LONDON, Aug. 5, 2020 /PRNewswire/ -- Noble
Corporation plc (OTC-PINK: NEBLQ, the Company) today reported a net
loss attributable to the Company for the three months ended
June 30, 2020 (second quarter) of
$42 million, or $0.17 per diluted share, on total revenues of
$238 million.
Results for the second quarter included net after tax favorable
items totaling $47 million, or
$0.18 per diluted share. These
items included a tax benefit totaling $112
million, or $0.44 per diluted
share, related to a release of tax reserves upon the completion of
certain tax audits, partially offset by an increase in legal
contingencies of $54 million, or
$0.22 per share, related to current
litigation, and pre-petition charges of $11
million, or $0.04 per diluted
share, primarily consisting of professional fees related to the
Chapter 11 filing. Excluding the impact of the aforementioned
items, Noble Corporation plc would have reported a net loss
attributable to the Company for the three months ended June 30, 2020, of $89
million, or $0.35 per diluted
share.
The adjusted results for the second quarter compared to a net
loss attributable to the Company for the three months ended
March 31, 2020 (first quarter) of
$1.1 billion, or $4.25 per diluted share, on total revenues of
$281 million. Results for the first
quarter included net unfavorable items totaling $977 million, or $3.91 per diluted share. Excluding the
$977 million of net unfavorable
items, the adjusted net loss attributable to Noble Corporation plc
for the first quarter of 2020 would have been $86 million, or $0.34 per diluted share.
A Non-GAAP supporting schedule is included with the statements
and schedules attached to this press release and can also be found
at www.noblecorp.com. It provides a reconciliation of revenues, net
loss, income tax and diluted earnings per share for the second
quarters of 2020 and 2019 and the first quarter of 2020.
Excluding pre-petition charges and the increase in legal
contingencies, second quarter earnings before interest, taxes,
depreciation and amortization (EBITDA) totaled $58 million compared to $91 million in the first quarter, while contract
drilling margin declined to 35 percent from 40 percent in the
previous period.
Contract drilling services revenues for the second quarter
totaled $220 million compared to
$267 million in the first quarter of
2020. The decrease in revenues was due largely to a decline in
total fleet operating days as a result of four rigs completing
contracts in late first quarter or early second quarter and fewer
available days in the second quarter due to the retirement of the
Noble Joe Beall during the first quarter. This resulted in
lower fleet utilization of 59% in the second quarter compared to
77% in the first quarter.
Contract drilling services costs for the second quarter were
$144 million compared to $161 million in the first quarter of 2020. The
11% decline from first quarter costs was primarily driven by fewer
operating days.
Operating Highlights
In early August, ExxonMobil awarded the drillship
Noble Sam Croft a new 6-month
contract to drill offshore Guyana,
with operations commencing in the fourth quarter of 2020 after the
rig finishes its current program offshore Suriname. This
contract was awarded under the previously-announced Commercial
Enabling Agreement (CEA) established with ExxonMobil for
Guyana earlier this year.
With this award, all four of Noble's high-specification HHI
drillships will now be contracted to ExxonMobil in Guyana, expanding our relationship with a
valued client in one of the world's most exciting deepwater basins
and enhancing our footprint in this emerging region.
The Company's 12 floating rigs achieved utilization of 53
percent in the second quarter compared to 58 percent in the first
quarter. Excluding five cold stacked units, utilization in the
second and first quarters was 92 percent and 100 percent,
respectively. The eight percent decline in operating days in the
second quarter versus the first quarter was due largely to reduced
days for the semisubmersible Noble Clyde
Boudreaux, which completed its contract early in the
second quarter.
The Company's 12 jackup rigs experienced fewer operating days
when compared to the first quarter. A reduction in operating days
on several rigs in the North Sea as well as reduced available days
due to the retirement of the Noble Joe Beall were partially
offset by increased operating days on the Noble Regina
Allen. The Noble Tom Prosser was placed on a
special standby rate in mid-April and returned to full dayrate in
mid-July, and the Noble Scott Marks began a one-year
contract suspension at zero dayrate in early May 2020.
