ZUG, Switzerland, July 20, 2011 /PRNewswire/ -- Noble Corporation (NYSE: NE) today reported second quarter 2011 earnings of $54 million, or $0.21 per diluted share, matching earnings reported for the first quarter of 2011. Results for the second quarter included a $0.04 per diluted share benefit relating to the settlement of certain discrete tax matters. First quarter 2011 results included a one-time after-tax net gain of $0.06 per diluted share relating to the substitution of the drillship Noble Phoenix for the drillship Noble Muravlenko in Brazil. Contract drilling services revenues totaled $590 million in the second quarter of 2011, up nine percent from $543 million in the first quarter of 2011. Contract drilling margin percentage for the second quarter of 2011 was approximately 43 percent compared to 44 percent in the prior quarter. Noble invested $815 million in capital projects during the second quarter.

At June 30, 2011, approximately 73 percent of the Company's available rig operating days were committed for the remainder of 2011 and approximately 43 percent were committed for 2012.  The Company's total backlog at June 30, 2011 was approximately $13 billion.

David W. Williams, Chairman, President and Chief Executive Officer, noted, "Second quarter results were significantly hindered by several downtime events involving five rigs.  Although we were disappointed by the interruption in service on these rigs, most of which pertained to subsea equipment and control systems, four out of five rigs returned to service prior to the end of the second quarter. Despite the fleet downtime, the quarter was characterized by an improvement in business fundamentals, as utilization and tendering activity improved for both jackups and deepwater units, and several Noble rigs returned to active status."

Operations Highlights

In Mexico, six of Noble's jackups returned to active status during the second quarter following the award of contracts, while a contract on the Noble Sam Noble is expected to commence by the end of July. Also, the Noble Roy Butler was awarded a three-year contract in July, which is expected to commence in September 2011 following the completion of a leg-extension project. Dayrates for the rigs that have or will soon return to work range from approximately $80,000 to $100,000. Noble now has all 12 of its jackup rigs in Mexico under contract, with 10 of the 12 units under contract into late 2011 or beyond.

In the North Sea, the jackup Noble Byron Welliver was awarded a three-well contract at a dayrate of $91,000, while the jackup Noble Lynda Bossler was awarded a two-well contract at a dayrate of $105,000. Both rigs are expected to commence their new contracts in or around January 2012.  

The Company continued to build its presence in Saudi Arabia following the award of contracts for the jackups Noble Gene House and Noble Joe Beall. The three-year contracts are expected to commence in September 2011 with an operating dayrate for each rig of $81,000. With these awards, the Company now has four jackups committed to Saudi Aramco.

Finally, in the U.S. Gulf of Mexico, the semisubmersible Noble Jim Day began receiving its full contract dayrate of $485,000 on July 11 following the award to our client of permits necessary to commence well operations in the region. In addition, certification of the subsea control system on the semisubmersible Noble Driller was completed in July and the rig is expected to resume operations shortly at its full operating dayrate, pending receipt of a drilling permit. The Company now has certified subsea equipment and control systems on all six of its active semisubmersibles in the U.S. Gulf of Mexico.

"Offshore demand continues to build in most regions around the world, supporting expectations for gradually improving utilization and dayrates among our  jackups and floating rigs," said Williams. He added, "Additional client demand for jackups is visible in Mexico and the Middle East.  In the deepwater sector, Petrobras continues to tender for dynamically positioned and moored rigs for offshore Brazil with contract lengths of three to five years and we continue to see client interest in some of the emerging deepwater frontiers."

In closing, Williams stated, "Our fleet enhancement program, currently composed of the construction of seven ultra-deepwater drillships and four high-specification jackups, is transforming Noble into one of the industry's most modern and capable offshore drilling contractors. As client demand in the offshore sector increases and expands geographically, so does the need for technically advanced, versatile and efficient rigs that address both shallow and deepwater prospects. We believe our strategic growth initiatives strongly position the Company to benefit from further client demand and offshore industry expansion."

