ZUG, Switzerland, Jan. 27 /PRNewswire-FirstCall/ -- Noble Corporation today reported fourth quarter 2009 earnings of $446 million, or $1.72 per diluted share, versus $419 million, or $1.58 per diluted share, for the fourth quarter of 2008. Per-share earnings were up 8.9 percent from the fourth quarter of 2008 and up 5.5 percent from the $1.63 per share reported for the third quarter of 2009. Earnings for the full year 2009 totaled $6.42 per diluted share compared with $5.81 per diluted share in 2008. Results for the fourth quarter include $6.5 million or $0.03 per diluted share benefit related to a settlement of tax-related issues in the Middle East.
"Noble''s efforts to manage costs, advance our safety culture and deliver top-tier margins continued through the fourth quarter of 2009," said David W. Williams, Chairman, President and Chief Executive Officer. "In spite of a turbulent year in both the financial and drilling markets, our team''s focused efforts enabled us to end the year with our best ever safety results, a strong balance sheet and record earnings per share. At the same time, we continued to fund the expansion and modernization of our fleet, repurchase shares, provide outstanding service to our customers and drive value for our shareholders."
Contract drilling services revenues for the fourth quarter 2009 were $894 million, up 1.3 percent from the year-earlier quarter. Contract drilling margins for the fourth quarter 2009 were approximately 70 percent, generating $622 million in net cash provided by operating activities during the quarter and $2.1 billion for full year 2009. The Company invested $539 million in capital projects during the quarter, bringing full-year capital spending for 2009 to $1.4 billion. Debt as a percentage of total capitalization decreased to 10 percent at December 31, 2009, from approximately 10.5 percent at the end of the third quarter 2009.
The Company repurchased 1.75 million of its shares during the fourth quarter 2009 at a total cost of $74 million and at an average price per share of $42.06. For the full year 2009, Noble repurchased approximately 5.5 million of its shares at an average price per share of $34.10 for a total cost of $187 million.
Operations Highlights
At year end 2009, approximately 54 percent of the Company''s available rig operating days was committed for 2010 and approximately 26 percent was committed for 2011. The Company''s total backlog at December 31, 2009 was approximately $8.1 billion.
Noble''s newbuild 10,000-foot dynamically positioned deepwater semisubmersible Noble Danny Adkins, which has recently arrived in the U.S. Gulf of Mexico, is expected to commence drilling operations with Shell in the first quarter of 2010.
In Brazil, the newbuild dynamically positioned deepwater semisubmersible Noble Dave Beard is undergoing acceptance trials and is expected to commence operations under its five year contract with Petrobras in February.
In Mexico, Noble executed short term extensions for the Noble Leonard Jones and the Noble Eddie Paul, currently working for Pemex. The Noble Eddie Paul has been extended until June 3, 2010 and the Noble Leonard Jones has been extended until June 22, 2010. The extensions on both units are at a rate of $127,900 per day. Additionally, Noble has commenced a dialogue regarding short-term extensions on the Noble Lewis Dugger and the Noble John Sandifer, also in Mexico.
Outlook
"We expect to begin to realize the benefits of our fleet expansion program in 2010," continued Williams. "The commencements of operations of three new ultra-deepwater units, coupled with our outstanding backlog, give us positive momentum for the year ahead. At the same time, we will stay focused on fundamentals and work hard to create value for the shareholders."
About Noble Corporation
Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 62 offshore drilling units (including three rigs currently under construction) located worldwide, including in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, and West Africa. Noble''s shares are traded on the New York Stock Exchange under the symbol "NE". Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com/.
Statements regarding earnings, costs, revenue, rig demand, fleet performance, contract commitments, dayrates, contract commencements, contract extensions or renewals, newbuilds, fleet expansion or composition, industry fundamentals, global economic conditions, financial strength, contract backlog, customer base, future performance, growth opportunities, market outlook, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with operations outside of the U.S., actions by customers and other third parties, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, the actual amount of downtime, factors that reduce applicable dayrates, violations of anti-corruption laws, hurricanes and other weather conditions, the future price of oil and gas and other factors detailed in the Company''s most recent Form 10-K, Form 10-Q''s and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.
