Exxon's drill ship contractor profit quadruples to US$158M in 3Q

Exxon’s drill ship contractor profit quadruples to US$158M in 3Q

Nov 04, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – American drilling giant Noble Corporation reports remarkable growth in its third-quarter earnings.

For the third quarter of 2023, the company recorded a net profit of US$158 million, a significant surge from US$34 million during the same period the previous year. This impressive growth is further emphasised by the doubling of net revenues, soaring from US$306 million to US$697 million.

Additionally, adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw substantial gains, rising from US$97 million to US$283 million – the company reported. Noble’s CEO, Robert Eifler, attributed these outstanding results to the synergies achieved through the Noble-Maersk Drilling combination, with progress and integration surpassing expectations. The merger of Noble and Maersk Drilling had created a formidable force in the industry, with an extended fleet capable of addressing diverse drilling needs around the globe.

Revenue from contract drilling services soared from US$289 million to US$671 million, with 92% of Noble’s marketed fleet of 16 drill ships and semi-submersible rigs contracted through Q3 2023. The company said that this robust contracting activity is a testament to its reputation for delivering high-quality drilling services.

Also, jack-up utilization stood at 61%, reflecting an improvement from the previous quarter’s 59%. Contracting activity for the jack-up fleet has been on an upward trajectory, with leading edge fixtures for harsh rigs ranging from US$130,000 to US$150,000.

Noble’s underscored that its ability to adapt to market demand and provide cost-effective solutions remains a key driver of its success.

As of October 31, Noble boasts a substantial backlog order of US$4.7 billion. It was explained that this backlog underscores the company’s resilience and its ability to secure long-term contracts, providing stability and predictability in its revenue streams. It also positions Noble to explore future growth opportunities and expand its global footprint.

Notably, Noble Corporation earns over $84 million daily for each of its four drillships operating in Guyana’s Stabroek Block, thanks to a contract with ExxonMobil Guyana. Under a 2016 Production Sharing Agreement, all expenses are recovered by Exxon, with profits being shared after covering operational costs.

Noble’s 2022 results review revealed day rates per rig in the low-to-mid US$400,000s, translating to over G$80 million. This arrangement places the financial responsibility on Guyana for each day the drill ships are active.

ExxonMobil Guyana extended its contract with Noble, maintaining an average day rate of around US$420,000 for the four drill ships, ensuring their presence in Guyana until the second quarter of 2027. This extended contract not only provides a stable revenue stream for Noble but also highlights the continued trust placed in the company’s expertise and operational excellence.

This publication had reported that the rig market is experiencing a revival, owed to offshore activities in countries like Guyana and Brazil.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

and Amortization (EBITDA), Depreciation, Earnings Before Interest, revenues, soaring, taxes

Latest News

Exxon’s drill ship contractor profit quadruples to US$158M in 3Q

Discover more from Kaieteur News

Similar Articles

Listen to the The Glenn Lall Show

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Attention shifts to $10M Nitro Kart Clash

VIEW ALL SPORTS

Features/Columnists

Has the world lost its conscience?

Sir. Ronald Sanders

The Cost of Silence: How the OAS is Undermining its Own Relevance

The GHK Lall Column

It is Good Friday. What a day! Darkness prevailed.

Publisher’s Note

Weekend Cartoon

Bridge Watch

> Berbice Bridge […]