EX-99.1 3 h07629exv99w1.txt PRESS RELEASE - QUARTER FINANCIAL RESULTS EXHIBIT 99.1 NOBLE CORPORATION 13135 SOUTH DAIRY ASHFORD, SUITE 800 SUGAR LAND, TX 77478 NEWS PHONE: 281-276-6100 FAX: 281-491-2092 [NOBLE LOGO] ================================================================================ NOBLE REPORTS SECOND QUARTER 2003 RESULTS ST. MICHAEL, Barbados, July 24, 2003 -- Noble Corporation reported net income for the second quarter of 2003 of $43.7 million, or $0.33 per diluted share, on operating revenues of $247.9 million, compared to net income of $57.4 million, or $0.43 per diluted share, on operating revenues of $253.6 million for the second quarter of 2002. Net income for the six months ended June 30, 2003 was $83.2 million, or $0.63 per diluted share, on operating revenues of $492.9 million, compared to net income of $108.9 million, or $0.81 per diluted share, on operating revenues of $495.4 million for the six months ended June 30, 2002. At June 30, 2003, the Company's consolidated balance sheet reflected $2.08 billion in shareholders' equity, $190.7 million in cash and marketable securities, and $638.8 million in total debt. James C. Day, Chairman and Chief Executive Officer, said, "The international drilling markets, particularly in the Middle East and Mexico, continue to remain robust." Offshore contract drilling services revenues from deepwater drilling units (capable of drilling in 4,000 feet or greater) accounted for approximately 34 percent of the Company's total offshore contract drilling services revenues for the second quarter of both 2003 and 2002. The Company currently operates five deepwater semisubmersibles in the Gulf of Mexico and one deepwater semisubmersible and three deepwater drillships offshore Brazil. Offshore contract drilling services revenues from international sources accounted for approximately 73 percent and 68 percent of the Company's total offshore contract drilling services revenues for the second quarter of 2003 and 2002, respectively. Results for the second quarter of 2003 were adversely impacted by weaker market conditions in certain international markets, primarily the North Sea and West Africa, partially offset by additional growth in Mexico. The average dayrate for the Company's international rigs was $56,384 in the second quarter of 2003 compared to $63,881 in the second quarter of 2002. Likewise, utilization on these rigs decreased from 98 percent in the second quarter of 2002 to 87 percent in the second quarter of 2003. Utilization on our deepwater assets in the U.S. Gulf of Mexico was also lower in the recent quarter as compared to the second quarter of 2002. Utilization on these units decreased from 92 percent in the second quarter of 2002 to 71 percent in the second quarter of 2003, although the average dayrate increased 12 percent to $138,826 in the second quarter of 2003. The average dayrate on the Company's domestic jackup rigs was $27,876 in the second quarter of 2003, or 10 percent higher than the same quarter of last year. Utilization on these units increased to 97 percent in the second quarter of 2003 as compared to 93 percent in the second quarter of 2002. However, the Company had 60 percent fewer available days for domestic jackup rigs during the second quarter of 2003 as compared to the same quarter of last year following the mobilization of six premium jackup units out of this region to Mexico under long-term contracts since September 2002 (excluding the Noble Bill Jennings, which is currently being mobilized to Mexico for a long-term contract). Our premium jackups in Mexico were fully utilized during the second quarter of 2003 and had an average dayrate of $50,025, or 79 percent higher than the average dayrate on our remaining premium jackups in the U.S. Gulf of Mexico for the recent quarter. Day said, "Fundamental drilling data, such as bidding activity and plans and permits, all currently point to rather uneventful third and fourth quarters in the U.S. Gulf. We are, however, pleased with our recent acquisitions, which will add to returns that already lead the sector." Noble Corporation is a leading provider of diversified services for the oil and gas industry. Contract drilling services are performed with the Company's fleet, which stands at 59* mobile offshore drilling units located in key markets worldwide. The Company's fleet of floating deepwater units consists of 13 semisubmersibles and three dynamically positioned drillships, seven of which are designed to operate in water depths greater than 5,000 feet. The Company's premium fleet of 40* independent leg, cantilever jackup rigs includes 26* units that operate in water depths of 300 feet or greater, four of which 2 operate in water depths of 360 feet or greater, and 11 units that operate in water depths up to 250 feet. In addition, the Company's fleet includes three submersible units. Nine of the Company's units are capable of operating in harsh environments. Over 70 percent of the fleet is currently deployed in international markets, principally including the North Sea, Brazil, West Africa, the Middle East, Mexico and India. The Company provides technologically advanced drilling-related products and services designed to create value for our customers. The Company also provides labor contract drilling services, well site and project management services, and engineering services. The Company's ordinary shares are traded on the New York Stock Exchange under the symbol "NE". 