SUGAR LAND, Texas, April 23 /PRNewswire-FirstCall/ -- Noble Corporation today reported first quarter 2008 earnings of $384 million, or $1.43 per diluted share, versus $250 million, or $0.93 per diluted share (split adjusted), for the first quarter of 2007. Per-share earnings were up 54 percent from the first quarter of 2007 and up 11 percent from the $1.29 per diluted share reported for the fourth quarter of 2007.
Contract drilling services revenues for the 2008 first quarter were $798 million, up 5 percent from the fourth quarter 2007. Contract drilling margin for the first quarter 2008 was approximately 70 percent, generating $493 million in net cash provided by operating activities. The Company invested $234 million in capital projects during the first quarter 2008. The results for the 2008 first quarter include after-tax charges of $0.03 per diluted share related to the ongoing independent investigation of the Company's Nigerian operations.
"With a fifth consecutive record quarter, Noble continues to deliver excellent results, powered by our industry-leading margins, increased dayrates on several units and attention to cost control," said Noble Corporation Chairman, President and Chief Executive Officer David W. Williams. "This quarter was again characterized by strong execution by our crews, a clear focus on the timely completion of our newbuild and upgrade programs, and extension of our contract backlog."
Debt as a percentage of total capitalization declined to 13.6 percent at March 31, 2008, from approximately 15.4 percent at December 31, 2007. During the first quarter of 2008, the Company repurchased 593,000 shares at an average price per share of $44.81, for a total cost of approximately $27 million. As previously reported on April 17, 2008, the Company's Board of Directors has declared a special cash dividend of $0.75 per ordinary share that will be paid on May 16, 2008 to shareholders of record on April 30, 2008. The dividend payout will total approximately $202 million based on the number of ordinary shares of the Company currently outstanding.
Noble Adds Almost $5.0 Billion in Potential Revenue Backlog During First Quarter 2008
As of March 31, 2008, approximately 83 percent of the Company's total rig operating days were committed for 2008 and approximately 50 percent were committed for 2009. Additionally, the Company secured commitments on eight deepwater rigs for multi-year terms beginning as late as 2010. In late March, Noble announced a Memorandum of Understanding for contracts on five rigs currently in Brazil. These commitments are reflected in the Company's recently released Fleet Status report, along with the preliminary timing and order on when the three drillships in Brazil will experience shipyard time for their respective upgrades. In West Africa, the deepwater semisubmersible Noble Homer Ferrington received a Letter of Intent (LOI) from a major operator for three years at a dayrate of $495,000 commencing in 2009.
In the U.S. Gulf of Mexico, the deepwater semisubmersible Noble Jim Thompson received a contract during the quarter for two years with Shell at a dayrate of $505,000, commencing in 2009. The Company also received a contract for the Noble Lorris Bouzigard for a two year term with LLOG at a dayrate of $270,000, scheduled to begin in May 2008. Also in the U.S. Gulf of Mexico, the mooring system upgrade is nearing completion on the Noble Amos Runner, which is expected to return to full service in May 2008, under contract to Anadarko at a dayrate of $435,000 until March 2011.
The Company's international jackup units also experienced notable contract activity in many markets during the quarter. In the North Sea, the 360' jackup Noble Al White received a LOI from Total for one year at a dayrate of $208,000, commencing in 2008, and Cirrus Energy declared its option on the Noble Lynda Bossler at a dayrate of $220,000 through February 2009. In the Middle East, the Noble Roger Lewis commenced the contract for Shell in Qatar in February. As a result, a dayrate increase from $103,000 to $160,000 on the Noble Gene House, which also works for Shell, went into effect at the time the Noble Roger Lewis' contract commenced. Also in the Middle East, the 150' jackup Dhabi II received a LOI for an extension from ADOC for a three year commitment at a dayrate of $92,000 commencing in July 2008.
Noble Corporation is a leading offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 62 mobile offshore drilling units located in key markets worldwide, including the U.S. Gulf of Mexico, Middle East, Mexico, the North Sea, Brazil, West Africa and India. The fleet count includes five rigs under construction. Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com/.
This news release contains "forward-looking statements" about the business, financial performance and prospects of the Company. Statements about the Company's or management's plans, intentions, expectations, beliefs, estimates, predictions, or similar expressions for the future are forward-looking statements. No assurance can be given that the outcomes of these forward-looking statements will be realized, and actual results could differ materially from those expressed as a result of various factors. A discussion of these factors, including risks and uncertainties, is set forth from time to time in the Company's filings with the U.S. Securities and Exchange Commission.
