Noble Corporation Reports Record First Quarter Earnings of $1.43 Per Share on Operating Revenues of $861 Million

SUGAR LAND, Texas, April 23 /PRNewswire-FirstCall/ -- Noble Corporation (NYSE:NE) today reported first quarter 2008 earnings of $384 million, or $1.43 per diluted share, versus $250 million, or $0.93 per diluted share (split adjusted), for the first quarter of 2007. Per-share earnings were up 54 percent from the first quarter of 2007 and up 11 percent from the $1.29 per diluted share reported for the fourth quarter of 2007.

Contract drilling services revenues for the 2008 first quarter were $798 million, up 5 percent from the fourth quarter 2007. Contract drilling margin for the first quarter 2008 was approximately 70 percent, generating $493 million in net cash provided by operating activities. The Company invested $234 million in capital projects during the first quarter 2008. The results for the 2008 first quarter include after-tax charges of $0.03 per diluted share related to the ongoing independent investigation of the Company's Nigerian operations.

"With a fifth consecutive record quarter, Noble continues to deliver excellent results, powered by our industry-leading margins, increased dayrates on several units and attention to cost control," said Noble Corporation Chairman, President and Chief Executive Officer David W. Williams. "This quarter was again characterized by strong execution by our crews, a clear focus on the timely completion of our newbuild and upgrade programs, and extension of our contract backlog."

Debt as a percentage of total capitalization declined to 13.6 percent at March 31, 2008, from approximately 15.4 percent at December 31, 2007. During the first quarter of 2008, the Company repurchased 593,000 shares at an average price per share of $44.81, for a total cost of approximately $27 million. As previously reported on April 17, 2008, the Company's Board of Directors has declared a special cash dividend of $0.75 per ordinary share that will be paid on May 16, 2008 to shareholders of record on April 30, 2008. The dividend payout will total approximately $202 million based on the number of ordinary shares of the Company currently outstanding.

Noble Adds Almost $5.0 Billion in Potential Revenue Backlog During First Quarter 2008

As of March 31, 2008, approximately 83 percent of the Company's total rig operating days were committed for 2008 and approximately 50 percent were committed for 2009. Additionally, the Company secured commitments on eight deepwater rigs for multi-year terms beginning as late as 2010. In late March, Noble announced a Memorandum of Understanding for contracts on five rigs currently in Brazil. These commitments are reflected in the Company's recently released Fleet Status report, along with the preliminary timing and order on when the three drillships in Brazil will experience shipyard time for their respective upgrades. In West Africa, the deepwater semisubmersible Noble Homer Ferrington received a Letter of Intent (LOI) from a major operator for three years at a dayrate of $495,000 commencing in 2009.

In the U.S. Gulf of Mexico, the deepwater semisubmersible Noble Jim Thompson received a contract during the quarter for two years with Shell at a dayrate of $505,000, commencing in 2009. The Company also received a contract for the Noble Lorris Bouzigard for a two year term with LLOG at a dayrate of $270,000, scheduled to begin in May 2008. Also in the U.S. Gulf of Mexico, the mooring system upgrade is nearing completion on the Noble Amos Runner, which is expected to return to full service in May 2008, under contract to Anadarko at a dayrate of $435,000 until March 2011.

The Company's international jackup units also experienced notable contract activity in many markets during the quarter. In the North Sea, the 360' jackup Noble Al White received a LOI from Total for one year at a dayrate of $208,000, commencing in 2008, and Cirrus Energy declared its option on the Noble Lynda Bossler at a dayrate of $220,000 through February 2009. In the Middle East, the Noble Roger Lewis commenced the contract for Shell in Qatar in February. As a result, a dayrate increase from $103,000 to $160,000 on the Noble Gene House, which also works for Shell, went into effect at the time the Noble Roger Lewis' contract commenced. Also in the Middle East, the 150' jackup Dhabi II received a LOI for an extension from ADOC for a three year commitment at a dayrate of $92,000 commencing in July 2008.

Noble Corporation is a leading offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 62 mobile offshore drilling units located in key markets worldwide, including the U.S. Gulf of Mexico, Middle East, Mexico, the North Sea, Brazil, West Africa and India. The fleet count includes five rigs under construction. Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com/.

This news release contains "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.

Conference Call

Noble will hold its first quarter conference call on Thursday, April 24, 2008, at 1:00 p.m., Central Time. The call may be accessed live via telephone at (866) 461-7129 (706-679-3084 for international callers), using pass code 39846262. The call also will be available over the Internet through the "Investor Relations" section of the Company's Web site, using the "Web cast" link. A replay of the conference call will be available on Thursday, April 24, 2008, beginning at 5:00 p.m., Central Time, through Wednesday, April 30, 2008, ending at 5:00 p.m., Central Time. The phone number for the conference call replay is (800) 642-1687 (706-645-9291 for international callers), using the conference ID number 39846262. The conference call may include non-GAAP financial measures. Noble will post a reconciliation of any such measures to the most directly comparable GAAP measures in the "Investor Relations" section of the Company's Web site under the heading "Reg G Reconciliations."