Conference Call
Noble has scheduled a conference call and webcast related to its fourth quarter and full year 2009 results on Thursday, January 28, 2010, at 8:00 a.m. U.S. Central Standard Time. Interested parties are invited to listen to the call by dialing 1-866-461-7129, or internationally 1-706-679-3084, using access code: 38607606 or by asking for the Noble Corporation conference call. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company''s Web site.
A replay of the conference call will be available on Thursday, January 28, 2010, beginning at 10:00 a.m. U.S. Central Standard Time, through Friday, February 12, 2010, ending at 5:00 p.m. U.S. Central Standard Time. The phone number for the conference call replay is 1-800-642-1687 or, for calls from outside of the U.S., 1-706-645-9291, using access code: 38607606. The replay will also be available on the Company''s Web site following the end of the live call. The conference call may include non-GAAP financial measures. Noble will post a reconciliation of any such measures to the most directly comparable GAAP measures in the "Investor Relations" section of the Company''s Web site under the heading "Regulation G Reconciliations."
NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Operating revenues Contract drilling services $894,184 $882,538 $3,509,755 $3,298,850 Reimbursables 37,234 19,340 99,201 90,849 Labor contract drilling services 8,455 7,732 30,298 55,078 Other 253 544 1,530 1,724 --- --- ----- ----- 940,126 910,154 3,640,784 3,446,501 ------- ------- --------- --------- Operating costs and expenses Contract drilling services 264,012 265,765 1,006,764 1,011,882 Reimbursables 32,954 15,541 85,035 79,327 Labor contract drilling services 4,928 5,279 18,827 42,573 Depreciation and amortization 112,667 93,252 408,313 356,658 Selling, general and administrative 19,361 17,176 80,262 74,143 (Gain)/loss on asset disposal/involuntary conversion, net (214) (964) 30,839 (26,485) ---- ---- ------ ------- 433,708 396,049 1,630,040 1,538,098 ------- ------- --------- --------- Operating income 506,418 514,105 2,010,744 1,908,403 Other income (expense) Interest expense, net of amount capitalized (424) (1,956) (1,685) (4,388) Interest income and other, net 1,848 1,430 6,843 8,443 ----- ----- ----- ----- Income before income taxes 507,842 513,579 2,015,902 1,912,458 Income tax provision (61,427) (95,012) (337,260) (351,463) ------- ------- -------- -------- Net income $446,415 $418,567 $1,678,642 $1,560,995 ======== ======== ========== ========== Net income per share Basic $1.72 $1.59 $6.44 $5.85 Diluted $1.72 $1.58 $6.42 $5.81 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, -------------- 2009 2008 ---- ---- ASSETS Current assets Cash and cash equivalents $735,493 $513,311 Accounts receivable 647,454 644,840 Insurance receivables 6,971 13,516 Prepaid expenses 26,938 21,207 Other current assets 66,334 47,467 ------ ------ Total current assets 1,483,190 1,240,341 --------- --------- Property and equipment Drilling equipment and facilities 8,666,750 7,427,908 Other 143,477 105,340 ------- ------- 8,810,227 7,533,248 Accumulated depreciation (2,175,775) (1,886,231) ---------- ---------- 6,634,452 5,647,017 --------- --------- Other assets 279,254 219,441 ------- ------- Total assets $8,396,896 $7,106,799 ========== ========== LIABILITIES AND SHAREHOLDERS'' EQUITY Current liabilities Current maturities of long-term debt $- $172,698 Accounts payable 197,800 259,107 Accrued payroll and related costs 100,167 75,449 Taxes payable 68,760 107,211 Interest payable 11,258 11,325 Other current liabilities 55,962 53,203 ------ ------ Total current liabilities 433,947 678,993 ------- ------- Long-term debt 750,946 750,789 Deferred income taxes 300,231 265,018 Other liabilities 123,340 121,284 ------- ------- Total liabilities 1,608,464 1,816,084 --------- --------- Commitments and contingencies Shareholders'' equity Shares - par value 4.85 Swiss francs per share; 414,399 shares authorized, 138,133 additional shares conditionally