Noble Corporation Plc (NE) Bundle
A Brief History of Noble Corporation
Noble Corporation, a prominent player in the offshore drilling sector, has undergone significant transformations and expansions, particularly in 2024. The company has positioned itself as a leader in contract drilling services, driven by strategic acquisitions and operational enhancements.
Acquisition of Diamond Offshore Drilling
On September 4, 2024, Noble Corporation completed the acquisition of Diamond Offshore Drilling, a deal valued at approximately $1.5 billion. This acquisition included:
- Cash paid to legacy Diamond shareholders: $583.2 million
- Fair value of Noble shares transferred: $857.7 million
- Replacement Diamond RSU Awards: $22.3 million
- Cash paid for retention bonuses and short-term incentive plans: $9.5 million
This merger is expected to enhance Noble's operational capacity and market reach significantly.
Financial Performance Overview
As of September 30, 2024, Noble Corporation reported strong financial metrics:
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $351.7 million | $332.2 million |
| Operating Revenues | $2.1 billion | $1.9 billion |
| Earnings per Share (Diluted) | $2.37 | $2.29 |
| Total Debt | $1.4 billion | $1.2 billion |
| Total Shareholders' Equity | $4.7 billion | $3.9 billion |
Operational Highlights
Noble's operational metrics for the nine months ended September 30, 2024, indicate a robust performance:
| Operational Metric | Floaters | Jackups |
|---|---|---|
| Contract Drilling Services Revenues | $1.6 billion | $419.1 million |
| Average Dayrates | $430,615 | $153,648 |
| Average Rig Utilization | 69% | 76% |
Investment and Capital Expenditures
Noble Corporation has been proactive in investing in its assets, with capital expenditures totaling $374.3 million for the nine months ended September 30, 2024. The breakdown includes:
- Sustaining Capital: $214.2 million
- Major Projects: $132.8 million
- Rebillable Capital: $27.3 million
For the year ending December 31, 2024, capital additions are estimated to be between $480 million and $510 million, primarily funded through operational cash flows.
Debt Structure
Noble's debt strategy has evolved, with significant issuances in 2024:
- 8.000% Senior Notes due 2030 issued totaling $1.4 billion
- Amended and Restated Senior Secured Revolving Credit Agreement with commitments of $550 million
As of September 30, 2024, the company maintained no borrowings under its revolving credit facility, indicating strong liquidity management.
Future Outlook
Looking ahead, Noble Corporation's strategic focus on enhancing its drilling capabilities and expanding its market presence through acquisitions like Diamond Offshore is expected to drive growth. The company also maintains a contract drilling services backlog of approximately $6.5 billion, reflecting robust demand for its services in the offshore drilling market.
A Who Owns Noble Corporation Plc (NE)
Current Share Structure
As of September 30, 2024, Noble Corporation Plc had approximately 160.3 million A ordinary shares outstanding. This is an increase from approximately 140.8 million shares outstanding at December 31, 2023.
Major Shareholders
The ownership structure of Noble Corporation is characterized by a mix of institutional and retail investors. The following table summarizes the major shareholders as of the latest reporting period:
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | ~70 million | ~43.6% |
| Retail Investors | ~90 million | ~56.4% |
Shareholder Transactions
During the nine months ended September 30, 2024, Noble Corporation repurchased approximately 6.9 million of its ordinary shares for a total of $250.0 million. These shares were subsequently cancelled, reducing the number of outstanding shares.
Warrants and Options
As of September 30, 2024, the company had the following outstanding warrants:
| Warrant Type | Number Outstanding | Exercise Price |
|---|---|---|
| Tranche 1 Warrants | 0.9 million | $19.27 |
| Tranche 2 Warrants | 1.0 million | $23.13 |
| Tranche 3 Warrants | 2.8 million | $124.40 |
| Diamond Warrants | 7.5 million | $29.22 |
Recent Transactions
On September 4, 2024, Noble issued 24,239,941 class A ordinary shares to former shareholders of Diamond Offshore Drilling, marking a significant transaction affecting ownership structure.
Shareholder Composition Trends
Over the past year, institutional ownership has fluctuated due to market conditions, with significant interest from large asset managers. The following table provides an overview of the changes in shareholder composition:
| Ownership Type | Percentage as of Dec 31, 2023 | Percentage as of Sep 30, 2024 |
|---|---|---|
| Institutional Investors | ~42% | ~43.6% |
| Retail Investors | ~58% | ~56.4% |
Financial Performance Indicators
For the nine months ended September 30, 2024, Noble Corporation reported a net income of $351.7 million, equating to $2.37 per diluted share on operating revenues of $2.1 billion.
