Noble Corporation (NE)

[frenchee]

Noble Corporation Reports Record Earnings of $4.48 Per Share
for 2007 on Revenues of $3.0 Billion

SUGAR LAND, Texas, Jan. 23 /PRNewswire-FirstCall/ -- Noble Corporation (NYSE: NE) today reported fourth quarter 2007 earnings of $347.4 million, or $1.29 per diluted share, versus $199.7 million, or $0.74 per diluted share, for the fourth quarter of 2006. Per-share earnings were up 74 percent from the fourth quarter of 2006 and up nine percent from the $1.18 per share reported for the third quarter of 2007. Earnings for the full year 2007 totaled $4.48 per diluted share compared with $2.66 per diluted share in 2006 (split adjusted).

The results for the 2007 fourth quarter include a net after-tax charge of $0.06 per share related to the previously reported fire aboard the drillship Noble Roger Eason and costs associated with the ongoing independent investigation of the Company's Nigerian operations, offset by an insurance recovery on our 2005 Hurricane claims.

"We delivered a strong finish to an outstanding year, with good revenue growth and earnings growth across all four quarters," said Chairman, Chief Executive Officer and President David W. Williams. "At the same time, we are on track with our capital spending program and returned added value to our shareholders through our increased dividend and share repurchases."

Contract drilling services revenues for the 2007 fourth quarter were $761.1 million, up 50 percent from the year-earlier quarter. Contract drilling margin during the fourth quarter 2007 was 68 percent, generating $419.0 million in net cash provided by operating activities. Contract drilling services revenues for the full year were $2.7 billion and earnings were $1.2 billion for 2007, up 44 percent and 65 percent, respectively, from the full year 2006.

The Company invested $344.6 million in capital projects during the quarter, bringing the total for the year to $1.3 billion. Debt as a percentage of total capitalization declined to 15.4 percent at December 31, 2007, from approximately 16.4 percent at the end of the third quarter. In addition, Noble repurchased 1.4 million of the Company's ordinary shares during the fourth quarter 2007, at an average price per share of $52.05, for a total cost of $75.1 million. For the full year 2007, Noble repurchased 4.2 million ordinary shares at an average price per share of $42.31 for a total cost of $178.5 million.

Operations Highlights

At year end 2007, approximately 81 percent of the Company's total rig operating days were committed for 2008 and approximately 40 percent were committed for 2009. During the quarter, Noble entered into contracts for two of the Company's Gulf of Mexico deepwater assets, including a one-year term contract for the Noble Paul Romano at $482,000 per day with Marathon, scheduled to begin January 2009, and a two-year term contract with LLOG on the Noble Lorris Bouzigard, scheduled to begin in May 2008, at $270,000 per day.

In international markets, the Company entered into contract extensions for several of its North Sea jackup units, including the Noble Piet van Ede at $205,000 per day with Gaz de France for the latter half of 2008, a contract with Total for a 100-day well for the Noble Al White at $195,000 per day and a one-year extension for the Noble Julie Robertson with Venture North Sea Gas Ltd. at $198,000 per day expected to commence in the third quarter of 2008.

Shipyard Update

Following delivery and commissioning activities conducted during the fourth quarter 2007, the Noble Roger Lewis is now on location. This new high-specification jackup drilling unit is the first of three such rigs being built for the Company. Noble is the leading supplier of premium jackups in the Middle East, with a fleet that now includes 15 drilling units.

Shipyard work was also completed during the fourth quarter 2007 on the Noble Paul Romano, which received mooring upgrades as part of the Company's NC-5(SM) mooring upgrade initiative. The Romano was returned to service on November 5, 2007. The final unit currently scheduled to receive these upgrades, the Noble Amos Runner, will enter the shipyard this week. It is anticipated that the Runner will return to service in the second quarter 2008.

"Our markets are strong and demand, particularly for deepwater assets, remains high," said Williams. "We have seven deepwater rigs with contracts that roll over later this year or in 2009. Additionally, in the next two years we will bring online five new rigs. These factors, along with our dedication to safety and operational excellence, position us well to take advantage of future opportunities while delivering value to our customers and shareholders."

Noble Corporation is a leading provider of diversified services 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 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.

Conference Call

Noble will hold its fourth quarter and full year earnings conference call on Thursday, January 24, 2008, at 1:00 p.m., Central Time. The call may be accessed live via telephone at 800-732-5617 (212-231-2939 for international callers), using pass code 21363624. 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, January 24, 2008, beginning at 5:00 p.m., Central Time, through Thursday, January 31, 2008, ending at 5:00 p.m., Central Time. The phone number for the conference call replay is 800-633-8284 (402-977-9140 for international callers), using the access code 21363624. 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 "Regulation G Reconciliations."



NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
OPERATING REVENUES
Contract drilling services $761,075 $507,846 $2,714,250 $1,886,987
Reimbursables 30,012 23,842 121,241 92,354
Labor contract drilling
services 40,166 27,073 156,508 111,201
Engineering, consulting and
other 359 63 3,312 9,697
831,612 558,824 2,995,311 2,100,239
OPERATING COSTS AND EXPENSES
Contract drilling services 243,882 183,171 880,049 696,264
Reimbursables 26,123 20,390 105,952 79,520
Labor contract drilling
services 32,443 21,782 125,624 91,353
Engineering, consulting and
other 150 2,970 17,520 16,779
Depreciation and
amortization 82,607 65,859 292,987 253,325
Selling, general and
administrative 26,686 13,457 85,831 46,272
Hurricane losses and
recoveries, net (5,114) (6,300) (3,514) (10,704)
406,777 301,329 1,504,449 1,172,809
OPERATING INCOME 424,835 257,495 1,490,862 927,430
OTHER INCOME (EXPENSE)
Interest expense, net of
amount capitalized (1,230) (1,033) (13,111) (16,167)
Other, net 2,527 3,752 11,151 10,024
INCOME BEFORE INCOME TAXES 426,132 260,214 1,488,902 921,287
INCOME TAX PROVISION (78,752) (60,512) (282,891) (189,421)
NET INCOME $347,380 $199,702 $1,206,011 $ 731,866
NET INCOME PER SHARE:
Basic $ 1.30 $ 0.74 $ 4.52 $ 2.69
Diluted $ 1.29 $ 0.74 $ 4.48 $ 2.66
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 267,074 269,004 266,700 271,834
Diluted 269,508 271,570 269,330 274,756
NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, December 31,
2007 2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 161,058 $ 61,710
Accounts receivable 613,115 408,241
Insurance receivables 39,066 54,191
Inventories 3,814 4,461
Prepaid expenses 20,721 20,491
Other current assets 22,417 20,886
Total current assets 860,191 569,980
PROPERTY AND EQUIPMENT
Drilling equipment and facilities 6,354,782 5,215,477
Other 80,169 71,870
6,434,951 5,287,347
Accumulated depreciation (1,639,035) (1,428,954)
4,795,916 3,858,393
OTHER ASSETS 208,747 157,541
$5,864,854 $4,585,914
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 10,334 $ 9,629
Accounts payable 198,395 196,111
Accrued payroll and related costs 119,975 93,251
Taxes payable 85,641 52,793
Interest payable 9,951 9,683
Other current liabilities 74,353 64,793
Total current liabilities 498,649 426,260
LONG-TERM DEBT 774,182 684,469
DEFERRED INCOME TAXES 235,923 219,521
OTHER LIABILITIES 62,319 34,019
1,571,073 1,364,269
COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST (5,596) (7,348)
SHAREHOLDERS' EQUITY
Ordinary shares-par value $0.10 per
share; 400,000 shares authorized;
268,223 shares issued and
outstanding in 2007; 269,184
shares (adjusted for stock split)
issued and outstanding in 2006 26,822 26,918
Capital in excess of par value 683,697 775,895
Retained earnings 3,602,870 2,446,056
Accumulated other comprehensive loss (14,012) (19,876)
4,299,377 3,228,993
$5,864,854 $4,585,914
NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Twelve Months Ended December 31,
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $1,206,011 $731,866
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 292,987 253,325
Impairment loss on assets 10,189 4,849
Deferred income tax provision 16,402 4,137
Share-based compensation expense 34,681 21,560
Pension contribution (42,852) (19,668)
Hurricane losses and recoveries, net (5,114) (6,300)
Other 40,369 19,742
Other changes in current assets and
liabilities:
Accounts receivable (204,874) (131,014)
Other current assets 23,276 (13,688)
Accounts payable (25,671) 53,746
Other current liabilities 68,969 70,160
Net cash provided by operating
activities 1,414,373 988,715
CASH FLOWS FROM INVESTING ACTIVITIES
New construction (754,967) (670,951)
Other capital expenditures (423,657) (382,093)
Major maintenance expenditures (108,419) (69,017)
Accrued capital expenditures 45,260 31,100
Proceeds from sales of property and
equipment 7,910 3,788
Proceeds from sale of business
unit 10,000 -
Proceeds from Smedvig disposition - 691,261
Proceeds from sales and maturities
of marketable securities - 46,002
Net cash used for investing
activities (1,223,873) (349,910)
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term debt borrowing 685,000 -
Short-term debt payment (685,000) -
Borrowings on bank credit facilities 220,000 -
Payments on bank credit facilities (120,000) (135,000)
