Noble Corporation reported a strong fourth quarter of 2024, bolstered by the full incorporation of its Diamond Offshore acquisition.
Noble’s contract drilling services revenue for Q4 2024 totaled US$882 million, up from US$764 million in Q3. The increase was driven by the Diamond Offshore acquisition. Marketed fleet utilization stood at 77%, down from 82% in the previous quarter. Noble’s contract drilling services costs rose to US$527 million from US$434 million.
Net income increased to US$97 million from US$61 million in Q3. Adjusted EBITDA rose to US$319 million from US$291 million, including approximately US$40 million from the early termination of the Noble Deliverer. Net cash from operations was US$136 million, with capital expenditures at US$141 million, offset by US$7 million in insurance claim proceeds, resulting in free cash flow of US$2 million.
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Noble’s marketed fleet of 25 floaters was 74% contracted in Q4, down from 81% in Q3 due to temporary idle time on Noble BlackRhino, Noble Gerry de Souza, and Noble Globetrotter I, all of which resumed operations in January. The company secured nearly four rig years of additional backlog, reducing open exposure in 2025. Tier-1 drillship dayrates ranged from the mid-to-high US$400,000s, while 6th generation floaters secured rates between the lowUS$300,000s and low US$400,000s per day.
Jackup utilization was 82%, slightly down from 83% in Q3, with a further decline expected in Q1 2025 due to contract gaps. Dayrates for harsh environment jackups remained stable, but 2025 utilization visibility is lower compared to 2024.
New contracts since the last earnings report total approximately US$525 million:
- Noble Venturer secured a US$171 million contract with Tullow for six wells in Ghana, starting in May 2025 for 360 days.
- Noble Developer won an US$84 million contract with Petronas in Suriname for three wells starting in June 2025, plus a subsequent US$70 million contract with Shell in the Americas for 180 days, commencing Q3 2026.
- Noble Globetrotter I began a one-well contract in the U.S. Gulf in January, with potential extensions valued at US$70 million.
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- Noble Gerry de Souza received a 140-day extension with TotalEnergies in Nigeria, with options for an additional year.
- Noble Patriot extended options for 16 wells with TAQA, adding one year of backlog in the UK North Sea through early 2029.
- Noble Innovator secured a two-well extension with bp in the UK North Sea, running from May to November 2026 at US$155,000 per day.
- Ocean Apex was extended for at least 37 days in Australia into Q3 2025.
As of February 17, 2025, Noble’s backlog stands at US$5.8 billion.
2025 Outlook
Noble has set guidance for 2025, projecting revenue between US$3.25 billion and US$3.45 billion, Adjusted EBITDA between US$1.05 billion and US$1.15 billion, and capital expenditures of US$375 million to US$425 million.
Robert W. Eifler, President and Chief Executive Officer of Noble expressed confidence in the company’s prospects, stating, “We are encouraged by the depth and breadth of our active discussions with customers and line of sight to potentially contracting all of our tier-1 drillships this year for programs commencing throughout 2025-2026. Noble’s high quality backlog and lower capex requirements for 2025 compared to 2024 are expected to support meaningfully higher free cash flow this year, which we intend to direct toward dividends and share repurchases.”
Noble is one of ExxonMobil’s biggest Stabroek Block contractors.
