Noble Corporation plc Reports Q2 2026 Results: Contract Wins, Debt Refinancing, and Revised Outlook

Key Highlights from Noble Corporation’s Q2 2026 Financial Report

• New Contracts: Approximately \$200 million in new contract value secured since the April fleet status report, including a six-well contract for the Noble Viking and a three-well contract for the Noble Claus Bachmann. Backlog now stands at \$6.8 billion.
• Debt Refinancing: Successful refinancing of legacy Diamond notes, simplifying the capital structure and unlocking \$35 million in annual cash benefits, primarily from lower interest and tax costs.
• Dividend Announcement: The Board declared a cash dividend of \$0.50 per share for Q3 2026, maintaining the company’s consistent return of capital program. Payment is set for September 24, 2026 to shareholders of record as of September 3, 2026.
• Financial Performance: Q2 net loss of \$37 million and diluted loss per share of (\$0.23); adjusted diluted EPS was \$0.01. Adjusted EBITDA came to \$212 million, with net cash provided by operating activities at \$144 million and free cash flow at \$(59) million.
• Guidance Cut: Full year 2026 guidance for revenue and adjusted EBITDA reduced due to operational suspensions in Brazil and backlog re-sequencing. Capital expenditures guidance remains unchanged.

Detailed Financial Results

The quarter was notably impacted by a \$43 million revenue hit due to operational suspension of the Noble Faye Kozack and Noble Courage rigs in Brazil. Excluding this, operational and financial performance remained strong. The completion of a significant debt refinancing is expected to provide ongoing cash benefits. The offshore drilling market continues to tighten, particularly for high-specification drillships, with leading-edge dayrates reaching the mid \$400,000s per day.

Operational and Balance Sheet Updates

• Utilization of the 29 marketed rigs dropped to 64% from 68% in the prior quarter.
• Contract drilling services costs decreased slightly to \$446 million from \$450 million.
• Capital expenditures were \$205 million; free cash flow was negative at \$(59) million.
• Total debt principal stands at \$1.9 billion, with cash and equivalents at \$456 million.
• Refinanced \$800 million of bonds with a new 6.25% senior unsecured notes due 2034. The quarter includes an \$18 million loss on debt extinguishment.
• Lease buy-out of the third Blackships BOP system completed for \$18 million; the final buy-out expected in Q4 2026.
• Idle semisubmersible Ocean Apex sold for scrapping for \$5 million, resulting in a \$42 million impairment charge.

Backlog and Contract Awards

• 24 marketed floaters were 61% contracted in Q2 (down from 68%); 5 marketed ultra-harsh jackups had 80% utilization (up from 66%).
• New contracts since last quarter added approximately 16 months of new floater backlog, including:
• Noble Viking: Six-well contract in Asia Pacific, commencing early 2028 (~300 days duration).
• Noble Claus Bachmann: Three-well contract with BP in the UK North Sea, commencing March 2027 for 150–210 days at \$320,000/day plus a \$5 million mobilization fee. A subsequent three-year campaign with Aker BP will follow directly.
• Backlog as of July 27, 2026: \$6.8 billion (excludes mobilization and demobilization revenue).

Updated 2026 Outlook

• Revenue Guidance: Now \$2,800–\$2,900 million (down from \$2,800–\$3,000 million).
• Adjusted EBITDA Guidance: Now \$850–\$925 million (down from \$940–\$1,020 million).
• Capital Expenditures Guidance: Unchanged at \$615–\$665 million.
• The lowered guidance is attributed to reduced revenues from the two rigs in Brazil and re-sequencing of backlog for the Noble Viking and Noble Innovator/Noble Intrepid in H2 2026.
• Despite near-term headwinds, management remains optimistic about market conditions in 2027 and beyond, citing strong demand and rising dayrates for both deepwater and harsh environment rigs.

Other Important Information for Shareholders

• Future dividends and shareholder returns are subject to Board approval and business conditions.
• Risks highlighted include market volatility, operational risks, regulatory changes, geopolitical events, and contract uncertainties.
• Guidance figures are non-GAAP and reconciliation to GAAP is not provided due to unpredictability of certain components.
• Company warns that actual results could differ materially from guidance due to the above risks and uncertainties.

Non-GAAP Financial Measures

Noble uses several non-GAAP measures (Adjusted EBITDA, Adjusted Net Income/Loss, Adjusted Diluted EPS, and Free Cash Flow) to provide greater transparency around core operating performance and cash flow. These measures exclude infrequent or non-recurring items for more meaningful comparisons across periods. Investors are cautioned that such non-GAAP measures should be considered in addition to, and not as a substitute for, GAAP figures.

Conference Call

Noble will host a conference call regarding Q2 2026 results on July 28, 2026, at 8:00 a.m. U.S. Central Time. Details for participation and a webcast replay are available on the company’s Investor Relations website.

Potentially Price-Sensitive Information

• The \$43 million revenue impact from Brazil rig suspensions, combined with the guidance cut for 2026 revenue and EBITDA, are likely to be significant for the share price.
• The \$200 million in new contract awards and \$6.8 billion backlog provide support for longer-term revenue visibility.
• Successful debt refinancing—unlocking \$35 million in annual cash benefits—is a positive for cash flow and capital returns.
• The continued \$0.50 per share dividend and strong backlog signal confidence, but operational headwinds and guidance cuts may weigh on sentiment in the short term.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. All financial figures are as reported by Noble Corporation plc. Actual results may differ materially from forward-looking statements due to various risks and uncertainties discussed by the company. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions.

View Noble Corp plc Historical chart here