NOBLE CORPORATION PLC ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS
Noble (NYSE: NE) reported strong Q4 2024 results, with contract drilling services revenue reaching $882 million, up from $764 million in Q3. Net income increased to $97 million from $61 million in Q3, while Adjusted EBITDA rose to $319 million from $291 million.
The company returned over $575 million to shareholders in 2024 through dividends ($278 million) and share buybacks ($300 million). The Diamond integration is progressing well, with half of the targeted $100 million synergies realized. Noble secured approximately $525 million in new contract awards since November, maintaining a total backlog of $5.8 billion.
For 2025, Noble projects Total Revenue of $3,250-$3,450 million, Adjusted EBITDA of $1,050-$1,150 million, and Capital Expenditures of $375-$425 million. The Board approved a quarterly dividend of $0.50 per share for Q1 2025.
Noble (NYSE: NE) ha riportato risultati solidi per il quarto trimestre del 2024, con i ricavi dei servizi di perforazione contrattuale che hanno raggiunto i 882 milioni di dollari, in aumento rispetto ai 764 milioni del terzo trimestre. L'utile netto è aumentato a 97 milioni di dollari rispetto ai 61 milioni del terzo trimestre, mentre l'EBITDA rettificato è salito a 319 milioni di dollari rispetto ai 291 milioni.
L'azienda ha restituito oltre 575 milioni di dollari agli azionisti nel 2024 tramite dividendi (278 milioni di dollari) e riacquisti di azioni (300 milioni di dollari). L'integrazione di Diamond sta procedendo bene, con metà delle sinergie previste di 100 milioni di dollari già realizzate. Noble ha ottenuto circa 525 milioni di dollari in nuovi contratti da novembre, mantenendo un portafoglio totale di 5,8 miliardi di dollari.
Per il 2025, Noble prevede un fatturato totale di 3.250-3.450 milioni di dollari, un EBITDA rettificato di 1.050-1.150 milioni di dollari e spese in conto capitale di 375-425 milioni di dollari. Il Consiglio ha approvato un dividendo trimestrale di 0,50 dollari per azione per il primo trimestre del 2025.
Noble (NYSE: NE) reportó resultados sólidos para el cuarto trimestre de 2024, con ingresos por servicios de perforación contractual alcanzando los 882 millones de dólares, un aumento desde los 764 millones en el tercer trimestre. El ingreso neto aumentó a 97 millones de dólares desde los 61 millones en el tercer trimestre, mientras que el EBITDA ajustado creció a 319 millones de dólares desde los 291 millones.
La empresa devolvió más de 575 millones de dólares a los accionistas en 2024 a través de dividendos (278 millones de dólares) y recompra de acciones (300 millones de dólares). La integración de Diamond está avanzando bien, con la mitad de las sinergias previstas de 100 millones de dólares ya realizadas. Noble aseguró aproximadamente 525 millones de dólares en nuevos contratos desde noviembre, manteniendo una cartera total de 5.8 mil millones de dólares.
Para 2025, Noble proyecta ingresos totales de 3,250-3,450 millones de dólares, EBITDA ajustado de 1,050-1,150 millones de dólares y gastos de capital de 375-425 millones de dólares. La Junta aprobó un dividendo trimestral de 0.50 dólares por acción para el primer trimestre de 2025.
Noble (NYSE: NE)는 2024년 4분기 강력한 실적을 보고했으며, 계약 시추 서비스 수익이 8억 8200만 달러에 달해 3분기 7억 6400만 달러에서 증가했습니다. 순이익은 3분기 6100만 달러에서 9700만 달러로 증가했으며, 조정 EBITDA는 2억 9100만 달러에서 3억 1900만 달러로 상승했습니다.
회사는 2024년에 배당금(2억 7800만 달러)과 자사주 매입(3억 달러)을 통해 주주에게 5억 7500만 달러 이상을 반환했습니다. 다이아몬드 통합이 순조롭게 진행되고 있으며, 목표로 했던 1억 달러의 시너지 중 절반이 실현되었습니다. Noble은 11월 이후 약 5억 2500만 달러의 새로운 계약을 확보했으며, 총 잔고는 58억 달러입니다.
