Noble Corporation Reports First Quarter 2013 Earnings PR Newswire ZUG, Switzerland, April 17, 2013 ZUG, Switzerland, April 17, 2013 /PRNewswire/ -- Noble Corporation (NYSE: NE) today reported first quarter 2013 earnings of $150 million, or $0.59 per diluted share, compared to $128 million, or $0.50 per diluted share, for the fourth quarter of 2012. Earnings for the first quarter of 2012 totaled $120 million, or $0.47 per diluted share. Revenues for the first quarter of 2013 were $971 million compared to $966 million in the fourth quarter of 2012 and $798 million in the first quarter of 2012. David W. Williams, Chairman, President and Chief Executive Officer of Noble Corporation stated, "During the first quarter, we saw an improvement in our operational performance across several regions, compared to the fourth quarter of 2012. Two rigs accounted for most of the downtime in the quarter, the semisubmersibles Noble Clyde Boudreaux in Australia and in Brazil, the Noble Paul Wolff which experienced a failure of its wellhead connector bolts. Additional downtime was also experienced on the drillship Noble Globetrotter I in the U.S. Gulf, however, fleet-wide unplanned operational downtime improved by approximately 2 percentage pointsin the quarter from 7 percent in the fourth quarter of 2012. While our performance improved in the quarter, achieving further reductions in downtime and improving operational performance remain key objectives for the Company." Contract drilling services revenues for the first quarter of 2013 of $929 million improved by $7 million, or just under 1 percent from the fourth quarter of 2012. The increase was primarily driven by improved fleet utilization, which increased to 86 percent in the first quarter from 83 percent in the fourth quarter of 2012, coupled with a slight increase in average dayrates, which improved to $174,600 from $174,100 over the comparative period. Contract drilling services operating costs totaled $484 million in the first quarter of 2013, essentially unchanged from the fourth quarter of 2012. Contract drilling margin for the first quarter of 2013 was 47.9 percent, compared to 47.5 percent during the fourth quarter of 2012. Net cash from operating activities was $203 million in the first quarter of 2013 as compared to $450 million for the fourth quarter of 2012. The decline was primarily related to receivables issues with a major customer. These issues were resolved subsequent to March 31, 2013 and full payment is expected in the second quarter of 2013. Capital expenditures in the first quarter totaled $372 million, including $138 million (excluding capitalized interest) related to the Company's newbuild construction program. At March 31, 2013, approximately $2.6 billion in capital expenditures (excluding capitalized interest) is required to complete the remaining 11 projects in the Company's newbuild construction program. Total debt at March 31, 2013 was $4.8 billion, resulting in debt as a percentage of total capitalization of 36 percent, as compared to 35 percent at year end 2012. Noble's first quarter of 2013 effective tax rate was 17 percent, compared with 29 percent in the fourth quarter 2012. The decrease in the effective tax rate was primarily due to changes in the geographic mix of pre-tax income and the recognition of certain discrete items in the quarter. Operating Highlights Total backlog at March 31, 2013 was approximately $14.0 billion compared to $14.3 billion at December 31, 2012. At the end of the first quarter 2013, approximately 74 percent of the Company's available rig operating days were committed for the remainder of 2013, including 79 percent of the floating rig days and 76 percent of the jackup rig days. For 2014, an estimated 55 percent of the available rig operating days were committed, including 71 percent and 50 percent of the floating and jackup rig days, respectively. In the U.S. Gulf of Mexico, which accounted for 31 percent of contract drilling services revenues in the first quarter, four of the region's seven active rigs experienced improved operating performance. Contract opportunities remain strong, especially for rigs addressing customer needs in deepwater, as evidenced by the recent two-year contract extension for the