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended March 31,
2008 2007
OPERATING REVENUES
Contract drilling services $797,834 $576,915
Reimbursables 32,458 31,143
Labor contract drilling services 30,931 36,555
Engineering, consulting and other 202 1,811
861,425 646,424

OPERATING COSTS AND EXPENSES
Contract drilling services 235,952 196,842
Reimbursables 29,461 27,546
Labor contract drilling services 25,337 28,403
Engineering, consulting and other - 3,641
Depreciation and amortization 82,899 64,465
Selling, general and administrative 21,273 14,226
394,922 335,123

OPERATING INCOME 466,503 311,301

OTHER INCOME (EXPENSE)
Interest expense, net of amounts
capitalized (1,110) (1,504)
Other, net 3,129 1,158

INCOME BEFORE INCOME TAXES 468,522 310,955
INCOME TAX PROVISION (84,334) (60,635)

NET INCOME $384,188 $250,320

NET INCOME PER SHARE:
Basic $ 1.44 $ 0.94
Diluted $ 1.43 $ 0.93

WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 266,451 267,122
Diluted 268,578 269,600

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

March 31, December 31,
2008 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 319,597 $ 161,058
Accounts receivable 576,981 613,115
Insurance receivables - 39,066
Inventories 3,924 3,814
Prepaid expenses 59,957 20,721
Other current assets 25,033 22,417
Total current assets 985,492 860,191

PROPERTY AND EQUIPMENT
Drilling equipment and facilities 6,562,748 6,354,782
Other 82,609 80,169
6,645,357 6,434,951
Accumulated depreciation (1,700,584) (1,639,035)
4,944,773 4,795,916

OTHER ASSETS 222,767 219,899
$6,153,032 $5,876,006

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 30,518 $ 10,334
Accounts payable 169,192 198,395
Accrued payroll and related costs 95,330 115,914
Taxes payable 117,520 85,641
Interest payable 7,546 9,951
Other current liabilities 58,041 72,537
Total current liabilities 478,147 492,772

LONG-TERM DEBT 701,495 774,182
DEFERRED INCOME TAXES 250,461 240,621
OTHER LIABILITIES 64,731 65,705
1,494,834 1,573,280

COMMITMENTS AND CONTINGENCIES

MINORITY INTEREST (6,068) (5,596)

SHAREHOLDERS' EQUITY
Ordinary shares-par value $0.10 per
share; 400,000 shares authorized;
268,683 shares issued and
outstanding in 2008; 268,223 shares
issued and outstanding in 2007 26,868 26,822
Capital in excess of par value 666,298 683,697
Retained earnings 3,976,312 3,602,870
Accumulated other comprehensive loss (5,212) (5,067)
4,664,266 4,308,322
$6,153,032 $5,876,006

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Three Months Ended March 31,
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $384,188 $250,320
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 82,899 64,465
Deferred income tax provision 9,840 2,794
Share-based compensation expense 8,716 7,340
Pension contribution (3,183) (728)
Other 1,380 3,631
Other changes in current assets and
liabilities:
Accounts receivable 36,134 (53,306)
Hurricane insurance recoveries 17,319 - Other current assets (42,268) 5,795
Accounts payable 3,278 (49,536)
Other current liabilities (5,606) 39,471
Net cash provided by operating
activities 492,697 270,246

CASH FLOWS FROM INVESTING ACTIVITIES
New construction (134,380) (115,049)
Other capital expenditures (76,673) (103,216)
Major maintenance expenditures (22,935) (18,413)
Accrued capital expenditures (32,481) 9,627
Hurricane insurance recoveries 21,747 - Proceeds from sales of property and
equipment 282 - Net cash used for investing
activities (244,440) (227,051)

CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on bank credit facilities - 170,000
Payments on bank credit facilities (50,000) (85,000)
Payments of other long-term debt (2,516) (2,345)
Net proceeds from employee stock
transactions 115 (481)
Dividends paid (10,746) (5,409)
Repurchases of ordinary shares (26,571) (104,557)
Net cash used for financing
activities (89,718) (27,792)

NET INCREASE IN CASH AND CASH EQUIVALENTS 158,539 15,403

CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 161,058 61,710

CASH AND CASH EQUIVALENTS, END OF PERIOD $319,597 $ 77,113

NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except utilization amounts, operating days and average
dayrates)
(Unaudited)

Three Months Ended March 31,
2008
Contract
Drilling
Services Other Total
OPERATING REVENUES
Contract drilling services $797,834 $ - $797,834
Reimbursables 21,166 11,292 32,458
Labor contract drilling services - 30,931 30,931
Engineering, consulting and other 187 15 202
$819,187 $42,238 $861,425

