"Our fourth quarter results capped off a record year for the Company," said Chairman, President and Chief Executive Officer
Contract drilling services revenues for the 2008 fourth quarter were
The Company repurchased 2.0 million of its ordinary shares during the fourth quarter 2008 at a total cost of
Operations Highlights
At year end 2008, approximately 79 percent of the Company's total rig operating days were committed for 2009 and approximately 40 percent were committed for 2010. The Company made a number of strategic moves within its fleet during the quarter, including the mobilization of the Noble Roy Butler and
The Company also took delivery during the fourth quarter 2008 of the Noble Hans Deul, an F&G JU 2000E design jackup rated for water depths of 400 feet and drilling depths of 30,000 feet. That unit is now fully crewed and undergoing inspection and customer acceptance before commencing initial drilling activities in the North Sea. This new high-specification jackup drilling unit is the second of three such rigs being built for the Company, with the final unit, the Noble Scott Marks, expected to be delivered in the third quarter 2009.
Outlook
"While we believe the long-term fundamentals of our industry are sound, the condition of the global economic environment is clearly a cause of concern and a reason for caution," said Williams. "That said, the strength of our balance sheet, the extent of our contract coverage and the quality of our customer base should position us well to both weather the current economic storm and capitalize on opportunities for growth in a disciplined manner."
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 63 offshore drilling units (including five rigs currently under construction) located worldwide, including in the
Statements regarding contract commitments, dayrates, contract commencements, 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 recent Form 10-K 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 hold its fourth quarter and full year earnings conference call on
NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2008 2007 2008 2007 ---- ---- ---- ---- OPERATING REVENUES Contract drilling services $882,538 $761,075 $3,298,850 $2,714,250 Reimbursables 19,340 30,012 90,849 121,241 Labor contract drilling services 7,732 40,166 55,078 156,508 Engineering, consulting and other 544 359 1,724 3,312 --- --- ----- ----- 910,154 831,612 3,446,501 2,995,311 ------- ------- --------- --------- OPERATING COSTS AND EXPENSES Contract drilling services 265,765 243,882 1,011,882 880,049 Reimbursables 15,541 26,123 79,327 105,952 Labor contract drilling services 5,279 32,443 42,573 125,624 Engineering, consulting and other - 150 - 17,520 Depreciation and amortization 93,252 82,607 356,658 292,987 Selling, general and administrative 17,176 26,686 74,143 85,831 Hurricane losses and recoveries, net - (5,114) 10,000 (3,514) Gain on disposal of assets, net (964) - (36,485) - ---- --- ------- --- 396,049 406,777 1,538,098 1,504,449 ------- ------- --------- --------- OPERATING INCOME 514,105 424,835 1,908,403 1,490,862 OTHER INCOME (EXPENSE) Interest expense, net of amount capitalized (1,956) (1,230) (4,388) (13,111) Interest income and other, net 1,430 2,527 8,443 11,151 ----- ----- ----- ------ INCOME BEFORE INCOME TAXES 513,579 426,132 1,912,458 1,488,902 INCOME TAX PROVISION (95,012) (78,752) (351,463) (282,891) ------- ------- -------- -------- NET INCOME $418,567 $347,380 $1,560,995 $1,206,011 ======== ======== ========== ========== NET INCOME PER SHARE: Basic $ 1.60 $ 1.30 $ 5.90 $ 4.52 Diluted $ 1.59 $ 1.29 $ 5.85 $ 4.48 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 261,501 267,074 264,782 266,700 Diluted 262,452 269,508 266,805 269,330 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) December 31, ------------ 2008 2007 ---- ---- ASSETS CURRENT ASSETS Cash and cash equivalents $ 513,311 $ 161,058 Accounts receivable 644,840 613,115 Insurance receivables 13,516 39,066 Prepaid expenses 21,207 20,721 Other current assets 47,467 26,231 ------ ------ Total current assets 1,240,341 860,191 --------- ------- PROPERTY AND EQUIPMENT Drilling equipment and facilities 7,423,440 6,354,782 Other 105,340 80,169 ------- ------ 7,528,780 6,434,951 Accumulated depreciation (1,886,231) (1,639,035) ---------- ---------- 5,642,549 4,795,916 --------- --------- OTHER ASSETS 219,441 219,899 ------- ------- $7,102,331 $5,876,006 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ 172,698 $ 10,334 Accounts payable 259,107 198,395 Accrued payroll and related costs 76,842 115,914 Taxes payable 107,211 85,641 Interest payable 11,325 9,951 Other current liabilities 53,541 72,537 ------ ------ Total current liabilities 680,724 492,772 ------- ------- LONG-TERM DEBT 750,789 774,182 DEFERRED INCOME TAXES 264,618 240,621 OTHER LIABILITIES 120,886 65,705 ------- ------ 1,817,017 1,573,280 --------- --------- COMMITMENTS AND CONTINGENCIES MINORITY INTEREST (4,468) (5,596) ------ ------ SHAREHOLDERS' EQUITY Ordinary shares - par value $0.10 per share; 400,000 shares authorized; 261,899 and 268,223 shares issued and outstanding at December 31, 2008 and 2007, respectively 26,190 26,822 Capital in excess of par value 402,115 683,697 Retained earnings 4,919,667 3,602,870 Accumulated other comprehensive loss (58,190) (5,067) ------- ------ 