semisubmersible Noble Amos Runner at a dayrate of $450,000. In Brazil, operational improvements were largely driven by better performance on the drillships Noble Bully II, Noble Phoenix and Noble Leo Segerius. Substantially offsetting the improvement was increased downtime on the semisubmersible Noble Paul Wolff, which experienced a failure of the wellhead connector bolts. The first quarter also saw the commencement of a three-year contract on the semisubmersible Noble Max Smith at a dayrate of $407,000, which contributed to a 2 percent improvement in average revenues from the region in the first quarter compared to the fourth quarter of 2012. The Company's 12 jackup rigs operating offshore Mexico continued to achieve excellent operating performance.Recently, the Noble Johnnie Hoffman received a contract award covering three years at a dayrate of $101,500, up from its previous dayrate of $80,000. Contract opportunities remain encouraging for other Noble jackups in the region with near-term availability, as demand from PEMEX is expected to continue to grow. Previously the Company announced a definitive agreement to sell the Noble Lewis Dugger for $61 million. Due to extensions undertaken by the customer to complete the well in progress, the transaction is now expected to close during the second quarter of 2013. The operating results for the Company's Europe and Mediterranean fleet remained strong during the first quarter of 2013, however, the Company saw the early termination of a contract for the semisubmersible Noble Homer Ferrington, due in part to well permitting delays experienced by the customer. Recently, the semisubmersible Noble Paul Romano was awarded a one-well program for work in the Eastern Mediterranean at a dayrate of $465,000. The contract is expected to commence in August 2013. Both the Romano and Ferrington continue to be marketed to customers inside and outsidethe Eastern Mediterranean. In the North Sea, the Company's eight jackups continue to experience near-full operating utilization with increasing interest from customers to contract rigs into 2014 and beyond, as evidenced by the three-year contract extension on the Noble Julie Robertson at a dayrate of $150,000, contracting the rig into April 2016. The Company's Middle and Far East division experienced improved performance during the first quarter of 2013, primarily due to better operating performance on the drillship Noble Duchess operating offshore India, and a full quarter of operations on the jackup Noble Gus Androes, partially offset by downtime on the semisubmersible Noble Clyde Boudreaux in Australia. The Company continues to identify opportunities to address near-term availability in its Middle East jackup fleet, as evidenced by a three year contract extension on the Noble Harvey Duhaney at a dayrate of $111,500, up from a previous dayrate of $66,000. Finally, in West Africa, where the Company operates five jackups, revenues improved during the first quarter, primarily due to a full quarter of operations on the Noble Lloyd Noble following the completion of a shipyard project during the fourth quarter of 2012. Outlook In closing, Williams commented, "We are increasingly confident that key fundamental factors in our business will remain in place, supporting robust deep and shallow water drilling activity beyond 2013. We are evaluating a number of contract opportunities, both for existing rigs in our fleet, and those to be added this year and next, following the completion of construction programs. I believe Noble is in a strong position to secure many of these opportunities, given the geographic mix of our assets and the well-timed delivery of our newbuilds. Overall, Noble is on the right path to deliver improved execution and greater value to our shareholders." About Noble Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 79 offshore drilling units (including five ultra-deepwater drillships and six high-specification jackup drilling rigs currently under construction), located worldwide, including in the U.S. Gulf of Mexico and Alaska, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India and Australia. Noble's shares are traded on the New York Stock Exchange under the symbol "NE." Additional information on Noble