LONDON, July 30, 2014 /PRNewswire/ -- Noble Corporation plc (NYSE: NE) today reported second quarter 2014 net income of $235 million, or $0.91 per diluted share, compared to $256 million, or $0.99 per diluted share, for the first quarter of 2014. For the second quarter of 2013, net income totaled $177 million, or $0.69 per diluted share. Results for the second quarter of 2013 included $18 million, or $0.06 per diluted share, related to cancellation of a contract awarded to a jackup rig under construction. Revenues for the second quarter of 2014 were $1.2 billion compared to $1.3 billion in the first quarter of 2014 and $1.0 billion in the second quarter of 2013.

David W. Williams, Chairman, President and Chief Executive Officer of Noble Corporation plc noted, "Second quarter results benefited from our strategy to shift the fleet toward a greater mix of premium rigs with contributions from two new jackup rigs, the Noble Houston Colbert and Noble Regina Allen. In addition, revenues in the quarter were supported by contractual dayrate increases on several rigs and the commencement of a contract for the Noble Paul Romano, which returned to work in May. However, due to planned regulatory inspection and maintenance shipyard projects for several rigs, revenues for the second quarter declined modestly when compared to first quarter 2014.

"As of the close of the second quarter, Noble has added nine new, technically advanced rigs to its fleet since 2011. Two additional new rigs are expected to commence operations during the third quarter with the arrival of the ultra-deepwater drillship Noble Sam Croft in the U.S. Gulf of Mexico and the high-specification jackup Noble Sam Turner in the North Sea. Operating performance on our new rigs has continued to improve due in part to the implementation of previously announced operational readiness procedures and crew competency measures. We believe these improvements are sustainable and should continue to drive operating performance."

Contract drilling services revenues for the second quarter of 2014 reached $1.2 billion, a slight decline of less than 1 percent from revenues reported during the first quarter of 2014. The slight decrease was the result of increased non-operating days in the quarter as six rigs began planned shipyard projects, substantially offset by favorable contractual pricing increases, most notably on the Noble Bully II, Noble Roger Lewis, Noble Jimmy Puckett and Noble Discoverer, and revenues received from newbuilds beginning their first contracts. Fleet operating days decreased 4 percent during the quarter due to an increase in shipyard days. As a result, fleet utilization decreased to 79 percent as compared to 84 percent during the first quarter of 2014. Offsetting the utilization decrease was an increase in average daily revenues, up 3 percent in the second quarter to $231,000 compared to the previous quarter average of $223,600, reflecting the addition of premium assets and favorable contract prices on existing rigs. Contract drilling operating costs increased marginally in the second quarter to $577 million compared to $561 million in the first quarter of 2014. Higher costs associated with adding newbuild rigs to the fleet were almost entirely offset by a reduction in mobilization and repair and maintenance costs.

Net cash from operating activities was $526 million in the second quarter of 2014 as compared to $506 million for the first quarter of the year. Capital expenditures in the second quarter totaled $699 million, including $510 million related to the Company's fleet expansion program. As of June 30, 2014, approximately $1.1 billion in capital expenditures was required to complete the remaining three projects in the Company's newbuild program, comprised of one ultra-deepwater drillship and two high-specification jackups.

Debt as a percentage of total capitalization at June 30, 2014 was 39 percent, a slight increase from 38 percent at March 31, 2014, while liquidity, defined as cash and cash equivalents plus availability under revolving credit facilities, totaled $772 million compared to $1.03 billion at March 31, 2014. The decrease in liquidity primarily relates to final milestone payments on newbuild rigs, partially offset by cash flows from operating activities.

Operating Highlights

The Company's total contract backlog at June 30, 2014 was an estimated $13.4 billion compared to $14.3 billion at March 31, 2014, reflecting a reduced pace of customer contractual activity during the first half of 2014.

Utilization of the Company's floating rig fleet (semisubmersibles and drillships) decreased to 81 percent in the second quarter of 2014 from 85 percent in the first quarter of 2014. Excluding the impact of two cold stacked rigs, utilization would have been 88 percent in the second quarter of 2014 and 92 percent in the first quarter of 2014. The decline in utilization was a result of the Noble Paul Wolff completing its contract with Petrobras in April coupled with downtime for planned maintenance on the Noble Dave Beard in Brazil and the Noble Amos Runner in the U.S. Gulf of Mexico. The Noble Amos Runner project is expected to extend through the third quarter of 2014. Average daily revenues in the floating rig fleet were $401,200 in the second quarter of 2014, an improvement of approximately 2 percent compared to $393,300 in the first quarter of 2014.

