Exhibit 99.1
Noble Corporation
Dorfstrasse 19a
Baar
Switzerland 6340
Dorfstrasse 19a
Baar
Switzerland 6340
PRESS RELEASE
Noble Corporation Reports Second Quarter Earnings of $1.49 per Share
ZUG, Switzerland and SUGAR LAND, Texas, July 22, 2009 — Noble Corporation (NYSE: NE) today reported second quarter 2009 earnings of $392 million, or $1.49 per diluted share, versus earnings of $376 million, or $1.39 per diluted share, for the second quarter of last year. The results for the second quarter 2009 include a net after-tax charge of $0.05 per share related to expenses associated with theNoble David Tinsley, which was damaged as a result of the previously disclosed “punch-through” event that occurred as the unit was being positioned on location offshore Qatar.
Contract drilling services revenues for the second quarter 2009 were $868 million, up 10.8 percent from the second quarter 2008. Contract drilling margins for the second quarter 2009 were approximately 71 percent, generating $451 million in net cash provided by operating activities. Noble invested $275 million in capital projects during the quarter. Debt as a percentage of total capitalization declined slightly to 11.0 percent at June 30, 2009, from approximately 11.7 percent at March 31, 2009.
“Despite continued turbulence in global markets, Noble’s focus on operational excellence enabled us to deliver another outstanding quarter,” said David W. Williams, Chairman, President and Chief Executive Officer. “Costs are under control, our safety performance has been excellent, and despite having a number of jackup units available in the Middle East and West Africa, our contract drilling margins remain strong.”
Highlights
Three of the Company’s deepwater drilling units moved to higher dayrates during the quarter. In the U.S. Gulf of Mexico, theNoble Clyde Boudreaux’sdayrate increased to $605,000 from $244,000. In the Mediterranean Sea, theNoble Homer Ferringtonbegan its three-year contract in Libya with ExxonMobil at a dayrate of $537,000, an increase from its previous contracted dayrate of $434,000. In Brazil, theNoble Muravlenkocommenced its six-year contract with Petrobras at a dayrate of $290,000, exclusive of a potential 15 percent performance bonus. The previous dayrate for this unit was $120,000, also exclusive of a 15 percent performance bonus.
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NOBLE CORPORATION SECOND QUARTER EARNINGS ANNOUNCED | PAGE 2 |
Also in Brazil, the Company reached an agreement with Petrobras regarding late delivery penalties on the 10,000 foot dynamically positioned deepwater semisubmersibleNoble Dave Beard. Under the terms of the agreement, Noble will provide additional capital equipment on the unit for Petrobras’ use. In exchange, the delivery date for the unit has been reset to October 2009. Since the unit is expected to begin work under the contract at the end of 2009, the Company may still incur a penalty. The penalty amount would be reflected as a reduction in dayrate over the five-year contract and we expect the impact on the contracted dayrate of $220,000 to be immaterial.
During the quarter, the last of the Company’s three newbuild jackups, theNoble Scott Marks, commenced mobilization from the shipyard in Dalian, China to the North Sea. The unit is expected to begin its two-year contract with Venture Production at a dayrate of $210,000 during the third quarter 2009.
Finally, in Nigeria, the Company signed a contract extension on theNoble Ed Noble, a 250 foot independent leg cantilever jackup, with ExxonMobil at a dayrate of $115,000. The 213-day contract is subject to a 30-day notice of cancellation by either party.
“Looking ahead, we do not expect the near-term contracting environment to change significantly despite the gradual recovery we are seeing in crude prices,” said Williams. “However, every day that crude prices stay at a reasonable level or continue to improve builds confidence in our future. Our backlog is at a very healthy level and we continue to exercise discipline on the cost side. At the same time, we are making investments to improve the reliability and performance of our fleet. Our strong balance sheet and customer base allow us to add capacity when attractive opportunities come along that meet our disciplined investment process. Investors can count on us to act prudently as we confront this difficult climate and remain focused on increasing value now and when the economy improves.”