Corporation is available on the Company's Web site at http://www.noblecorp.com. Statements regarding contract backlog, earnings, costs, revenue, rig demand, fleet condition or performance, shareholder value, timing of delivery of newbuilds, contract commitments, dayrates, contract commencements, contract extensions or renewals, letters of intent or award, industry fundamentals, customer relationships and requirements, strategic initiatives, future performance, growth opportunities, market outlook, 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 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, delays in the construction of newbuilds, the actual amount of downtime, factors that reduce applicable dayrates, violations of anti-corruption laws, hurricanes and other weather 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 2013 results on Thursday, April 18, 2013, at 8:00 a.m. U.S. Central Daylight Time. Interested parties are invited to listen to the call by dialing 1-866-461-7129, or internationally 1-706-679-3084, using access code: 75234447, or by asking for the Noble Corporation conference call. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site. A replay of the conference call will be available on Thursday, April 18, 2013, beginning at 11:00 a.m. U.S. Central Daylight Time, through Thursday, May 2, 2013, ending at 11:00 p.m. U.S. Central Daylight Time. The phone number for the conference call replay is 1-855-859-2056 or, for calls from outside of the U.S., 1-404-537-3406, using access code: 75234447. The replay will also be available on the Company's Web site following the end of the live call. NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2013 2012 Operating revenues Contract drilling services $ 928,737 $ 746,310 Reimbursables 21,174 35,141 Labor contract drilling services 21,054 16,008 Other 10 231 970,975 797,690 Operating costs and expenses Contract drilling services 484,087 420,011 Reimbursables 14,922 30,601 Labor contract drilling services 12,249 9,232 Depreciation and amortization 206,156 171,077 General and administrative 25,570 23,126 Gain on contract extinguishment (1,800) - 741,184 654,047 Operating income 229,791 143,643 Other income (expense) Interest expense, net of amount (27,301) (10,496) capitalized Interest income and other, net (425) 1,785 Income before income taxes 202,065 134,932 Income tax provision (34,352) (21,589) Net income 167,713 113,343 Net loss (income) attributable to (17,653) 6,832 noncontrolling interests Net income attributable to Noble $ 150,060 $ 120,175 Corporation Net income per share Basic $ 0.59 $ 0.47 Diluted $ 0.59 $ 0.47 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) March 31, December 31, 2013 2012 ASSETS Current assets Cash and cash equivalents $ 214,528 $ 282,092 Accounts receivable 887,759 743,673 Prepaid expenses and other 326,278 279,560 current assets Total current assets 1,428,565 1,305,325 Property and equipment 17,329,558 16,971,666 Accumulated depreciation (4,144,693) (3,945,694) Property and equipment, net 13,184,865 13,025,972 Other assets 276,528 276,477 Total assets $ 14,889,958 $ 14,607,774 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 319,674 $ 350,147 Accrued payroll and related 118,706 132,728 costs Dividend payable 33,340 66,369 Other current liabilities 340,465 362,205 Total current liabilities 812,185 911,449 Long-term debt 4,844,193 4,634,375 Deferred income taxes 223,500 226,045 Other liabilities 347,395 347,615 Total liabilities 6,227,273 6,119,484 Commitments and contingencies Equity Total shareholders' equity 7,879,908 7,723,166 Noncontrolling interests 782,777 765,124 Total equity 8,662,685 8,488,290 Total liabilities and equity $ 14,889,958 $ 14,607,774 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, 2013 2012 Cash flows from operating activities Net income $ $ 167,713 113,343 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 206,156 171,077 Other changes in operating activities (171,317) (183,794) Net cash from operating activities 202,552 100,626 Cash flows from investing activities New construction (137,893) (133,075) Other capital expenditures (148,568) (161,243) Drilling equipment replacement and upgrades (55,654) (29,928) Capitalized interest (29,875) (40,637) Other