Noble Corporation reports strong backlog and cash flow in Q2 2025

Noble Corporation recently posted its second quarter 2025 results, which showed total revenues of US$849 million, net income of US$43 million, an adjusted gross operating profit of US$282 million, net cash provided by operating activities of US$216 million, and free cash flow of US$107 million.

Noble said approximately US$380 million in new contract awards have been secured since the publication of its April fleet status report, while the backlog stands at US$6.9 billion.

"Our second quarter results reflect resilient earnings and free cash flow delivery against a backdrop of elevated macro volatility," said Robert W. Eifler, President and Chief Executive Officer of Noble.

"We have successfully achieved our integration targets and meaningfully expanded backlog in the first half of 2025, positioning Noble to continue to deliver differentiated shareholder capital returns going forward."

Revenue and cash flow

Contract drilling services revenue for the second quarter of 2025 totalled US$812 million compared to US$832 million in the prior quarter, with the sequential decrease driven primarily by rig utilisation. Marketed fleet utilisation was 70 per cent in the second quarter of 2025 compared to 78 per cent in the prior quarter.

Contract drilling services costs for the second quarter were US$502 million, up from US$462 million in the prior quarter. Net income decreased to US$43 million in the second quarter of 2025, down from US$108 million in the prior quarter, and adjusted gross operating profit decreased to US$282 million in the second quarter of 2025, down from US$338 million in the prior quarter.

Net cash provided by operating activities in the second quarter of 2025 was US$216 million, capital expenditures were US$117 million offset by proceeds from insurance claims of US$7 million, and free cash flow (non-GAAP) was US$107 million.

The company's balance sheet as of June 30, 2025, reflected total debt principal value of US$2 billion and cash (and cash equivalents) of US$338 million.

Operating highlights and backlog

Noble's marketed fleet of 25 floaters was 75 per cent contracted during the second quarter, compared with 80 per cent in the prior quarter. Recent backlog additions since the prior quarter have added approximately three rig years of total backlog, bringing total rig years of backlog added for the year to more than 18 years.

Recent dayrate fixtures for "tier one" drillships have been in the low to mid US$400,000s, with sixth generation floater fixtures between the low US$300,000s to mid US$400,000s.

Utilisation of Noble's 13 marketed jackups was 61 per cent in the second quarter, versus 74 per cent utilisation during the prior quarter. Leading edge dayrates for harsh environment jackups in the North Sea have remained somewhat stable across limited fixtures, while near-term utilisation visibility is trending lower.

The sale of the cold-stacked drillships Pacific Scirocco and Pacific Meltem closed in June and July, respectively, for combined gross proceeds of US$41 million.

Additionally, Noble has entered into a definitive agreement to sell the cold-stacked jackup Noble Highlander for US$65 million, which is expected to close in Q3 2025. Noble Globetrotter II and Noble Reacher are meanwhile held for sale.

Outlook

For the full year 2025, Noble said total revenue guidance will be reduced to a range of US$3.2 billion to US$3.3 billion (previously US$3.25 billion to US$3.45 billion) while adjusted gross operating profit will be increased to a range of US$1.075 billion to US$1.15 billion (previously US$1.05 billion to US$1.15 billion).

Capital expenditures (net of reimbursements) will be increased to a range of US$400 million to US$450 million (previously US$375 million to US$425 million) due to capital associated with recent long term contract awards.