Payments of other long-term debt (9,630) (608,970)
Proceeds from issuance of senior
notes, net of debt issuance costs - 295,801
Net proceeds from employee stock
transactions, including tax benefit 46,472 21,186
Dividends paid (32,197) (21,825)
Repurchases of ordinary shares (195,797) (250,132)
Net cash used for financing
activities (91,152) (698,940)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 99,348 (60,135)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 61,710 121,845
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 161,058 $ 61,710
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,
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
(1) Effective January 1, 2007, the Company's 30 percent net profit
interest in the Noble Kolskaya is reported in labor contract drilling
services. For the quarters ended December 31, 2007, 2006 and
September 30, 2007, Noble Kolskaya labor contract drilling margin was
$3.2 million, $2.0 million and $4.1 million, respectively.
Three Months Ended December 31,
2006
Contract
Drilling
Services Other Total
OPERATING REVENUES
Contract drilling services $507,846 $ - $507,846
Reimbursables 16,574 7,268 23,842
Labor contract drilling services - 27,073 27,073
Engineering, consulting and other (1,174) 1,237 63
$523,246 $35,578 $558,824
OPERATING COSTS AND EXPENSES
Contract drilling services $183,171 $ - $183,171
Reimbursables 13,930 6,460 20,390
Labor contract drilling services - 21,782 21,782
Engineering, consulting and other - 2,970 2,970
Depreciation and amortization 64,600 1,259 65,859
Selling, general and administrative 12,610 847 13,457
Hurricane losses and recoveries, net (6,300) - (6,300)
$268,011 $33,318 $301,329
OPERATING INCOME $255,235 $ 2,260 $257,495
OPERATING STATISTICS
Jackups:
Average Rig Utilization 93%
Operating Days 3,431
Average Dayrate $ 89,769
Semisubmersibles - (6,000 feet or
greater):
Average Rig Utilization 100%
Operating Days 552
Average Dayrate $242,468
Semisubmersibles - (less than 6,000
feet):
Average Rig Utilization 60%
Operating Days 166
Average Dayrate $138,141
Drillships:
Average Rig Utilization 100%
Operating Days 276
Average Dayrate $101,491
Submersibles:
Average Rig Utilization 74%
Operating Days 205
Average Dayrate $ 73,607
Total:
Average Rig Utilization 92%
Operating Days 4,630
Average Dayrate $109,666
(1) Effective January 1, 2007, the Company's 30 percent net profit
interest in the Noble Kolskaya is reported in labor contract drilling
services. For the quarters ended December 31, 2007, 2006 and
September 30, 2007, Noble Kolskaya labor contract drilling margin was
$3.2 million, $2.0 million and $4.1 million, respectively.
Three Months Ended September 30,
2007
Contract
Drilling
Services Other Total
OPERATING REVENUES
Contract drilling services $718,756 $ - $718,756
Reimbursables 24,234 7,244 31,478
Labor contract drilling services - 40,622 40,622
Engineering, consulting and other 401 19 420
$743,391 $47,885 $791,276
OPERATING COSTS AND EXPENSES
Contract drilling services $227,276 $ - $227,276
Reimbursables 20,820 6,855 27,675
Labor contract drilling services - 32,324 32,324
Engineering, consulting and other - 6,073 6,073
Depreciation and amortization 75,627 2,365 77,992
Selling, general and administrative 24,112 505 24,617
Hurricane losses and recoveries, net 1,600 - 1,600
$349,435 $48,122 $397,557
OPERATING INCOME $393,956 $ (237) $393,719
OPERATING STATISTICS
Jackups:
Average Rig Utilization 95%
Operating Days 3,532
Average Dayrate $126,342
Semisubmersibles - (6,000 feet or
greater):
Average Rig Utilization 99%
Operating Days 636
Average Dayrate $282,807
Semisubmersibles - (less than 6,000
feet):
Average Rig Utilization 100%
Operating Days 276
Average Dayrate $178,403
Drillships:
Average Rig Utilization 87%
Operating Days 241
Average Dayrate $130,019
Submersibles:
Average Rig Utilization 68%
Operating Days 188
Average Dayrate $ 63,812
Total:
Average Rig Utilization 94%
Operating Days 4,873
Average Dayrate $147,501
(1) Effective January 1, 2007, the Company's 30 percent net profit
interest in the Noble Kolskaya is reported in labor contract drilling
services. For the quarters ended December 31, 2007, 2006 and
September 30, 2007, Noble Kolskaya labor contract drilling margin was
$3.2 million, $2.0 million and $4.1 million, respectively.



SOURCE Noble Corporation