2025년을 위해 Noble은 총 수익을 3250-3450백만 달러, 조정 EBITDA를 1050-1150백만 달러, 자본 지출을 375-425백만 달러로 예상하고 있습니다. 이사회는 2025년 1분기 주당 0.50달러의 분기 배당금을 승인했습니다.
Noble (NYSE: NE) a annoncé de solides résultats pour le quatrième trimestre 2024, avec des revenus des services de forage contractuels atteignant 882 millions de dollars, en hausse par rapport à 764 millions de dollars au troisième trimestre. Le revenu net a augmenté à 97 millions de dollars contre 61 millions de dollars au troisième trimestre, tandis que l'EBITDA ajusté a grimpé à 319 millions de dollars contre 291 millions de dollars.
L'entreprise a restitué plus de 575 millions de dollars aux actionnaires en 2024 par le biais de dividendes (278 millions de dollars) et de rachats d'actions (300 millions de dollars). L'intégration de Diamond progresse bien, avec la moitié des synergies ciblées de 100 millions de dollars réalisées. Noble a sécurisé environ 525 millions de dollars de nouveaux contrats depuis novembre, maintenant un carnet de commandes total de 5,8 milliards de dollars.
Pour 2025, Noble prévoit un chiffre d'affaires total de 3 250 à 3 450 millions de dollars, un EBITDA ajusté de 1 050 à 1 150 millions de dollars et des dépenses d'investissement de 375 à 425 millions de dollars. Le Conseil a approuvé un dividende trimestriel de 0,50 dollar par action pour le premier trimestre 2025.
Noble (NYSE: NE) hat starke Ergebnisse für das vierte Quartal 2024 gemeldet, mit Einnahmen aus Vertragsbohrdiensten von 882 Millionen Dollar, ein Anstieg von 764 Millionen Dollar im dritten Quartal. Der Nettogewinn stieg von 61 Millionen Dollar im dritten Quartal auf 97 Millionen Dollar, während das bereinigte EBITDA von 291 Millionen Dollar auf 319 Millionen Dollar zunahm.
Das Unternehmen hat 2024 über 575 Millionen Dollar an die Aktionäre über Dividenden (278 Millionen Dollar) und Aktienrückkäufe (300 Millionen Dollar) zurückgegeben. Die Integration von Diamond verläuft gut, wobei die Hälfte der angestrebten Synergien von 100 Millionen Dollar bereits realisiert wurde. Noble sicherte sich seit November etwa 525 Millionen Dollar an neuen Vertragsvergaben und hält einen Gesamtauftragsbestand von 5,8 Milliarden Dollar.
Für 2025 prognostiziert Noble einen Gesamterlös von 3.250-3.450 Millionen Dollar, ein bereinigtes EBITDA von 1.050-1.150 Millionen Dollar und Investitionsausgaben von 375-425 Millionen Dollar. Der Vorstand genehmigte eine vierteljährliche Dividende von 0,50 Dollar pro Aktie für das erste Quartal 2025.
- Revenue increased to $882M in Q4 from $764M in Q3 2024
- Net income grew to $97M from $61M quarter-over-quarter
- Adjusted EBITDA rose to $319M from $291M in Q3
- $525M in new contract awards secured
- Strong backlog of $5.8B
- $575M returned to shareholders in 2024
- 50% of targeted $100M synergies from Diamond acquisition already realized
- Marketed fleet utilization decreased to 77% from 82% in Q3
- Contract drilling costs increased to $527M from $434M in Q3
- Free cash flow declined to $2M in Q4
- Jackup utilization expected to decrease in Q1 2025
Insights
Noble 's Q4 2024 results reveal a company executing effectively on multiple fronts. The 44% year-over-year revenue growth to
The integration of Diamond Offshore is progressing ahead of expectations, with
The company's commercial success is evident in several metrics:
- Secured
$525 million in new contracts since November - Maintained a robust
$5.8 billion backlog - Achieved premium dayrates for Tier-1 drillships in the mid-to-high
$400,000 range
The 2025 guidance implies healthy margins, with Adjusted EBITDA margins projected at
The market positioning remains strong, particularly in the high-specification floater segment where Noble has secured favorable rates. The geographic diversification of new contracts across Ghana, Suriname, and the U.S. Gulf of Mexico reduces regional exposure risk. The sequential decline in marketed fleet utilization to
The balance sheet remains solid with
- Over
of capital returned via dividends and share buybacks in 2024.$575 million - Diamond integration progressing on plan, with half of
targeted synergies realized to date.$100 million - Approximately
in new contract awards since November, with total backlog at$525 million .$5.8 billion - Full Year 2025 Guidance provided as follows: Total Revenue