About Noble
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 four rigs currently under construction) located worldwide, including in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the North Sea, Brazil, and West Africa. Noble’s shares are traded on the New York Stock Exchange under the symbol “NE”.
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NOBLE CORPORATION SECOND QUARTER EARNINGS ANNOUNCED | PAGE 3 |
Statements regarding costs, safety performance, margins, rig demand, fleet performance, acquisitions, contract commitments, dayrates, contract commencements, penalties, newbuilds, 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 recentForm 10-K,Form 10-Q 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 will host a conference call and web cast related to its second-quarter 2009 results on Thursday, July 23, 2009, at 1:00 p.m. Central Time. Interested parties are invited to listen to the call by dialing (866) 461-7129, or internationally (706) 679-3084, using access code: 72480778 or by asking for the Noble Corporaiton conference call. A replay of the conference call will be available on Thursday, July 23, 2009, beginning at 5:00 p.m., Central Time, through Friday, July 31, 2009, ending at 5:00 p.m., Central Time. The phone number for the conference call replay is (800) 642-1687 or, for calls from outside of the U.S., 1-706-645-9291, using access code: 72480778. 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.” All individuals listening to the conference call or the replay are reminded that all conference call material is copyrighted by the Company and cannot be recorded or rebroadcast without the Company’s express written consent.
7/22/2009
For additional information, contact:
For Investors: | Lee M. Ahlstrom, Vice President — Investor Relations and Planning, | |
Noble Drilling Services Inc., 281-276-6440 | ||
For Media: | John S. Breed, Director of Corporate Communications, | |
Noble Drilling Services Inc., 281-276-6729 |
NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Operating revenues | ||||||||||||||||
Contract drilling services | $ | 868,205 | $ | 783,280 | $ | 1,740,602 | $ | 1,581,114 | ||||||||
Reimbursables | 22,834 | 20,964 | 39,512 | 53,422 | ||||||||||||
Labor contract drilling services | 7,419 | 8,218 | 14,353 | 39,149 | ||||||||||||
Other | 414 | 479 | 556 | 681 | ||||||||||||
898,872 | 812,941 | 1,795,023 | 1,674,366 | |||||||||||||
Operating costs and expenses | ||||||||||||||||
Contract drilling services | 251,054 | 256,436 | 491,910 | 492,388 | ||||||||||||
Reimbursables | 19,281 | 17,831 | 33,364 | 47,292 | ||||||||||||
Labor contract drilling services | 4,881 | 6,547 | 9,257 | 31,884 | ||||||||||||
Depreciation and amortization | 99,417 | 87,836 | 192,401 | 170,735 | ||||||||||||
Selling, general and administrative | 21,484 | 19,667 | 39,201 | 40,940 | ||||||||||||
(Gain)/impairment loss on asset disposals, net | 16,943 | (35,521 | ) | 28,977 | (35,521 | ) | ||||||||||
413,060 | 352,796 | 795,110 | 747,718 | |||||||||||||
Operating income | 485,812 | 460,145 | 999,913 | 926,648 | ||||||||||||
Other income (expense) | ||||||||||||||||
Interest expense, net of amount capitalized | (361 | ) | (721 | ) | (882 | ) | (1,831 | ) | ||||||||
Interest income and other, net | 1,318 | 1,580 | 2,390 | 4,709 | ||||||||||||
Income before income taxes | 486,769 | 461,004 | 1,001,421 | 929,526 | ||||||||||||
