Noble Corporation plc (NE - Free Report) reported first-quarter 2019 loss from continuing operations of 37 cents per share, narrower than the Zacks Consensus Estimate of a loss of 42 cents. Also, the figure was narrower than the year-ago loss of 55 cents.
Total revenues in the quarter increased to $282.9 million from $235.2 million in the prior-year period. Also, quarterly revenues beat the Zacks Consensus Estimate of $275 million. Contract Drilling Services, which contributed $270.5 million to its total revenues, increased 18.1% year over year.
The better-than-expected results were supported by year-over-year increase in total rig fleet utilization and overall operating days.
Operating Highlights
Net loss from continuing operations was $92 million, narrower than first-quarter 2018 loss of $135 million.
Total rig utilization increased to 76% from the year-ago level of 47%. However, overall average dayrate declined to $172,305 from $195,633 in the year-ago quarter. Nonetheless, overall operating days rose to 1,570 from 1,171 in the year-ago period.
The average dayrate for the company's jackups was $127,150 compared with $153,662 in the prior-year quarter. Average capacity utilization rose to 93% from the year-ago level of 56%.
The average dayrate for the company's floaters was $236,715 compared with $259,326 in the prior-year quarter. Average capacity utilization jumped to 60% from the year-ago level of 37%.
Nearly 64% of the available rig days were committed for 2019, including 53% of floating rig days and 75% of jackup rig days.
Costs & Expenses
Total operating costs increased to $306.7 million in the quarter from the year-ago period’s $292 million. Cost of contract drilling services increased to $171.7 million in the first quarter from the year-ago level of $136.8 million. General and administrative costs declined to $16 million from $22.1 million in first-quarter 2018.
Backlog
As of Mar 31, 2019, total backlog was approximately $2.3 billion, of which around $1.4 billion and $900 million were contributed by floating rig and jackup rig fleets, respectively.
Financials
Capital expenditure in the reported quarter totaled $83 million.
At the end of the first quarter, the company had a cash balance of $187.1 million and long-term debt of $3,550.8 million, with a debt-to-capitalization ratio of 45.9%.
Zacks Rank and Stocks to Consider
Currently, Noble carries a Zacks Rank #3 (Hold). Prospective players in the energy space worth considering include Cactus, Inc. (WHD - Free Report) , Hess Corporation (HES - Free Report) and Chevron Corporation (CVX - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cactus’ earnings growth is projected at 11.8% through 2019.
Hess’ earnings are expected to grow 90.5% through 2019.
Chevron’s earnings are likely to grow 13.5% on a year-over-year basis in the second quarter of 2019.
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Noble Corporation plc (NE - Free Report) reported first-quarter 2019 loss from continuing operations of 37 cents per share, narrower than the Zacks Consensus Estimate of a loss of 42 cents. Also, the figure was narrower than the year-ago loss of 55 cents.
Total revenues in the quarter increased to $282.9 million from $235.2 million in the prior-year period. Also, quarterly revenues beat the Zacks Consensus Estimate of $275 million. Contract Drilling Services, which contributed $270.5 million to its total revenues, increased 18.1% year over year.
The better-than-expected results were supported by year-over-year increase in total rig fleet utilization and overall operating days.
Operating Highlights
Net loss from continuing operations was $92 million, narrower than first-quarter 2018 loss of $135 million.
Total rig utilization increased to 76% from the year-ago level of 47%. However, overall average dayrate declined to $172,305 from $195,633 in the year-ago quarter. Nonetheless, overall operating days rose to 1,570 from 1,171 in the year-ago period.
The average dayrate for the company's jackups was $127,150 compared with $153,662 in the prior-year quarter. Average capacity utilization rose to 93% from the year-ago level of 56%.
The average dayrate for the company's floaters was $236,715 compared with $259,326 in the prior-year quarter. Average capacity utilization jumped to 60% from the year-ago level of 37%.
Nearly 64% of the available rig days were committed for 2019, including 53% of floating rig days and 75% of jackup rig days.
Costs & Expenses
Total operating costs increased to $306.7 million in the quarter from the year-ago period’s $292 million. Cost of contract drilling services increased to $171.7 million in the first quarter from the year-ago level of $136.8 million. General and administrative costs declined to $16 million from $22.1 million in first-quarter 2018.
Backlog
As of Mar 31, 2019, total backlog was approximately $2.3 billion, of which around $1.4 billion and $900 million were contributed by floating rig and jackup rig fleets, respectively.
Financials
Capital expenditure in the reported quarter totaled $83 million.
At the end of the first quarter, the company had a cash balance of $187.1 million and long-term debt of $3,550.8 million, with a debt-to-capitalization ratio of 45.9%.
Zacks Rank and Stocks to Consider
Currently, Noble carries a Zacks Rank #3 (Hold). Prospective players in the energy space worth considering include Cactus, Inc. (WHD - Free Report) , Hess Corporation (HES - Free Report) and Chevron Corporation (CVX - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cactus’ earnings growth is projected at 11.8% through 2019.
Hess’ earnings are expected to grow 90.5% through 2019.
Chevron’s earnings are likely to grow 13.5% on a year-over-year basis in the second quarter of 2019.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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