Conference Call
Noble will hold its first quarter conference call on Thursday, April 24, 2008, at 1:00 p.m., Central Time. The call may be accessed live via telephone at (866) 461-7129 (706-679-3084 for international callers), using pass code 39846262. The call also will be available over the Internet through the "Investor Relations" section of the Company's Web site, using the "Web cast" link. A replay of the conference call will be available on Thursday, April 24, 2008, beginning at 5:00 p.m., Central Time, through Wednesday, April 30, 2008, ending at 5:00 p.m., Central Time. The phone number for the conference call replay is (800) 642-1687 (706-645-9291 for international callers), using the conference ID number 39846262. 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 "Reg G Reconciliations."
NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2008 2007 OPERATING REVENUES Contract drilling services $797,834 $576,915 Reimbursables 32,458 31,143 Labor contract drilling services 30,931 36,555 Engineering, consulting and other 202 1,811 861,425 646,424 OPERATING COSTS AND EXPENSES Contract drilling services 235,952 196,842 Reimbursables 29,461 27,546 Labor contract drilling services 25,337 28,403 Engineering, consulting and other - 3,641 Depreciation and amortization 82,899 64,465 Selling, general and administrative 21,273 14,226 394,922 335,123 OPERATING INCOME 466,503 311,301 OTHER INCOME (EXPENSE) Interest expense, net of amounts capitalized (1,110) (1,504) Other, net 3,129 1,158 INCOME BEFORE INCOME TAXES 468,522 310,955 INCOME TAX PROVISION (84,334) (60,635) NET INCOME $384,188 $250,320 NET INCOME PER SHARE: Basic $ 1.44 $ 0.94 Diluted $ 1.43 $ 0.93 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 266,451 267,122 Diluted 268,578 269,600 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) March 31, December 31, 2008 2007 ASSETS CURRENT ASSETS Cash and cash equivalents $ 319,597 $ 161,058 Accounts receivable 576,981 613,115 Insurance receivables - 39,066 Inventories 3,924 3,814 Prepaid expenses 59,957 20,721 Other current assets 25,033 22,417 Total current assets 985,492 860,191 PROPERTY AND EQUIPMENT Drilling equipment and facilities 6,562,748 6,354,782 Other 82,609 80,169 6,645,357 6,434,951 Accumulated depreciation (1,700,584) (1,639,035) 4,944,773 4,795,916 OTHER ASSETS 222,767 219,899 $6,153,032 $5,876,006 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ 30,518 $ 10,334 Accounts payable 169,192 198,395 Accrued payroll and related costs 95,330 115,914 Taxes payable 117,520 85,641 Interest payable 7,546 9,951 Other current liabilities 58,041 72,537 Total current liabilities 478,147 492,772 LONG-TERM DEBT 701,495 774,182 DEFERRED INCOME TAXES 250,461 240,621 OTHER LIABILITIES 64,731 65,705 1,494,834 1,573,280 COMMITMENTS AND CONTINGENCIES MINORITY INTEREST (6,068) (5,596) SHAREHOLDERS' EQUITY Ordinary shares-par value $0.10 per share; 400,000 shares authorized; 268,683 shares issued and outstanding in 2008; 268,223 shares issued and outstanding in 2007 26,868 26,822 Capital in excess of par value 666,298 683,697 Retained earnings 3,976,312 3,602,870 Accumulated other comprehensive loss (5,212) (5,067) 4,664,266 4,308,322 $6,153,032 $5,876,006 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES Net income $384,188 $250,320 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 82,899 64,465 Deferred income tax provision 9,840 2,794 Share-based compensation expense 8,716 7,340 Pension contribution (3,183) (728) Other 1,380 3,631 Other changes in current assets and liabilities: Accounts receivable 36,134 (53,306) Hurricane insurance recoveries 17,319 - Other current assets (42,268) 5,795 Accounts payable 3,278 (49,536) Other current liabilities (5,606) 39,471 Net cash provided by operating activities 492,697 270,246 CASH FLOWS FROM INVESTING ACTIVITIES New construction (134,380) (115,049) Other capital expenditures (76,673) (103,216) Major maintenance expenditures (22,935) (18,413) Accrued capital expenditures (32,481) 9,627 Hurricane insurance recoveries 21,747 - Proceeds from sales of property and equipment 282 - Net cash used for investing activities (244,440) (227,051) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on bank credit facilities - 170,000 Payments on bank credit facilities (50,000) (85,000) Payments of other long-term debt (2,516) (2,345) Net