Noble Corp. announced robust financial results for the second quarter of 2023, showcasing a positive growth trajectory amidst an upswing in market conditions. The company reported contract drilling services revenue of US$606 million for the quarter, representing an increase from US$575 million in the previous quarter, primarily driven by improving average day rates.
The company’s marketed fleet utilisation for the three months ended June 30, 2023, was reported at 76%, a slight dip from 80% in the prior quarter. The utilisation remained tempered by intermittent gaps between contracts and planned SPS-related (Special Periodic Survey) downtime. However, Noble said it remains confident, highlighting that all sixteen marketed floaters are consistently contracted, with strong visibility for future follow-on opportunities.
Exxon Guyana drilling operations providing exciting opportunity for Noble | OilNOW
Noble Corporation’s second-quarter contract drilling services costs remained flat at US$363 million, compared to the first quarter. Despite this, the company’s adjusted EBITDA significantly increased to US$188 million, up from US$138 million in the previous quarter, illustrating improved operational efficiency and cost management.
The company highlighted several significant contracts secured during the second quarter, further enhancing its revenue visibility for the coming quarters. These include:
- Noble Faye Kozack was awarded a 2.5-year contract with Petrobras, valued at approximately $500 million, including mobilisation and additional services. The contract is expected to commence in Q1 2024.
- Noble Voyager secured a one-well contract from Shell for an exploration well in Mauritania at an undisclosed value. This contract follows the direct continuation of the current Shell contract in Colombia and is expected to extend the rig’s operation through year-end 2023.
- Noble Discoverer landed a one-well contract with Petronas in Suriname, expected to begin in August 2023, with an estimated duration of 90 days. The firm contract value is approximately US$43 million, including additional services provided, mobilisation, and demobilisation fees.
- Noble Viking had three option wells exercised by Shell Corp., with a total contract value of approximately US$49 million and an estimated total duration of 111 days. This extension has now extended the rig’s firm backlog into Q2 2025.
Furthermore, the company’s jackup fleet witnessed a sequential downtick in utilisation, with 59% utilisation in the second quarter, compared to 67% in the first quarter. Nevertheless, with recent improvements in commercial activity and the anticipation of existing and potential contracts, Noble remains optimistic that jackup fleet utilisation will pick up in the near future.
Noble is one of ExxonMobil’s biggest Stabroek Block contractors. The company currently has the Tom Madden, Sam Croft, Don Taylor, Discoverer, and the Noble Bob Douglas vessels in operation offshore Guyana. Noble was awarded a significant additional backlog commitment in May from ExxonMobil Guyana to extend utilisation of four drillships from Q4 2025 to Q2 2027.
The company completed a business combination with Maersk Drilling last year, cementing itself as a leading offshore drilling contractor for the oil and gas industry. The company said the merger created one of the youngest and highest specification fleets of global scale in the industry.
