Noble Corporation Plc

Contract drilling services revenue in Q2 was $679 million. Adjusted EBITDA was $212 million, and adjusted EBITDA margin was 30%. Cash flow from operations was $144 million, capital expenditures were $205 million, and free cash flow was negative $59 million. Q2 was adversely impacted by $43 million from the suspension of two rigs in Brazil, plus an $18 million lease buy-out and a $42 million impairment tied to the Ocean Apex scrap sale. For 2026, Noble lowered revenue guidance to $2.8 billion-$2.9 billion from $2.8 billion-$3.0 billion and adjusted EBITDA guidance to $850 million-$925 million from $940 million-$1.02 billion; capex guidance stayed at $615 million-$665 million. Backlog was $6.8 billion as of July 27, with about $1 billion scheduled for the rest of 2026 and $2.3 billion for 2027.

Robert Eifler said demand in deepwater remains healthy despite oil price volatility, with Eastern Hemisphere strength more than offsetting softness in the U.S. Gulf and Brazil. He pointed to 77 rig years of UDW backlog contracted in the first half, recent fixtures in the mid-$400,000s per day, and a path to the marketed fleet being essentially fully contracted by late next year. His tone was upbeat and confident, emphasizing that Noble has limited remaining capacity in 2027 and expects more contract announcements soon.

Richard Barker focused on the quarter’s financial bridge and the updated outlook. He cited the $679 million revenue base, $212 million of adjusted EBITDA, $144 million of operating cash flow, and the $205 million capex level, then explained the Q2 drag from Brazil, the $18 million BOP lease buy-out, and the $42 million Ocean Apex impairment. He also highlighted the June refinancing with $800 million of new 6.25% senior unsecured notes due 2034, which he said simplifies the capital structure and unlocks $35 million in annual cash benefits from interest and tax-related savings.

Analysts pressed management on regional strategy, especially whether Noble is underrepresented in West Africa and Asia-Pacific, and Eifler said he could see an additional unit moving to Asia-Pac and Noble expanding in West Africa, though it is too early to say definitively. Questions also focused on whether the mid-$400,000s day-rate level can hold for shorter 2027 work; management said gap filler work should still discount versus longer programs, but rates are moving up as the market tightens. On Brazil, Eifler said the company is still negotiating with Petrobras and that the revised guidance includes at least $15 million of additional revenue loss through January 2027, with both rigs currently operating.