Second quarter 2014 utilization of the Company's jackup rig fleet was 80 percent, a decrease from 86 percent utilization achieved during the first quarter of 2014. The decline in utilization was due to an increase in shipyard days on certain rigs in West Africa and in the North Sea, together with greater idle time due to the completion of contracts for the Noble David Tinsley and the Noble Kenneth Delaney during the quarter. Average daily revenues during the second quarter improved by approximately 5 percent to $130,900 from $125,000 during the first quarter of 2014. The increase in dayrates is primarily the result of favorable contractual repricing, and the impact of dayrates on the newbuild jackups Noble Regina Allen and Noble Houston Colbert.

At the end of the second quarter of 2014, 74 percent of the Company's available rig operating days for both floater and jackup units were committed for the remainder of 2014. For 2015, an estimated 50 percent of the available rig operating days were committed, including 59 percent and 46 percent of the floating and jackup rig days, respectively. The calculations for committed operating days include available days for two floaters and one jackup, all of which are currently cold stacked and also contract backlog associated with the Paragon Offshore rigs.

Outlook

Williams closed by stating, "On August 1, Noble will complete the spin-off of Paragon Offshore, creating a separate and distinct company focused on the operation of standard capability rigs. The transaction represents a critical step in transforming Noble into one of the offshore drilling industry's premier fleets, one possessing the modern features and versatility to address the increasing technical complexity of many of our customers' well programs today and in the future. As for Paragon, we believe it is positioned to excel in the standard specification drilling sector, with well-maintained and efficient rigs, highly-proficient crews, a strong customer base and a talented management team.

"We are delighted to reach this point in our strategic transformation and believe the completion of the spin-off will provide Noble with an improved competitive posture and an enhanced platform for creating shareholder value. We strongly believe our improved fleet mix, improving operations performance, best-in-class shipyard execution, demonstrated contracting expertise and improving free cash flow, place the Company in an advantageous position to address opportunities expected in the next phase of the industry cycle."

About Noble Corporation

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 77 offshore drilling units (including one ultra-deepwater drillship and two high-specification jackup drilling rigs currently under construction) located worldwide, including in the U.S. Gulf of Mexico and Alaska, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India, Malaysia, Argentina and Australia.

Following the spin-off of Paragon Offshore, Noble will own and operate one of the most modern, versatile and technically advanced fleets in the offshore drilling industry. The 35 rig fleet, consisting of 20 semisubmersibles and drillships and 15 jackups, are focused largely on ultra-deepwater and high-specification jackup drilling opportunities in many of the world's established and emerging regions. Noble's shares are traded on the New York Stock Exchange under the symbol "NE." Noble Corporation plc is a public limited company registered in England and Wales with company number 08354954 and registered office at Devonshire House, 1 Mayfair Place, London, W1J 8AJ England. Additional information on Noble Corporation is available on the Company's Web site at http://www.noblecorp.com.

Forward Looking Disclosure Statement

Statements regarding contract backlog, earnings, costs, revenue, rig demand, fleet condition or performance, shareholder value, timing of delivery of newbuilds, contract commitments, dayrates, contract commencements, contract extensions or renewals, letters of intent or award, industry fundamentals, customer relationships and requirements, strategic initiatives, 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 regulatory authorities, customers and other third parties, legislation and regulations affecting drilling operations, compliance with regulatory requirements, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, delays in the construction of newbuilds, 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, Form 10-Q's 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 has scheduled a conference call and webcast related to its second quarter 2014 results on Thursday, July 31, 2014, at 8:00 a.m. U.S. Central Daylight Time. Interested parties are invited to listen to the call by dialing 1-866-461-7129, or internationally 1-706-679-3084, using access code: 88248309, or by asking for the Noble Corporation conference call. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site.

