Noble 8K Reports Fourth Quarter and Full Year 2005 Results | SEC 26 Jan 06

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 FOURTH QUARTER AND FULL YEAR 2005 RESULTS

SUGAR LAND, Texas, January 26, 2006 — Noble Corporation reported net income for the fourth quarter of 2005 of $101.3 million, or $0.73 per diluted share, on operating revenues of $360.6 million, compared to net income of $52.9 million, or $0.39 per diluted share, on operating revenues of $302.2 million for the fourth quarter of 2004. Net income for the year ended December 31, 2005 was $296.7 million, or $2.16 per diluted share, on operating revenues of $1,382.1 million, compared to net income of $146.1 million, or $1.09 per diluted share, on operating revenues of $1,066.2 million for the year ended December 31, 2004.

At December 31, 2005, the Company’s consolidated balance sheet reflected $2.75 billion in shareholders’ equity, $166.3 million in cash and marketable securities, and $1,138.3 million in total debt. Net cash provided by operating activities for the year ended December 31, 2005 was $529.0 million.

The Company’s premium fleet of 62 offshore drilling rigs includes two new F&G JU-2000E enhanced premium jackups, theNoble Roger Lewisand theNoble Hans Deul, which are currently under construction and scheduled for delivery in the third quarter of 2007 and the first quarter of 2008, respectively. The purchase price for these two new build units, each of which has a two year contract, is being financed with net cash provided by operating activities.

James C. Day, Chairman, Chief Executive Officer and President, said, “Even with extraordinary weather events, the Company’s financial results continued to improve throughout the year.”

Net income for the fourth quarter of 2005 increased 32 percent from the third quarter of 2005 as market conditions continued to improve in West Africa and the North Sea. Average dayrates on the Company’s North Sea units continued to increase during the fourth quarter and utilization in the North Sea was 100 percent. The Company’s results for the third quarter of 2005 included a $20.0 million charge, net

of expected recoveries from our hull and machinery insurance, related to the damage from Hurricanes Katrina and Rita and $9.5 million in expected loss of hire insurance recoveries. The fourth quarter of 2005 includes $40.2 million in expected loss of hire insurance recoveries related to Hurricanes Katrina and Rita. These financial impacts are presented in Hurricane losses and recoveries, net, as a component of Operating Costs and Expenses in our Consolidated Statements of Income.

Net income for the fourth quarter of 2005 increased 92 percent as compared to the fourth quarter of 2004 due principally to higher dayrates, primarily in Mexico and the North Sea, expected loss of hire recoveries related to Hurricanes Katrina and Rita, higher utilization rates across the fleet and additional operating days in the Middle East. These items were partially offset by additional costs associated with increased utilization and higher labor costs.

The Company’s Middle East division, which operates 17 rigs and includes India and the Mediterranean Sea, experienced an increase of 309 operating days in the fourth quarter of 2005 as compared to the fourth quarter of 2004. The increase in operating days was primarily due to the acquisition of theNoble Mark BurnsandNoble David Tinsley, both 300’ independent leg cantilever premium jackups, in June 2004 and October 2004, respectively, which were activated in August 2005 and February 2005, respectively,and the purchase of the remaining 50 percent interest in theNoble Harvey Duhaney, a 300’ independent leg cantilever premium jackup, in August 2005. Utilization in our West Africa operating division was also higher in the fourth quarter of 2005 as compared to the same quarter in 2004, increasing to 100 percent in the recent quarter from 88 percent in the fourth quarter of 2004.

In October 2005, theNoble Paul Wolffultra deep semisubmersible went into the shipyard in Brazil for a 150-day contract related upgrade project, which unfavorably impacted average dayrates during the fourth quarter as the unit remains under contract during this project. Partially offsetting this year-over-year comparison was the reactivation of theNoble Roger Eason, a 6,000’ ice class drillship, in April 2005 after

having been in the shipyard all of 2004 undergoing planned maintenance and significant upgrades which increased its operating capabilities.

Offshore contract drilling services revenues from deepwater drilling units (capable of drilling in water depths of 4,000 feet or greater) accounted for approximately 24 percent and 29 percent of the Company’s total contract drilling services revenues for the fourth 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 another deepwater semisubmersible in Nigeria. Contract drilling services revenues from international sources accounted for approximately 83 percent and 77 percent of the Company’s total contract drilling services revenues for the fourth quarter of 2005 and 2004, respectively.

