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| Noble Reports Fourth Quarter and Full Year 2004 Results |
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SUGAR LAND, Texas, Jan 27, 2005 /PRNewswire-FirstCall via COMTEX/ -- Noble Corporation (NYSE: NE) reported net income for the fourth quarter of 2004 of $52.9 million, or $0.39 per diluted share, on operating revenues of $302.2 million, compared to net income of $30.3 million, or $0.23 per diluted share, on operating revenues of $239.8 million for the fourth quarter of 2003. Net income for the year ended December 31, 2004 was $146.1 million, or $1.09 per diluted share, on operating revenues of $1,066.2 million, compared to net income of $166.4 million, or $1.25 per diluted share, on operating revenues of $987.4 million for the year ended December 31, 2003. At December 31, 2004, the Company's consolidated balance sheet reflected $2.4 billion in shareholders' equity, $191.6 million in cash and marketable debt securities, and $511.6 million in total debt. Net cash provided by operating activities for the year ended December 31, 2004 was $332.2 million. The Company's premium fleet of offshore drilling rigs expanded to 60 in 2004, with the addition of three 300 foot independent leg cantilever jackups financed with net cash provided by operating activities. One unit is under a long-term contract, while a second unit is scheduled to commence a long-term contract in February 2005. The Company is currently upgrading the third jackup, which will substantially increase its operating capabilities and will cost approximately $30 million. Further, the Company recently announced a commitment for a two-year contract from Shell Exploration & Production Company for the Noble Clyde Boudreaux, an ultra-deepwater semisubmersible hull that once constructed will be capable of drilling in water depths of 10,000 feet. In addition, the Company has three ultra-deepwater hulls in inventory, ready for upgrade. James C. Day, Chairman and Chief Executive Officer, said, "As markets continue to tighten, the ready availability of premium drilling assets is becoming a concern for the industry as exploration and production plans are being developed for 2006 and 2007." Net income for the fourth quarter of 2004 increased 73 percent from the third quarter of 2004 as market conditions continued to improve in West Africa and the North Sea. By the middle of the fourth quarter, all six of the Company's jackups in Nigeria were operating. Upgrades to the Noble Homer Ferrington semisubmersible were completed during the fourth quarter and the unit was mobilized to West Africa for a long-term contract for ExxonMobil, which commenced in late November 2004. Both utilization and average dayrates on the Company's North Sea units continued to increase during the fourth quarter. Results for the fourth quarter of 2004 were also positively impacted by the favorable resolution of income tax audits, which resulted in a lower effective tax rate in the fourth quarter of 2004 as compared to the third quarter of 2004. The higher contract drilling costs for the fourth quarter of 2004 were the result of a 13 percent increase in operating days and costs associated with three shipyard projects. The Company's results for the third quarter of 2004 included a $5.8 million, or $.04 per diluted share, after-tax charge related to damage incurred on three of the Company's semisubmersibles in the U.S. Gulf of Mexico as a result of Hurricane Ivan. Compared to the fourth quarter of 2003, net income for the fourth quarter of 2004 increased 75 percent due principally to higher utilization on international jackups, primarily in West Africa and the Middle East, and the favorable impact from the completion of the income tax audits. These items were partially offset by costs associated with three shipyard projects during the fourth quarter of 2004, lower average dayrates on our deepwater semisubmersibles in the U.S. Gulf of Mexico, and a gain on the sale of certain deepwater exploration properties in the fourth quarter of 2003. The Company's Middle East operating division, which also includes India and the Mediterranean Sea, experienced an increase of 449 operating days from the fourth quarter of 2003. The increase in operating days was primarily due to the acquisition of the Noble Gene House and Noble Charlie Yester premium