to$3,250 , Adjusted EBITDA$3,450 million to$1,050 , and Capital Expenditures (net of reimbursements)$1,150 million to$375 .$425 million
Three Months Ended | ||||||
(in millions, except per share amounts) | December 31, 2024 | September 30, 2024 | December 31, 2023 | |||
Total Revenue | $ 927 | $ 801 | $ 643 | |||
Contract Drilling Services Revenue | 882 | 764 | 609 | |||
Net Income (Loss) | 97 | 61 | 150 | |||
Adjusted EBITDA* | 319 | 291 | 201 | |||
Adjusted Net Income (Loss)* | 91 | 89 | 56 | |||
Basic Earnings (Loss) Per Share | 0.60 | 0.41 | 1.06 | |||
Diluted Earnings (Loss) Per Share | 0.59 | 0.40 | 1.03 | |||
Adjusted Diluted Earnings (Loss) Per Share* | 0.56 | 0.58 | 0.39 | |||
* A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release. |
Robert W. Eifler, President and Chief Executive Officer of Noble, stated "The fourth quarter capped our first full quarter incorporating the Diamond acquisition, with solid results. We have also had a number of important contract wins recently which collectively have augmented our revenue coverage for 2025 and 2026. Integration is progressing well with over half of the
Fourth Quarter Results
Contract drilling services revenue for the fourth quarter of 2024 totaled
Balance Sheet and Capital Allocation
The Company's balance sheet as of December 31, 2024, reflected total debt principal value of
Today, Noble's Board of Directors approved a quarterly interim dividend of
Operating Highlights and Backlog
Noble's marketed fleet of twenty-five floaters was
Utilization of Noble's thirteen marketed jackups was
Subsequent to last quarter's earnings press release, new contracts with total contract value of approximately
- Noble Venturer was awarded a contract with Tullow for six wells in
Ghana , with a total contract value of expected to commence in May 2025 with an estimated duration of 360 days (120 days in 2025, then resuming for remaining 240 days in 2026).$171 million - Noble Developer was awarded a three well contract (plus one option well) with Petronas in Suriname that is scheduled to commenced in June 2025 with a total contract value of
(including additional services, mobilization and demobilization) associated with the estimated firm duration of 200 days excluding option. Additionally, Noble Developer was subsequently awarded a 180 day contract with Shell in the$84 million Americas with an approximate total contract value of (including mobilization and demobilization), scheduled to commence in the third quarter of 2026.$70 million - Noble Globetrotter I was awarded a one well contract plus six option wells in the
U.S. Gulf which commenced in January. The maximum total scope assuming all options are exercised is approximately over slightly greater than 200 days.$70 million - Noble Gerry de Souza received a 140-day extension with TotalEnergies in
Nigeria which commenced in January. Additional options comprising slightly over one year remain. - Noble Patriot had options for sixteen wells exercised by TAQA, representing approximately one additional year of backlog in the
UK North Sea into early 2029. - Noble Innovator had an option exercised by bp for two wells in the
UK North Sea with estimated duration of 200 days (from May 2026 to November 2026) at a dayrate of .$155,000 - Ocean Apex was extended for an additional scope of a minimum of 37 days in
Australia into the third quarter of 2025.
Noble's backlog as of February 17, 2025, stands at
Outlook
For the full year 2025, today Noble announces a guidance range for Total Revenue of
Commenting on Noble's outlook, Mr. Eifler stated, "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."
Due to the forward-looking nature of Adjusted EBITDA and Capital Expenditures (net of reimbursements), management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure, net income and capital expenditures, respectively. Accordingly, the Company is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure without unreasonable effort. The unavailable information could have a significant effect on Noble's full year 2025 GAAP financial results.
Conference Call
Noble will host a conference call related to its fourth quarter 2024 results on Tuesday, February 18, 2025 at 9:00 a.m.
For additional information, visit www.noblecorp.com or email investors@noblecorp.com.
