Noble Corporation has reported that its contract drilling services revenue for the first quarter of 2025 totaled $832 million compared to $882 million in the fourth quarter of 2024, with the sequential decrease driven primarily by the benefit received in the fourth quarter of 2024 from the Noble Deliverer's early termination fee.
Contract drilling services costs for the first quarter were $462 million, down from $527 million in the fourth quarter of 2024.
Net income increased to $108 million in the first quarter of 2025, up from $97 million in the fourth quarter of 2024, and Adjusted EBITDA increased to $338 million in the first quarter of 2025, up from $319 million in the prior quarter.
Robert W. Eifler, President and Chief Executive Officer of Noble, stated: "Our strong first quarter financial results and recent contract awards have demonstrated the effectiveness of our First Choice Offshore strategy amid prevalent macroeconomic volatility. Moreover, the booking of over 15 rig years of new contract awards over the past several weeks underscores the durability of our customers' long-term commitments offshore, as well as Noble's place as a trusted service provider for these highly strategic drilling campaigns."
Noble's marketed fleet of 25 floaters was 80% contracted during the first quarter, compared with 74% in the prior quarter. Recent backlog additions since last quarter have added 15 rig years of total floater backlog, materially enhancing contract coverage over the next several years. Recent dayrate fixtures for Tier-1 drillships have been in the low-to-high $400,000s, with 6th generation floater fixtures between the low $300,000s to mid $400,000s.
Utilization of Noble's 13 marketed jackups was 74% in the first quarter, versus 82% utilization during the prior quarter. Leading edge dayrates for harsh environment jackups in the North Sea have remained stable, albeit with limited fixtures recently.
Subsequent to last quarter's earnings press release, new contracts with total contract value of between $2.2 to $2.7 billion include the following:
Noble Voyager and a second Noble V-class 7th generation drillship to be named have each been awarded four-year contracts with Shell in the U.S. Gulf. The two contracts, scheduled to commence in mid 2026 and Q4 2027, each include a base dayrate value of $606 million (inclusive of upgrades and services but excluding additional fees for mobilization and demobilization). There is the potential to earn performance incentive compensation of up to a maximum of 20% of the base value.
Noble Developer and a Noble V-class 7th generation drillship to be named in the coming months have each been awarded 16-well (estimated 1,060 days) contracts with TotalEnergies in Suriname which are expected to commence between Q4 2026 and Q1 2027. Together, the firm revenue of the two contracts is $753 million. These contracts allow for an additional $297 million in revenue tied to collective operational performance program with TotalEnergies.
Noble Discoverer received a 390-day extension from Petrobras in Colombia via option exercise, extending the rig from July 2025 to August 2026 at its existing dayrate.
Noble Regina Allen received a one-well contract in Suriname with estimated duration of 65 days expected to commence in Q4 2025 with a total contract value estimated at $17.7 million including mobilization and demobilization fees.
Noble Viking received a contract from Brunei Shell Petroleum for one well plus one option, scheduled to commence in Q4 2025 with an estimated firm contract value of $14 million.
Noble Intrepid has been awarded a one-well contract with DNO Norge in Norway that is expected to commence in August 2025 with estimated duration of 50-90 days.
Assuming 40% of available performance revenue realized on a combined basis under recent long-term contracts, Noble's backlog as of April 28, 2025, stands at $7.5 billion. Backlog excludes mobilization and demobilization revenue.
For the full year 2025, Noble maintains the previously issued guidance ranges for total revenue between $3,250 to $3,450 million, Adjusted EBITDA in the range of $1,050 to $1,150 million, and capital expenditures (net of reimbursements) between $375 to $425 million.
Eifler stated, "Our recent commercial success and 30% sequential increase in backlog have greatly enhanced our visibility through 2030. We remain highly focused on delivering safe and efficient operations for our customers, building strategic backlog, optimizing costs, and producing differentiated free cash flow and return of capital for our shareholders."