jackups in July 2003 and September 2003, respectively, and the mobilization of the Noble Carl Norberg premium jackup to the Mediterranean Sea from the U.S. Gulf of Mexico in December 2003. Following completion of upgrade programs, the Noble Charlie Yester and Noble Gene House commenced contracts in December 2003 and February 2004, respectively. In addition, the Noble Cees van Diemen, acquired in July 2004, commenced an 880-day contract in September 2004. Utilization of our West Africa jackups was also significantly higher in the fourth quarter of 2004 as compared to the same quarter in 2003, increasing to 97 percent in the recent quarter from 30 percent in the fourth quarter of 2003. In Brazil, the Company's Noble Roger Eason drillship was in the shipyard all of 2004 undergoing planned maintenance and significant upgrades, including water depth increase to 7,200 feet. This upgrade project was recently completed and the unit is expected to commence in February 2005 its 700-day contract for Petrobras at a dayrate of $96,250, plus the opportunity for a performance bonus. Offshore contract drilling services revenues from deepwater drilling units (capable of drilling in water depths of 4,000 feet or greater) accounted for approximately 29 percent and 38 percent of the Company's total contract drilling services revenues for the fourth quarter of 2004 and 2003, respectively. The Company currently operates six deepwater semisubmersibles in the Gulf of Mexico, one deepwater semisubmersible and three deepwater drillships offshore Brazil, and another deepwater semisubmersible in Nigeria. Contract drilling services revenues from international sources accounted for approximately 77 percent and 72 percent of the Company's total contract drilling services revenues for the fourth quarter of 2004 and 2003, respectively. The average dayrate for the Company's international jackup rigs was $50,984 in the fourth quarter of 2004 compared to $50,379 in the fourth quarter of 2003. Utilization on these rigs improved to 97 percent in the recent quarter as compared to 74 percent in the fourth quarter of 2003. The average dayrate on the Company's deepwater assets in the U.S. Gulf of Mexico capable of drilling in water depths of 6,000 feet or greater decreased 10 percent to $98,767 in the fourth quarter of 2004 as compared to the fourth quarter of 2003. However, this market has continued to strengthen, and recent contracts on the Company's domestic deepwater semisubmersibles have generally been higher than the average for the fourth quarter of 2004. Utilization on these units was 91 percent during the fourth quarter of 2004 and 95 percent in the same quarter of the previous year. The average dayrate on the Company's domestic jackups increased 28 percent to $50,049 in the fourth quarter 2004 as compared to the fourth quarter of 2003. These units were fully utilized in the recent quarter as compared to utilization of 98 percent in the fourth quarter of 2003. Day said, "We will continue to market our three semisubmersible hulls for ultra-deep projects starting in 2007 and 2008, as well as search for premium drilling assets to acquire. The Company has increased its fleet by 22 percent over the last three years." Noble Corporation is a leading provider of diversified services for the oil and gas industry. Contract drilling services are performed with the Company's premium fleet of 60 mobile offshore drilling units located in key markets worldwide. This fleet consists of 13 semisubmersibles, three dynamically positioned drillships, 41 jackups and three submersibles. Approximately 80 percent of the fleet is currently deployed in international markets, principally including the Middle East, Mexico, the North Sea, Brazil, West Africa, India, and the Mediterranean Sea. The Company provides technologically advanced drilling-related products and services designed to create value for our customers. The Company also provides labor contract drilling services, well site and project management services, and engineering services. The Company's ordinary shares are traded on the New York Stock Exchange under the symbol "NE". This news release may contain "forward-looking statements" about the business, financial performance and prospects of the Company. Statements about the Company's or management's plans, intentions, expectations, beliefs, estimates, predictions, or similar expressions for the future are forward- looking statements. No assurance can be given that the outcomes of these forward-looking statements will be realized, and actual results could differ materially from those expressed as a result of various factors. A discussion of these factors, including risks and uncertainties, is set forth from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com . NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