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. Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com. * Assumes that the Company exercises its options to purchase three additional premium, independent leg, cantilever jackup rigs capable of operating in 300 feet of water. NC-289 07/24/03 For additional information, contact: John T. Rynd, Vice President-Investor Relations, Noble Drilling Services Inc. Noble Corporation, 281-276-6100 3 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, -------------------------------- -------------------------------- 2003 2002 2003 2002 -------------- -------------- -------------- -------------- OPERATING REVENUES Contract drilling services $ 220,586 $ 234,922 $ 436,954 $ 455,727 Reimbursables 10,366 7,248 26,222 14,559 Labor contract services 7,219 6,735 13,915 14,659 Engineering, consulting and other 9,749 4,740 15,837 10,434 -------------- -------------- -------------- -------------- 247,920 253,645 492,928 495,379 -------------- -------------- -------------- -------------- OPERATING COSTS AND EXPENSES Contract drilling services 123,091 121,161 246,938 235,293 Reimbursables 9,572 6,254 24,770 12,515 Labor contract drilling services 5,878 5,087 11,601 11,414 Engineering, consulting and other 7,503 5,459 12,899 10,363 Depreciation and amortization 36,031 31,239 69,895 61,532 Selling, general and administrative 7,175 6,171 13,437 15,383 -------------- -------------- -------------- -------------- 189,250 175,371 379,540 346,500 -------------- -------------- -------------- -------------- OPERATING INCOME 58,670 78,274 113,388 148,879 OTHER INCOME (EXPENSE) Interest expense (10,348) (10,591) (20,843) (21,291) Other, net 822 1,939 892 3,677 -------------- -------------- -------------- -------------- INCOME BEFORE INCOME TAXES 49,144 69,622 93,437 131,265 INCOME TAX PROVISION (5,406) (12,184) (10,278) (22,397) -------------- -------------- -------------- -------------- NET INCOME $ 43,738 $ 57,438 $ 83,159 $ 108,868 ============== ============== ============== ============== EARNINGS PER SHARE: Basic $ 0.33 $ 0.43 $ 0.63 $ 0.82 Diluted $ 0.33 $ 0.43 $ 0.63 $ 0.81 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 131,880 132,507 131,832 132,289 Diluted 132,885 134,132 132,932 133,712
Note: Certain reclassifications have been made in prior period statements of income to conform to the classifications used in the statements of income for the three and six months ended June 30, 2003. 4 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands)
JUNE 30, DECEMBER 31, 2003 2002 --------------- --------------- (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 123,970 $ 192,509 Restricted cash 7,191 8,668 Investment in marketable securities (a) 68,212 72,957 Accounts receivable 179,387 164,613 Inventories 3,844 3,628 Prepaid expenses 14,051 6,595 Other current assets 19,532 16,673 --------------- --------------- Total current assets 416,187 465,643 --------------- --------------- PROPERTY AND EQUIPMENT Drilling equipment and facilities 3,275,573 3,153,509 Other 63,976 63,296 --------------- --------------- 3,339,549 3,216,805 Accumulated depreciation (815,518) (745,762) --------------- --------------- 2,524,031 2,471,043 --------------- --------------- INVESTMENT IN AND ADVANCES TO JOINT VENTURES 22,591 22,538 OTHER ASSETS 135,125 106,490 --------------- --------------- $ 3,097,934 $ 3,065,714 =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Current maturities of long-term debt $ 71,371 $ 80,577 Accounts payable 44,677 64,783 Accrued payroll and related costs 42,506 51,125 Taxes payable 39,078 41,997 Interest payable 9,571 10,089 Other current liabilities 35,498 32,089 --------------- --------------- Total current liabilities 242,701 280,660 LONG-TERM DEBT 567,419 589,562 DEFERRED INCOME TAXES 209,024 206,351 OTHER LIABILITIES 5,443 5,635 COMMITMENTS AND CONTINGENCIES -- -- MINORITY INTEREST (5,937) (5,704) --------------- --------------- 1,018,650 1,076,504 --------------- --------------- SHAREHOLDERS' EQUITY Ordinary shares-par value $0.10 per share 13,366 13,353 Capital in excess of par value 908,969 905,865 Retained earnings 1,223,631 1,140,472 Treasury stock, at cost (50,085) (51,317) Restricted stock (unearned compensation) (10,276) (12,871) Accumulated other comprehensive loss (6,321) (6,292) --------------- --------------- 2,079,284 1,989,210 --------------- --------------- $ 3,097,934 $ 3,065,714 =============== ===============
(a) Includes amounts in a Rabbi Trust for the Noble Drilling Corporation 401(k) Savings Restoration Plan at June 30, 2003 and December 31, 2002 of $8,646,000 and $6,827,000, respectively. 5 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
