Noble Corporation said its revenue from contract drilling services for the fourth quarter of 2022 totaled US$586 million compared to US$289 million in the third quarter. It said the increase is primarily attributable to the business combination with Maersk Drilling.
Marketed fleet utilisation was 88% in the three months ended December 31, 2022 compared to 89% in the previous quarter. Contract drilling services for the fourth quarter were US$366 million, up from US$186 million in the third quarter of 2022.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the three months ended December 31, 2022 was US$157 million compared to US$97 million in the third quarter of 2022. Capital expenditures totaled US$77 million in the fourth quarter and US$194 million for the full year ending December 31, 2022. Net cash provided by operating activities for the fourth quarter was US$171 million and free cash flow was US$106 million. With the business combination with Maersk closing on October 3, 2022, the fourth quarter results reflect the combined company for 90 out of 92 days of the period.
Noble’s balance sheet as of December 31 reflected total debt of US$673 million and cash (and cash equivalents) of US$476 million. Subsequent to the end of the fourth quarter, Noble elected to pay off its US$150 million Danish Ship Finance term loan with excess cash on its balance sheet.
During the fourth quarter, Noble executed US$86 million of share repurchases (including the compulsory purchase of legacy Maersk Drilling shareholders in November and open market share repurchases conducted during December pursuant to Noble’s previously announced share repurchase program), with additional share repurchases in January totalling US$10 million.
The company entered 2023 with a backlog of US$3.9 billion. It has provided, for the full year 2023, a guidance range of US$2.35-2.55 billion, adjusted EBITDA in the range of US$725-825 million and capital expenditures (net of reimbursable capex) between US$325 and US$365 million.
Noble, which has the most rigs on contract with ExxonMobil for its Stabroek Block operations in Guyana, remains one of the world’s leading offshore drilling contractors for the oil and gas industry. The Maersk Discoverer, now styled Noble Discoverer, is also conducting exploration drilling at the Wei-1 well for CGX Energy, offshore Guyana.
