Revenue:
Results for the first quarter included net after tax unfavorable items totaling $977 million, or $3.91 per diluted share – including a pre-tax non-cash charge totaling $1.1 billion ($1.024 billion, or $4.10 per diluted share on an after-tax basis) relating to the impairment of the semisubmersible rigs Noble Danny Adkins and Noble Jim Day, the drillships Noble Bully I and Noble Bully II, and certain capital spares; partially offset by tax benefits totaling $47 million, or $0.19 per diluted share, including a benefit of $43 million, relating primarily to the application of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") provisions passed by the US Congress to address the adverse economic impact resulting from the COVID-19 pandemic. Excluding the impact of the aforementioned items, Noble Corporation plc would have reported a net loss attributable to the Company for the three months ended March 31, 2020, of $86 million, or $0.34 per diluted share.
Julie J. Robertson, Chairman, President and Chief Executive Officer of Noble Corporation plc, noted, "Total fleet utilization and average daily revenues in the first quarter were largely unchanged from the fourth quarter of 2019, with limited impact from the significant dislocation experienced in the global oil and gas market.
"The first quarter results were aided by an exceptional effort to manage our global operation in the face of mounting risks and uncertainties created by the COVID-19 pandemic. The effort, which included professionals throughout our Operations, HSE, Human Resources and Supply Chain disciplines, and many among our offshore personnel who agreed to extended crew rotation schedules, demonstrates the commitment and dedication that characterizes the entire Noble organization.
Operations:
The Company's 12 floating rigs achieved utilization of 58 percent in the first quarter compared to 60 percent in the fourth quarter. Excluding three cold stacked units, utilization in the first and fourth quarters was 78 percent and 80 percent, respectively. In addition to the effect of fewer calendar days in the first quarter, there was a four percent decline in operating days when compared to the fourth quarter, due largely to reduced days for the drillship Noble Bully II, which spent the quarter mobilizing to a new stacking location. Partially offsetting the decline in operating days was a full quarter of operations on the Noble Don Taylor offshore Guyana. At the conclusion of the first quarter, seven of the Company's nine actively marketed rigs were contracted. In April, operations on the Noble Tom Madden offshore Guyana were placed on standby for up to 90 days at a reduced dayrate.
The Company's 13 jackup rigs (before the retirement of the Noble Joe Beall) experienced marginally fewer operating days when compared to the fourth quarter. A reduction in operating days on each of the rigs Noble Joe Beall, Noble Regina Allen, Noble Johnny Whitstine and Noble Hans Deul, was largely offset by increased activity on the Noble Tom Prosser, Noble Houston Colbert and Noble Joe Knight. Due to the retirement of the Noble Joe Beall and fewer calendar days in the quarter, utilization finished the first quarter at 94 percent compared to 93 percent in the fourth quarter. During the first quarter, the Noble Hans Deul and Noble Sam Turner completed contracts in the UK North Sea and have been warm stacked. Following the conclusion of the quarter, the Noble Sam Hartley and Noble Houston Colbert were warm stacked after completing work assignments in April 2020 and operations on the Noble Tom Prosser offshore Australia were placed on standby at a reduced dayrate for up to 365 days.
The jackup rig Noble Scott Marks, located offshore Saudi Arabia, will be suspended at the request of its client. The contract suspension, which covers a period of up to 365 days, is expected to commence during the first half of May 2020, following the conclusion of the well in progress. During the suspension period, no dayrate will be paid. However, the Company has the right to market the rig in pursuit of other work opportunities in the region.
Source: Noble Corp
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