A replay of the conference call will be available on Thursday, July 31, 2014, beginning at 12:00 p.m. U.S. Central Daylight Time, through Friday, August 29, 2014, ending at 11:00 p.m. U.S. Central Daylight Time. The phone number for the conference call replay is 1-855-859-2056 or, for calls from outside of the U.S., 1-404-537-3406, using access code: 88248309. The replay will also be available on the Company's Web site following the end of the live call.



                                                              NOBLE CORPORATION PLC AND SUBSIDIARIES

                                                                 CONSOLIDATED STATEMENTS OF INCOME

                                                             (In thousands, except per share amounts)

                                                                            (Unaudited)


                                                                                          Three Months Ended               Six Months Ended

                                                                                             June 30,                     June 30,
                                                                                             --------                     --------

                                                                                               2014               2013                    2014         2013
                                                                                               ----               ----                    ----         ----

     Operating revenues

                                      Contract drilling services                           $1,200,406           $975,455              $2,406,710   $1,904,192

                                      Reimbursables                                            31,811             28,260                  68,464       49,434

                                      Labor contract drilling services                          8,146             13,603                  16,358       34,657

                                      Other                                                         -                67                       1           77


                                                                                          1,240,363          1,017,385               2,491,533    1,988,360
                                                                                          ---------          ---------               ---------    ---------

     Operating costs and expenses

                                      Contract drilling services                              577,134            487,971               1,138,265      968,097

                                      Reimbursables                                            22,460             22,701                  53,066       37,623

                                      Labor contract drilling services                          6,261              9,349                  12,487       21,598

                                      Depreciation and amortization                           254,394            212,589                 500,299      418,745

                                      General and administrative                               27,080             26,850                  52,717       52,419

                                      Non-recurring spin-off related costs                      6,458              4,065                  18,863        8,027

                                      Gain on contract extinguishment                               -                 -                      -     (1,800)

                                                                                            893,787            763,525               1,775,697    1,504,709
                                                                                            -------            -------               ---------    ---------


     Operating income                                                                      346,576            253,860                 715,836      483,651


     Other income (expense)

                                      Interest expense, net of amount
                                       capitalized                                           (36,351)          (24,665)               (76,743)    (51,966)

                                      Interest income and other, net                            (328)               955                 (1,518)         530


     Income before income taxes                                                            309,897            230,150                 637,575      432,215

                                      Income tax provision                                   (52,435)          (36,824)              (106,871)    (71,176)


     Net income                                                                            257,462            193,326                 530,704      361,039

                                      Net income attributable to
                                       noncontrolling interests                              (22,903)          (16,706)               (39,819)    (34,359)

     Net income attributable to Noble
      Corporation                                                   $234,559                  $176,620           $490,885                $326,680
                                                                    ========                  ========           ========                ========


     Net income per share

                                      Basic                                                     $0.91              $0.69                   $1.90        $1.28

                                      Diluted                                                   $0.91              $0.69                   $1.90        $1.27



                                                  NOBLE CORPORATION PLC AND SUBSIDIARIES

                                                       CONSOLIDATED BALANCE SHEETS

                                                              (In thousands)

                                                               (Unaudited)


                                                                             June 30,         December 31,

                                                                                       2014                 2013
                                                                                       ----                 ----

     ASSETS

     Current assets

                Cash and cash equivalents                                            $140,537             $114,458

                Accounts receivable                                                   889,942              949,069

                Prepaid expenses and other current
                 assets                                                               381,597              327,408


     Total current assets                                                        1,412,076            1,390,935
                                                                                 ---------            ---------


     Property and equipment, at cost                                            20,391,892           19,198,767

                Accumulated depreciation                                          (5,118,363)         (4,640,677)


     Property and equipment, net                                                15,273,529           14,558,090
                                                                                ----------           ----------


     Other assets                                                                  304,295              268,932
                                                                                   -------              -------

                Total assets                                                      $16,989,900          $16,217,957



     LIABILITIES AND  EQUITY

     Current liabilities

                Accounts payable                                                     $365,961             $347,214

                Accrued payroll and related costs                                     148,447              151,161

                Dividends payable                                                           -             128,249

                Other current liabilities                                             386,406              425,291

     Total current liabilities                                                     900,814            1,051,915
                                                                                   -------            ---------


