Noble Corporation plc today reported a significant increase in its financial metrics for the third quarter of 2023, on October 31. The net income surged 364% to US$158 million, compared to US$34 million in the same period last year. Total revenue for the third quarter was US$697 million, more than double the US$306 million reported for Q3 2022.
“Our third quarter results reflect continued strong operational and financial performance and demonstrate the power of the Noble – Maersk Drilling combination where synergy progress and integration are ahead of schedule,” said Robert W. Eifler, president and chief executive officer of Noble. “We recently celebrated the one-year anniversary of the combination and I’d like to extend a special thank you to our employees around the world who have been so critical to the success of the integration which has exceeded all expectations. We remain optimistic about expanding free cash flow potential for Noble in the years ahead. To that end, we are pleased to be able to raise our quarterly dividend to $0.40 per share in the fourth quarter.”
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Contract drilling services revenue for the third quarter of 2023 totaled US$671 million compared to US$606 million in the second quarter, with the sequential increase driven by both higher average dayrates and utilization. Net income increased to US$158 million in the third quarter, up from US$66 million in the second quarter. Adjusted earnings before interest, taxes, deprecation and amortization (EBITDA) increased to US$283 million in the third quarter, up from US$188 million in the second quarter.
Noble’s board of directors approved an increase of the quarterly interim dividend to US$0.40 per share in the fourth quarter of 2023. The dividend is to be payable on December 14, 2023, to shareholders of record at the close of business on November 15, 2023.
The Company’s balance sheet as of September 30, 2023, reflected total debt principal value of US$600 million and cash (and cash equivalents) of US$245 million. Share repurchases totaled US$10 million during the third quarter, bringing 2023 year-to-date share repurchases to US$80 million.
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Noble’s marketed fleet of sixteen floaters was 92% contracted through the third quarter. “Strong year-to-date operational and financial performance has enabled us to increase full year guidance and the quarterly dividend. Our outlook for a sustained long-term up-cycle remains well supported by macro factors and customer dialogue,” commented Eifler. For the full year 2023, Noble is increasing guidance for total revenue to a range of US$2.5 billion to US$2.6 billion and adjusted EBITDA to a range of US$775 million to US$825 million.
Noble’s backlog as of October 31, 2023, stands at US$4.7 billion, and the company remains optimistic about its future prospects, despite moderate financial fluctuation expected in the upcoming quarters. “While moderately lower financial results are expected over the next two quarters due to contract sequencing and scheduled downtime, we continue to expect a nice step up in 2024 compared to 2023,” Eifler concluded.