Income tax provision | (94,920 | ) | (85,286 | ) | (195,277 | ) | (169,620 | ) | ||||||||
Net income | $ | 391,849 | $ | 375,718 | $ | 806,144 | $ | 759,906 | ||||||||
Net income per share | ||||||||||||||||
Basic | $ | 1.50 | $ | 1.40 | $ | 3.08 | $ | 2.83 | ||||||||
Diluted | $ | 1.49 | $ | 1.39 | $ | 3.08 | $ | 2.81 |
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NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 671,420 | $ | 513,311 | ||||
Accounts receivable | 654,435 | 644,840 | ||||||
Insurance receivables | 39,214 | 13,516 | ||||||
Prepaid expenses | 43,582 | 21,207 | ||||||
Other current assets | 45,326 | 47,467 | ||||||
Total current assets | 1,453,977 | 1,240,341 | ||||||
Property and equipment | ||||||||
Drilling equipment and facilities | 7,854,412 | 7,427,908 | ||||||
Other | 113,395 | 105,340 | ||||||
7,967,807 | 7,533,248 | |||||||
Accumulated depreciation | (2,015,731 | ) | (1,886,231 | ) | ||||
5,952,076 | 5,647,017 | |||||||
Other assets | 276,069 | 219,441 | ||||||
Total assets | $ | 7,682,122 | $ | 7,106,799 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | — | $ | 172,698 | ||||
Accounts payable | 204,914 | 259,107 | ||||||
Accrued payroll and related costs | 75,270 | 75,449 | ||||||
Taxes payable | 69,253 | 107,211 | ||||||
Interest payable | 11,252 | 11,325 | ||||||
Other current liabilities | 62,155 | 53,203 | ||||||
Total current liabilities | 422,844 | 678,993 | ||||||
Long-term debt | 750,866 | 750,789 | ||||||
Deferred income taxes | 275,396 | 265,018 | ||||||
Other liabilities | 170,721 | 121,284 | ||||||
Total liabilities | 1,619,827 | 1,816,084 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity | ||||||||
Shares — par value 5.00 Swiss francs per share; 414,399 shares authorized, 138,133 additional shares conditionally authorized, 276,266 shares issued and 261,404 shares outstanding as of June 30, 2009; | 1,163,035 | — | ||||||
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 | 4,950,702 | 4,919,667 | ||||||
Accumulated other comprehensive loss | (51,442 | ) | (57,257 | ) | ||||
Total shareholders’ equity | 6,062,295 | 5,290,715 | ||||||
Total liabilities and shareholders’ equity | $ | 7,682,122 | $ | 7,106,799 | ||||
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NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended | ||||||||
June 30, | ||||||||
2009 | 2008 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 806,144 | $ | 759,906 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation and amortization | 192,401 | 170,735 | ||||||
(Gain)/impairment loss on asset disposals, net | 28,977 | (35,521 | ) | |||||
Deferred income tax provision | 6,431 | 13,900 | ||||||
Share-based compensation expense | 17,294 | 18,471 | ||||||
Pension contributions | (1,432 | ) | (17,445 | ) | ||||
Other changes in current assets and liabilities: | ||||||||
Accounts receivable | (25,691 | ) | 52,192 | |||||
Other current assets | (42,037 | ) | (25,313 | ) | ||||
Other assets | (17,282 | ) | 3,236 | |||||
Accounts payable | 23,333 | (7,994 | ) | |||||
Other current liabilities | (29,083 | ) | (1,179 | ) | ||||
Other liabilities | 39,384 | 4,525 | ||||||
Net cash from operating activities | 998,439 | 935,513 | ||||||
Cash flows from investing activities | ||||||||
New construction | (275,153 | ) | (310,770 | ) | ||||
Other capital expenditures | (192,657 | ) | (161,546 | ) | ||||