The average dayrate for the Company’s international jackup rigs was $59,178 in the fourth quarter of 2005 compared to $50,984 in the fourth quarter of 2004. Utilization on these rigs improved to 99 percent in the recent quarter as compared to 97 percent in the fourth quarter of 2004. The average dayrate on the Company’s deepwater rigs in the U.S. Gulf of Mexico capable of drilling in water depths of 6,000 feet or greater decreased 48 percent to $51,146 in the fourth quarter of 2005 as compared to $98,767 in the fourth quarter of 2004 due to rigs under repair related to Hurricanes Katrina and Rita. Loss of hire insurance recoveries associated with these rigs for the fourth quarter of 2005 are expected to be $40.2 million and are presented in Hurricane losses and recoveries, net, as a component of Operating Costs and Expenses in our Consolidated Statements of Income. All deepwater rigs were back on contract as of January 15, 2006. The U.S. Gulf of Mexico deepwater market has continued to strengthen, and the dayrates under recent contracts for the Company’s domestic deepwater semisubmersibles have been higher than the average dayrate for the fourth quarter of 2005. Utilization on these units was 100 percent during the fourth quarter of 2005 and 91 percent in the same quarter of the previous year. The average dayrate on

the Company’s domestic jackups increased 52 percent to $75,976 in the fourth quarter of 2005 as compared to the fourth quarter of 2004.

Day said, “The Company is well positioned with talented personnel and premium assets to fully participate in an expanding worldwide market anticipated in 2006. Assuring access to premium assets for our key clients remains a challenge particularly in the ultra deep market.”

On December 23, 2005, the Company acquired, directly and indirectly, 21,095,600 Class A shares and 2,501,374 Class B shares of Smedvig ASA (“Smedvig”). The purchase price for the Class A shares was NOK 200.00 per share and for the Class B shares was NOK 150.00 per share, totaling NOK 4,594,326,100 (or approximately US$691 million). The Company financed the acquisition of the Smedvig shares with an aggregate of $700 million in new debt borrowings. On January 23, 2006, SeaDrill Limited, a Bermudian limited company (“SeaDrill”), reported that SeaDrill had received acceptances for a total of 24,876,009 Class A shares and 15,417,402 Class B shares of Smedvig under the voluntary offer conducted by SeaDrill for shares of Smedvig. SeaDrill further reported that, including its already owned shares, SeaDrill controlled 51.24 percent of the Class A shares and 52.47 percent of the Smedvig capital. SeaDrill has expressed its intention to put forward a mandatory offer in Norway together with a tender offer in the United States to all remaining shareholders in Smedvig as soon as practically possible. As a result of the foregoing, the Company is currently reviewing available alternatives relative to the Company’s investment in Smedvig shares. The Company has no present plans or intention to make an offer for the balance of the shares of Smedvig the Company does not own. The Company continues to reserve the right to pursue all options available to it.

Noble Corporation is a leading provider of diversified services for the oil and gas industry. Contract drilling services are performed with the Company’s premium fleet of 62 mobile offshore drilling units located in key markets worldwide. This fleet consists of 13 semisubmersibles, three dynamically positioned drillships, 43 jackups and three submersibles. The fleet count includes 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 the first quarter of 2008. As previously announced, these units have been contracted. 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-360
1/26/06

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 December 31,							Year Ended December 31,
	2005			2004				2005			2004
OPERATING REVENUES
Contract drilling services	$	315,031		$	261,107		��	$	1,209,447		$	937,414
Reimbursables		25,097			18,469				86,332			50,234
Labor contract drilling services		16,256			15,712				69,203			51,327
Engineering, consulting and other		4,215			6,863				17,155			27,256

		360,599			302,151				1,382,137			1,066,231

OPERATING COSTS AND EXPENSES
Contract drilling services		153,251	(a)		141,595	(a)			599,207	(a)		521,663	(a)
Reimbursables		21,567			16,947				76,238			44,610
Labor contract drilling services		14,066	(a)		13,908	(a)			58,698	(a)		42,610	(a)
Engineering, consulting and other		5,709			7,583				22,678			27,339
Depreciation and amortization		64,570	(a)		54,790	(a)			241,752	(a)		209,123	(a)
Selling, general and administrative		13,037			9,574				40,278			33,714
Hurricane losses and recoveries, net		(40,224	)(b)		—				(29,759	)(c)		—

