On July 31, 2024, Noble Corp PLC (NE, Financial) released its 8-K filing announcing its second quarter 2024 results. Noble Corp PLC is an offshore drilling contractor for the oil and gas industry, providing contract drilling services with a fleet of mobile offshore drilling units. The company focuses on a high-specification fleet of floating and jackup rigs deployed in oil and gas basins worldwide.
Performance Overview
Noble Corp PLC reported a net income of $195 million for Q2 2024, significantly higher than the $95 million reported in Q1 2024. The diluted earnings per share (EPS) stood at $1.34, surpassing the analyst estimate of $0.67. The company's total revenue for the quarter was $693 million, exceeding the estimated $635.33 million.
Key Financial Achievements
The company's Adjusted EBITDA for Q2 2024 was $271 million, a 48% increase from the previous quarter's $183 million. This improvement was driven by key contract startups and increased utilization. Noble's marketed fleet utilization rose to 78% from 72% in Q1 2024, reflecting higher operational efficiency.
Robert W. Eifler, President and CEO of Noble Corporation plc, stated, "Our second quarter results reflect a strong earnings improvement driven by key contract startups, resulting in a 48% sequential improvement in Adjusted EBITDA."
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Total Revenue | $693 million | $639 million | $637 million |
| Net Income | $195 million | $95 million | $66 million |
| Adjusted EBITDA | $271 million | $183 million | $188 million |
| Diluted EPS | $1.34 | $0.66 | $0.45 |
Balance Sheet and Cash Flow
As of June 30, 2024, Noble Corp PLC reported a total debt principal value of $635 million and cash and cash equivalents of $163 million. The company generated $107 million in net cash from operating activities during Q2 2024, although free cash flow was negative at $(26) million due to significant working capital build.
Strategic Developments and Outlook
Noble Corp PLC announced the acquisition of Diamond Offshore Drilling, Inc., expected to close by Q1 2025. This acquisition is anticipated to bolster Noble's position in deepwater drilling. Additionally, the company increased its Q3 dividend to $0.50 per share, the highest in the U.S. oilfield services sector.
Mr. Eifler commented, "We are extremely excited to be progressing toward closing the highly accretive acquisition of Diamond, which represents a critical milestone in our First Choice journey through the formation of an industry-leading deepwater fleet."
Operational Highlights
Noble's marketed fleet of sixteen floaters was 78% contracted in Q2 2024, with leading edge dayrates for tier-1 drillships firm in the high $400,000s to low $500,000s per day range. The utilization of the company's thirteen marketed jackups improved to 77%, up from 67% in the prior quarter.
Conclusion
Noble Corp PLC's strong Q2 2024 performance, driven by increased utilization and strategic acquisitions, positions the company well for future growth. The company's financial achievements and operational efficiency underscore its robust standing in the offshore drilling industry.
Explore the complete 8-K earnings release (here) from Noble Corp PLC for further details.