Major maintenance expenditures | (57,750 | ) | (52,577 | ) | ||||
Accrued capital expenditures | (68,134 | ) | (17,596 | ) | ||||
Hurricane insurance receivables | — | 21,747 | ||||||
Proceeds from disposal of assets | — | 39,134 | ||||||
Net cash from investing activities | (593,694 | ) | (481,608 | ) | ||||
Cash flows from financing activities | ||||||||
Payments on bank credit facilities | — | (50,000 | ) | |||||
Payments of other long-term debt | (172,700 | ) | (5,076 | ) | ||||
Net proceeds from employee stock transactions | (2,599 | ) | 10,558 | |||||
Dividends paid | (10,470 | ) | (222,910 | ) | ||||
Repurchases of ordinary shares | (60,867 | ) | (26,571 | ) | ||||
Net cash from financing activities | (246,636 | ) | (293,999 | ) | ||||
Net increase in cash and cash equivalents | 158,109 | 159,906 | ||||||
Cash and cash equivalents, beginning of period | 513,311 | 161,058 | ||||||
Cash and cash equivalents, end of period | $ | 671,420 | $ | 320,964 | ||||
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NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except utilization amounts, operating days and average dayrates)
(Unaudited)
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except utilization amounts, operating days and average dayrates)
(Unaudited)
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | ||||||||||||||||||||||||||||||||||
Contract | Contract | Contract | ||||||||||||||||||||||||||||||||||
Drilling | Drilling | Drilling | ||||||||||||||||||||||||||||||||||
Services | Other | Total | Services | Other | Total | Services | Other | Total | ||||||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||||||
Contract drilling services | $ | 868,205 | $ | — | $ | 868,205 | $ | 783,280 | $ | — | $ | 783,280 | $ | 872,397 | $ | — | $ | 872,397 | ||||||||||||||||||
Reimbursables | 22,295 | 539 | 22,834 | 19,646 | 1,318 | 20,964 | 16,156 | 522 | 16,678 | |||||||||||||||||||||||||||
Labor contract drilling services | — | 7,419 | 7,419 | — | 8,218 | 8,218 | — | 6,934 | 6,934 | |||||||||||||||||||||||||||
Other | 414 | — | 414 | 464 | 15 | 479 | 127 | 15 | 142 | |||||||||||||||||||||||||||
$ | 890,914 | $ | 7,958 | $ | 898,872 | $ | 803,390 | $ | 9,551 | $ | 812,941 | $ | 888,680 | $ | 7,471 | $ | 896,151 | |||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||||||
Contract drilling services | $ | 251,054 | $ | — | $ | 251,054 | $ | 256,436 | $ | — | $ | 256,436 | $ | 240,856 | $ | — | $ | 240,856 | ||||||||||||||||||
Reimbursables | 18,754 | 527 | 19,281 | 16,565 | 1,266 | 17,831 | 13,589 | 494 | 14,083 | |||||||||||||||||||||||||||
Labor contract drilling services | — | 4,881 | 4,881 | — | 6,547 | 6,547 | — | 4,376 | 4,376 | |||||||||||||||||||||||||||
Depreciation and amortization | 96,952 | 2,465 | 99,417 | 86,636 | 1,200 | 87,836 | 90,898 | 2,086 | 92,984 | |||||||||||||||||||||||||||
Selling, general and administrative | 21,411 | 73 | 21,484 | 19,526 | 141 | 19,667 | 17,667 | 50 | 17,717 | |||||||||||||||||||||||||||
(Gain)/loss on disposal and planned disposal of assets, net | 16,943 | — | 16,943 | — | (35,521 | ) | (35,521 | ) | 12,034 | — | 12,034 | |||||||||||||||||||||||||
$ | 405,114 | $ | 7,946 | $ | 413,060 | $ | 379,163 | $ | (26,367 | ) | $ | 352,796 | $ | 375,044 | $ | 7,006 | $ | 382,050 | ||||||||||||||||||
Operating income | $ | 485,800 | $ | 12 | $ | 485,812 | $ | 424,227 | $ | 35,918 | $ | 460,145 | $ | 513,636 | $ | 465 | $ | 514,101 | ||||||||||||||||||
