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Noble (NE) Q3 Loss Wider Than Expected; Revenues Fall Y/Y
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Leading contract drilling company Noble Corporation (NE - Free Report) reported third-quarter 2016 loss of 23 cents per share, wider than the Zacks Consensus Estimate of loss of 19 cents per share. The quarterly results also compared unfavorably with the year-ago quarter earnings of 72 cents per share.
Total revenue in the quarter declined to $385.1 million from $896.7 million in the comparable quarter last year. Contract Drilling Services plunged 57.3% year over year and contributed $373.2 million to the total revenue.
Third-Quarter Operating Highlights
Net loss from continuing operations was $44.2 million, which compared unfavorably with net income of $344.4 million in the third quarter of 2015. Total rig utilization decreased to 59% from the year-earlier level of 82%. The overall average dayrate declined to $238,869 from $385,755 in the year-ago quarter.
The average dayrate for drillships of $467,949 was substantially lower than $497,147 a year ago. Average capacity utilization was 70% compared with 100% in the prior-year period.
The average dayrate for the company's jackups was $109,387 as against $159,745 in the prior-year quarter. Average capacity utilization decreased to 80% from the year-ago level of 84%.
The average dayrate for the company's semi-submersibles was $293,269 compared with $698,512 in the prior-year quarter. Average capacity utilization plummeted to 13% from the year-ago level of 59%.
As of Sep 30, 2016, the company had 62% of available rig operating days committed for 2016, which included 41% of floating rig days and 85% of jackup rig days. For 2017, an estimated 47% of available rig operating days are committed. This consists of 28% and 69% of floating and jackup rig days, respectively.
Backlog
As of Sep 30, 2016, total backlog was approximately $4.7 billion. Of this, about $3.5 billion relates to floating rig fleet and $1.2 billion pertains to jackup fleet.
At the end of the reported quarter, the company had a cash balance of $426.1 million and long-term debt of $3,830.2 million, with debt-to-capitalization ratio of 33.1% compared with 32.9% in the preceding quarter.
Enbridge Inc. reported a negative earnings surprise of 10.00% in the prior-year quarter.
TransCanada posted a positive earnings surprise of 22.92% in the last reported quarter.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
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Noble (NE) Q3 Loss Wider Than Expected; Revenues Fall Y/Y
Leading contract drilling company Noble Corporation (NE - Free Report) reported third-quarter 2016 loss of 23 cents per share, wider than the Zacks Consensus Estimate of loss of 19 cents per share. The quarterly results also compared unfavorably with the year-ago quarter earnings of 72 cents per share.
Total revenue in the quarter declined to $385.1 million from $896.7 million in the comparable quarter last year. Contract Drilling Services plunged 57.3% year over year and contributed $373.2 million to the total revenue.
Third-Quarter Operating Highlights
Net loss from continuing operations was $44.2 million, which compared unfavorably with net income of $344.4 million in the third quarter of 2015. Total rig utilization decreased to 59% from the year-earlier level of 82%. The overall average dayrate declined to $238,869 from $385,755 in the year-ago quarter.
The average dayrate for drillships of $467,949 was substantially lower than $497,147 a year ago. Average capacity utilization was 70% compared with 100% in the prior-year period.
The average dayrate for the company's jackups was $109,387 as against $159,745 in the prior-year quarter. Average capacity utilization decreased to 80% from the year-ago level of 84%.
The average dayrate for the company's semi-submersibles was $293,269 compared with $698,512 in the prior-year quarter. Average capacity utilization plummeted to 13% from the year-ago level of 59%.
As of Sep 30, 2016, the company had 62% of available rig operating days committed for 2016, which included 41% of floating rig days and 85% of jackup rig days. For 2017, an estimated 47% of available rig operating days are committed. This consists of 28% and 69% of floating and jackup rig days, respectively.
Backlog
As of Sep 30, 2016, total backlog was approximately $4.7 billion. Of this, about $3.5 billion relates to floating rig fleet and $1.2 billion pertains to jackup fleet.
NOBLE CORP PLC Price, Consensus and EPS Surprise
NOBLE CORP PLC Price, Consensus and EPS Surprise | NOBLE CORP PLC Quote
Financials
At the end of the reported quarter, the company had a cash balance of $426.1 million and long-term debt of $3,830.2 million, with debt-to-capitalization ratio of 33.1% compared with 32.9% in the preceding quarter.
Zacks Rank
Noble Corp currently has a Zacks Rank #3 (Hold).
Some better-ranked players from the same sector are Enbridge Inc. (ENB - Free Report) , Braskem SA (BAK - Free Report) and TransCanada Corporation (TRP - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Inc. reported a negative earnings surprise of 10.00% in the prior-year quarter.
TransCanada posted a positive earnings surprise of 22.92% in the last reported quarter.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>