About Noble Corporation

Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 76 offshore drilling units (including seven ultra-deepwater rigs and four jackup drilling rigs currently under construction), located worldwide, including in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and Asian Pacific. Noble's shares are traded on the New York Stock Exchange under the symbol "NE". Additional information on Noble Corporation is available on the Company's Web site at http://www.noblecorp.com.

Statements regarding contract backlog, earnings, costs, revenue, rig demand, fleet condition or performance, shareholder value, timing of delivery of newbuilds, contract commitments, dayrates, contract commencements, contract extensions or renewals, letters of intent or award, industry fundamentals, customer relationships, future performance, growth opportunities, market outlook, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with operations outside of the U.S., actions by regulatory authorities, customers and other third parties, legislation and regulations affecting drilling operations, compliance with regulatory requirements, costs and difficulties relating to the integration of acquired businesses, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, delays in the construction of newbuilds, the actual amount of downtime, factors that reduce applicable dayrates, violations of anti-corruption laws, hurricanes and other weather conditions, the future price of oil and gas and other factors detailed in the Company's most recent Form 10-K, Form 10-Q's and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. 

Conference Call

Noble has scheduled a conference call and webcast related to its second quarter 2011 results on Thursday, July 21, 2011, at 8:00 a.m. U.S. Central Daylight Time. Interested parties are invited to listen to the call by dialing 1-866-461-7129, or internationally 1-706-679-3084, using access code: 27255924 or by asking for the Noble Corporation conference call. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site.  

A replay of the conference call will be available on Thursday, July  21, 2011, beginning at 11:00 a.m. U.S. Central Daylight Time, through Thursday, August 4, 2011, ending at 5:00 p.m. U.S. Central Daylight Time. The phone number for the conference call replay is 1-800-642-1687 or, for calls from outside of the U.S., 1-706-645-9291, using access code: 27255924.  The replay will also be available on the Company's Web site following the end of the live call. The conference call may include non-GAAP financial measures. Noble will post a reconciliation of any such measures to the most directly comparable GAAP measures in the "Investor Relations" section of the Company's Web site under the heading "Regulation G Reconciliations."

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2011		2010		2011		2010
Operating revenues
	Contract drilling services		$      589,550		$      687,510		$   1,132,155		$   1,496,156
	Reimbursables		24,122		13,753		46,413		37,986
	Labor contract drilling services		14,012		8,056		27,559		15,817
	Other		313		603		758		814
			627,997		709,922		1,206,885		1,550,773
Operating costs and expenses
	Contract drilling services		336,728		275,595		643,091		530,026
	Reimbursables		18,723		10,365		35,826		30,108
	Labor contract drilling services		8,750		5,380		17,273		11,268
	Depreciation and amortization		163,119		126,227		321,241		242,084
	Selling, general and administrative		21,632		23,808		45,347		45,779
	Gain on contract extinguishments, net		-		-		(21,202)		-
			548,952		441,375		1,041,576		859,265
Operating income			79,045		268,547		165,309		691,508
Other income (expense)
	Interest expense, net of amount capitalized		(14,829)		(510)		(33,870)		(975)
	Interest income and other, net		(534)		1,006		2,058		4,632
Income before income taxes			63,682		269,043		133,497		695,165
	Income tax provision		(9,508)		(51,118)		(24,867)		(106,514)
Net income			54,174		217,925		108,630		588,651
	Net income attributable to noncontrolling interests		(91)		-		(52)		-
Net income attributable to Noble Corporation			$        54,083		$      217,925		$      108,578		$      588,651
Net income per share
	Basic		$            0.21		$            0.85		$            0.43		$            2.29
	Diluted		$            0.21		$            0.85		$            0.43		$            2.28

