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Noble Corp (NE) Q3 Earnings and Revenues Beat Estimates

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Noble Corporation plc (NE - Free Report) reported third-quarter 2019 loss from continuing operations of 46 cents per share, narrower than the Zacks Consensus Estimate of loss of 53 cents. However, the figure was wider than the year-ago loss of 43 cents per share.

Total revenues in the quarter decreased to $275.5 million from $279.4 million in the prior-year period. However, quarterly revenues beat the Zacks Consensus Estimate of $261 million.

The company’s better-than-expected results were supported by a year-over-year increase in total rig fleet utilization, partially offset by a decline in average dayrate.

Operating Highlights

Net loss from continuing operations was $444.9 million, wider than third-quarter 2018 loss of $81.6 million.

Total average rig utilization increased to 76% from the year-ago level of 69%. However, overall average dayrate declined to $154,827 from $174,665 in the year-ago quarter. Nonetheless, overall operating days rose to 1,676 from 1,530 in the year-ago period.

The average dayrate for the company's jackups was $130,339 compared with $122,350 in the prior-year quarter. However, average capacity utilization dropped to 89% from the year-ago level of 93%.

The average dayrate for its floaters was $189,773 compared with $281,796 in the prior-year quarter. However, average capacity utilization rose to 63% from the year-ago level of 45%.

Costs & Expenses

Total contract drilling service costs increased to $175.9 million in the quarter from $163 million in the year-ago period. General and administrative costs rose to $17.6 million from $14.7 million in third-quarter 2018.

Backlog

As of Sep 30, 2019, the offshore drilling contractor’s total revenue backlog was reported at roughly $2 billion.

Financials

Capital expenditure in the reported quarter totaled $57 million.

At the end of the third quarter, the company had cash balance of $135.9 million and long-term debt of $3,577.9 million, with a debt-to-capitalization ratio of 51.5%.

Noble Corporation Price, Consensus and EPS Surprise

 

Noble Corporation Price, Consensus and EPS Surprise

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

Zacks Rank & Stocks to Consider

Noble Corp currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are CNX Resources Corporation (CNX - Free Report) , Contango Oil & Gas Company (MCF - Free Report) and Noble Midstream Partners LP (NBLX - Free Report) . All the stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CNX Resources beat the Zacks Consensus Estimate in two of the prior four quarters, the average positive earnings surprise being 34.8%.

Contango Oil & Gas is likely to witness bottom-line growth of 87% in 2019.

Noble Midstream has witnessed upward revisions in its 2019 earnings over the past 30 days.

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