OPERATING COSTS AND EXPENSES
Contract drilling services $235,952 $ - $235,952
Reimbursables 18,753 10,708 29,461
Labor contract drilling services - 25,337 25,337
Engineering, consulting and other - - - Depreciation and amortization 80,785 2,114 82,899
Selling, general and administrative 19,896 1,377 21,273
Hurricane losses and recoveries, net - - - $355,386 $39,536 $394,922

OPERATING INCOME $463,801 $ 2,702 $466,503

OPERATING STATISTICS
Jackups:
Average Rig Utilization 97%
Operating Days 3,601
Average Dayrate $145,337

Semisubmersibles - (6,000 feet or
greater):
Average Rig Utilization 100%
Operating Days 637
Average Dayrate $291,924

Semisubmersibles - (less than 6,000
feet):
Average Rig Utilization 100%
Operating Days 273
Average Dayrate $201,699

Drillships:
Average Rig Utilization 67%
Operating Days 182
Average Dayrate $133,665

Submersibles:
Average Rig Utilization 66%
Operating Days 179
Average Dayrate $ 51,274

Total:
Average Rig Utilization 94%
Operating Days 4,872
Average Dayrate $163,772

Three Months Ended March 31,
2007
Contract
Drilling
Services Other Total
OPERATING REVENUES
Contract drilling services $576,915 $ - $576,915
Reimbursables 19,769 11,374 31,143
Labor contract drilling services - 36,555 36,555
Engineering, consulting and other 230 1,581 1,811
$596,914 $49,510 $646,424

OPERATING COSTS AND EXPENSES
Contract drilling services $196,842 $ - $196,842
Reimbursables 16,939 10,607 27,546
Labor contract drilling services - 28,403 28,403
Engineering, consulting and other 141 3,500 3,641
Depreciation and amortization 61,809 2,656 64,465
Selling, general and administrative 13,660 566 14,226
Hurricane losses and recoveries, net - - - $289,391 $45,732 $335,123

OPERATING INCOME $307,523 $ 3,778 $311,301

OPERATING STATISTICS
Jackups:
Average Rig Utilization 98%
Operating Days 3,512
Average Dayrate $102,112

Semisubmersibles - (6,000 feet or
greater):
Average Rig Utilization 100%
Operating Days 540
Average Dayrate $259,837

Semisubmersibles - (less than 6,000
feet):
Average Rig Utilization 67%
Operating Days 180
Average Dayrate $176,722

Drillships:
Average Rig Utilization 93%
Operating Days 252
Average Dayrate $100,740

Submersibles:
Average Rig Utilization 95%
Operating Days 256
Average Dayrate $ 81,047

Total:
Average Rig Utilization 96%
Operating Days 4,740
Average Dayrate $121,705

Three Months Ended December 31,
2007
Contract
Drilling
Services Other Total
OPERATING REVENUES
Contract drilling services $761,075 $ - $761,075
Reimbursables 20,233 9,779 30,012
Labor contract drilling services - 40,166 40,166
Engineering, consulting and other 319 40 359
$781,627 $49,985 $831,612

OPERATING COSTS AND EXPENSES
Contract drilling services $243,882 $ - $243,882
Reimbursables 16,644 9,479 26,123
Labor contract drilling services - 32,443 32,443
Engineering, consulting and other - 150 150
Depreciation and amortization 79,679 2,928 82,607
Selling, general and administrative 26,181 505 26,686
Hurricane losses and recoveries, net (5,114) - (5,114)
$361,272 $45,505 $406,777

OPERATING INCOME $420,355 $ 4,480 $424,835

OPERATING STATISTICS
Jackups:
Average Rig Utilization 98%
Operating Days 3,697
Average Dayrate $138,746

Semisubmersibles - (6,000 feet or
greater):
Average Rig Utilization 97%
Operating Days 626
Average Dayrate $269,146

Semisubmersibles - (less than 6,000
feet):
Average Rig Utilization 100%
Operating Days 276
Average Dayrate $185,227

Drillships:
Average Rig Utilization 74%
Operating Days 204
Average Dayrate $118,581

Submersibles:
Average Rig Utilization 31%
Operating Days 85
Average Dayrate $ 50,695

Total:
Average Rig Utilization 93%
Operating Days 4,888
Average Dayrate $155,707

First Call Analyst:
FCMN Contact: bwootton@noblecorp.com

Source: Noble Corporation

CONTACT: investors, Lee M. Ahlstrom, Vice President - Investor Relations
and Planning, +1-281-276-6440, or media, John S. Breed, Director of Corporate
Communications, +1-281-276-6729, both of Noble Drilling Services Inc.

Web site: http://www.noblecorp.com/

2008-04-23 17:43:41 0343768 PRNEWSWIRE