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
			June 30,		December 31,
			2011		2010
ASSETS
Current assets
	Cash and cash equivalents		$               230,877		$               337,871
	Accounts receivable		510,019		387,414
	Prepaid expenses and other current assets		236,600		186,509
Total current assets			977,496		911,794
Property and equipment			13,926,052		12,643,866
	Accumulated depreciation		(2,863,482)		(2,595,779)
Property and equipment, net			11,062,570		10,048,087
Other assets			398,172		342,506
	Total assets		$          12,438,238		$          11,302,387
LIABILITIES AND  EQUITY
Current liabilities
	Current maturities of long-term debt		$                            -		$                  80,213
	Accounts payable		303,902		374,814
	Accrued payroll and related costs		114,736		125,663
	Interest payable		58,328		40,260
	Other current liabilities		149,590		180,497
Total current liabilities			626,556		801,447
Long-term debt			3,521,770		2,686,484
Deferred income taxes			257,069		258,822
Other liabilities			212,475		268,000
	Total liabilities		4,617,870		4,014,753
Commitments and contingencies
Shareholders' equity
	Shares		857,795		917,684
	Additional paid-in capital		50,499		39,006
	Retained earnings		6,739,078		6,630,500
	Treasury shares		(383,344)		(373,967)
	Accumulated other comprehensive loss		(42,316)		(50,220)
	Total shareholders' equity		7,221,712		7,163,003
	Noncontrolling interests		598,656		124,631
	Total equity		7,820,368		7,287,634
	Total liabilities and equity		$          12,438,238		$          11,302,387

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
			Six Months Ended
			June 30,
			2011		2010
Cash flows from operating activities
	Net income		$            108,630		$            588,651
	Adjustments to reconcile net income to net cash from
	operating activities:
	Depreciation and amortization		321,241		242,084
	Gain on contract extinguishments, net		(21,202)		-
	Deferred income taxes		(1,753)		(11,842)
	Share-based compensation expense		16,388		16,285
	Net change in other assets and liabilities		(177,968)		179,246
	Net cash from operating activities		245,336		1,014,424
Cash flows from investing activities
	New construction		(1,017,190)		(184,963)
	Other capital expenditures		(316,245)		(305,751)
	Major maintenance expenditures		(95,348)		(40,687)
	Refund from contract extinguishments		18,642		-
	Change in accrued capital expenditures		(51,500)		(17,848)
	Net cash from investing activities		(1,461,641)		(549,249)
Cash flows from financing activities
	Borrowings on bank credit facilities		625,000		-
	Payments on bank credit facilities		(240,000)		-
	Payments of other long-term debt		(693,494)		-
	Proceeds from issuance of senior notes, net of debt issuance costs		1,087,833		-
	Contributions from joint venture partners		436,000		-
	Settlements of interest rate swaps		(29,032)		-
	Par value reduction payments		(72,141)		(23,306)
	Repurchases of shares		-		(88,652)
	Financing costs on credit facilities		(2,835)		-
	Proceeds from employee stock transactions		7,357		3,711
	Repurchases of employee shares surrendered for taxes		(9,377)		(9,309)
	Net cash from financing activities		1,109,311		(117,556)
	Net change in cash and cash equivalents		(106,994)		347,619
Cash and cash equivalents, beginning of period			337,871		735,493
Cash and cash equivalents, end of period			$            230,877		$         1,083,112

NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except operating statistics)
(Unaudited)
		Three Months Ended June 30,												Three Months Ended March 31,
		2011						2010						2011
		Contract						Contract						Contract
		Drilling						Drilling						Drilling
		Services		Other		Total		Services		Other		Total		Services		Other		Total
Operating revenues
Contract drilling services		$ 589,550		$          -		$ 589,550		$ 687,510		$        -		$ 687,510		$ 542,605		$          -		$ 542,605
Reimbursables		22,982		1,140		24,122		12,989		764		13,753		21,604		687		22,291
Labor contract drilling services		-		14,012		14,012		-		8,056		8,056		-		13,547		13,547
Other		313		-		313		603		-		603		445		-		445
		$ 612,845		$ 15,152		$ 627,997		$ 701,102		$ 8,820		$ 709,922		$ 564,654		$ 14,234		$ 578,888
Operating costs and expenses
Contract drilling services		$ 336,728		$          -		$ 336,728		$ 275,595		$        -		$ 275,595		$ 306,363		$          -		$ 306,363
Reimbursables		17,606		1,117		18,723		9,626		739		10,365		16,440		663		17,103
Labor contract drilling services		-		8,750		8,750		-		5,380		5,380		-		8,523		8,523
Depreciation and amortization		159,843		3,276		163,119		123,379		2,848		126,227		154,888		3,234		158,122
Selling, general and administrative		21,359		273		21,632		23,561		247		23,808		23,449		266		23,715
Gain on contract extinguishments, net		-		-		-		-		-		-		(21,202)		-		(21,202)
		$ 535,536		$ 13,416		$ 548,952		$ 432,161		$ 9,214		$ 441,375		$ 479,938		$ 12,686		$ 492,624
Operating income		$   77,309		$   1,736		$   79,045		$ 268,941		$  (394)		$ 268,547		$   84,716		$   1,548		$   86,264
Operating statistics
Jackups:
Average Rig Utilization		71%						81%						62%
Operating Days		2,797						3,183						2,381
Average Dayrate		$   80,742						$   96,677						$   80,866
Semisubmersibles:
Average Rig Utilization		85%						94%						69%
Operating Days		1,088						1,023						868
Average Dayrate		$ 269,798						$ 328,286						$ 277,859
Drillships:
Average Rig Utilization		58%						67%						70%
Operating Days		317						182						361
Average Dayrate		$ 220,953						$ 242,045						$ 301,647
FPSO/Submersibles:
Average Rig Utilization		0%						0%						0%
Operating Days		-						-						-
Average Dayrate		$               -						$               -						$               -
Total:
Average Rig Utilization		70%						80%						61%
Operating Days		4,202						4,388						3,610
Average Dayrate		$ 140,296						$ 156,683						$ 150,294

NOBLE CORPORATION AND SUBSIDIARIES
CALCULATION OF BASIC AND DILUTED NET INCOME
(In thousands, except per share amounts)
(Unaudited)
The following table sets forth the computation of basic and diluted net income per share:
		Three months ended				Six months ended
		June 30,				June 30,
		2011		2010		2011		2010
Allocation of net income
Basic
Net income attributable to Noble Corporation		$     54,083		$    217,925		$    108,578		$    588,651
Earnings allocated to unvested share-based payment awards		(572)		(2,143)		(1,083)		(5,652)
Net income to common shareholders - basic		$     53,511		$    215,782		$    107,495		$    582,999
Diluted
Net income attributable to Noble Corporation		$     54,083		$    217,925		$    108,578		$    588,651
Earnings allocated to unvested share-based payment awards		(572)		(2,137)		(1,082)		(5,632)
Net income to common shareholders - diluted		$     53,511		$    215,788		$    107,496		$    583,019
Weighted average number of  shares outstanding - basic		251,368		254,224		251,198		254,671
Incremental shares issuable from assumed exercise of stock options		700		800		737		949
Weighted average number of  shares outstanding - diluted		252,068		255,024		251,935		255,620
Weighted average unvested share-based payment awards		2,688		2,480		2,554		2,431
Earnings per share
Basic		$         0.21		$          0.85		$          0.43		$          2.29
Diluted		$         0.21		$          0.85		$          0.43		$          2.28

SOURCE Noble Corporation

For further information: Investors, Jeffrey L. Chastain, Vice President - Investor Relations, +1-281-276-6383, or Media, John S. Breed, Director of Corporate Communications, +1-281-276-6729, both of Noble Drilling Services Inc.