Additionally, the Company has agreed to an adjusted dayrate on the
Noble Roger Lewis of $139,000
effective April 1, 2020 through
December 31, 2021, after which the
dayrate returns to the original rate of $159,000 for the remainder of the contract.
Under the same agreement, the dayrates for the Noble Johnny
Whitstine and Noble Joe
Knight will not be adjusted. Utilization for the
jackup fleet was 65 percent in the second quarter compared to 94
percent in the first quarter.
Restructuring
Update
On July 31, 2020 the Company
entered into a restructuring support agreement (the "RSA") with two
ad hoc groups of the largest holders of the Company's outstanding
bond debt which will be implemented through a voluntary chapter 11
process and is intended to significantly deleverage the Company's
balance sheet. Noble will continue to operate as usual during
the bankruptcy and expects to pay employees and vendors in the
normal course of business. The RSA, among other things, calls
for all of the Company's bond debt, which is currently over
$3.4 billion, to be converted into
equity of the reorganized company. In addition, the Company's
major bond holders have agreed to invest $200 million of new capital in the form of new
second lien notes. At emergence, liquidity is expected to be
further enhanced by a new $675
million secured revolving credit facility provided by the
Company's current syndicate of revolving credit facility
lenders. The Company expects to emerge from chapter 11 before
year end with a significantly improved balance sheet and liquidity
position.
Robert W. Eifler, President and
Chief Executive Officer of Noble Corporation plc, stated, "Last
week we filed for Chapter 11 bankruptcy protection to help us
facilitate a recapitalization of our balance sheet. I
appreciate the support that we have been shown by our creditors,
customers, and vendors as we work through this process. I am
especially proud of the men and women at Noble who continue to
deliver safe and reliable service to our customers without
interruption. We will continue our day-to-day operations as
usual as we manage through our restructuring, and Noble will emerge
as a stronger company with a sustainable balance sheet to support
our industry-leading operations."
Outlook
Commenting on the state of the offshore drilling industry, Mr.
Eifler added, "Our industry is dealing with the most difficult
environment we have endured in decades. After several years
of low commodity prices that translated to severe reductions in
overall rig demand and dayrates, the impact of the COVID-19
pandemic and the OPEC+ supply disruptions has led us to push out
further our expectations for a meaningful recovery in demand.
Despite the very challenging backdrop, Noble has continued to
outperform the market in utilization. We are signing new
contracts for our jackups in the North Sea and maintain very robust
utilization for our floaters in the Gulf
of Mexico and Guyana/Suriname basin. This is a
reflection of the high quality of our rig crews and our high
specification fleet. Looking forward, we will maintain our focus on
efficiently managing our business and on strong operational
execution. I am confident that the strength of our operations
combined with a solid financial platform post emergence will
position Noble to lead the industry as market conditions
improve."
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 performs, through its subsidiaries, contract
drilling services with a fleet of 24 offshore drilling units,
consisting of 12 drillships and semisubmersibles and 12 jackups,
focused largely on ultra-deepwater and high-specification jackup
drilling opportunities in both established and emerging regions
worldwide. Noble is a public limited company registered in
England and Wales with company number 08354954 and
registered office at 10 Brook Street, London, W1S 1BG England. Additional information on Noble is
available at www.noblecorp.com.