Dividends and Shareholder Returns
Noble Corporation declared a quarterly dividend payment totaling approximately $81.6 million (or $0.50 per share) on June 10, 2024, paid to shareholders of record on September 12, 2024.
Noble Corporation Plc (NE) Mission Statement
Mission Overview
Noble Corporation Plc aims to provide superior drilling services while maintaining a strong commitment to safety, environmental stewardship, and operational excellence. The company's mission reflects its dedication to delivering value to its customers, shareholders, and employees through innovative solutions and an unwavering focus on sustainability.
Core Values
- Safety: Prioritizing the health and safety of employees and stakeholders.
- Integrity: Conducting business with honesty and transparency.
- Excellence: Striving for the highest standards in operations and service delivery.
- Innovation: Embracing new technologies and methodologies to enhance efficiency and effectiveness.
- Sustainability: Committing to environmentally responsible practices in all operations.
Financial Performance
As of September 30, 2024, Noble Corporation reported a net income of $351.7 million, or $2.37 per diluted share, on operating revenues of $2.1 billion. This compares to a net income of $332.2 million, or $2.29 per diluted share, on operating revenues of $1.9 billion for the same period in 2023.
Contract Drilling Services
Noble's contract drilling services segment achieved the following results for the nine months ended September 30, 2024:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Contract Drilling Services Revenues | $2,036,678 million | $1,852,474 million | $184,204 million | 10% |
| Operating Costs | $1,159,913 million | $1,078,521 million | $81,392 million | 8% |
| Operating Income | $432,989 million | $417,025 million | $15,964 million | 4% |
Rig Utilization and Dayrates
The average rig utilization and dayrates for Noble's fleet for the nine months ended September 30, 2024, are summarized below:
| Category | Average Rig Utilization (%) | Average Dayrates ($) |
|---|---|---|
| Floaters | 69% | $430,615 |
| Jackups | 76% | $153,648 |
| Total | 71% | $313,007 |
Backlog and Future Commitments
Noble Corporation has a total contract drilling services backlog of approximately $6.5 billion as of September 30, 2024, with commitments covering 70% of available days for the remainder of the year.
Capital Expenditures
For the nine months ended September 30, 2024, total capital additions were $374.3 million. The breakdown of these expenditures is as follows:
| Type of Capital Expenditure | Amount ($ million) |
|---|---|
| Sustaining Capital | $214.2 |
| Major Projects | $132.8 |
| Rebillable Capital and Contract Modifications | $27.3 |
Shareholder Returns
Noble Corporation declared a quarterly dividend of $0.50 per share on June 10, 2024, payable on September 26, 2024. The total dividend payments for the nine months ended September 30, 2024, amounted to approximately $198.2 million.
Debt Position
As of September 30, 2024, Noble's total debt stood at $1.98 billion, with a significant portion attributed to its 8.000% Senior Notes due 2030, amounting to $1.4 billion.
How Noble Corporation Plc (NE) Works
Company Overview
Noble Corporation Plc (NE) operates as a global provider of offshore drilling services. The company focuses on contract drilling services for the oil and gas industry, utilizing a fleet of advanced drilling rigs, which includes both floaters and jackups. As of September 30, 2024, Noble had a total of 28 floaters and 13 jackups in its fleet.
Financial Performance
For the nine months ended September 30, 2024, Noble reported:
- Net income: $351.7 million
- Operating revenues: $2.1 billion
- Net income per diluted share: $2.37
In comparison, for the same period in 2023, the figures were:
- Net income: $332.2 million
- Operating revenues: $1.9 billion
- Net income per diluted share: $2.29
Revenue Breakdown
Noble's revenue is generated from two primary segments: floaters and jackups. The following table summarizes the contract drilling services revenues and costs for both segments during the nine months ended September 30, 2024, and 2023:
| Segment | 2024 Revenue (Millions) | 2023 Revenue (Millions) | 2024 Cost (Millions) | 2023 Cost (Millions) |
|---|---|---|---|---|
| Floaters | $1,617.5 | $1,519.3 | $870.9 | $816.3 |
| Jackups | $419.1 | $333.1 | $289.0 | $262.2 |
Operational Metrics
Noble's operational efficiency is measured through key metrics such as average rig utilization, operating days, and average dayrates. The following table presents these metrics for the nine months ended September 30, 2024, and 2023:
| Type | Average Rig Utilization (2024) | Average Rig Utilization (2023) | Operating Days (2024) | Operating Days (2023) | Average Dayrates (2024) | Average Dayrates (2023) |
|---|---|---|---|---|---|---|
| Floaters | 69% | 77% | 3,658 | 3,966 | $430,615 | $366,560 |
| Jackups | 76% | 65% | 2,700 | 2,487 | $153,648 | $121,913 |
Cost Structure
Noble's operating costs and expenses for the nine months ended September 30, 2024, were significant, with the following breakdown:
- Total contract drilling services cost: $1.16 billion
- Depreciation and amortization: $287.3 million
- General and administrative expenses: $109.2 million
- Merger and integration costs: $89.2 million
Cash Flow and Capital Expenditures
In terms of cash flow, for the nine months ended September 30, 2024, Noble reported:
- Net cash provided by operating activities: $519.3 million
- Net cash used in investing activities: $813.8 million
- Net cash provided by financing activities: $331.9 million
Noble's capital expenditures for the nine months ended September 30, 2024, totaled $374.3 million, comprising:
- $214.2 million for sustaining capital
- $132.8 million for major projects
- $27.3 million for rebillable capital
Debt and Equity Structure
As of September 30, 2024, Noble had total debt amounting to $1.98 billion, which included:
- 8.000% Senior Notes due 2030: $1.4 billion
- 8.500% Senior Secured Second Lien Notes: $580 million
The total shareholders' equity stood at approximately $4.68 billion.
