Noble Corporation recently reported its first quarter 2025 results.
"Our strong first quarter financial results and recent contract awards have demonstrated the effectiveness of our 'first choice offshore' strategy amid prevalent macroeconomic volatility," said Robert W. Eifler, President and Chief Executive Officer of Noble.
"Moreover, the booking of over 15 rig years of new contract awards over the past several weeks underscores the durability of our customers' long-term commitments offshore, as well as Noble's place as a trusted service provider for these highly strategic drilling campaigns."
Contract drilling services revenue for the first quarter of 2025 totaled US$832 million compared to US$882 million in the fourth quarter of 2024, with the sequential decrease driven primarily by the benefit received in the fourth quarter of 2024 from Noble Deliverer's early termination fee.
Contract drilling services costs for the first quarter were US$462 million, down from US$527 million in the fourth quarter of 2024.
Net income increased to $108 million in the first quarter of 2025, up from $97 million in the fourth quarter of 2024, and adjusted gross operating profit increased to US$338 million in the first quarter of 2025, up from US$319 million in the prior quarter.
Net cash provided by operating activities in the first quarter of 2025 was US$271 million, capital expenditures were US$114 million offset by proceeds from insurance claims of US$15 million, and free cash flow (non-GAAP) was US$173 million.
The company's balance sheet as of March 31, 2025, reflected total debt principal value of US$1.98 billion and cash (and cash equivalents) of US$304 million. The company repurchased approximately 737 thousand shares in the first quarter for US$20 million.
On April 28, 2025, Noble's board of directors approved an interim quarterly cash dividend on our ordinary shares of US$0.50 per share for the second quarter of 2025. The US$0.50 per share dividend is expected to be paid on June 18, 2025, to shareholders of record at close of business on June 5, 2025.
Noble's marketed fleet of 25 floaters was 80 per cent contracted during the first quarter, compared with 74 per cent in the prior quarter. Recent backlog additions since last quarter have added 15 rig years of total floater backlog, materially enhancing contract coverage over the next several years.
Recent dayrate fixtures for Tier-1 drillships have been in the low-to-high US$400,000s, with sixth generation floater fixtures between the low US$300,000s to mid US$400,000s.
Utiliaation of Noble's thirteen marketed jackups was 74 per cent in the first quarter, versus 82 per cent utilisation during the prior quarter. Leading edge dayrates for harsh environment jackups in the North Sea have remained stable, albeit with limited fixtures recently.
Subsequent to last quarter's earnings press release, new contracts with total contract value of between US$2.2 to US$2.7 billion (including additional services and mobilisation payments, but excluding unexercised extension options) were secured.
Assuming 40 per cent of available performance revenue realized on a combined basis under recent long-term contracts, Noble's backlog as of April 28, 2025, stands at US$7.5 billion. Backlog excludes mobilisation and demobilisation revenue.
For the full year 2025, Noble maintains the previously issued guidance ranges for total revenue between $3,250 to $3,450 million, Adjusted gross operating profit in the range of US$1.05 billion to US$1.15 billion, and capital expenditures (net of reimbursements) between US$375 million to US$425 million.