Forward-looking Disclosure Statement
This communication includes "forward-looking statements" within
the meaning of Section 27A of the US Securities Act of 1933, as
amended, and Section 21E of the US Securities Exchange Act of 1934,
as amended. All statements other than statements of historical
facts included in this communication, including those regarding the
effect, impact, potential duration and other implications of the
Chapter 11 Cases, the global novel strain of coronavirus
("COVID-19") pandemic, and agreements regarding production levels
among members of the Organization of Petroleum Exporting Countries
and other oil and gas producing nations ("OPEC+"), and any
expectations we may have with respect thereto, and those regarding
rig demand, fleet condition, operational or financial performance,
the offshore drilling market, oil prices, contract backlog, fleet
status, our future financial position, business strategy,
impairments, repayment of debt, liquidity, sources of funds, future
capital expenditures, contract commitments, dayrates, contract
commencements, extensions or renewals, contract tenders, plans and
objectives of management for future operations, industry
conditions, access to financing, impact of competition,
availability of labor, worldwide economic conditions, taxes and tax
rates, are forward-looking statements. Words such as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may," "might,"
"plan," "project," "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 whether the requisite holders of our notes will
execute and deliver the restructuring support agreement, whether
the other conditions to the obligations of the consenting creditors
under the restructuring support agreement will be satisfied or
waived, risks and uncertainties relating to the Chapter 11 Cases
(including but not limited to our ability to obtain approval from
the United States Bankruptcy Court for the Southern District of
Texas (the "Bankruptcy Court")
with respect to motions in the Chapter 11 Cases, the effects of the
Chapter 11 Cases on the Company and its various constituents, the
impact of Bankruptcy Court rulings in the Chapter 11 Cases, our
ability to develop and implement a plan of reorganization that will
be approved by the Bankruptcy Court and the ultimate outcome of the
Chapter 11 Cases in general, the length of time we will operate
under the Chapter 11 Cases, attendant risks associated with
restrictions on our ability to pursue our business strategies,
risks associated with third-party motions in the Chapter 11 Cases,
the potential adverse effects of the Chapter 11 Cases on our
liquidity, the potential cancellation of our ordinary shares in the
Chapter 11 Cases, the potential material adverse effect of claims
that are not discharged in the Chapter 11 Cases, uncertainty
regarding our ability to retain key personnel and uncertainty and
continuing risks associated with our ability to achieve our stated
goals and continue as a going concern), the effects of public
health threats, pandemics and epidemics, such as the recent and
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 growth, 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 and trading markets with respect thereto,
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 the
duration of contracts, the actual amount of downtime, factors that
reduce applicable 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 referenced or described in Part I, Item
1A. "Risk Factors" of our Annual Report on Form 10-K for the year
ended December 31, 2019, in Part II,
Item 1A. "Risk Factors" of our Quarterly Report on Form 10-Q for
the quarter ended March 31, 2020, and
in our 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.
Conference Call
Noble has scheduled a conference call and webcast related to its
second quarter 2020 results on Thursday,
August 6, 2020, at 8:00 a.m.
U.S. Central Time. We will not be hosting a question and
answer session as part of this call. Interested parties are
invited to listen to the call by dialing 1-877-680-4232, or
internationally 1-647-689-5432, using access code: 5334579, or by
asking for the Noble Corporation plc conference call. Interested
parties may also listen over the Internet through a link posted in
the Investor Relations section of the Company's Website.
A replay of the conference call will be available on
Thursday, August 6, 2020, beginning
at 12:00 p.m. U.S. Central Time,
through Saturday, September 5, 2020,
ending at 11:00 p.m. U.S. Central
Time. The phone number for the conference call replay is
1-800-585-8367 or, for calls from outside of the U.S.,
1-416-621-4642, using access code: 5334579. The replay will
also be available on the Company's Website following the end of the
live call.
