Noble 8K Reports Third Quarter 2005 Results | SEC 20 Oct 05

EXHIBIT 99.1


NEWS		NOBLE CORPORATION 13135 South Dairy Ashford, Suite 800 Sugar Land, TX 77478 Phone: 281-276-6100 Fax: 281-491-2092

NOBLE REPORTS THIRD QUARTER 2005 RESULTS

SUGAR LAND, Texas, October 20, 2005 — Noble Corporation reported net income for the third quarter of 2005 of $76.5 million, or $0.55 per diluted share, on operating revenues of $367.2 million, compared to net income of $30.6 million, or $0.23 per diluted share, on operating revenues of $265.6 million for the third quarter of 2004. Net income for the nine months ended September 30, 2005 was $195.4 million, or $1.42 per diluted share, on operating revenues of $1.02 billion, compared to net income of $93.2 million, or $0.70 per diluted share, on operating revenues of $764 million for the nine months ended September 30, 2004, a 110 percent increase in net income and a 34 percent increase in operating revenues.

At September 30, 2005, the Company’s consolidated balance sheet reflected $2.65 billion in shareholders’ equity, $211.5 million in cash and marketable debt securities, and $440.4 million in total debt. Net cash provided by operating activities for the nine month period ended September 30, 2005 was $337.9 million. Debt as a percentage of total capitalization decreased from 18 percent as of December 31, 2004 to 14 percent as of September 30, 2005. During the nine months ended September 30, 2005, the Company repaid $65 million principal amount of the outstanding balance on its $300 million bank credit facility.

As previously reported in the Company’s October 6, 2005 press release, we estimated financial impacts directly attributable to Hurricanes Katrina and Rita to be a reduction of the Company’s net income in the range of $0.13 to $0.15 per diluted share for the third quarter. During the third quarter of 2005, the Company recorded a $20 million charge, net of expected recoveries from our hull and machinery insurance, related to the damage from these events and $9.5 million in business interruption insurance proceeds that the Company expects to recover from our insurance underwriters. These financial impacts

are presented in Hurricane losses and recoveries, net, as a component of Operating Costs and Expenses in our interim Unaudited Consolidated Statements of Income.

James C. Day, Chairman, Chief Executive Officer and President, said, “Obviously, the severe Katrina and Rita storms in the Gulf of Mexico have had a significant impact on the oil and gas service sector not only in the offshore arena but also in the onshore infrastructure needed to complete repairs. Importantly, all Noble personnel were evacuated to safety and we continue to assist those who have been impacted by the storms.”

Net income for the third quarter of 2005 increased 4 percent from the second quarter of 2005 as average dayrates for all divisions continued to improve and operating days for most divisions, except for the U.S. Gulf of Mexico and North Sea, increased. Operating days in the U.S. Gulf of Mexico and North Sea decreased due to unscheduled downtime resulting from Hurricanes Katrina and Rita and the shipyard project related to theNoble Al White upgrade.

Compared to the third quarter of 2004, net income in the third quarter of 2005 increased 150 percent primarily due to an increase in worldwide utilization and higher average dayrates in the U.S. Gulf of Mexico, West Africa, Middle East and North Sea. Worldwide rig utilization increased to 97 percent in the third quarter of 2005 from 82 percent in the third quarter of 2004. Operating days in the Middle East increased by 360 days in the third quarter of 2005 over the third quarter of 2004 primarily due to the acquisitions of theNoble Cees van Diemen, Noble Mark BurnsandNoble David Tinsleyin the second half of 2004 andNoble Harvey Duhaneyin the third quarter of 2005 and contributions from theNoble Dick Favor(which was in drydock during a portion of the third quarter of 2004). Operating days in Nigeria increased 250 days due to contracts for theNoble Ed Noble,Noble Don Walker, andNoble Homer Ferrington.

The average dayrates for the jackup and deepwater rigs (capable of drilling in water depths of 4,000 feet or greater) in the U.S. Gulf of Mexico increased 50 and 19 percent, respectively, from the third

quarter of 2004. The average dayrates in the North Sea and West Africa increased $11,408 (22 percent) and $12,770 (25 percent), respectively, in the third quarter of 2005 from the third quarter of 2004.