investing activities (66,312) (127,393) Net cash from investing activities (438,302) (492,276) Cash flows from financing activities Net change in borrowings on bank credit 209,680 (825,000) facilities Proceeds from issuance of senior notes, net of - 1,186,636 debt issuance costs Contributions from joint venture partners - 40,000 Par value reduction payments/dividends paid (33,335) (36,370) Other financing activities (8,159) (3,972) Net cash from financing activities 168,186 361,294 Net change in cash and cash equivalents (67,564) (30,356) Cash and cash equivalents, beginning of period 282,092 239,196 Cash and cash equivalents, end of period $ $ 214,528 208,840 NOBLE CORPORATION AND SUBSIDIARIES FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT (In thousands, except operating statistics) (Unaudited) Three Months Ended March 31, Three Months Ended December 31, 2013 2012 2012 Contract Contract Contract Drilling Drilling Drilling Services Other Total Services Other Total Services Other Total Operating revenues Contract drilling $ $ $ $ $ $ $ $ $ services 928,737 928,737 746,310 746,310 921,603 - 921,603 - - Reimbursables 20,711 463 21,174 34,702 439 35,141 21,043 362 21,405 Labor contract - 21,054 21,054 - 16,008 16,008 - 23,352 23,352 drilling services Other 10 - 10 231 - 231 7 - 7 $ $ $ $ $ $ $ $ $ 949,458 21,517 970,975 781,243 16,447 797,690 942,653 23,714 966,367 Operating costs and expenses Contract drilling $ $ $ $ $ $ $ $ $ services 484,087 484,087 420,011 420,011 483,843 - 483,843 - - Reimbursables 14,469 453 14,922 30,173 428 30,601 17,127 351 17,478 Labor contract - 12,249 12,249 - 9,232 9,232 - 12,825 12,825 drilling services Depreciation and 202,619 3,537 206,156 167,948 3,129 171,077 205,329 3,513 208,842 amortization General and 24,949 621 25,570 22,844 282 23,126 24,060 542 24,602 administrative Loss on impairment - - - - - - - 2,039 2,039 Gain on contract (1,800) - (1,800) - - - - - - extinguishment $ $ $ $ $ $ $ $ $ 724,324 16,860 741,184 640,976 13,071 654,047 730,359 19,270 749,629 Operating income $ $ $ $ $ $ $ $ $ 225,134 4,657 229,791 140,267 3,376 143,643 212,294 4,444 216,738 Operating statistics Jackups: Average Rig 93% 79% 89% Utilization Operating Days 3,598 3,089 3,520 Average Dayrate $ $ $ 105,559 90,382 100,356 Semisubmersibles: Average Rig 84% 86% 85% Utilization Operating Days 1,053 1,092 1,096 Average Dayrate $ $ $ 321,037 355,098 360,226 Drillships: Average Rig 83% 51% 82% Utilization Operating Days 669 285 679 Average Dayrate $ $ $ 315,216 278,693 255,667 FPSO/Submersibles: Average Rig 0% 0% 0% Utilization Operating Days - - - $ $ $ Average Dayrate - - - Total: Average Rig 86% 74% 83% Utilization Operating Days 5,320 4,466 5,295 Average Dayrate $ $ $ 174,578 167,124 174,065 NOBLE CORPORATION AND SUBSIDIARIES CALCULATION OF BASIC AND DILUTED NET INCOME PER SHARE (In thousands, except per share amounts) (Unaudited) The following table sets forth the computation of basic and diluted net income per share: Three months ended March 31, 2013 2012 Allocation of net income Basic Net income attributable to Noble $ 150,060 $ 120,175 Corporation Earnings allocated to unvested share-based (1,667) (1,126) payment awards Net income to common shareholders - basic $ 148,393 $ 119,049 Diluted Net income attributable to Noble $ 150,060 $ 120,175 Corporation Earnings allocated to unvested share-based (1,664) (1,125) payment awards Net income to common shareholders - $ 148,396 $ 119,050 diluted Weighted average number of shares 253,073 251,971 outstanding - basic Incremental shares issuable from assumed 268 491 exercise of stock options Weighted average number of shares 253,341 252,462 outstanding - diluted Weighted average unvested share-based 2,844 2,407 payment awards Earnings per share Basic $ 0.59 $ 0.47 Diluted $ 0.59 $ 0.47 SOURCE Noble Corporation Website: http://www.noblecorp.com Contact: For Investors, Jeffrey L. Chastain, Vice President - Investor Relations and Corporate Communications, Noble Drilling Services Inc., +1-281-276-6383, or For Media: John S. Breed, Director of Investor Relations and Corporate Communications, Noble Drilling Services Inc., +1-281-276-6729
Noble Corporation Reports First Quarter 2013 Earnings
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