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Operating
revenues
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
220,141
|
|
|
$
|
274,817
|
|
|
$
|
487,505
|
|
|
$
|
545,318
|
|
Reimbursables and
other
|
|
17,777
|
|
|
18,119
|
|
|
31,724
|
|
|
30,506
|
|
|
|
237,918
|
|
|
292,936
|
|
|
519,229
|
|
|
575,824
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
144,154
|
|
|
168,865
|
|
|
305,299
|
|
|
340,593
|
|
Reimbursables
|
|
16,334
|
|
|
15,381
|
|
|
28,018
|
|
|
24,776
|
|
Depreciation and
amortization
|
|
89,365
|
|
|
111,148
|
|
|
193,046
|
|
|
220,726
|
|
General and
administrative
|
|
73,003
|
|
|
116,252
|
|
|
90,842
|
|
|
132,251
|
|
Pre-petition
charges
|
|
10,515
|
|
|
—
|
|
|
10,515
|
|
|
—
|
|
Loss on
impairment
|
|
—
|
|
|
—
|
|
|
1,119,517
|
|
|
—
|
|
|
|
333,371
|
|
|
411,646
|
|
|
1,747,237
|
|
|
718,346
|
|
Operating
loss
|
|
(95,453)
|
|
|
(118,710)
|
|
|
(1,228,008)
|
|
|
(142,522)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense, net
of amounts capitalized
|
|
(70,279)
|
|
|
(68,976)
|
|
|
(141,159)
|
|
|
(139,220)
|
|
Gain (loss) on
extinguishment of debt, net
|
|
(593)
|
|
|
—
|
|
|
(593)
|
|
|
31,266
|
|
Interest income and
other, net
|
|
2,956
|
|
|
1,860
|
|
|
674
|
|
|
4,366
|
|
Loss from
continuing operations before income taxes
|
|
(163,369)
|
|
|
(185,826)
|
|
|
(1,369,086)
|
|
|
(246,110)
|
|
Income tax
benefit
|
|
121,175
|
|
|
37,182
|
|
|
264,215
|
|
|
34,317
|
|
Net loss from
continuing operations
|
|
(42,194)
|
|
|
(148,644)
|
|
|
(1,104,871)
|
|
|
(211,793)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,821)
|
|
Net
loss
|
|
(42,194)
|
|
|
(148,644)
|
|
|
(1,104,871)
|
|
|
(215,614)
|
|
Net income
attributable to noncontrolling interests
|
|
—
|
|
|
(3,316)
|
|
|
—
|
|
|
(7,235)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(42,194)
|
|
|
$
|
(151,960)
|
|
|
$
|
(1,104,871)
|
|
|
$
|
(222,849)
|
|
Net loss attributable
to Noble Corporation plc
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(42,194)
|
|
|
$
|
(151,960)
|
|
|
$
|
(1,104,871)
|
|
|
$
|
(219,028)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,821)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(42,194)
|
|
|
$
|
(151,960)
|
|
|
$
|
(1,104,871)
|
|
|
$
|
(222,849)
|
|
Per share
data
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.41)
|
|
|
$
|
(0.88)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.41)
|
|
|
$
|
(0.90)
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.41)
|
|
|
$
|
(0.88)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Loss attributable to
Noble Corporation plc
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.41)
|
|
|
$
|
(0.90)
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
ASSETS
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
191,217
|
|
|
$
|
104,621
|
|
Accounts receivable,
net
|
|
163,972
|
|
|
198,665
|
|
Prepaid expenses and
other current assets
|
|
245,984
|
|
|
118,821
|
|
Total current
assets
|
|
601,173
|
|
|
422,107
|
|
Property and
equipment, at cost
|
|
8,732,700
|
|
|
10,306,625
|
|
Accumulated
depreciation
|
|
(2,246,143)
|
|
|
(2,572,701)
|
|
Property and
equipment, net
|
|
6,486,557
|
|
|
7,733,924
|
|
Other
assets
|
|
99,750
|
|
|
128,467
|
|
Total
assets
|
|
$
|
7,187,480
|
|
|
$
|
8,284,498
|
|
|
LIABILITIES AND
EQUITY
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
|
3,953,708
|
|
|
$
|
62,505
|
|
Accounts
payable
|
|
94,735
|
|
|
108,208
