt extinguishment
costs
|
(25,697)
|
|
—
|
Compulsory purchase
payment
|
—
|
|
(69,924)
|
Share
repurchases
|
(94,826)
|
|
(15,000)
|
Dividend
payments
|
(98,804)
|
|
—
|
Other financing
activities
|
(8,139)
|
|
(4,884)
|
Net cash provided by
(used in) financing activities
|
(325,791)
|
|
(367,772)
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
(117,962)
|
|
288,985
|
Cash, cash
equivalents and restricted cash, beginning of period
|
485,707
|
|
196,722
|
Cash, cash
equivalents and restricted cash, end of period
|
$
367,745
|
|
$
485,707
|
NOBLE CORPORATION
plc AND SUBSIDIARIES
|
OPERATIONAL
INFORMATION
|
(Unaudited)
|
|
|
Average Rig
Utilization
|
|
Three Months
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
Floaters
|
63 %
|
|
77 %
|
|
76 %
|
Jackups
|
61 %
|
|
64 %
|
|
87 %
|
Total
|
62 %
|
|
72 %
|
|
81 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
Three Months
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
Floaters
|
1,101
|
|
1,348
|
|
1,320
|
Jackups
|
785
|
|
824
|
|
1,201
|
Total
|
1,886
|
|
2,172
|
|
2,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Dayrates
|
|
Three Months
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
Floaters
|
$
437,827
|
|
$
403,813
|
|
$
303,734
|
Jackups
|
147,954
|
|
140,775
|
|
118,089
|
Total
|
$
317,150
|
|
$
304,040
|
|
$
215,751
|
NOBLE CORPORATION
plc 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:
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Numerator:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 149,700
|
|
$ 134,962
|
|
$ 481,902
|
|
$ 168,948
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
|
141,054
|
|
131,924
|
|
138,380
|
|
85,055
|
Dilutive effect of
share-based awards
|
|
3,158
|
|
3,334
|
|
3,158
|
|
3,334
|
Dilutive effect of
warrants
|
|
1,763
|
|
9,117
|
|
3,659
|
|
8,489
|
Dilutive effect of
compulsory purchase
|
|
—
|
|
2,893
|
|
—
|
|
729
|
Weighted average shares
outstanding - diluted
|
|
145,975
|
|
147,268
|
|
145,197
|
|
97,607
|
Per share
data
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
1.06
|
|
$
1.02
|
|
$
3.48
|
|
$
1.99
|
Diluted:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
1.03
|
|
$
0.92
|
|
$
3.32
|
|
$
1.73
|
NOBLE CORPORATION plc 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)
adjusted for interest expense, net of amounts capitalized; interest
income and other, net; income tax benefit (provision); and
depreciation and amortization expense, as well as, if applicable,
gain (loss) on extinguishment of debt, net; losses on economic
impairments; restructuring and similar charges; costs related to
mergers and integrations; and certain other infrequent operational
events. We believe that the Adjusted EBITDA measure provides
greater transparency of our core operating 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. 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. Similar to
Adjusted EBITDA, we believe these measures help identify underlying
trends that could otherwise be masked by the effect of the
non-recurring items we exclude in the measure. Additionally, we
define net capital expenditures for full year 2023 as capital
expenditures net of reimbursements and insurance proceeds, and we
define Capital Additions as additions to property and
equipment.
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 22, 2024, are appropriate
measures of the continuing and normal operations of the
Company:
(i)
|
In the third and fourth
quarter of 2023 and the fourth quarter of 2022, merger and
integration costs; hurricane losses and (recoveries), net;
intangible contract amortization; and discrete tax
items.
|
(ii)
|
The third quarter of
2023 includes a gain on bargain purchase and joint taxation scheme
compensation.
|
(iii)
|
In addition, the fourth
quarter of 2022 included (gain) loss on sale of operating assets,
net, (gain) loss on extinguishment of debt, net, and professional
services costs related to corporate initiatives.
|
The Company also discloses free cash flow as a non-GAAP
liquidity measure. Free cash flow is calculated as Net cash
provided by (used in) operating activities less cash paid for
capital expenditures, net of proceeds from insurance claims. We
believe Free Cash Flow is useful to investors because it measures
our ability to generate or use cash. Once business needs and
obligations are met, this cash can be used to reinvest in the
company for future growth or to return to shareholders through
dividend payments or share repurchases.
