Key Highlights

  • Revenues were USD 728.8 million, down from USD 798.0 million, and adjusted EBITDA was USD 201 million, down 5% sequentially.
  • Net loss was USD 117.0 million, or USD 0.73 per share, after a USD 133.0 million tax provision.
  • Backlog stood at USD 6.7 billion, with USD 560 million of new awards covering about 44 months of floater backlog.
  • Full-year adjusted EBITDA guidance narrowed to USD 850 million to 900 million from USD 850 million to 925 million.

Quarter Results

Noble Corporation (NYSE:NE) reported third quarter 2026 results on Tuesday. Operating revenues were USD 728.8 million, compared with USD 798.0 million a year earlier. Contract drilling services revenue was USD 683.7 million versus USD 757.4 million, and USD 679 million in the prior quarter. Contract drilling costs were USD 468.5 million, up from USD 446 million in the prior quarter.

Operating income was USD 60.1 million, compared with USD 50.4 million, which included a USD 60.7 million impairment charge in the prior-year quarter. The net loss was USD 117.0 million, or USD 0.73 per diluted share, against USD 21.1 million, or USD 0.13. An income tax provision of USD 133.0 million drove the loss. It included USD 15.8 million tied to valuation allowance adjustments, primarily in Switzerland, and recurring accruals of USD 117.3 million. Adjusted diluted loss per share was USD 0.57, compared with adjusted earnings of USD 0.01 in the second quarter.

Fleet and Day Rates

Floaters worked 1,398 operating days at an average dayrate of USD 403,113, compared with USD 412,650 in the prior quarter. Jackups worked 579 days at USD 207,651. Marketed utilization was 70% overall, with floaters at 66% and ultra-harsh jackups at 86%.

Chief Executive Eifler said tier-1 drillship day rates of USD 450,000 to USD 500,000 confirm recovery for high-end units, and that 109 of 110 marketed ultra-deepwater rigs are contracted now or for future work, ahead of the 2024 peak. He described the U.S. Gulf as a soft spot in an otherwise strong global market, with the rig count in the mid-teens. Norway jackup day rates were cited at USD 230,000 to USD 300,000. Management attributed the lower end of the narrowed range to slightly later starts for two drillships, including a Shell contract delayed by commissioning and weather.

Cash Flow and Capital

Operating cash flow was USD 144 million and capital expenditures were USD 192 million, leaving free cash flow of negative USD 48 million. For the nine months, net cash from operating activities was USD 561.9 million versus USD 764.6 million, reflecting the sale of five jackups to Borr and Brazil suspensions. Cash was USD 337 million and total debt principal USD 1.9 billion. The company received USD 45 million from the sale of the Noble Resolve on Oct. 9, with USD 38 million more tied to another sale. The board declared a fourth quarter dividend of USD 0.50 per share.

Guidance and 2027 Setup

Full-year revenue guidance narrowed to USD 2.85 billion to USD 2.9 billion from USD 2.8 billion to USD 2.9 billion. Capital expenditure guidance rose to USD 680 million to USD 705 million, reflecting USD 65 million of customer-reimbursable projects. Management guided first quarter 2027 adjusted EBITDA broadly similar to the fourth quarter of 2026, with contracted capacity 20% higher in the second half of 2027 than the first half. Normalized net capital expenditures after 2027 are put at about USD 400 million annually, excluding specific life-of-asset upgrades. A three-year light well intervention agreement for the Globetrotter I carries a minimum commitment of 150 days per year.

Offshore Drilling Markers to Follow

Tracking points include drillship day rates against the USD 450,000 to USD 500,000 range, start dates for the delayed drillships, and marketed floater utilization against 66%. Further items are U.S. Gulf activity, free cash flow after the quarter's negative USD 48 million, and the first-half versus second-half 2027 contracting profile.