|
|
Accrued payroll and
related costs
|
|
43,038
|
|
|
56,056
|
|
Other current
liabilities
|
|
350,505
|
|
|
290,159
|
|
Total current
liabilities
|
|
4,441,986
|
|
|
516,928
|
|
Long-term
debt
|
|
—
|
|
|
3,779,499
|
|
Other
liabilities
|
|
188,524
|
|
|
329,099
|
|
Total
liabilities
|
|
4,630,510
|
|
|
4,625,526
|
|
Commitments and
contingencies
|
|
|
|
|
Total shareholders'
equity
|
|
2,556,970
|
|
|
3,658,972
|
|
Total liabilities
and equity
|
|
$
|
7,187,480
|
|
|
$
|
8,284,498
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
Net loss
|
|
$
|
(1,104,871)
|
|
|
$
|
(215,614)
|
|
Adjustments to
reconcile net loss to net cash flow from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
193,046
|
|
|
220,726
|
|
Loss on
impairment
|
|
1,119,517
|
|
|
—
|
|
(Gain) loss on
extinguishment of debt, net
|
|
593
|
|
|
(31,266)
|
|
Changes in components
of working capital:
|
|
|
|
|
Change in taxes
receivable
|
|
(121,130)
|
|
|
2,758
|
|
Net changes in other
operating assets and liabilities
|
|
(38,872)
|
|
|
15,934
|
|
Net cash provided by
(used in) operating activities
|
|
48,283
|
|
|
(7,462)
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(69,355)
|
|
|
(152,354)
|
|
Proceeds from
disposal of assets, net
|
|
227
|
|
|
9,367
|
|
Net cash used in
investing activities
|
|
(69,128)
|
|
|
(142,987)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings on credit
facilities
|
|
210,000
|
|
|
370,000
|
|
Repayments of credit
facilities
|
|
—
|
|
|
(20,000)
|
|
Repayments of
debt
|
|
(101,132)
|
|
|
(400,000)
|
|
Debt issuance
costs
|
|
—
|
|
|
(90)
|
|
Dividends paid to
noncontrolling interests
|
|
—
|
|
|
(17,538)
|
|
Cash paid to settle
equity awards
|
|
(1,010)
|
|
|
—
|
|
Taxes withheld on
employee stock transactions
|
|
(417)
|
|
|
(2,761)
|
|
Net cash provided by
(used in) financing activities
|
|
107,441
|
|
|
(70,389)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
86,596
|
|
|
(220,838)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
105,924
|
|
|
375,907
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
192,520
|
|
|
$
|
155,069
|
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
FINANCIAL AND
OPERATIONAL INFORMATION BY SEGMENT
|
(In thousands,
except operating statistics)
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
Three Months Ended
March 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
|
Contract
Drilling
Services
|
|
Other
|
|
Total
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
220,141
|
|
|
$
|
—
|
|
|
$
|
220,141
|
|
|
$
|
274,817
|
|
|
$
|
—
|
|
|
$
|
274,817
|
|
|
$
|
267,364
|
|
|
$
|
—
|
|
|
$
|
267,364
|
|
Reimbursables and
other
|
|
17,777
|
|
|
—
|
|
|
17,777
|
|
|
18,119
|
|
|
—
|
|
|
18,119
|
|
|
13,947
|
|
|
—
|
|
|
13,947
|
|
|
|
$
|
237,918
|
|
|
$
|
—
|
|
|
$
|
237,918
|
|
|
$
|
292,936
|
|
|
$
|
—
|
|
|
$
|
292,936
|
|
|
$
|
281,311
|
|
|
$
|
—
|
|
|
$
|
281,311
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
144,154
|
|
|
$
|
—
|
|
|
$
|
144,154
|
|
|
$
|
168,865
|
|
|
$
|
—
|
|
|
$
|
168,865
|
|
|
$
|
161,145
|
|
|
$
|
—
|
|
|
$
|
161,145
|
|
Reimbursables
|
|
16,334
|
|
|
—
|
|
|
16,334
|
|
|
15,381
|
|
|
—
|
|
|
15,381
|
|
|
11,684
|
|
|
—
|
|
|
11,684
|
|
Depreciation and
amortization
|
|
87,297
|
|
|
2,068
|
|
|
89,365
|
|
|
107,802
|
|
|
3,346
|
|
|
111,148
|
|
|
101,108
|
|
|
2,573
|
|
|
103,681
|
|
General and
administrative
|
|
73,003
|
|
|
—
|
|
|
73,003
|
|
|
116,252
|
|
|
—
|
|