5,289,782 4,308,322 --------- --------- $7,102,331 $5,876,006 ========== ========== NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Twelve Months Ended December 31, ------------ 2008 2007 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income $1,560,995 $1,206,011 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 356,658 292,987 Impairment loss on assets - 10,189 Hurricane losses and recoveries, net 10,000 (3,514) Deferred income tax provision 51,026 20,509 Share-based compensation expense 35,899 34,681 Pension contributions (21,439) (54,233) Gain on disposal of assets, net (36,485) - Other, net (2,884) 56,027 Other changes in current assets and liabilities: Accounts receivable (31,725) (204,874) Hurricane insurance receivables 3,803 - Other current assets (22,040) 23,276 Accounts payable 2,490 (25,671) Other current liabilities (14,639) 58,985 ------- ------ Net cash from operating activities 1,891,659 1,414,373 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES New construction (799,736) (754,967) Other capital expenditures (323,955) (423,657) Major maintenance expenditures (107,630) (108,419) Accrued capital expenditures 40,830 45,260 Hurricane insurance receivables 21,747 - Proceeds from disposal of assets 39,451 7,910 Proceeds from sale of business unit - 10,000 --- ------ Net cash from investing activities (1,129,293) (1,223,873) ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Short-term debt borrowing - 685,000 Short-term debt payment - (685,000) Borrowings on bank credit facilities 30,000 220,000 Payments on bank credit facilities (130,000) (120,000) Payments of other long-term debt (10,335) (9,630) Net proceeds from employee stock transactions 9,304 38,995 Proceeds from issuance of senior notes, net 249,238 - Tax benefit of employee stock transactions - 7,477 Dividends paid (244,198) (32,197) Repurchases of ordinary shares (314,122) (195,797) -------- -------- Net cash from financing activities (410,113) (91,152) -------- ------- NET INCREASE IN CASH AND CASH EQUIVALENTS 352,253 99,348 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 161,058 61,710 ------- ------ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 513,311 $ 161,058 ======== ======== 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, ------------------ 2008 ---- Contract Drilling Services Other Total -------- ----- ----- OPERATING REVENUES Contract drilling services $882,538 $ - $882,538 Reimbursables 18,060 1,280 19,340 Labor contract drilling services - 7,732 7,732 Engineering, consulting and other 530 14 544 --- -- --- $901,128 $9,026 $910,154 ======== ====== ======== OPERATING COSTS AND EXPENSES Contract drilling services $265,765 $ - $265,765 Reimbursables 14,329 1,212 15,541 Labor contract drilling services - 5,279 5,279 Engineering, consulting and other - - - Depreciation and amortization 91,104 2,148 93,252 Selling, general and administrative 17,073 103 17,176 Hurricane losses and recoveries, net - - - Gain on disposal of assets, net - (964) (964) --- ---- ---- $388,271 $7,778 $396,049 ======== ====== ======== OPERATING INCOME $512,857 $1,248 $514,105 ======== ====== ======== OPERATING STATISTICS Jackups: Average Rig Utilization 88% Operating Days 3,354 Average Dayrate $151,601 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 100% Operating Days 644 Average Dayrate $364,180 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $249,603 Drillships: Average Rig Utilization 67% Operating Days 184 Average Dayrate $326,170 Submersibles: Average Rig Utilization 67% Operating Days 184 Average Dayrate $ 56,903 Total: Average Rig Utilization 88% Operating Days 4,642 Average Dayrate $190,137 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, ------------------ 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) Gain on disposal of assets, net - - - --- --- --- $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 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, ------------------ 2008 ---- Contract Drilling Services Other Total -------- ----- ----- OPERATING REVENUES Contract drilling services $835,198 $ - $835,198 Reimbursables 17,227 860 18,087 Labor contract drilling services - 8,197 8,197 Engineering, consulting and other 94 405 499 -- --- --- $852,519 $9,462 $861,981 ======== ====== ======== OPERATING COSTS AND EXPENSES Contract drilling services $253,729 $ - $253,729 Reimbursables 15,604 890 16,494 Labor contract drilling services - 5,410 5,410 Engineering, consulting and other - - - Depreciation and amortization 90,923 1,748 92,671 Selling, general and administrative 15,886 141 16,027 Hurricane losses and recoveries, net 10,000 - 10,000 Gain on disposal of assets, net - - - --- --- --- $386,142 $8,189 $394,331 ======== ====== ======== OPERATING INCOME $466,377 $1,273 $467,650 ======== ====== ======== OPERATING STATISTICS Jackups: Average Rig Utilization 91% Operating Days 3,444 Average Dayrate $150,350 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 95% Operating Days 613 Average Dayrate $329,586 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $237,674 Drillships: Average Rig Utilization 67% Operating Days 184 Average Dayrate $214,758 Submersibles: Average Rig Utilization 67% Operating Days 184 Average Dayrate $ 55,117 Total: Average Rig Utilization 90% Operating Days 4,701 Average Dayrate $177,683
SOURCE Noble Corporation