About Noble Corporation plc
Noble is a leading offshore drilling contractor for the oil and gas industry. The Company owns and operates one of the most modern, versatile, and technically advanced fleets in the offshore drilling industry. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. Noble performs, through its subsidiaries, contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities in both established and emerging regions worldwide. Additional information on Noble is available at www.noblecorp.com.
Forward-looking Statements
This communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, as amended. All statements other than statements of historical facts included in this communication are forward looking statements, including those regarding future guidance, including revenue, adjusted EBITDA, the offshore drilling market and demand fundamentals, realization and timing of integration synergies, costs, the benefits or results of acquisitions or dispositions such as the acquisition of Diamond Offshore Drilling, Inc. (the "Diamond Transaction"), free cash flow expectations, capital expenditures, capital allocation expectations, including planned dividends and share repurchases, contract backlog, rig demand, expected future contracts, anticipated contract start dates, major project schedules, dayrates and duration, any asset sales or the retirement of rigs, access to capital and fleet condition and utilization, timing and amount of insurance recoveries and 2025 financial guidance. Forward-looking statements involve risks, uncertainties and assumptions, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. When used in this communication, or in the documents incorporated by reference, the words "guidance," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "on track," "plan," "possible," "potential," "predict," "project," "should," "would," "achieve," "shall," "target," "will" and similar expressions are intended to be among the statements that identify forward looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. These forward-looking statements speak only as of the date of this communication and we undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law. Risks and uncertainties include, but are not limited to, those detailed in Noble's most recent Annual Report on Form 10-K, Quarterly Reports Form 10-Q and other filings with the
NOBLE CORPORATION plc AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
| ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Operating revenues | ||||||||
Contract drilling services | $ 882,089 | $ 609,241 | $ 2,918,767 | $ 2,461,715 | ||||
Reimbursables and other | 45,252 | 33,738 | 139,051 | 127,303 | ||||
927,341 | 642,979 | 3,057,818 | 2,589,018 | |||||
Operating costs and expenses | ||||||||
Contract drilling services | 527,251 | 373,760 | 1,687,164 | 1,452,281 | ||||
Reimbursables | 36,283 | 24,158 | 105,479 | 91,642 | ||||
Depreciation and amortization | 141,279 | 82,933 | 428,626 | 301,345 | ||||
General and administrative | 31,273 | 32,985 | 140,499 | 128,413 | ||||
Merger and integration costs | 20,261 | 13,286 | 109,424 | 60,335 | ||||
(Gain) loss on sale of operating assets, net | — | — | (17,357) | — | ||||
Hurricane losses and (recoveries), net | — | (41,823) | — | (19,703) | ||||
756,347 | 485,299 | 2,453,835 | 2,014,313 | |||||
Operating income (loss) | 170,994 | 157,680 | 603,983 | 574,705 | ||||
Other income (expense) | ||||||||
Interest expense, net of amount capitalized | (39,720) | (14,600) | (94,211) | (59,139) | ||||
Gain (loss) on extinguishment of debt, net | — | — | — | (26,397) | ||||
Interest income and other, net | (6,812) | 1,777 | (17,438) | 18,069 | ||||
Gain on bargain purchase | — | — | — | 5,005 | ||||
Income (loss) before income taxes | 124,462 | 144,857 | 492,334 | 512,243 | ||||
Income tax benefit (provision) | (27,814) | 4,843 | (43,981) | (30,341) | ||||
Net income (loss) | $ 96,648 | $ 149,700 | $ 448,353 | $ 481,902 | ||||
Per share data | ||||||||
Basic: | ||||||||
Net income (loss) | $ 0.60 | $ 1.06 | $ 3.01 | $ 3.48 | ||||
Diluted: | ||||||||
Net income (loss) | $ 0.59 | $ 1.03 | $ 2.96 | $ 3.32 |
NOBLE CORPORATION plc AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
| ||||
December 31, 2024 | December 31, 2023 | |||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ 247,303 | $ 360,794 | ||
Accounts receivable, net | 796,961 | 548,844 | ||
Prepaid expenses and other current assets | 214,600 | 152,110 | ||
Total current assets | 1,258,864 | 1,061,748 | ||
Intangible assets | 214 | 10,128 | ||
Property and equipment, at cost | 6,904,731 | 4,591,936 | ||
Accumulated depreciation | (868,914) | (467,600) | ||
Property and equipment, net | 6,035,817 | 4,124,336 | ||
Other assets | 568,605 | 311,225 | ||
