Noble Corporation plc Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2015; Provides Earnings Guidance for the Second Quarter, Remainder and Full Year of 2015; Announces Impairment Charges for the First Quarter Ended March 31, 2015
Apr 29 15
Noble Corporation plc announced unaudited consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company’s operating revenue was $804,342,000 against $795,187,000 for the same period a year ago. Operating income was $284,359,000 against $248,968,000 for the same period a year ago. Income before income taxes was $241,897,000 against $207,308,000 for the same period a year ago. Net income from continuing operations was $198,450,000 against $171,730,000 for the same period a year ago. Net income attributable to the company from continuing operations was $178,403,000 or $0.72 per basic and diluted share against $154,814,000 or $0.60 per basic and diluted share for the same period a year ago. Net income attributable to the company was $178,403,000 or $0.72 per basic and diluted share against $256,326,000 or $0.99 per basic and diluted share for the same period a year ago. Net cash from operating activities was $368,582,000 compared to $505,796,000 a year ago. Capital expenditures in the first quarter were $89 million and are expected to decline to approximately $585 million in 2015 when compared to an average of approximately $2.1 billion per year for the last three years. The company reported total debt at March 31, 2015 of $4.9 billion, unchanged from the level at December 31, 2014. The expected decline this year in capital expenditures reflects lower expenditures associated with new build projects. Excluding the fourth quarter impairment charge, net income from continuing operations would have been $119 million, or $0.47 per diluted share.
Fourth quarter 2014 results included an after-tax charge of $713 million, or $2.86 per diluted share, related to the impairment of three rigs and the company's total goodwill balance.
The company provided earnings guidance for the second quarter, remainder and full year of 2015. Net interest expense in the second quarter is expected to be $55 million to $60 million. This expense is ultimately dependent on the operational performance of these 2 jointly owned rigs. Total capital spending for the second quarter is expected to be about $160 million.
The 7% rate for the remainder of 2015 is a conservative expectation, but it reflects its high mix of premium, complex floating and jackup rigs. The company expects depreciation to increase about $2 million to $4 million per quarter through the remainder of 2015.
Interest expense, net of capitalized interest, is expected to total $215 million to $225 million in the year. Based on its existing debt structure, this level is above its prior guidance because of the senior note offering in the first quarter, along with lower capitalized interest. Capitalized interest in 2015 is expected to total $20 million to $25 million. The effective tax rate in 2015 is being lowered from its previous guidance of 24% to 25% to a revised range of 21% to 23%. Finally, the company continues to expect its capital expenditures for 2015 to be approximately $585 million. Sustaining capital expenditures were expected to total of $170 million in 2015. The company continues to expect positive free cash flow in 2015.
Noble Corporation plc Presents at UBS 2015 Global Oil & Gas Conference, May-20-2015 08:05 AM
Apr 28 15
Noble Corporation plc Presents at UBS 2015 Global Oil & Gas Conference, May-20-2015 08:05 AM. Venue: Four Seasons Downtown, 98 San Jacinto Blvd, Austin, Texas, United States. Speakers: David W. Williams, Chairman, Chief Executive Officer and President, John S. Breed, Director of Corporate Communications and Director of Corporate Communications of Noble Drilling Services Inc.