Rig company Noble Corp., which is to merge with Maersk Drilling, raises its full-year guidance. The two merging partners prepare rigs divestment following UK authority concerns.
Photo: PR Maersk Drilling
Increased activity on the offshore drilling market has led to soaring day rates for Noble Corp., and this prompts the US rig company to raise its expectations for 2022 prior to the planned merger with Maersk Drilling.
Noble expects adjusted revenue of USD 1,130-1,180m for the whole year, and earnings before interest, taxes, depreciations and amortizations (EBITDA) of USD 320-350m, according to the company’s Q1 financial statement.
However, the result expectations are under pressure from increasing inflation, Noble adds in the announcement.
We are encouraged by the steadily improving fundamentals in the offshore drilling market
ROBERT W. EIFLER, CEO, NOBLE CORP.
In the year’s first three months, Noble had a revenue of USD 195m compared to USD 192m in Q4 2021.
EBITDA came to USD 27m against USD 12m in 2021’s fourth quarter. However, the bottom line ended with a loss of USD 8m compared to a loss in the fourth quarter of USD 29m.
Q1’s fleet utilization landed at 75% against 77% in the previous quarter.
”We are encouraged by the steadily improving fundamentals in the offshore drilling market and expect to continue to see positive dayrate momentum. We anticipate realizing a meaningful improvement in financial results in the second quarter and have visibility to exiting the year at an adjusted EBITDA run-rate of USD 125m per quarter,” says Noble CEO Robert W. Eifler in the statement.
Competition authority demands rigs sale
Per April 1, Noble has an estimated revenue in the order book of USD 1.9bn and total liquidities of USD 767m, according to the announcement.
The Noble CEO’s optimism follows a number of tough years in the strained sector.
Like several competitors, Noble had to seek US bankruptcy protection in the wake of the Covid-19 crisis in order to get time to land a wide-scale rescue plan.
In February last year, the company completed its restructuring and since took over Pacific Drilling. Later in the year, it came out that a merger with Maersk Drilling was underway.
The merger will result in one of the world’s largest rig companies, and it’s expected to fall into place in mid-2022 after approval from authorities.
Will sell rigs in response to concern
Yesterday, Maersk Drilling announced that the two merging parties are preparing to divest rigs in the North Sea after the UK’s Competition and Markets Authority (CMA) expressed concern regarding the merger plans in April.
The rigs in question are likely to be Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner and Noble Houston Colberg, all owned by Noble.
Noble Lloyd Noble or Maersk Drilling rig Maersk Innovator may be included as well.
CMA was concerned over the supply of jack-up rigs in the area, feared to result in higher operational costs for oil and gas producers.
Previously in the year, already, Maersk Drilling and Noble predicted that a British approval would be followed by demands of selling certain rigs currently located in the North Sea. Thus, they started investigating the opportunities for sale.
English edit: Kristoffer Grønbæk