We believe that these non-GAAP financial measures provide useful
information about our financial performance, enhance the overall
understanding of our past performance and future prospects, and
allow for greater transparency with respect to key metrics used by
our management team for financial and operational decision-making.
We are presenting these non-GAAP financial measures to assist
investors in seeing our financial performance through the eyes of
management, and because we believe that these measures provide an
additional tool for investors to use in comparing our core
financial performance over multiple periods with other companies in
our industry.
These non-GAAP adjusted measures should be considered in
addition to, and not as a substitute for, or superior to, contract
drilling revenue, contract drilling cost, contract drilling margin,
average daily revenue, operating income, cash flows from
operations, or other measures of financial performance prepared in
accordance with GAAP. Please see the following non-GAAP Financial
Measures and Reconciliations for a complete description of the
adjustments.
NOBLE CORPORATION
plc AND SUBSIDIARIES
|
NON-GAAP MEASURES
AND RECONCILIATION
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
Reconciliation of
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Net income
(loss)
|
|
$ 149,700
|
|
$ 158,323
|
|
$ 134,962
|
|
$ 481,902
|
|
$ 168,948
|
Income tax (benefit)
provision
|
|
(4,843)
|
|
51,659
|
|
10,778
|
|
30,341
|
|
22,553
|
Interest expense, net
of amounts
capitalized
|
|
14,600
|
|
13,005
|
|
19,384
|
|
59,139
|
|
42,722
|
Interest income and
other, net
|
|
(1,777)
|
|
(17,206)
|
|
(9,599)
|
|
(18,069)
|
|
(14,365)
|
Depreciation and
amortization
|
|
82,933
|
|
77,146
|
|
69,770
|
|
301,345
|
|
146,879
|
Amortization of
intangible assets and
contract liabilities, net
|
|
(11,236)
|
|
(10,803)
|
|
(41,877)
|
|
(106,776)
|
|
(5,352)
|
Gain on bargain
purchase
|
|
—
|
|
(5,005)
|
|
—
|
|
(5,005)
|
|
—
|
(Gain) loss on
extinguishment of debt,
net
|
|
—
|
|
—
|
|
8,716
|
|
26,397
|
|
8,912
|
Professional services -
corporate projects
|
|
—
|
|
—
|
|
43
|
|
—
|
|
723
|
Merger and integration
costs
|
|
13,286
|
|
12,966
|
|
56,752
|
|
60,335
|
|
84,668
|
(Gain) loss on sale of
operating assets,
net
|
|
—
|
|
—
|
|
(87,125)
|
|
—
|
|
(90,230)
|
Hurricane losses and
(recoveries), net
|
|
(41,823)
|
|
2,642
|
|
(4,641)
|
|
(19,703)
|
|
60
|
Adjusted
EBITDA
|
|
$ 200,840
|
|
$ 282,727
|
|
$ 157,163
|
|
$ 809,906
|
|
$ 365,518
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Income Tax Benefit (Provision)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Income tax benefit
(provision)
|
|
$
4,843
|
|
$ (51,659)
|
|
$ (10,778)
|
|
$ (30,341)
|
|
$ (22,553)
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets and
contract liabilities, net
|
|
6,508
|
|
6,079
|
|
9,471
|
|
19,835
|
|
1,800
|
Joint taxation scheme
compensation
|
|
—
|
|
(1,981)
|
|
—
|
|
(1,981)
|
|
—
|
Gain (loss) on sale of
operating assets,
net
|
|
—
|
|
—
|
|
2,255
|
|
—
|
|
866
|
Hurricane losses and
(recoveries), net
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(562)
|
Discrete tax
items
|
|
(60,116)
|
|
(17,088)
|
|
(17,525)
|
|
(170,436)
|
|
(45,139)
|
Total