authorized, 276,266 shares issued and 261,975 shares outstanding as of December 31, 2009; 1,130,607 Ordinary shares - par value $.10 per share; 400,000 shares authorized; 261,899 shares issued and outstanding at December 31, 2008 26,190 Capital in excess of par value - 402,115 Retained earnings 5,855,737 4,919,667 Treasury shares - 3,750 shares held (143,031) - Accumulated other comprehensive loss (54,881) (57,257) ------- ------- Total shareholders'' equity 6,788,432 5,290,715 --------- --------- Total liabilities and shareholders'' equity $8,396,896 $7,106,799 ========== ========== NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Twelve Months Ended December 31, ------------ 2009 2008 ---- ---- Cash flows from operating activities Net income $1,678,642 $1,560,995 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 408,313 356,658 (Gain)/loss on asset disposal/involuntary conversion, net 30,839 (26,485) Deferred income tax provision 36,866 51,026 Share-based compensation expense 37,995 35,899 Pension contributions (17,639) (21,439) Net change in other assets and liabilities (38,300) (68,462) ------- ------- Net cash from operating activities 2,136,716 1,888,192 --------- --------- Cash flows from investing activities New construction (717,148) (799,736) Other capital expenditures (594,957) (323,955) Major maintenance expenditures (119,393) (107,630) Accrued capital expenditures (63,561) 40,830 Hurricane insurance receivables - 21,747 Proceeds from disposal of assets - 39,451 - ------ Net cash from investing activities (1,495,059) (1,129,293) ---------- ---------- Cash flows from financing activities Borrowings on bank credit facilities - 30,000 Payments on bank credit facilities - (130,000) Proceeds from issuance of senior notes, net - 249,238 Payments of other long-term debt (172,700) (10,335) Net proceeds from employee stock transactions 5,062 9,304 Tax benefit of employee stock transactions - 3,467 Dividends/par value reduction payments (47,939) (244,198) Repurchases of shares (203,898) (314,122) -------- -------- Net cash from financing activities (419,475) (406,646) -------- -------- Net increase in cash and cash equivalents 222,182 352,253 Cash and cash equivalents, beginning of period 513,311 161,058 ------- ------- Cash and cash equivalents, end of period $735,493 $513,311 ======== ======== NOBLE CORPORATION AND SUBSIDIARIES FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT (In thousands, except utilization amounts, operating days and average dayrates) (Unaudited) --------- Three Months Ended December 31, ------------------ 2009 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $894,184 $- $894,184 Reimbursables 36,199 1,035 37,234 Labor contract drilling services - 8,455 8,455 Other 253 - 253 --- - --- $930,636 $9,490 $940,126 ======== ====== ======== Operating costs and expenses Contract drilling services $264,012 $- $264,012 Reimbursables 31,967 987 32,954 Labor contract drilling services - 4,928 4,928 Depreciation and amortization 110,054 2,613 112,667 Selling, general and administrative 19,297 64 19,361 (Gain)/loss on asset disposal/ involuntary conversion, net - (214) (214) - ---- ---- $425,330 $8,378 $433,708 ======== ====== ======== Operating income $505,306 $1,112 $506,418 ======== ====== ======== Operating statistics Jackups: Average Rig Utilization 81% Operating Days 3,218 Average Dayrate $131,975 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 100% Operating Days 721 Average Dayrate $450,459 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $254,820 Drillships: Average Rig Utilization 100% Operating Days 276 Average Dayrate $269,615 Submersibles: Average Rig Utilization 0% Operating Days - Average Dayrate $- Total: Average Rig Utilization 83% Operating Days 4,491 Average Dayrate $199,122 Three Months Ended December 31, ------------------ 2008 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $882,538 $- $882,538 Reimbursables 18,060 1,280 19,340 Labor contract drilling services - 7,732 7,732 Other 530 14 544 --- -- --- $901,128 $9,026 $910,154 ======== ====== ======== Operating costs and expenses Contract drilling services $265,765 $- $265,765 Reimbursables 14,329 1,212 15,541 Labor contract drilling services - 5,279 5,279 Depreciation and amortization 91,104 2,148 93,252 Selling, general and administrative 17,073 103 17,176 (Gain)/loss on asset disposal/ involuntary conversion, net - (964) (964) - ---- ---- $388,271 $7,778 $396,049 ======== ====== ======== Operating income $512,857 $1,248 $514,105 ======== ====== ======== Operating statistics Jackups: Average Rig Utilization 88% Operating Days 3,354 Average Dayrate $151,601 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 100% Operating Days 644 Average Dayrate $364,180 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $249,603 Drillships: Average Rig Utilization 67% Operating Days 184 Average Dayrate $326,170 Submersibles: Average Rig Utilization 67% Operating Days 184 Average Dayrate $56,903 Total: Average Rig Utilization 88% Operating Days 4,642 Average Dayrate $190,137 Three Months Ended September 30, ------------------ 2009 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $874,969 $- $874,969 Reimbursables 21,511 944 22,455 Labor contract drilling services - 7,490 7,490 Other 509 212 721 --- --- --- $896,989 $8,646 $905,635 ======== ====== ======== Operating costs and expenses Contract drilling services $250,842 $- $250,842 Reimbursables 17,811 906 18,717 Labor contract drilling services - 4,642 4,642 Depreciation and amortization 100,669 2,576 103,245 Selling, general and administrative 21,629 71 21,700 (Gain)/loss on asset disposal/ involuntary conversion, net 2,076 - 2,076 ----- - ----- $393,027 $8,195 $401,222 ======== ====== ======== Operating income $503,962 $451 $504,413 ======== ==== ======== Operating statistics Jackups: Average Rig Utilization 80% Operating Days 3,183 Average Dayrate $143,388 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 98% Operating Days 631 Average Dayrate $434,435 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $261,167 Drillships: Average Rig Utilization 100% Operating Days 276 Average Dayrate $243,186 Submersibles: Average Rig Utilization 42% Operating Days 78 Average Dayrate $65,944 Total: Average Rig Utilization 83% Operating Days 4,444 Average Dayrate $196,900 NOBLE CORPORATION AND SUBSIDIARIES CALCULATION OF BASIC AND DILUTED NET INCOME (In thousands, except per share amounts) (Unaudited) The following table sets forth the computation of basic and diluted net income per share: Three months ended Twelve months ended December 31, December 31, ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Allocation of net income Basic Net income $446,415 $418,567 $1,678,642 $1,560,995 Earnings allocated to unvested share-based payment awards (4,647) (3,534) (16,811) (13,195) ------ ------ ------- ------- Net income to common shareholders - basic $441,768 $415,033 $1,661,831 $1,547,800 ======== ======== ========== ========== Diluted Net income $446,415 $418,567 $1,678,642 $1,560,995 Earnings allocated to unvested share-based payment awards (4,628) (3,525) (16,758) (13,131) ------ ------ ------- ------- Net income to common shareholders - diluted $441,787 $415,042 $1,661,884 $1,547,864 ======== ======== ========== ========== Weighted average number of shares outstanding - basic 256,507 261,501 258,035 264,782 Incremental shares issuable from assumed exercise of stock options 1,090 688 856 1,567 ----- --- --- ----- Weighted average number of shares outstanding -diluted 257,597 262,189 258,891 266,349 ======= ======= ======= ======= Weighted average unvested share-based payment awards 2,699 2,227 2,611 2,224 ===== ===== ===== ===== Earnings per share Basic $1.72 $1.59 $6.44 $5.85 Diluted $1.72 $1.58 $6.42 $5.81
Noble Corporation
CONTACT: Investors, Lee M. Ahlstrom, Vice President - Investor Relations
and Planning, +1-281-276-6440, or Media, John S. Breed, Director of Corporate
Communications, +1-281-276-6729, both of Noble Drilling Services Inc.
Web Site: http://www.noblecorp.com/