     Long-term debt                                                              6,013,946            5,556,251

     Deferred income taxes                                                         233,419              225,455

     Other liabilities                                                             338,888              334,308
                                                                                   -------              -------

                Total liabilities                                                   7,487,067            7,167,929



     Commitments and contingencies


     Equity

                Total shareholders' equity                                          8,777,479            8,322,583

                Noncontrolling interests                                              725,354              727,445

                Total equity                                                        9,502,833            9,050,028


                Total liabilities and equity                                      $16,989,900          $16,217,957



                                                   NOBLE CORPORATION PLC AND SUBSIDIARIES

                                                   CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                               (In thousands)

                                                                (Unaudited)

                                                                            Six Months Ended

                                                                             June 30,
                                                                             --------

                                                                                           2014         2013
                                                                                           ----         ----

     Cash flows from operating activities

                Net income                                                               $530,704     $361,039

               Adjustments to
                 reconcile net
                 income to net cash
                 from operating
                 activities:

                Depreciation and amortization                                             500,299      418,745

                Other changes in operating activities                                         820    (133,719)

                Net cash from operating activities                                      1,031,823      646,065



     Cash flows from investing activities

                New construction                                                        (836,251)   (752,332)

                Other capital expenditures                                              (352,744)   (430,253)

                Capitalized interest                                                     (27,409)    (61,726)

                Other investing activities                                               (11,813)    (39,047)

                Net cash from investing activities                                    (1,228,217) (1,283,358)



     Cash flows from financing activities

                Net change in borrowings outstanding on
                 bank credit facilities                                                   707,472      941,653

                Dividend payments                                                       (193,740)    (66,672)

                Repayment of long-term debt                                             (250,000)   (300,000)

                Other financing activities                                               (41,259)    (53,573)

                Net cash from financing activities                                        222,473      521,408


                Net change in cash and cash equivalents                                    26,079    (115,885)

     Cash and cash equivalents, beginning of
      period                                                                           114,458      282,092
                                                                                       -------      -------

     Cash and cash equivalents, end of period                                         $140,537     $166,207
                                                                                      ========     ========



                                                                                                                                     NOBLE CORPORATION PLC AND SUBSIDIARIES

                                                                                                                                FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT

                                                                                                                                  (In thousands, except operating statistics)

                                                                                                                                                  (Unaudited)


                                                           Three Months Ended June 30,                                         Three Months Ended March 31,
                                                         ---------------------------                                    ----------------------------

                                                                    2014                                      2013                                                       2014
                                                                    ----                                      ----                                                       ----

                                          Contract                                                                                              Contract                                                            Contract

                                          Drilling                                                                                              Drilling                                                            Drilling

                                          Services                                     Other          Total                                     Services                         Other             Total            Services              Other               Total
                                          --------                                     -----          -----                                     --------                         -----             -----            --------              -----               -----

     Operating revenues

     Contract drilling services                    $1,200,406                              $        -       $1,200,406                                        $975,455                 $        -        $975,455            $1,206,304         $         -         $1,206,304

     Reimbursables                                     29,291                                   2,520            31,811                                          28,000                        260           28,260                36,133                 520              36,653

     Labor contract drilling services                       -                                  8,146             8,146                                               -                    13,603           13,603                     -              8,212               8,212

     Other                                                  -                                      -                -                                             67                          -              67                     1                   -                  1
                                                          ---                                    ---              ---                                            ---                        ---             ---                   ---                 ---                ---

                                                   $1,229,697                                 $10,666        $1,240,363                                      $1,003,522                    $13,863       $1,017,385            $1,242,438              $8,732          $1,251,170
                                                   ==========                                 =======        ==========                                      ==========                    =======       ==========            ==========              ======          ==========


     Operating costs and expenses

     Contract drilling services                      $577,134                              $        -         $577,134                                        $487,971                 $        -        $487,971              $561,131         $         -           $561,131

     Reimbursables                                     21,481                                     979            22,460                                          22,469                        232           22,701                30,118                 488              30,606

     Labor contract drilling services                       -                                  6,261             6,261                                               -                     9,349            9,349                     -              6,226               6,226

     Depreciation and amortization                    249,701                                   4,693           254,394                                         209,082                      3,507          212,589               241,574               4,331             245,905