proceeds from employee stock transactions 115 (481) Dividends paid (10,746) (5,409) Repurchases of ordinary shares (26,571) (104,557) Net cash used for financing activities (89,718) (27,792) NET INCREASE IN CASH AND CASH EQUIVALENTS 158,539 15,403 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 161,058 61,710 CASH AND CASH EQUIVALENTS, END OF PERIOD $319,597 $ 77,113 NOBLE CORPORATION AND SUBSIDIARIES FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT (In thousands, except utilization amounts, operating days and average dayrates) (Unaudited) Three Months Ended March 31, 2008 Contract Drilling Services Other Total OPERATING REVENUES Contract drilling services $797,834 $ - $797,834 Reimbursables 21,166 11,292 32,458 Labor contract drilling services - 30,931 30,931 Engineering, consulting and other 187 15 202 $819,187 $42,238 $861,425 OPERATING COSTS AND EXPENSES Contract drilling services $235,952 $ - $235,952 Reimbursables 18,753 10,708 29,461 Labor contract drilling services - 25,337 25,337 Engineering, consulting and other - - - Depreciation and amortization 80,785 2,114 82,899 Selling, general and administrative 19,896 1,377 21,273 Hurricane losses and recoveries, net - - - $355,386 $39,536 $394,922 OPERATING INCOME $463,801 $ 2,702 $466,503 OPERATING STATISTICS Jackups: Average Rig Utilization 97% Operating Days 3,601 Average Dayrate $145,337 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 100% Operating Days 637 Average Dayrate $291,924 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 273 Average Dayrate $201,699 Drillships: Average Rig Utilization 67% Operating Days 182 Average Dayrate $133,665 Submersibles: Average Rig Utilization 66% Operating Days 179 Average Dayrate $ 51,274 Total: Average Rig Utilization 94% Operating Days 4,872 Average Dayrate $163,772 Three Months Ended March 31, 2007 Contract Drilling Services Other Total OPERATING REVENUES Contract drilling services $576,915 $ - $576,915 Reimbursables 19,769 11,374 31,143 Labor contract drilling services - 36,555 36,555 Engineering, consulting and other 230 1,581 1,811 $596,914 $49,510 $646,424 OPERATING COSTS AND EXPENSES Contract drilling services $196,842 $ - $196,842 Reimbursables 16,939 10,607 27,546 Labor contract drilling services - 28,403 28,403 Engineering, consulting and other 141 3,500 3,641 Depreciation and amortization 61,809 2,656 64,465 Selling, general and administrative 13,660 566 14,226 Hurricane losses and recoveries, net - - - $289,391 $45,732 $335,123 OPERATING INCOME $307,523 $ 3,778 $311,301 OPERATING STATISTICS Jackups: Average Rig Utilization 98% Operating Days 3,512 Average Dayrate $102,112 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 100% Operating Days 540 Average Dayrate $259,837 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 67% Operating Days 180 Average Dayrate $176,722 Drillships: Average Rig Utilization 93% Operating Days 252 Average Dayrate $100,740 Submersibles: Average Rig Utilization 95% Operating Days 256 Average Dayrate $ 81,047 Total: Average Rig Utilization 96% Operating Days 4,740 Average Dayrate $121,705 Three Months Ended December 31, 2007 Contract Drilling Services Other Total OPERATING REVENUES Contract drilling services $761,075 $ - $761,075 Reimbursables 20,233 9,779 30,012 Labor contract drilling services - 40,166 40,166 Engineering, consulting and other 319 40 359 $781,627 $49,985 $831,612 OPERATING COSTS AND EXPENSES Contract drilling services $243,882 $ - $243,882 Reimbursables 16,644 9,479 26,123 Labor contract drilling services - 32,443 32,443 Engineering, consulting and other - 150 150 Depreciation and amortization 79,679 2,928 82,607 Selling, general and administrative 26,181 505 26,686 Hurricane losses and recoveries, net (5,114) - (5,114) $361,272 $45,505 $406,777 OPERATING INCOME $420,355 $ 4,480 $424,835 OPERATING STATISTICS Jackups: Average Rig Utilization 98% Operating Days 3,697 Average Dayrate $138,746 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 97% Operating Days 626 Average Dayrate $269,146 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $185,227 Drillships: Average Rig Utilization 74% Operating Days 204 Average Dayrate $118,581 Submersibles: Average Rig Utilization 31% Operating Days 85 Average Dayrate $ 50,695 Total: Average Rig Utilization 93% Operating Days 4,888 Average Dayrate $155,707
