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Noble Corp (NE) Q2 Loss Narrower Than Expected, Revenues Top

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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.

Noble Corporation Price, Consensus and EPS Surprise

Noble Corporation Price, Consensus and EPS Surprise

Noble Corporation price-consensus-eps-surprise-chart | Noble Corporation Quote

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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