|
116,252
|
|
|
17,839
|
|
|
—
|
|
|
17,839
|
|
Pre-petition
charges
|
|
—
|
|
|
10,515
|
|
|
10,515
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loss on
impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,119,517
|
|
|
—
|
|
|
1,119,517
|
|
|
|
$
|
320,788
|
|
|
$
|
12,583
|
|
|
$
|
333,371
|
|
|
$
|
408,300
|
|
|
$
|
3,346
|
|
|
$
|
411,646
|
|
|
$
|
1,411,293
|
|
|
$
|
2,573
|
|
|
$
|
1,413,866
|
|
Operating
loss
|
|
$
|
(82,870)
|
|
|
$
|
(12,583)
|
|
|
$
|
(95,453)
|
|
|
$
|
(115,364)
|
|
|
$
|
(3,346)
|
|
|
$
|
(118,710)
|
|
|
$
|
(1,129,982)
|
|
|
$
|
(2,573)
|
|
|
$
|
(1,132,555)
|
|
Operating
statistics
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
65%
|
|
98%
|
|
94%
|
Operating
Days
|
|
709
|
|
1,050
|
|
1,082
|
Average
Dayrate
|
|
$148,781
|
|
$124,572
|
|
$131,253
|
Floaters:
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
53%
|
|
67%
|
|
58%
|
Operating
Days
|
|
584
|
|
728
|
|
637
|
Average
Dayrate
|
|
$196,489
|
|
$197,911
|
|
$196,759
|
Total:
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
59%
|
|
82%
|
|
77%
|
Operating
Days
|
|
1,293
|
|
1,778
|
|
1,719
|
Average
Dayrate
|
|
$170,325
|
|
$154,609
|
|
$155,526
|
NOBLE CORPORATION
PLC AND SUBSIDIARIES
|
CALCULATION OF
BASIC AND DILUTED NET INCOME/(LOSS) PER SHARE
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
The following table
presents the computation of basic and diluted loss per
share:
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Numerator:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(42,194)
|
|
|
$
|
(151,960)
|
|
|
$
|
(1,104,871)
|
|
|
$
|
(219,028)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,821)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(42,194)
|
|
|
$
|
(151,960)
|
|
|
$
|
(1,104,871)
|
|
|
$
|
(222,849)
|
|
Diluted
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
|
(42,194)
|
|
|
$
|
(151,960)
|
|
|
$
|
(1,104,871)
|
|
|
$
|
(219,028)
|
|
Net loss from
discontinued operations, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,821)
|
|
Net loss
attributable to Noble Corporation plc
|
|
$
|
(42,194)
|
|
|
$
|
(151,960)
|
|
|
$
|
(1,104,871)
|
|
|
$
|
(222,849)
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic
|
|
250,978
|
|
|
249,154
|
|
|
250,512
|
|
|
248,705
|
|
Weighted average
shares outstanding - diluted
|
|
250,978
|
|
|
249,154
|
|
|
250,512
|
|
|
248,705
|
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.41)
|
|
|
$
|
(0.88)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.41)
|
|
|
$
|
(0.90)
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.41)
|
|
|
$
|
(0.88)
|
|
Loss from
discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.41)
|
|
|
$
|
(0.90)
|
|
NOBLE CORPORATION PLC AND SUBSIDIARIES
NON-GAAP
RECONCILIATION
Certain non-GAAP performance 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. 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
August 5, 2020, and discussed in the related conference call
on August 6, 2020, are appropriate measures of the continuing
and normal operations of the Company:
(i)
In the second quarter of 2019, a charge related
to ongoing litigation and a discrete tax item;
(ii) In the first quarter of 2020, an
impairment on four of our rigs, certain capital spare equipment and
discrete tax items;
(iii) In the second quarter of 2020, a charge
related to ongoing litigation, a loss on debt extinguishment,
pre-petition charges and discrete tax items.