OPERATING REVENUES
Contract drilling services $261,107 $217,378 $937,414 $889,603
Reimbursables 18,469 9,716 50,234 44,214
Labor contract services 15,712 7,735 51,327 28,492
Engineering, consulting and
other 6,863 4,977 27,256 25,071
302,151 239,806 1,066,231 987,380
OPERATING COSTS AND EXPENSES
Contract drilling services 152,362 133,410 562,508 505,038
Reimbursables 16,947 8,199 44,610 39,024
Labor contract drilling
services 13,913 5,691 42,669 22,642
Engineering, consulting and
other 7,583 8,196 27,339 28,249
Depreciation 44,018 40,473 168,219 148,127
Selling, general and
administrative 9,574 6,716 33,714 26,634
Gain on sale of property and
equipment --- (3,472) --- (3,472)
244,397 199,213 879,059 766,242
OPERATING INCOME 57,754 40,593 187,172 221,138
OTHER INCOME (EXPENSE)
Interest expense (8,319) (9,426) (34,389) (40,291)
Other, net 3,312 2,878 9,034 6,137
INCOME BEFORE INCOME TAXES 52,747 34,045 161,817 186,984
INCOME TAX BENEFIT (PROVISION) 127 (3,745) (15,731) (20,568)
NET INCOME $52,874 $30,300 $146,086 $166,416
EARNINGS PER SHARE:
Basic $0.39 $0.23 $1.10 $1.26
Diluted $0.39 $0.23 $1.09 $1.25
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 133,904 132,117 132,897 131,948
Diluted 135,311 133,141 134,115 133,007
NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, December 31,
2004 2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents $100,190 $139,467
Investment in marketable
securities (A) 91,388 98,376
Accounts receivable 205,023 149,235
Inventories 4,013 4,086
Prepaid expenses 12,454 11,809
Other current assets 12,215 18,986
Total current assets 425,283 421,959
PROPERTY AND EQUIPMENT
Drilling equipment and facilities 3,739,338 3,454,163
Other 65,550 64,591
3,804,888 3,518,754
Accumulated depreciation (1,061,268) (892,888)
2,743,620 2,625,866
INVESTMENT IN AND ADVANCES TO JOINT
VENTURES 18,804 19,868
OTHER ASSETS 124,833 121,940
$3,312,540 $3,189,633
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term
debt $8,361 $47,666
Accounts payable 83,012 87,178
Accrued payroll and related costs 60,911 48,511
Taxes payable 22,883 31,734
Interest payable 8,981 9,384
Other current liabilities 34,491 19,550
Total current liabilities 218,639 244,023
LONG-TERM DEBT 503,288 541,907
DEFERRED INCOME TAXES 206,539 213,357
OTHER LIABILITIES 8,110 18,201
COMMITMENTS AND CONTINGENCIES --- ---
MINORITY INTEREST (8,531) (6,280)
928,045 1,011,208
SHAREHOLDERS' EQUITY
Ordinary shares-par value $0.10
per share 13,441 13,389
Capital in excess of par value 926,652 915,240
Retained earnings 1,452,974 1,306,888
Treasury stock, at cost --- (49,121)
Restricted stock (unearned
compensation) (11,171) (7,981)
Accumulated other comprehensive
income 2,599 10
2,384,495 2,178,425
$3,312,540 $3,189,633
(A) Includes amounts in a Rabbi Trust for the Noble Drilling Corporation
401(k) Savings Restoration Plan at December 31, 2003 of $9,458,000.
The Rabbi Trust was liquidated and terminated in December 2004.
NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended December 31,
2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $146,086 $166,416
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation, and amortization
of deferred repairs and
maintenance 209,123 182,590
Deferred income tax provision 5,022 4,376
Loss on sales of marketable
securities 129 382
Equity in income of joint
venture (3,931) (2,307)
Distributions received from
joint venture 2,700 ---
Compensation expense from
stock-based plans 5,753 4,627
Gain on sale of interest in
deepwater oil and gas
properties --- (3,472)
Dissolution of rabbi trust 11,945 ---
Discretionary pension funding --- (17,100)
Other (4,028) 1,518
Other changes in current assets
and liabilities:
Accounts receivable (55,788) 15,378
Other current assets 1,187 (12,081)
Accounts payable (4,164) 22,400
Other current liabilities 18,187 2,581
Net cash provided by
operating activities 332,221 365,308