adjustments
|
|
(53,608)
|
|
(12,990)
|
|
(5,799)
|
|
(152,582)
|
|
(43,035)
|
Adjusted income tax
benefit (provision)
|
|
$ (48,765)
|
|
$ (64,649)
|
|
$ (16,577)
|
|
$
(182,923)
|
|
$ (65,588)
|
NOBLE CORPORATION
plc AND SUBSIDIARIES
|
NON-GAAP MEASURES
AND RECONCILIATION
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
Reconciliation of
Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Net income
(loss)
|
|
$ 149,700
|
|
$ 158,323
|
|
$ 134,962
|
|
$ 481,902
|
|
$ 168,948
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets and
contract liabilities, net
|
|
(4,728)
|
|
(4,724)
|
|
(32,406)
|
|
(86,941)
|
|
(3,552)
|
Joint taxation scheme
compensation
|
|
—
|
|
(19,837)
|
|
—
|
|
(19,837)
|
|
—
|
Gain on bargain
purchase
|
|
—
|
|
(5,005)
|
|
—
|
|
(5,005)
|
|
—
|
Professional services -
corporate projects
|
|
—
|
|
—
|
|
43
|
|
—
|
|
723
|
Merger and integration
costs
|
|
13,286
|
|
12,966
|
|
56,752
|
|
60,335
|
|
84,668
|
(Gain) loss on sale of
operating assets,
net
|
|
—
|
|
—
|
|
(84,870)
|
|
—
|
|
(89,364)
|
Hurricane losses and
(recoveries), net
|
|
(41,823)
|
|
2,642
|
|
(4,641)
|
|
(19,703)
|
|
(502)
|
(Gain) loss on
extinguishment of debt,
net
|
|
—
|
|
—
|
|
8,716
|
|
26,397
|
|
8,912
|
Discrete tax
items
|
|
(60,116)
|
|
(17,088)
|
|
(17,525)
|
|
(170,436)
|
|
(45,139)
|
Total
adjustments
|
|
(93,381)
|
|
(31,046)
|
|
(73,931)
|
|
(215,190)
|
|
(44,254)
|
Adjusted net income
(loss)
|
|
$
56,319
|
|
$ 127,277
|
|
$
61,031
|
|
$ 266,712
|
|
$ 124,694
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Unadjusted diluted
EPS
|
|
$
1.03
|
|
$
1.09
|
|
$
0.92
|
|
$
3.32
|
|
$
1.73
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets and contract
liabilities, net
|
|
(0.03)
|
|
(0.03)
|
|
(0.22)
|
|
(0.60)
|
|
(0.04)
|
Joint taxation scheme
compensation
|
|
—
|
|
(0.14)
|
|
—
|
|
(0.14)
|
|
—
|
Gain on bargain
purchase
|
|
—
|
|
(0.03)
|
|
—
|
|
(0.03)
|
|
—
|
Professional services -
corporate projects
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.02
|
Merger and integration
costs
|
|
0.09
|
|
0.08
|
|
0.39
|
|
0.42
|
|
0.87
|
(Gain) loss on sale of
operating assets, net
|
|
—
|
|
—
|
|
(0.59)
|
|
—
|
|
(0.92)
|
Hurricane losses and
(recoveries), net
|
|
(0.29)
|
|
0.02
|
|
(0.03)
|
|
(0.14)
|
|
(0.01)
|
(Gain) loss on
extinguishment of debt, net
|
|
—
|
|
—
|
|
0.06
|
|
0.18
|
|
0.09
|
Discrete tax
items
|
|
(0.41)
|
|
(0.12)
|
|
(0.12)
|
|
(1.17)
|
|
(0.46)
|
Total
adjustments
|
|
(0.64)
|
|
(0.22)
|
|
(0.51)
|
|
(1.48)
|
|
(0.45)
|
Adjusted diluted
EPS
|
|
$
0.39
|
|
$
0.87
|
|
$
0.41
|
|
$
1.84
|
|
$
1.28
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
September
30,
2023
|
|
December 31,
2022
|
|
December 31,
2023
|
|
December 31,
2022
|
Net cash provided by
(used in) operating
activities
|
|
$ 287,489
|
|
$ 138,768
|
|
$ 171,179
|
|
$ 574,337
|
|
$ 280,985
|
Capital expenditures,
net of proceeds from
insurance claims
|
|
(122,641)
|
|
(98,601)
|
|
(65,084)
|
|
(390,772)
|
|
(174,319)
|
Free cash
flow
|
|
$ 164,848
|
|
$
40,167
|
|
$ 106,095
|
|
$ 183,565
|
|
$ 106,666
|
View original
content:https://www.prnewswire.com/news-releases/noble-corporation-plc-announces-fourth-quarter-and-full-year-2023-results-302069321.html
SOURCE Noble Corporation plc