Offshore contract drilling services revenues from deepwater drilling units accounted for approximately 33 percent and 29 percent, respectively, of the Company’s total contract drilling services revenues for the third quarter of 2005 and 2004, respectively. The Company currently operates six deepwater semisubmersibles in the Gulf of Mexico, one deepwater semisubmersible and three deepwater drillships offshore Brazil, and one deepwater semisubmersible in Nigeria. Contract drilling services revenues from international sources accounted for approximately 76 percent and 75 percent, respectively, of the Company’s total contract drilling services revenues for the third quarters of 2005 and 2004.

The average dayrate for the Company’s international jackup rigs was $55,271 in the third quarter of 2005 compared to $49,954 in the third quarter of 2004. Utilization on these units increased from 82 percent in the third quarter of 2004 to 98 percent in the third quarter of 2005.

The increase in the Company’s operating expenses in the third quarter of 2005 as compared to the same quarter of 2004 was mainly due to the increase in the number of operating days which was in part due to the addition of theNoble Cees van Diemen,Noble Mark Burns,Noble David Tinsley andNoble Harvey Duhaneyand higher rig utilization.

Day said “In October of 2004, the Company began analysis on developing a new operating standard for its semisubmersible fleet, designated API RP-2SK. This new operating design will assure our semisubmersible fleet can meet 100 year Deep Star storm conditions. We anticipate completing the new configuration over the next 24 months.”

Noble Corporation is a leading provider of diversified services for the oil and gas industry. Contract drilling services are performed with the Company’s fleet of 60 mobile offshore drilling units located in key markets worldwide. This fleet consists of 13 semisubmersibles, three dynamically positioned drillships, 41 jackups and three submersibles. In addition, the Company has contracted to

purchase two new F&G JU-2000E enhanced premium jackups, with scheduled delivery of the first unit in the third quarter of 2007 and the second unit in first quarter of 2008. Approximately 80 percent of the fleet is currently deployed in international markets, principally including the Middle East, Mexico, the North Sea, Brazil, West Africa, India, and the Mediterranean Sea. The Company provides technologically advanced drilling-related products and services designed to create value for our customers. The Company also provides labor contract drilling services, well site and project management services, and engineering services. The Company’s ordinary shares are traded on the New York Stock Exchange under the symbol “NE”.

This news release may contain “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.

Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com.

NC — 348
10/20/05

For additional information, contact:
Bruce W. Busmire, Senior Vice President and Chief Financial Officer
Noble Corporation, 281-276-6100

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2005			2004			2005			2004
OPERATING REVENUES
Contract drilling services	$	328,101		$	232,057		$	894,416		$	676,307
Reimbursables		18,078			12,161			61,235			31,765
Labor contract drilling services		17,275			15,146			52,947			35,615
Engineering, consulting and other		3,751			6,274			12,940			20,393

		367,205			265,638			1,021,538			764,080


OPERATING COSTS AND EXPENSES
Contract drilling services		156,026	(a)		133,235	(a)		445,955	(a)		380,068	(a)
Reimbursables		15,219			10,504			54,671			27,663
Labor contract drilling services		14,967	(a)		12,455	(a)		44,632	(a)		28,702	(a)
Engineering, consulting and other		5,349			4,875			16,970			19,756
Depreciation and amortization		61,276	(a)		52,723	(a)		177,182	(a)		154,333	(a)
Selling, general and administrative		9,324			7,831			27,241			24,140
Hurricane losses and recoveries, net		10,465	(b)		—			10,465			—

		272,626			221,623			777,116			634,662


OPERATING INCOME		94,579			44,015			244,422			129,418

OTHER INCOME (EXPENSE)
Interest expense		(5,153	)		(8,382	)		(16,280	)		(26,070	)
Other, net		2,093			1,199			8,304			5,722


INCOME BEFORE INCOME TAXES		91,519			36,832			236,446			109,070
INCOME TAX PROVISION		(14,996	)		(6,261	)		(41,083	)		(15,858	)


NET INCOME	$	76,523		$	30,571		$	195,363		$	93,212


NET INCOME PER SHARE:
Basic	$	0.56		$	0.23		$	1.44		$	0.70
Diluted	$	0.55		$	0.23		$	1.42		$	0.70

WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		136,708			132,540			136,013			132,583
Diluted		138,113			133,704			137,347			133,766


(a)		Amortization of deferred costs for major maintenance projects ($13,048 and $10,681 for the three months ended September 30, 2005 and 2004, and $36,158 and $30,132 for the nine months ended September 30, 2005 and 2004, respectively) is reflected in depreciation and amortization. Previously this cost component was included in expenses for contract drilling services and labor contract drilling services.

