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Noble (NE) Q4 Loss Narrower than Expected; Revenues Beat

Leading contract drilling company Noble CorporationNE reported fourth-quarter 2016 loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 23 cents per share. The quarterly results also compared unfavorably with the year-ago quarter earnings of 52 cents per share.

Total revenue in the quarter declined to $410.2 million from $857.7 million in the comparable quarter last year. The quarterly revenues, however, beat the Zacks Consensus Estimate of $397.91 million. Contract Drilling Services plunged 52.1% year over year and contributed $400.9 million to the total revenue.

Full-year 2016 loss came in at 5 cents per share, narrower than the Zacks Consensus Estimate of a loss of 13 cents. Noble posted earnings of $2.59 per share in 2015.

Total revenue for the full year decreased to $2,302.1 million from $3,352.2 million in 2015. Nonetheless, it surpassed the Zacks Consensus Estimate of $1,943.0 million.

Fourth-Quarter Operating Highlights

Net loss from continuing operations was $1,283.2 million, much wider than the net loss of $102.9 million in the fourth quarter of 2015. Total rig utilization decreased to 62% from the year-earlier level of 83%. The overall average dayrate declined to $238,704 from $367,953 in the year-ago quarter.

The average dayrate for drillships of $474,462 was substantially lower than $672,972 a year ago. Average capacity utilization was 73% compared with 99% in the prior-year period.

The average dayrate for the company's jackups was $124,470 as against $145,283 in the prior-year quarter. Average capacity utilization decreased to 86% from the year-ago level of 82%.

The average dayrate for the company's semi-submersibles was $166,253 compared with $315,459 in the prior-year quarter. Average capacity utilization plummeted to 13% from the year-ago level of 67%.

As of Dec 31, 2016, the company had 52% of available rig operating days committed for 2017, which included 33% floating rig days and 71% jackup rig days. For 2018, an estimated 32% of available rig operating days are committed. This consists of 29% and 36% floating and jackup rig days, respectively.

Backlog

As of Dec 31, 2016, total backlog was approximately $3.3 billion. Of this, about $2.3 billion relates to floating rig fleet and $1 billion pertains to jackup fleet.

Noble Corporation Price, Consensus and EPS Surprise

Noble Corporation Price, Consensus and EPS Surprise | Noble Corporation Quote

Financials

At the end of the reported quarter, the company had a cash balance of $725.7 million and long-term debt of $4,040.2 million, with debt-to-capitalization ratio of 38.4% compared with 33.1% in the preceding quarter.

Zacks Rank

Noble Corp. currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Denbury Resources Inc. DNR , Holly Energy Partners LP HEP and Sunrun Inc. RUN . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Denbury Resources posted a positive earnings surprise of 100.00% in the last reported quarter. It had an average earnings surprise of 283.33% in the four trailing quarters.

Holly Energy Partners posted a negative earnings surprise of 23.26% in the preceding quarter. It had an average negative earnings surprise of 0.96% in the four trailing quarters.

Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four preceding quarters and has an average positive earnings surprise of 134.71% in the four trailing quarters.

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Noble Corporation (NE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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