Noble Beats 1Q Earnings, Misses Rev

Zacks

Leading contract drilling company, Noble Corporation (NE) reported first quarter 2013 earnings of 59 cents per share. With a boost from multi-regional operational improvements, the results surpassed both the Zacks Consensus Estimate of 57 cents and year-ago earnings of 47 cents.

Total revenue in the quarter rose 21.7% to almost $971.0 million from $797.7 million in the comparable quarter last year. However, the top line failed to meet the Zacks Consensus Estimate of $989.0 million. Contract Drilling Services contributed $928.7 million to the total revenue, reflecting a year-over-year increase of 24.4% mainly on improved fleet utilization and higher average dayrates.

First Quarter Operating Highlights

Total operating income shot up almost 60% to $229.8 million from the year-ago level of $143.6 million. Operating income from the Contract Drilling segment rose 60.5% year over year to $225.1 million from $140.3 million.

Total rig utilization improved to 86% from the year-earlier level of 74%. The overall average dayrate surged 4.5% to $174,578 from $167,124 in the year-ago quarter.

The average dayrate for semisubmersible rigs registered about a 9.6% year-over-year fall to $321,037. Average capacity utilization was 84% versus 86% in the year-ago period.

The average dayrate for Drillships rose about 13.1% year-over-year to $315,216. Average capacity utilization was 83% versus 51% in the year-ago period.

The average dayrate for the company's jackups was $105,559 compared with $90,382 in the year-ago quarter. Average capacity utilization increased to 93% from the year-ago level of 79%.

The company has 74% of all rig days committed for this year, including 79% of floating rig days and 76% of jackup rig days. For 2014, 55% of the rig days are booked, comprising 71% of the floater time and 50% of the jackup rig days. Overall total backlog at the end of the first quarter was approximately $14.0 billion versus $14.3 billion as of year-end 2012.

Financials

At the end of the first quarter, the company had a cash balance of $214.5 million and long-term debt of $4,844.2 million, with debt-to-capitalization ratio of 36% (versus 35% at year-end 2012). In the reported quarter, Noble invested $372 million in capital projects.

Our Take

Noble Corporation is a leading offshore drilling contractor and provider of diversified services for the oil and gas industry.
 

Read the Full Research Report on NE

Zacks Investment Research



More From Zacks.com
View Comments (0)