Operating statistics | ||||||||||||||||||||||||||||||||||||
Jackups: | ||||||||||||||||||||||||||||||||||||
Average Rig Utilization | 80 | % | 93 | % | 86 | % | ||||||||||||||||||||||||||||||
Operating Days | 3,076 | 3,481 | 3,242 | |||||||||||||||||||||||||||||||||
Average Dayrate | $ | 157,381 | $ | 147,081 | $ | 158,359 | ||||||||||||||||||||||||||||||
Semisubmersibles — (6,000 feet or greater): | ||||||||||||||||||||||||||||||||||||
Average Rig Utilization | 94 | % | 90 | % | 100 | % | ||||||||||||||||||||||||||||||
Operating Days | 596 | 572 | 630 | |||||||||||||||||||||||||||||||||
Average Dayrate | $ | 408,510 | $ | 323,830 | $ | 369,988 | ||||||||||||||||||||||||||||||
Semisubmersibles — (less than 6,000 feet): | ||||||||||||||||||||||||||||||||||||
Average Rig Utilization | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||
Operating Days | 273 | 273 | 270 | |||||||||||||||||||||||||||||||||
Average Dayrate | $ | 251,945 | $ | 192,416 | $ | 246,118 | ||||||||||||||||||||||||||||||
Drillships: | ||||||||||||||||||||||||||||||||||||
Average Rig Utilization | 100 | % | 67 | % | 62 | % | ||||||||||||||||||||||||||||||
Operating Days | 273 | 182 | 168 | |||||||||||||||||||||||||||||||||
Average Dayrate | $ | 226,187 | $ | 131,174 | $ | 291,854 | ||||||||||||||||||||||||||||||
Submersibles: | ||||||||||||||||||||||||||||||||||||
Average Rig Utilization | 88 | % | 67 | % | 67 | % | ||||||||||||||||||||||||||||||
Operating Days | 161 | 182 | 180 | |||||||||||||||||||||||||||||||||
Average Dayrate | $ | 63,324 | $ | 53,039 | $ | 58,452 | ||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||
Average Rig Utilization | 84 | % | 90 | % | 86 | % | ||||||||||||||||||||||||||||||
Operating Days | 4,379 | 4,690 | 4,490 | |||||||||||||||||||||||||||||||||
Average Dayrate | $ | 198,270 | $ | 167,002 | $ | 194,308 |
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NOBLE CORPORATION AND SUBSIDIARIES
CALCULATION OF BASIC AND DILUTED NET INCOME
(In thousands, except per share amounts)
(Unaudited)
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 | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Allocation of net income | ||||||||||||||||
Basic | ||||||||||||||||
Net income | $ | 391,849 | $ | 375,718 | $ | 806,144 | $ | 759,906 | ||||||||
Earnings allocated to unvested share-based payment awards | (4,174 | ) | (3,324 | ) | (7,671 | ) | (6,418 | ) | ||||||||
Net income to common shareholders — basic | $ | 387,675 | $ | 372,394 | $ | 798,473 | $ | 753,488 | ||||||||
Diluted | ||||||||||||||||
Net income | $ | 391,849 | $ | 375,718 | $ | 806,144 | $ | 759,906 | ||||||||
Earnings allocated to unvested share-based payment awards | (4,161 | ) | (3,313 | ) | (7,650 | ) | (6,386 | ) | ||||||||
Net income to common shareholders — diluted | $ | 387,688 | $ | 372,405 | $ | 798,494 | $ | 753,520 | ||||||||
Weighted average number of shares outstanding — basic | 258,487 | 266,465 | 258,874 | 266,458 | ||||||||||||
Incremental shares issuable from assumed exercise of stock options | 839 | 2,049 | 702 | 1,967 | ||||||||||||
Weighted average number of shares outstanding — diluted | 259,326 | 268,514 | 259,576 | 268,425 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 1.50 | $ | 1.40 | $ | 3.08 | $ | 2.83 | ||||||||
Diluted | $ | 1.49 | $ | 1.39 | $ | 3.08 | $ | 2.81 |
8