Noble Corporation plc (NE - Free Report) recently reported second-quarter 2019 loss from continuing operations of 34 cents per share, narrower than the Zacks Consensus Estimate of a loss of 45 cents. Also, the figure was narrower than the year-ago loss of 49 cents per share.
Total revenues in the quarter increased to $292.9 million from $258.4 million in the prior-year period. Also, quarterly revenues beat the Zacks Consensus Estimate of $269 million. Contract Drilling Services, which contributed $274.8 million to its total revenues, increased 11% year over year.
The strong 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 $85.6 million, narrower than second-quarter 2018 loss of $121.2 million.
Total rig utilization increased to 82% from the year-ago level of 54%. However, overall average dayrate declined to $154,609 from $180,689 in the year-ago quarter. Nonetheless, overall operating days rose to 1,778 from 1,371 in the year-ago period.
The average dayrate for the company's jackups was $124,572 compared with $130,332 in the prior-year quarter. Average capacity utilization rose to 98% from the year-ago level of 70%.
The average dayrate for its floaters was $197,911 compared with $268,588 in the prior-year quarter. Average capacity utilization jumped to 67% from the year-ago level of 39%.
Nearly 73% of the available jackup rig days and 57% of floating rig days are committed for the next 12 months.
Costs & Expenses
Total contract drilling services costs increased to $168.9 million in the quarter from the year-ago period’s $151.4 million. General and administrative costs surged to $116.3 million from $21.7 million in second-quarter 2018.
Backlog
As of Jun 30, 2019, total backlog was approximately $2.1 billion, of which around $1.3 billion and $820 million were contributed by floating rig and jackup rig fleets, respectively.
Financials
Capital expenditure in the reported quarter totaled $64 million.
At the end of the second quarter, the company had a cash balance of $153.8 million and long-term debt of $3,553.1 million, with a debt-to-capitalization ratio of 44.5%.
Zacks Rank and Stocks to Consider
Currently, Noble Corp has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy sector are given below:
Transportadora de Gas del Sur S.A. (TGS - Free Report) is a midstream energy firm. In the trailing four quarters, the company delivered average positive earnings surprise of 114%. It has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
World Fuel Services Corporation is an oil and gas refining and marketing company. Its bottom line in 2019 is expected to improve nearly 12% from a year ago. The company has a Zacks Rank #1.
Keane Group, Inc. is a provider of integrated well completion services primarily in the United States. In the trailing four quarters, the company delivered average positive earnings surprise of 320.2%. It has a Zacks Rank #2 (Buy).
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Noble Corporation plc (NE - Free Report) recently reported second-quarter 2019 loss from continuing operations of 34 cents per share, narrower than the Zacks Consensus Estimate of a loss of 45 cents. Also, the figure was narrower than the year-ago loss of 49 cents per share.
Total revenues in the quarter increased to $292.9 million from $258.4 million in the prior-year period. Also, quarterly revenues beat the Zacks Consensus Estimate of $269 million. Contract Drilling Services, which contributed $274.8 million to its total revenues, increased 11% year over year.
The strong 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 $85.6 million, narrower than second-quarter 2018 loss of $121.2 million.
Total rig utilization increased to 82% from the year-ago level of 54%. However, overall average dayrate declined to $154,609 from $180,689 in the year-ago quarter. Nonetheless, overall operating days rose to 1,778 from 1,371 in the year-ago period.
The average dayrate for the company's jackups was $124,572 compared with $130,332 in the prior-year quarter. Average capacity utilization rose to 98% from the year-ago level of 70%.
The average dayrate for its floaters was $197,911 compared with $268,588 in the prior-year quarter. Average capacity utilization jumped to 67% from the year-ago level of 39%.
Nearly 73% of the available jackup rig days and 57% of floating rig days are committed for the next 12 months.
Costs & Expenses
Total contract drilling services costs increased to $168.9 million in the quarter from the year-ago period’s $151.4 million. General and administrative costs surged to $116.3 million from $21.7 million in second-quarter 2018.
Backlog
As of Jun 30, 2019, total backlog was approximately $2.1 billion, of which around $1.3 billion and $820 million were contributed by floating rig and jackup rig fleets, respectively.
Financials
Capital expenditure in the reported quarter totaled $64 million.
At the end of the second quarter, the company had a cash balance of $153.8 million and long-term debt of $3,553.1 million, with a debt-to-capitalization ratio of 44.5%.
Zacks Rank and Stocks to Consider
Currently, Noble Corp has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy sector are given below:
Transportadora de Gas del Sur S.A. (TGS - Free Report) is a midstream energy firm. In the trailing four quarters, the company delivered average positive earnings surprise of 114%. It has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
World Fuel Services Corporation is an oil and gas refining and marketing company. Its bottom line in 2019 is expected to improve nearly 12% from a year ago. The company has a Zacks Rank #1.
Keane Group, Inc. is a provider of integrated well completion services primarily in the United States. In the trailing four quarters, the company delivered average positive earnings surprise of 320.2%. It has a Zacks Rank #2 (Buy).
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
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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