Noble reported on their fourth quarter and full year 2020 results and the highlights are below:
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Completed financial restructuring on February 5, 2021
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Achieved zero lost-time incidents during 2020 and set several company safety records during the year
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Contract backlog over $1.6 billion at the end of 2020
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Fourth quarter results include a non-cash, before-tax charge of $2.8 billion relating to the impairment of certain rigs and related capital spares
Robert W. Eifler, President and Chief Executive Officer of Noble Corporation, stated, “In early February we completed our financial restructuring transactions and emerged from Chapter 11 with a much stronger financial foundation. I am very proud of the dedication that the Noble team showed throughout this process. Despite challenging conditions created by the COVID-19 pandemic, our crews remained focused on safe and efficient operations. We had zero lost-time incidents during 2020 and set several company safety records during the year. During the fourth quarter we disposed of five cold-stacked rigs, which we believe was the right economic decision for our shareholders. Through our deep customer relationships, we increased our backlog during 2020 and ended the year with contract backlog of over $1.6 billion.”
Contract drilling services revenues for the fourth quarter totaled $195 million compared to $227 million in the third quarter of 2020. The decrease in revenues was due largely to a lower dayrate on the Noble Lloyd Noble and lower operating days on the Noble Tom Prosser and Noble Clyde Boudreaux in the fourth quarter. Marketed fleet utilization was 70% in the fourth quarter compared to 72% in the third quarter.
For the full year 2020, operating days declined by 19% compared to 2019, driven by lower utilization on a number of rigs including the Bully II, Noble Scott Marks, Noble Sam Turner, Noble Hans Deul, and Noble Joe Beall.
Contract drilling services costs for the fourth quarter were $125 million compared to $137 million in the third quarter of 2020. The 9% decline from third quarter was primarily driven by the disposition of the five cold-stacked rigs, and lower expenses on rigs that were idle during the fourth quarter. Contract drilling margin decreased to 36 percent from 40 percent in the previous period.
Adjusted EBITDA for the fourth quarter was $57 million compared to $76 million in the third quarter. For the full year 2020, Adjusted EBITDA totaled $281 million versus $329 million for the full year 2019.
Outlook
Commenting on the state of the offshore drilling industry, Mr. Eifler added, “While our industry continues to face significant challenges, we are starting to see an increase in tender activity in various markets and expect further improvements to the extent operators remain confident in forward oil and gas prices. We remain highly focused on putting our assets to their best and highest use, and, to that end, look forward to commencing operations for the Noble Lloyd Noble in Norway later this year. Our fleet of high specification assets, our global footprint, and our diverse customer relationships position us not only to benefit as the market continues to improve but also to take advantage of strategic growth opportunities that may arise. As always, we remain focused on serving the needs of our customers and delivering exceptional results.
Source: Noble
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