Total assets | $ 7,863,500 | $ 5,507,437 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities | ||||
Accounts payable | $ 397,622 | $ 395,165 | ||
Accrued payroll and related costs | 116,877 | 97,313 | ||
Other current liabilities | 295,863 | 149,202 | ||
Total current liabilities | 810,362 | 641,680 | ||
Long-term debt | 1,980,186 | 586,203 | ||
Other liabilities | 412,986 | 307,451 | ||
Noncurrent contract liabilities | 8,580 | 50,863 | ||
Total liabilities | 3,212,114 | 1,586,197 | ||
Commitments and contingencies | ||||
Total shareholders' equity | 4,651,386 | 3,921,240 | ||
Total liabilities and equity | $ 7,863,500 | $ 5,507,437 |
NOBLE CORPORATION plc AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
| |||
Twelve Months Ended December 31, | |||
2024 | 2023 | ||
Cash flows from operating activities | |||
Net income (loss) | $ 448,353 | $ 481,902 | |
Adjustments to reconcile net income (loss) to net cash flow from operating activities: | |||
Depreciation and amortization | 428,626 | 301,345 | |
Amortization of intangible assets and contract liabilities, net | (60,032) | (106,776) | |
Gain on bargain purchase | — | (5,005) | |
(Gain) loss on extinguishment of debt, net | — | 26,397 | |
(Gain) loss on sale of operating assets, net | (17,357) | — | |
Changes in components of working capital and other operating activities | (144,115) | (123,526) | |
Net cash provided by (used in) operating activities | 655,475 | 574,337 | |
Cash flows from investing activities | |||
Capital expenditures | (575,315) | (409,581) | |
Proceeds from insurance claims | 23,297 | 18,809 | |
Cash paid in stock-based business combinations, net | (417,041) | — | |
Proceeds from disposal of assets, net | 10,040 | 24,264 | |
Net cash provided by (used in) investing activities | (959,019) | (366,508) | |
Cash flows from financing activities | |||
Issuance of debt | 824,000 | 600,000 | |
Repayments of debt | — | (673,411) | |
Borrowing on credit facilities | 35,000 | — | |
Repayments of credit facilities | (35,000) | — | |
Debt issuance costs | (10,002) | (24,914) | |
Debt extinguishment costs | — | (25,697) | |
Warrant exercised | 1,443 | 485 | |
Share repurchases | (299,989) | (94,826) | |
Dividend payments | (277,831) | (98,804) | |
Taxes withheld on employee stock transaction | (66,057) | (8,624) | |
Finance lease payments | (6,064) | — | |
Other | 22,578 | — | |
Net cash provided by (used in) financing activities | 188,078 | (325,791) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (115,466) | (117,962) | |
Cash, cash equivalents and restricted cash, beginning of period | 367,745 | 485,707 | |
Cash, cash equivalents and restricted cash, end of period | $ 252,279 | $ 367,745 |
NOBLE CORPORATION plc AND SUBSIDIARIES OPERATIONAL INFORMATION (Unaudited)
| |||||
Average Rig Utilization | |||||
Three Months Ended | |||||
December 31, 2024 | September 30, 2024 | December 31, 2023 | |||
Floaters | 68 % | 72 % | 63 % | ||
Jackups | 82 % | 83 % | 61 % | ||
Total | 73 % | 76 % | 62 % | ||
Operating Days | |||||
Three Months Ended | |||||
December 31, 2024 | September 30, 2024 | December 31, 2023 | |||
Floaters | 1,713 | 1,418 | 1,101 | ||
Jackups | 978 | 991 | 785 | ||
Total | 2,691 | 2,409 | 1,886 | ||
Average Dayrates | |||||
Three Months Ended | |||||
December 31, 2024 | September 30, 2024 | December 31, 2023 | |||
Floaters | $ 419,909 | $ 424,199 | $ 437,827 | ||
Jackups | 152,419 | 155,585 | 147,954 | ||
Total | $ 322,746 | $ 315,295 | $ 317,150 |
NOBLE CORPORATION plc AND SUBSIDIARIES CALCULATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER SHARE (In thousands, except per share amounts) (Unaudited)
| ||||||||
The following tables presents the computation of basic and diluted income (loss) per share:
| ||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Numerator: | ||||||||
Net income (loss) | $ 96,648 | $ 149,700 | $ 448,353 | $ 481,902 | ||||
Denominator: | ||||||||
Weighted average shares outstanding - basic | 160,257 | 141,054 | 148,733 | 138,380 | ||||
Dilutive effect of share-based awards | 1,512 | 3,158 | 1,512 | 3,158 | ||||
Dilutive effect of warrants | 1,048 | 1,763 | 1,394 | 3,659 | ||||
Weighted average shares outstanding - diluted | 162,817 | 145,975 | 151,639 | 145,197 | ||||
Per share data | ||||||||
Basic: | ||||||||
Net income (loss) | $ 0.60 | $ 1.06 | $ 3.01 | $ 3.48 | ||||
Diluted: | ||||||||
Net income (loss) | $ 0.59 | $ 1.03 | $ 2.96 | $ 3.32 |
NOBLE CORPORATION plc AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION
Certain non-GAAP measures and corresponding reconciliations to GAAP financial measures for the Company have been provided for meaningful comparisons between current results and prior operating periods. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles.