		231,976			244,397				1,009,092			879,059


OPERATING INCOME		128,623			57,754				373,045			187,172

OTHER INCOME (EXPENSE)
Interest expense		(3,506	)		(8,319	)			(19,786	)		(34,389	)
Other, net		2,529			3,312				10,833			9,034


INCOME BEFORE INCOME TAXES		127,646			52,747				364,092			161,817
INCOME TAX PROVISION		(26,313	)		127				(67,396	)		(15,731	)


NET INCOME	$	101,333		$	52,874			$	296,696		$	146,086


NET INCOME PER SHARE:
Basic	$	0.74		$	0.39			$	2.18		$	1.10
Diluted	$	0.73		$	0.39			$	2.16		$	1.09

WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		136,972			133,904				136,253			132,897
Diluted		138,202			135,311				137,561			134,115


(a)		Amortization of major maintenance project costs ($13,842 and $10,772 for the three months ended December 31, 2005 and 2004, and $50,021 and $40,904 for the years ended December 31, 2005 and 2004, respectively) is reflected in depreciation and amortization. In periods prior to 2005, this cost component was included in contract drilling services expenses and labor contract drilling services expenses.

(b)		Represents loss of hire insurance proceeds of $40,224 for theNoble Jim Thompson,Noble Max Smith,Noble Paul RomanoandNoble Amos Runner.

(c)		Represents a $20,000 charge, net of expected recoveries from our hull and machinery insurance, related to the damage from Hurricanes Katrina and Rita, offset by $49,759 in loss of hire insurance proceeds 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)


	December 31,			December 31,
	2005			2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	121,845		$	58,790
Investment in marketable securities		44,457			132,788
Accounts receivable		276,688			205,023
Inventories		3,940			4,013
Prepaid expenses		10,064			12,454
Other current assets		65,461			12,215

Total current assets		522,455			425,283


PROPERTY AND EQUIPMENT
Drilling equipment and facilities		4,178,097			3,739,338
Other		66,698			65,550

		4,244,795			3,804,888
Accumulated depreciation		(1,245,776	)		(1,061,268	)

		2,999,019			2,743,620


INVESTMENTS		691,804			18,804
OTHER ASSETS		148,148			120,266

	$	4,361,426		$	3,307,973


LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	8,972		$	8,361
Accounts payable		93,914			83,012
Accrued payroll and related costs		78,558			60,911
Taxes payable		45,245			22,883
Interest payable		9,640			8,981
Other current liabilities		16,294			30,018

Total current liabilities		252,623			214,166

LONG-TERM DEBT		1,129,325			503,288
DEFERRED INCOME TAXES		226,559			206,506
OTHER LIABILITIES		8,045			8,110

		1,616,552			932,070


COMMITMENTS AND CONTINGENCIES		—			—

MINORITY INTEREST		(7,906	)		(8,531	)

SHAREHOLDERS’ EQUITY
Ordinary shares-par value $0.10 per share		13,701			13,441
Capital in excess of par value		1,024,470			926,652
Retained earnings		1,736,015			1,452,974
Restricted stock (unearned compensation)		(17,099	)		(11,171	)
Accumulated other comprehensive income (loss)		(4,307	)		2,538

		2,752,780			2,384,434

	$	4,361,426		$	3,307,973

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


	Year Ended December 31,
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	296,696		$	146,086

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		241,752			209,123
Deferred income tax provision		36,207			5,022
Loss on sales of marketable securities		69			129
Income from equity investments		(3,194	)		(3,931	)
Distributions received from joint venture		2,194			2,700
Compensation expense from stock-based plans		7,377			5,753
Hurricane losses and recoveries, net		(29,759	)		—
Dissolution of rabbi trust		—			11,945
Other		3,213			(4,028	)

Changes in current assets and liabilities:
Accounts receivable		(68,094	)		(55,788	)
Other current assets		18,968			1,187
Accounts payable		(2,395	)		(4,164	)
Other current liabilities		25,976			18,187

Net cash provided by operating activities		529,010			332,221


CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions and related capital upgrades		(212,050	)		(110,548	)
Other capital expenditures		(221,806	)		(150,493	)
Major maintenance expenditures		(79,663	)		(72,948	)
Repayments from joint venture		—			2,295
Proceeds from sales of property and equipment		1,129			2,135
Investment in Smedvig ASA		(691,100	)		—
Purchase of remaining 50% interest in thePanon, net of cash acquired		(31,576	)		—
Investment in marketable securities		(24,973	)		(233,216	)
Proceeds from sales and maturities of marketable securities		112,628			265,352

