Noble Corp. reports 2Q21 revenue improvement
04 Aug 2021 - Upstream Costs and Technology | Headline Analysis
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Vishnu Gupta KothuriVishnu Gupta KothuriSenior Research Analyst

Noble Corp. reported a net profit for the second quarter of 2020 of USD 20 million on total revenues of USD 219 million. This is compared to a loss of USD 42 million in the second quarter of 2020 on revenues of USD 238 million.

Noble Corporation latest financial figures

Figures in USD million

Q2 2021

Q2 2020

y/y change

2020

Revenue

219

238

-8.0%

964

Operating profit

-45

-95

53.2%

-4,076

Operating profit margin

-20.3%

-39.9%

19.6 pp*

-422.8%

Net profit

20

-42

147.6%

-3,978

Net profit margin

9.1%

-17.6%

26.8 pp*

-412.7%

Backlog

1,518

1,358

11.8%

1,612

New orders

n/a

*Percentage points

Source: Noble Corporation© 2021 IHS Markit

Contract drilling services revenue for the second quarter of 2021 came is USD200 million, as compared with USD220 million in the second quarter of 2021. Decrease in revenue was due to Noble Lloyd Noble moved to the shipyard after completing its contract in February 2021, Noble Sam Hartley moved to warm stacked status in Scotland after the completion of its contract, lower revenue on the Noble Tom Prosser which was idle till May 2021 and returned to work in Australia on a 9-month contract and the Noble Scott Marks returned to operations with Saudi Aramco in mid-June 2021 after its one-year suspension period.

Contract drilling services costs for the second quarter of 2021 is $189 million compared to $127 million in the combined first quarter of 2021. The 48% increase was driven by the addition of the rigs acquired through the Pacific Drilling transaction in April 2021, as well as mobilization and contract startup activities of five rigs in the Noble fleet and the upgradation of shipyard on the Noble Lloyd Noble.

As a result, total rig utilization increased to 68% in the second quarter of 2021, as compared with 66% in the first quarter of 2021. Day rates in the second quarter of 2021 were also lower at USD148509 as compared with USD149,990 in the first quarter of 2021.

The company’s estimated revenue backlog totaled approximately USD1.518 billion, consisting of approximately USD1.2 billion associated with the floating rig fleet and approximately USD358 million with the jackup fleet.

Noble Corp. expressed hope in the market outlook as the world recovers from the Covid-19 pandemic. After emerging from bankruptcy, Noble is focused on maintaining a strong balance sheet and free cash flow.

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