     General and administrative                        26,845                                     235            27,080                                          26,378                        472           26,850                25,428                 209              25,637

     Non-recurring spin-off related costs               1,441                                   5,017             6,458                                               -                     4,065            4,065                   320              12,085              12,405

                                                     $876,602                                 $17,185          $893,787                                        $745,900                    $17,625         $763,525              $858,571             $23,339            $881,910
                                                     ========                                 =======          ========                                        ========                    =======         ========              ========             =======            ========


     Operating income                                $353,095                                $(6,519)         $346,576                                        $257,622                   $(3,762)        $253,860              $383,867           $(14,607)           $369,260
                                                     ========                                 =======          ========                                        ========                    =======         ========              ========            ========            ========


     Operating statistics

     Jackups:

     Average Rig Utilization                              80%                                                                                                    92%                                                            86%

     Operating Days                                     3,272                                                                                                   3,594                                                           3,413

     Average Dayrate                                 $130,851                                                                                                $116,266                                                        $124,962


     Semisubmersibles:

     Average Rig Utilization                              73%                                                                                                    76%                                                            79%

     Operating Days                                       924                                                                                                     970                                                             993

     Average Dayrate                                 $394,605                                                                                                $370,117                                                        $392,620


     Drillships:

     Average Rig Utilization                              92%                                                                                                    78%                                                            92%

     Operating Days                                     1,001                                                                                                     637                                                             990

     Average Dayrate                                 $407,259                                                                                                $311,490                                                        $393,892


     FPSO/Submersibles:

     Average Rig Utilization                               0%                                                                                                     0%                                                             0%

     Operating Days                                         -                                                                                                      -                                                              -

     Average Dayrate                          $             -                                                                                      $               -                                                    $         -


     Total:

     Average Rig Utilization                              79%                                                                                                    83%                                                            84%

     Operating Days                                     5,197                                                                                                   5,201                                                           5,396

     Average Dayrate                                 $231,003                                                                                                $187,537                                                        $223,559



                                                                                        NOBLE CORPORATION PLC AND SUBSIDIARIES

                                                                                 CALCULATION OF BASIC AND DILUTED NET INCOME PER SHARE

                                                                                       (In thousands, except per share amounts)

                                                                                                      (Unaudited)


     The following table sets forth the computation of basic and diluted net income per share:


                                                                    Three months ended                         Six months ended

                                                                         June 30,                                 June 30,
                                                                         --------                                 --------

                                                                                       2014                                      2013       2014       2013
                                                                                       ----                                      ----       ----       ----

     Allocation of net income

     Basic

     Net income attributable to Noble
      Corporation                                                                  $234,559                                  $176,620   $490,885   $326,680

     Earnings allocated to unvested share-
      based payment awards                                                          (3,776)                                  (2,169)   (8,048)   (3,822)
                                                                                     ------                                    ------     ------     ------

     Net income to common shareholders -
      basic                                                                        $230,783                                  $174,451   $482,837   $322,858
                                                                                   ========                                  ========   ========   ========


     Diluted

     Net income attributable to Noble
      Corporation                                                                  $234,559                                  $176,620   $490,885   $326,680

     Earnings allocated to unvested share-
      based payment awards                                                          (3,774)                                  (2,167)   (8,046)   (3,819)
                                                                                     ------                                    ------     ------     ------

     Net income to common shareholders -
      diluted                                                                      $230,785                                  $174,453   $482,839   $322,861
                                                                                   ========                                  ========   ========   ========


     Weighted average number of  shares
      outstanding -basic                                                            254,238                                   253,295    254,090    253,184

     Incremental shares issuable from
      assumed exercise of stock options                                                  97                                       261        116        265

     Weighted average number of  shares
      outstanding -diluted                                                          254,335                                   253,556    254,206    253,449
                                                                                    =======                                   =======    =======    =======


     Weighted average unvested share-based
      payment awards                                                                  4,156                                     3,150      4,172      2,998
                                                                                      =====                                     =====      =====      =====


     Earnings per share

     Basic                                                                            $0.91                                     $0.69      $1.90      $1.28

     Diluted                                                                          $0.91                                     $0.69      $1.90      $1.27

SOURCE Noble Corporation