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
RECONCILIATION
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
Reconciliation of
Income Tax Benefit (Provision)
|
|
Three Months
Ended
June
30,
|
|
Three Months
Ended
March 31,
|
|
|
2020
|
|
2019
|
|
2020
|
Income tax benefit
(provision)
|
|
$
|
121,175
|
|
|
$
|
37,182
|
|
|
$
|
143,040
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Loss on
impairment
|
|
—
|
|
|
—
|
|
|
(95,630)
|
|
Discrete tax
items
|
|
(111,930)
|
|
|
(33,663)
|
|
|
(47,240)
|
|
Total
Adjustments
|
|
(111,930)
|
|
|
(33,663)
|
|
|
(142,870)
|
|
Adjusted income tax
benefit
|
|
$
|
9,245
|
|
|
$
|
3,519
|
|
|
$
|
170
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Loss Attributable to Noble Corporation plc
|
|
Three Months
Ended
June
30,
|
|
Three Months
Ended
March 31,
|
|
|
2020
|
|
2019
|
|
2020
|
Net loss attributable
to Noble Corporation plc
|
|
$
|
(42,194)
|
|
|
$
|
(151,960)
|
|
|
$
|
(1,062,677)
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Loss on impairment,
net of tax
|
|
—
|
|
|
—
|
|
|
1,023,887
|
|
Loss on debt
extinguishment
|
|
593
|
|
|
—
|
|
|
—
|
|
Discrete tax
items
|
|
(111,930)
|
|
|
(33,663)
|
|
|
(47,240)
|
|
Legal
contingencies
|
|
54,000
|
|
|
100,000
|
|
|
—
|
|
Pre-petition
charges
|
|
10,515
|
|
|
—
|
|
|
—
|
|
Total
Adjustments
|
|
(46,822)
|
|
|
66,337
|
|
|
976,647
|
|
Adjusted net loss
attributable to Noble Corporation plc
|
|
$
|
(89,016)
|
|
|
$
|
(85,623)
|
|
|
$
|
(86,030)
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted EPS Attributable to Noble Corporation plc
|
|
Three Months
Ended
June
30,
|
|
Three Months
Ended
March 31,
|
|
|
2020
|
|
2019
|
|
2020
|
Unadjusted diluted
EPS attributable to Noble Corporation plc
|
|
$
|
(0.17)
|
|
|
$
|
(0.61)
|
|
|
$
|
(4.25)
|
|
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
Loss on
impairment
|
|
—
|
|
|
—
|
|
|
4.10
|
|
Discrete tax
items
|
|
(0.44)
|
|
|
(0.13)
|
|
|
(0.19)
|
|
Legal
contingencies
|
|
0.22
|
|
|
0.40
|
|
|
—
|
|
Pre-petition
charges
|
|
0.04
|
|
|
—
|
|
|
—
|
|
Total
Adjustments
|
|
(0.18)
|
|
|
0.27
|
|
|
3.91
|
|
Adjusted diluted EPS
attributable to Noble Corporation plc
|
|
$
|
(0.35)
|
|
|
$
|
(0.34)
|
|
|
$
|
(0.34)
|
|
View original
content:http://www.prnewswire.com/news-releases/noble-corporation-plc-reports-second-quarter-2020-results-301106883.html
SOURCE Noble Corporation