(b)		Represents a $20 million charge, net of expected recoveries from our hull and machinery insurance, related to the damage from Hurricanes Katrina and Rita, offset by $9.535 million in business interruption insurance recoveries for our EVA-4000 assets (Noble Jim Thompson,Noble Max Smith,Noble Paul RomanoandNoble Amos Runner) that suffered downtime during these events.

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)


		September 30,			December 31,
		2005			2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	166,673		$	58,790
Investment in marketable securities			44,837			132,788
Accounts receivable			269,788			205,023
Inventories			4,162			4,013
Prepaid expenses			13,404			12,454
Other current assets			40,906			12,215

Total current assets			539,770			425,283


PROPERTY AND EQUIPMENT
Drilling equipment and facilities			4,050,199			3,739,338
Other			65,452			65,550

			4,115,651			3,804,888
Accumulated depreciation			(1,196,607	)		(1,061,268	)

			2,919,044			2,743,620


INVESTMENTS IN AND ADVANCES TO JOINT VENTURES			—			18,804
OTHER ASSETS			132,466			120,266

		$	3,591,280		$	3,307,973


LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt		$	8,815		$	8,361
Accounts payable			161,636			83,012
Accrued payroll and related costs	��		73,016			60,911
Taxes payable			44,969			22,883
Interest payable			2,331			8,981
Other current liabilities			9,394			30,018

Total current liabilities			300,161			214,166

LONG-TERM DEBT			431,625			503,288
DEFERRED INCOME TAXES			203,912			206,506
OTHER LIABILITIES			8,149			8,110

			943,847			932,070


COMMITMENTS AND CONTINGENCIES

MINORITY INTEREST			(7,897	)		(8,531	)

SHAREHOLDERS’ EQUITY
Ordinary shares-par value $0.10 per share			13,691			13,441
Capital in excess of par value			1,023,407			926,652
Retained earnings			1,640,169			1,452,974
Restricted stock (unearned compensation)			(18,930	)		(11,171	)
Accumulated other comprehensive income (loss)			(3,007	)		2,538

			2,655,330			2,384,434

		$	3,591,280		$	3,307,973

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)


	Nine Months Ended September 30,
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	195,363		$	93,212

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		177,182			154,333
Deferred income tax provision		9,763			1,728
Loss on sales of marketable securities		48			131
Equity in income of joint venture		(2,818	)		(2,821	)
Distributions received from joint venture		2,194			1,452
Compensation expense from stock-based plans		5,546			4,257
Hurricane losses and recoveries, net		10,465			—
Other		2,552			2,224

Changes in current assets and liabilities:
Accounts receivable		(61,194	)		(31,645	)
Other current assets		(9,466	)		(5,483	)
Accounts payable		903			(5,805	)
Other current liabilities		7,414			1,073

Net cash provided by operating activities		337,952			212,656


CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions and related capital upgrades		(89,497	)		(69,473	)
Other capital expenditures		(139,752	)		(95,601	)
Deferred repair and maintenance expenditures		(50,140	)		(46,538	)
Proceeds from sales of property and equipment		1,035			1,616
Purchase of remaining 50% interest in thePanon, net of cash acquired		(28,374	)		2,295
Investment in marketable securities		(24,149	)		(90,367	)
Proceeds from sales and maturities of marketable securities		111,736			94,246

Net cash used for investing activities		(219,141	)		(203,822	)


CASH FLOWS FROM FINANCING ACTIVITIES
Payments of borrowing on credit facility		(65,000	)		—
Payments of other long-term debt		(6,371	)		(66,397	)
Proceeds from issuance of ordinary shares		68,611			52,344
Payments of dividends		(8,168	)		—
Repurchase of ordinary shares		—			(39,714	)