The Company defines "Adjusted EBITDA" as net income (loss) adjusted for interest expense, net of amounts capitalized; interest income and other, net; income tax benefit (provision); and depreciation and amortization expense, as well as, if applicable, gain (loss) on extinguishment of debt, net; losses on economic impairments; amortization of intangible assets and contract liabilities, net; restructuring and similar charges; costs related to mergers and integrations; and certain other infrequent operational events. We believe that the Adjusted EBITDA measure provides greater transparency of our core operating performance. We prepare Adjusted Net Income (Loss) by eliminating from Net Income (Loss) the impact of a number of non-recurring items we do not consider indicative of our on-going performance. We prepare Adjusted Diluted Earnings (Loss) per Share by eliminating from Diluted Earnings per Share the impact of a number of non-recurring items we do not consider indicative of our on-going performance. Similar to Adjusted EBITDA, we believe these measures help identify underlying trends that could otherwise be masked by the effect of the non-recurring items we exclude in the measure.
The Company also discloses free cash flow as a non-GAAP liquidity measure. Free cash flow is calculated as Net cash provided by (used in) operating activities less capital expenditures, net of proceeds from insurance claims. We believe Free Cash Flow is useful to investors because it measures our ability to generate or use cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases. We may have certain obligations such as non-discretionary debt service that are not deducted from the measure. Such business needs, obligations, and other non-discretionary expenditures that are not deducted from Free Cash Flow would reduce cash available for other uses including return of capital.
We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management team for financial and operational decision-making. We are presenting these non-GAAP financial measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.
These non-GAAP adjusted measures should be considered in addition to, and not as a substitute for, or superior to, contract drilling revenue, contract drilling costs, contract drilling margin, average daily revenue, operating income, cash flows from operations, or other measures of financial performance prepared in accordance with GAAP. Please see the following non-GAAP Financial Measures and Reconciliations for a complete description of the adjustments.
NOBLE CORPORATION plc AND SUBSIDIARIES NON-GAAP MEASURES AND RECONCILIATION (In thousands, except per share amounts) (Unaudited)
| ||||||||||
Reconciliation of Adjusted EBITDA | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Net income (loss) | $ 96,648 | $ 61,216 | $ 149,700 | $ 448,353 | $ 481,902 | |||||
Income tax (benefit) provision | 27,814 | 31,608 | (4,843) | 43,981 | 30,341 | |||||
Interest expense, net of amounts capitalized | 39,720 | 24,951 | 14,600 | 94,211 | 59,139 | |||||
Interest income and other, net | 6,812 | (2,292) | (1,777) | 17,438 | (18,069) | |||||
Depreciation and amortization | 141,279 | 109,879 | 82,933 | 428,626 | 301,345 | |||||
Amortization of intangible assets and contract liabilities, net | (13,452) | (3,730) | (11,236) | (60,032) | (106,776) | |||||
Gain on bargain purchase | — | — | — | — | (5,005) | |||||
(Gain) loss on extinguishment of debt, net | — | — | — | — | 26,397 | |||||
Merger and integration costs | 20,261 | 69,214 | 13,286 | 109,424 | 60,335 | |||||