SIX MONTHS ENDED JUNE 30, -------------------------------- 2003 2002 -------------- -------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 83,159 $ 108,868 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 69,895 61,532 Deferred income tax provision 3,426 14,882 Deferred repair and maintenance amortization 15,763 13,383 Loss on sales of marketable securities 336 71 Equity in income of joint ventures (341) (586) Compensation expense from stock-based plans 2,332 2,525 Realized loss on impairment of investment -- 9,758 Gain on sales of property and equipment -- (359) Gain on sale of interest in deepwater exploration property -- (5,908) Other (964) 1,330 Changes in current assets and liabilities: Accounts receivable (14,774) (15,215) Other current assets (12,802) (8,512) Accounts payable (20,095) 1,313 Other current liabilities (8,647) 3,318 -------------- -------------- Net cash provided by operating activities(a) 117,288 186,400 -------------- -------------- CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions and related capital upgrades (120,326) (90,400) Other capital expenditures (30,649) (102,937) Deferred repair and maintenance expenditures (14,431) (17,647) Proceeds from sales of property and equipment -- 839 Proceeds from sale of interest in deepwater exploration property -- 6,200 Investment in and advances to joint ventures, net 287 2,001 Investment in marketable securities (53,700) (27,810) Proceeds from sales of marketable securities 59,771 12,955 -------------- -------------- Net cash used for investing activities (159,048) (216,799) -------------- -------------- CASH FLOWS FROM FINANCING ACTIVITIES Payment of long-term debt (31,356) (25,068) Proceeds from issuance of ordinary shares, net 3,100 12,395 Proceeds from sales of put options on ordinary shares -- 1,880 Decrease in restricted cash 1,477 2,175 -------------- -------------- Net cash used for financing activities (26,779) (8,618) -------------- -------------- DECREASE IN CASH AND CASH EQUIVALENTS (68,539) (39,017) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 192,509 236,709 -------------- -------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 123,970 $ 197,692 ============== ==============
(a) The Company sometimes refers to Cash flow from operations as an approximation of cash returns before any changes in working capital. Such a reference to Cash flow from operations means the sum of Net income, Depreciation and amortization, Deferred income tax provision, and Deferred repair and maintenance amortization. The nearest measurement under Generally Accepted Accounting Principles is Net cash provided by operating activities. 6 NOBLE CORPORATION AND SUBSIDIARIES FINANCIAL AND OPERATIONAL INFORMATION (In thousands, except utilization amounts, operating days and average dayrates) (Unaudited)
THREE MONTHS ENDED JUNE 30, -------------------------------------------------------------------- 2003 2002 -------------------------------- -------------------------------- International Domestic International Domestic -------------- -------------- -------------- -------------- REVENUES Contract drilling services $ 160,526 $ 60,060 $ 158,935 $ 75,987 Labor contract drilling services 7,219 -- 6,735 -- Engineering, consulting and other 2,928 6,821 2,436 2,304 DIRECT OPERATING EXPENSES Contract drilling services $ 90,753 $ 32,338 $ 75,931 $ 45,230 Labor contract drilling services 5,878 -- 5,087 -- Engineering, consulting and other 2,674 4,829 2,008 3,451 OPERATING STATISTICS Jackups: Utilization 85% 97% 99% 93% Operating Days 2,392 354 2,066 848 Average Dayrate $ 51,577 $ 27,876 $ 59,921 $ 25,373 Semisubmersibles - Deepwater: Utilization 100% 71% 100% 92% Operating Days 91 321 91 420 Average Dayrate $ 125,628 $ 138,826 $ 112,482 $ 124,174 Semisubmersibles - Other: Utilization 100% 60% 100% -- Operating Days 91 55 91 -- Average Dayrate $ 42,181 $ 48,073 $ 70,118 $ -- Drillships: Utilization 100% -- 88% -- Operating Days 273 -- 240 -- Average Dayrate $ 73,950 $ -- $ 76,186 $ -- Submersibles: Utilization -- 84% -- 52% Operating Days -- 152 -- 95 Average Dayrate $ -- $ 19,638 $ -- $ 19,081 Total: Utilization 87% 81% 98% 88% Operating Days 2,847 882 2,488 1,363 Average Dayrate $ 56,384 $ 68,095 $ 63,881 $ 55,750 THREE MONTHS ENDED MARCH 31, 2003 -------------------------------- International Domestic -------------- -------------- REVENUES Contract drilling services $ 159,907 $ 56,461 Labor contract drilling services 6,696 -- Engineering, consulting and other 2,100 3,988 DIRECT OPERATING EXPENSES Contract drilling services $ 92,490 $ 31,357 Labor contract drilling services 5,723 -- Engineering, consulting and other 1,826 3,570 OPERATING STATISTICS Jackups: Utilization 89% 79% Operating Days 2,401 350 Average Dayrate $ 51,196 $ 27,031 Semisubmersibles - Deepwater: Utilization 100% 86% Operating Days 90 386 Average Dayrate $ 154,372 $ 113,845 Semisubmersibles - Other: Utilization 80% 100% Operating Days 72 31 Average Dayrate $ 41,799 $ 45,387 Drillships: Utilization 100% -- Operating Days 270 -- Average Dayrate $ 71,125 $ -- Submersibles: Utilization -- 37% Operating Days -- 66 Average Dayrate $ -- $ 17,288 Total: Utilization 90% 76% Operating Days 2,833 833 Average Dayrate $ 56,444 $ 67,780
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