Net cash used for financing activities		(10,928	)		(53,767	)


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		107,883			(44,933	)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		58,790			62,567


CASH AND CASH EQUIVALENTS, END OF PERIOD	$	166,673		$	17,634

NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except utilization amounts, operating days and average dayrates)
(Unaudited)


	Three Months Ended September 30,																				Three Months Ended June 30,
	2005										2004										2005
	International			Domestic							International			Domestic							International			Domestic
	Contract			Contract			Engineering				Contract			Contract			Engineering				Contract			Contract			Engineering
	Drilling			Drilling			& Consulting		Other		Drilling			Drilling			& Consulting		Other		Drilling			Drilling			& Consulting		Other
OPERATING REVENUES
Contract drilling services	$	248,536		$	79,565		$	—	$	—	$	174,821		$	57,236		$	—	$	—	$	224,518		$	79,393		$	—	$	—
Reimbursables		10,423			2,943			205		4,507		5,874			3,334			685		2,268		7,933			4,826			1,884		4,012
Labor contract drilling services		—			—			—		17,275		—			—			—		15,146		—			—			—		17,531
Engineering, consulting and other		774			228			2,749		—		1,862			306			3,063		1,043		761			285			2,865		—

	$	259,733		$	82,736		$	2,954	$	21,782	$	182,557		$	60,876		$	3,748	$	18,457	$	233,212		$	84,504		$	4,749	$	21,543


OPERATING COSTS AND EXPENSES
Contract drilling services	$	120,700		$	35,326		$	—	$	—	$	99,159		$	34,067		$	—	$	—	$	113,107		$	32,800		$	—	$	—
Reimbursables		8,053			2,740			242		4,184		4,611			3,110			673		2,110		6,195			4,602			1,919		3,830
Labor contract drilling services		—			—			—		14,967		—			—			—		12,455		—			—			—		14,476
Engineering, consulting and other		35			606			4,603		105		(706	)		(115	)		4,562		1,134		195			134			5,216		188
Depreciation and amortization		48,126			12,247			84		819		40,479			11,202			162		889		46,993			11,770			99		667
Selling, general and administrative		6,419			2,333			233		339		5,279			1,946			260		346		7,012			2,513			234		340
Hurricane losses and recoveries, net		—			10,465			—		—		—			—			—		—		—			—			—		—

	$	183,333		$	63,717		$	5,162	$	20,414	$	148,822		$	50,210		$	5,657	$	16,934	$	173,502		$	51,819		$	7,468	$	19,501


OPERATING STATISTICS
Jackups:
Average Rig Utilization		98	%		100	%						82	%		100	%						97	%		100	%
Operating Days		3,440			184							2,864			184							3,266			182
Average Dayrate	$	55,271		$	68,990						$	49,954		$	45,935						$	51,747		$	60,865

Semisubmersibles — (6,000 feet or greater):
Average Rig Utilization		100	%		100	%						50	%		100	%						100	%		96	%
Operating Days		184			368							92			368							182			348
Average Dayrate	$	153,274		$	127,240						$	158,924		$	106,880						$	158,779		$	125,866

Semisubmersibles — (less than 6,000 feet):
Average Rig Utilization		100	%		96	%						100	%		39	%						100	%		100	%
Operating Days		92			176							92			72							91			182
Average Dayrate	$	84,315		$	69,241						$	57,804		$	35,708						$	84,742		$	77,611

Drillships:
Average Rig Utilization		100	%		N/A							43	%		N/A							95	%		N/A
Operating Days		276			N/A							119			N/A							260			N/A
Average Dayrate	$	81,401			N/A						$	99,277			N/A						$	72,707			N/A

Submersibles:
Average Rig Utilization		N/A			67	%						N/A			100	%						N/A			95	%
Operating Days		N/A			184							N/A			276							N/A			258
Average Dayrate		N/A		$	42,590							N/A		$	24,931							N/A		$	40,267

Total:
Average Rig Utilization		99	%		90	%						79	%		89	%						97	%		97	%
Operating Days		3,992			912							3,167			900							3,799			970
Average Dayrate	$	62,265		$	87,209						$	55,201		$	63,596						$	59,099		$	81,848

Noble 8-KNoble Reports Third Quarter 2005 Results