(Gain) loss on sale of operating assets, net | — | — | — | (17,357) | — | |||||
Hurricane losses and (recoveries), net | — | — | (41,823) | — | (19,703) | |||||
Adjusted EBITDA | $ 319,082 | $ 290,846 | $ 200,840 | $ 1,064,644 | $ — | $ 809,906 | ||||
Reconciliation of Income Tax Benefit (Provision) | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Income tax benefit (provision) | $ (27,814) | $ (31,608) | $ 4,843 | $ (43,981) | $ (30,341) | |||||
Adjustments | ||||||||||
Amortization of intangible assets and contract liabilities, net | 859 | 90 | 6,508 | 1,108 | 19,835 | |||||
Joint taxation scheme compensation | — | — | — | — | (1,981) | |||||
Discrete tax items | (17,415) | (37,688) | (60,116) | (136,698) | (170,436) | |||||
Total adjustments | (16,556) | (37,598) | (53,608) | (135,590) | (152,582) | |||||
Adjusted income tax benefit (provision) | $ (44,370) | $ (69,206) | $ (48,765) | $ (179,571) | $ (182,923) |
NOBLE CORPORATION plc AND SUBSIDIARIES NON-GAAP MEASURES AND RECONCILIATION (In thousands, except per share amounts) (Unaudited)
| ||||||||||
Reconciliation of Adjusted Net Income (Loss) | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Net income (loss) | $ 96,648 | $ 61,216 | $ 149,700 | $ 448,353 | $ 481,902 | |||||
Adjustments | ||||||||||
Amortization of intangible assets and contract liabilities, net | (12,593) | (3,640) | (4,728) | (58,924) | (86,941) | |||||
Joint taxation scheme compensation | 4,018 | — | — | 4,018 | (19,837) | |||||
Gain on bargain purchase | — | — | — | — | (5,005) | |||||
Merger and integration costs | 20,261 | 69,214 | 13,286 | 109,424 | 60,335 | |||||
(Gain) loss on sale of operating assets, net | — | — | — | (17,357) | — | |||||
Hurricane losses and (recoveries), net | — | — | (41,823) | — | (19,703) | |||||
(Gain) loss on extinguishment of debt, net | — | — | — | — | 26,397 | |||||
Discrete tax items | (17,415) | (37,688) | (60,116) | (136,698) | (170,436) | |||||
Total adjustments | (5,729) | 27,886 | (93,381) | (99,537) | (215,190) | |||||
Adjusted net income (loss) | $ 90,919 | $ 89,102 | $ 56,319 | $ 348,816 | $ 266,712 | |||||
Reconciliation of Diluted EPS | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Unadjusted diluted EPS | $ 0.59 | $ 0.40 | $ 1.03 | $ 2.96 | $ 3.32 | |||||
Adjustments | ||||||||||
Amortization of intangible assets and contract liabilities, net | (0.08) | (0.02) | (0.03) | (0.39) | (0.60) | |||||
Joint taxation scheme compensation | 0.02 | — | — | 0.03 | (0.14) | |||||
Gain on bargain purchase | — | — | — | — | (0.03) | |||||
Merger and integration costs | 0.12 | 0.45 | 0.09 | 0.72 | 0.42 | |||||
(Gain) loss on sale of operating assets, net | — | — | — | (0.11) | — | |||||
Hurricane losses and (recoveries), net | — | — | (0.29) | — | (0.14) | |||||
(Gain) loss on extinguishment of debt, net | — | — | — | — | 0.18 | |||||
Discrete tax items | (0.09) | (0.25) | (0.41) | (0.91) | (1.17) | |||||
Total adjustments | (0.03) | 0.18 | (0.64) | (0.66) | (1.48) | |||||
Adjusted diluted EPS | $ 0.56 | $ 0.58 | $ 0.39 | $ 2.30 | $ 1.84 | |||||
Reconciliation of Free Cash Flow | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
Net cash provided by (used in) operating activities | $ 136,214 | $ 283,781 | $ 287,489 | $ 655,475 | $ 574,337 | |||||
Capital expenditures | (140,662) | (127,002) | (141,450) | (575,315) | (409,581) | |||||
Proceeds from insurance claims | 6,871 | 7,898 | 18,809 | 23,297 | 18,809 | |||||
Free cash flow | $ 2,423 | $ 164,677 | $ 164,848 | $ 103,457 | $ 183,565 |
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SOURCE Noble Corporation plc