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions and related capital
upgrades (110,548) (194,400)
Other capital expenditures (150,493) (112,734)
Deferred repair and maintenance
expenditures (72,948) (36,984)
Repayments from joint venture 2,295 4,977
Proceeds from sales of property
and equipment 2,135 1,606
Proceeds from sale of interest in
deepwater oil and gas properties --- 5,200
Investment in marketable
securities (102,516) (146,120)
Proceeds from sales and maturities
of marketable securities 99,152 122,585
Net cash used for
investing activities (332,923) (355,870)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of borrowing on credit
facility (25,000) ---
Payments of other long-term debt (52,933) (80,580)
Proceeds from issuance of ordinary
shares 79,072 9,432
Repurchase of ordinary shares (39,714) ---
Decrease in restricted cash --- 8,668
Net cash used for
financing activities (38,575) (62,480)
DECREASE IN CASH AND CASH EQUIVALENTS (39,277) (53,042)
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 139,467 192,509
CASH AND CASH EQUIVALENTS, END OF
PERIOD $100,190 $139,467
NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except utilization amounts, operating days and average
dayrates)
(Unaudited)
Three Months Ended December 31,
2004
International Domestic Engineering
Contract Contract &
Drilling Drilling Consulting Other
OPERATING REVENUES
Contract drilling
services $201,692 $59,415 $--- $---
Reimbursables 5,960 5,369 4,854 2,286
Labor contract drilling
services --- --- --- 15,712
Engineering, consulting
and other 783 332 3,193 2,555
$208,435 $65,116 $8,047 $20,553
OPERATING COSTS AND EXPENSES
Contract drilling
services $124,408 $27,954 $--- $---
Reimbursables 4,635 5,213 4,850 2,249
Labor contract drilling
services --- --- --- 13,913
Engineering, consulting
and other (202) 392 5,073 2,320
Depreciation and
amortization 32,653 10,429 99 837
Selling, general and
administrative 6,652 2,342 234 346
Gain on sale of property
and equipment --- --- --- ---
$168,146 $46,330 $10,256 $19,665
OPERATING STATISTICS
Jackups:
Utilization 97% 100%
Operating Days 3,213 184
Average Dayrate $50,984 $50,049
Semisubmersibles -
(6,000 feet or greater):
Utilization 67% 91%
Operating Days 123 335
Average Dayrate $143,244 $98,767
Semisubmersibles - (less
than 6,000 feet):
Utilization 100% 100%
Operating Days 92 184
Average Dayrate $57,413 $49,103
Drillships:
Utilization 64% N/A
Operating Days 176 N/A
Average Dayrate $85,108 N/A
Submersibles:
Utilization N/A 100%
Operating Days N/A 276
Average Dayrate N/A $29,290
Total:
Utilization 93% 97%
Operating Days 3,604 979
Average Dayrate $55,963 $60,689
NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT (continued)
(In thousands, except utilization amounts, operating days and average
dayrates)
(Unaudited)
Three Months Ended December 31,
2003
International Domestic Engineering
Contract Contract &
Drilling Drilling Consulting Other
OPERATING REVENUES
Contract drilling
services $157,417 $59,961 $--- $---
Reimbursables 3,261 3,811 464 2,180
Labor contract drilling
services --- --- --- 7,735
Engineering, consulting
and other 255 195 2,785 1,742
$160,933 $63,967 $3,249 $11,657
OPERATING COSTS AND EXPENSES
Contract drilling services $100,702 $32,708 $--- $---
Reimbursables 1,926 3,700 431 2,142
Labor contract drilling
services --- --- --- 5,691
Engineering, consulting
and other (398) 437 6,484 1,673
Depreciation and
amortization 27,618 11,891 110 854
Selling, general and
administrative 4,033 2,108 309 266
Gain on sale of property
and equipment --- (3,472) --- ---
$133,881 $47,372 $7,334 $10,626
OPERATING STATISTICS
Jackups:
Utilization 74% 98%
Operating Days 2,377 180
Average Dayrate $50,379 $38,961
Semisubmersibles -
(6,000 feet or greater):
Utilization 100% 95%
Operating Days 92 436
Average Dayrate $158,094 $109,544
Semisubmersibles - (less
than 6,000 feet):
Utilization 100% 11%
Operating Days 92 17
Average Dayrate $46,939 $39,059
Drillships:
Utilization 91% N/A
Operating Days 252 N/A
Average Dayrate $74,610 N/A
Submersibles:
Utilization N/A 86%
Operating Days N/A 211
Average Dayrate N/A $21,436
Total:
Utilization 76% 81%
Operating Days 2,813 844
Average Dayrate $55,961 $71,044
SOURCE Noble Corporation John T. Rynd, Vice President - Investor Relations, Noble Drilling Services Inc. of Noble Corporation, +1-281-276-6100 http://www.prnewswire.com |
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