Recent Developments
On September 4, 2024, Noble completed the acquisition of Diamond Offshore Drilling, which involved issuing 24.24 million class A ordinary shares and assuming outstanding warrants. This strategic move is expected to enhance Noble's operational capabilities and expand its market presence.
Backlog and Future Outlook
Noble's total contract drilling services backlog was approximately $6.5 billion as of September 30, 2024, with a commitment of 70% of available days for the remainder of 2024. This backlog indicates a robust demand for its drilling services moving forward.
How Noble Corporation Plc (NE) Makes Money
Revenue Generation from Contract Drilling Services
Noble Corporation Plc generates the majority of its revenue from contract drilling services, which includes the operation of floaters and jackups. For the nine months ended September 30, 2024, the company reported total operating revenues of $2.1 billion, an increase from $1.9 billion in the same period of 2023.
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Floaters | $1.6 billion | $1.5 billion | $84.0 million | 5.6% |
| Jackups | $419.1 million | $333.1 million | $72.8 million | 21.8% |
| Total | $2.1 billion | $1.9 billion | $184.4 million | 9.7% |
Average Dayrates and Rig Utilization
The average dayrates for Noble's rigs are a critical factor in its revenue. For the nine months ended September 30, 2024, the average dayrate for floaters was $430,615, while for jackups it was $153,648. This represents an increase from $366,560 and $121,913, respectively, in the prior year.
| Type of Rig | Average Dayrates (2024) | Average Dayrates (2023) | Change ($) |
|---|---|---|---|
| Floaters | $430,615 | $366,560 | $64,055 |
| Jackups | $153,648 | $121,913 | $31,735 |
Operating Costs and Expenses
Operating costs for contract drilling services totaled $1.16 billion for the nine months ended September 30, 2024, compared to $1.08 billion in the same period of 2023. This increase was driven primarily by additional costs associated with new rigs and rising labor and maintenance expenses.
| Segment | Operating Costs (2024) | Operating Costs (2023) | Change ($) |
|---|---|---|---|
| Floaters | $870.9 million | $816.3 million | $54.6 million |
| Jackups | $289.0 million | $262.2 million | $26.8 million |
| Total | $1.16 billion | $1.08 billion | $81.4 million |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Noble reported a net income of $351.7 million, or $2.37 per diluted share, compared to a net income of $332.2 million, or $2.29 per diluted share for the same period in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $351.7 million | $332.2 million |
| Earnings Per Share | $2.37 | $2.29 |
Contract Drilling Services Backlog
Noble's contract drilling services backlog as of September 30, 2024, was approximately $6.5 billion, indicating strong future revenue potential. This backlog includes commitments for 70% of available days for the remainder of 2024.
| Year | Contract Drilling Services Backlog |
|---|---|
| 2024 | $6.49 billion | 2025 | $2.57 billion | 2026 | $1.67 billion | 2027 | $1.01 billion | 2028 | $403.3 million |
Cash Flow and Capital Expenditures
Noble's cash flow from operating activities for the nine months ended September 30, 2024, was $519.3 million, up from $286.8 million in the prior year. This increase reflects improved operational efficiency and collection of receivables.
| Type | Cash Flow (2024) | Cash Flow (2023) |
|---|---|---|
| Operating Activities | $519.3 million | $286.8 million |
| Investing Activities | ($813.8 million) | ($268.1 million) |
| Financing Activities | $331.9 million | ($254.8 million) |
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Updated on 16 Nov 2024
Resources:
- Noble Corporation Plc (NE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Noble Corporation Plc (NE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Noble Corporation Plc (NE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.