Leading contract drilling company, Noble Corporation (NYSE: NE) reported first quarter 2014 earnings of 99 cents per share. The results surpassed the Zacks Consensus Estimate of 69 cents and improved from the year-ago earnings of 59 cents.
Total revenue in the quarter rose 28.9% to almost $1,251.2 million from $971.0 million in the comparable quarter last year. The top line also beat the Zacks Consensus Estimate of $1,207.0 million. Contract Drilling Services contributed $1,206.3 million to the total revenue, reflecting a year-over-year increase of 29.9% mainly on higher average dayrates. The decrease in operating downtime and higher bonus revenues aided the growth.
First Quarter Operating Highlights
Total operating income shot up 60.7% to $369.3 million from the year-ago level of $229.8 million. Operating income from the Contract Drilling segment rose 67.6% year over year to $383.9 million from $229.0 million.
Total rig utilization declined to 84% from the year-earlier level of 86%. The overall average dayrate surged 28.1% to $223,559 from $174,578 in the year-ago quarter.
The average dayrate for semisubmersible rigs registered about 22.3% year-over-year growth to $392,620. Average capacity utilization was 79% versus 84% in the year-ago period.
The average dayrate for Drillships rose about 25% year over year to $393,892. Average capacity utilization was 92% versus 83% in the year-ago period.
The average dayrate for the company's jackups was $124,962 compared with $105,559 in the year-ago quarter. Average capacity utilization fell to 86% from the year-ago level of 93%.
The company has 74% of all rig days committed for this year, including both floater and jackup units. For 2015, 47% of rig days are booked, comprising 62% of floater time and 39% of jackup rig days. Overall total backlog at the end of the first quarter was approximately $14.3 billion versus $15.4 billion as of year-end 2013.
Financials
At the end of the first quarter, the company had a cash balance of $114.7 million and long-term debt of $5,728.8 million, with debt-to-capitalization ratio of 38% (unchanged from year-end 2013). In the reported quarter, Noble invested $517 million in capital projects.
Ranks
Noble holds a Zacks Rank #3 (Hold rating). There are other stocks in the oil and gas industry, like Range Resources Corporation (NYSE: RRC), Unit Corporation (NYSE: UNT) and Helmerich & Payne, Inc. (NYSE: HP), which appear promising with a Zacks Rank #1 (Strong Buy).
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
HELMERICH&PAYNE (NYSE: HP): Free Stock Analysis Report
NOBLE CORP PLC (NYSE: NE): Free Stock Analysis Report
UNIT CORP (NYSE: UNT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research