Net cash used for investing activities		(1,147,411	)		(297,423	)


CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings/(Payments) on credit facilities, net		635,000			(25,000	)
Payments of other long-term debt		(8,517	)		(52,933	)
Proceeds from issuance of ordinary shares		76,037			79,072
Payments of dividends		(13,655	)		—
Repurchase of ordinary shares		(7,409	)		(39,714	)

Net cash provided by (used for) financing activities		681,456			(38,575	)


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		63,055			(3,777	)

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


CASH AND CASH EQUIVALENTS, END OF PERIOD	$	121,845		$	58,790

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,																				Three Months Ended September 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	$	260,038		$	54,993		$	—	$	—	$	201,692		$	59,415		$	—	$	—	$	248,536		$	79,565		$	—	$	—
Reimbursables		11,940			9,036			180		3,941		5,960			5,369			4,854		2,286		10,423			2,943			205		4,507
Labor contract drilling services		—			—			—		16,256		—			—			—		15,712		—			—			—		17,275
Engineering, consulting and other		470			808			2,937		—		783			332			3,193		2,555		774			228			2,749		—

	$	272,448		$	64,837		$	3,117	$	20,197	$	208,435		$	65,116		$	8,047	$	20,553	$	259,733		$	82,736		$	2,954	$	21,782


OPERATING COSTS AND EXPENSES
Contract drilling services	$	122,920		$	30,707		$	—	$	—	$	124,408		$	27,954		$	—	$	—	$	120,700		$	35,326		$	—	$	—
Reimbursables		8,478			8,877			321		3,891		4,635			5,213			4,850		2,249		8,053			2,740			242		4,184
Labor contract drilling services		—			—			—		14,066		—			—			—		13,913		—			—			—		14,967
Engineering, consulting and other		198			430			4,705		—		(202	)		392			5,073		2,320		35			606			4,603		105
Depreciation and amortization		50,581			13,086			84		819		32,653			10,429			99		837		48,126			12,247			84		819
Selling, general and administrative		9,228			3,235			234		340		6,652			2,342			234		346		6,419			2,333			233		339
Hurricane losses and recoveries, net		—			(40,224	)		—		—		—			—			—		—		—			10,465			—		—

	$	191,405		$	16,111		$	5,344	$	19,116	$	168,146		$	46,330		$	10,256	$	19,665	$	183,333		$	63,717		$	5,162	$	20,414


OPERATING STATISTICS
Jackups:
Average Rig Utilization		99	%		100	%						97	%		100	%						98	%		100	%
Operating Days		3,535			184							3,213			184							3,440			184
Average Dayrate	$	59,178		$	75,976						$	50,984		$	50,049						$	55,271		$	68,990

Semisubmersibles — (6,000 feet or greater):
Average Rig Utilization		100	%		100	%						67	%		91	%						100	%		100	%
Operating Days		184			368							123			335							184			368
Average Dayrate	$	79,434		$	51,146						$	143,244		$	98,767						$	153,274		$	127,240

Semisubmersibles — (less than 6,000 feet):
Average Rig Utilization		100	%		85	%						100	%		100	%						100	%		96	%
Operating Days		92			157							92			184							92			176
Average Dayrate	$	111,177		$	97,957						$	57,413		$	49,103						$	84,315		$	69,241

Drillships:
Average Rig Utilization		100	%		N/A							64	%		N/A							100	%		N/A
Operating Days		276			N/A							176			N/A							276			N/A
Average Dayrate	$	94,220			N/A						$	85,108			N/A						$	81,401			N/A

Submersibles:
Average Rig Utilization		N/A			62	%						N/A			100	%						N/A			67	%
Operating Days		N/A			170							N/A			276							N/A			184
Average Dayrate		N/A		$	39,828							N/A		$	29,290							N/A		$	42,590

Total:
Average Rig Utilization		99	%		87	%						93	%		97	%						99	%		90	%
Operating Days		4,087			879							3,604			979							3,992			912
Average Dayrate	$	63,626		$	62,563						$	55,963		$	60,689						$	62,265		$	87,209

Noble 8-KNoble Reports Fourth Quarter and Full Year 2005 Results