Noble Corp (NE) Reports $1.3B in New Contracts

By Chris Stiles • Thursday, February 12 13:16 • Permanent Link

Noble Corporation PLC has reported its fourth quarter and full year 2025 results, showcasing significant developments and achievements. Here's a breakdown of the key figures and changes:

New Contract Awards: The company secured approximately $1.3 billion in new contract awards since the October fleet status report, boosting the backlog to $7.5 billion.
Divestitures: Noble completed the divestiture of five jackups for $360 million, with an additional jackup (Noble Resolve) divestiture estimated to close in Q3 2026.
Dividends: A dividend of $0.50 per share was declared for Q1 2026, bringing the cumulative total capital returned since Q4 2022 to approximately $1.3 billion.

Financial Performance: * Total Revenue: In the fourth quarter of 2025, total revenue was $764 million, down from $798 million in the previous quarter and $927 million in the same period in 2024. * Contract Drilling Services Revenue: This stood at $705 million in the fourth quarter, compared to $757 million in the prior quarter and $882 million in the same period in 2024. * Net Income (Loss): The net income for the fourth quarter was $87 million, marking a significant improvement from a loss of ($21) million in the previous quarter. * Adjusted EBITDA: This metric decreased to $232 million in the fourth quarter, down from $254 million in the prior quarter. * Earnings Per Share: Basic earnings per share for the fourth quarter were $0.55, while adjusted diluted earnings per share were $0.09, down from $0.19 in the previous quarter.

Balance Sheet and Capital Allocation: * Total Debt: As of December 31, 2025, the company had total debt principal value of $2 billion and cash (and cash equivalents) of $471 million. * Share Repurchases: Share repurchases for 2025 totaled $20 million, and $318 million in dividends were paid during the year.

Operating Highlights and Backlog: * Marketed Fleet: Noble's marketed fleet of 24 floaters was 62% contracted through the fourth quarter, compared with 67% in the prior quarter. * Utilization of Jackups: Utilization of Noble's 11 marketed jackups was 68% in the fourth quarter, up from 60% in the prior quarter.

Guidance for 2026: * Total Revenue: Noble announced a guidance range for total revenue of $2,800 to $3,000 million for the full year 2026. * Adjusted EBITDA: The company expects adjusted EBITDA in the range of $940 to $1,020 million for 2026. * Capital Expenditures: The guidance for capital expenditures stands between $590 to $640 million, including project capital for the Noble Greatwhite.

Outlook: * The company anticipates a tightening market as it progresses through 2026, with a likelihood of a transitional year from an earnings perspective.

Noble Corporation PLC's press release indicates a mix of successes and challenges, as it navigates the evolving landscape of the offshore drilling industry. As a result of these announcements, the company's shares have moved -0.88% on the market, and are now trading at a price of $32.69. If you want to know more, read the company's complete 8-K report here.

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