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Update: Noble Corporation Scraps Floaters And Defers MLP Plans

Noble Corporation (NE) reported its Q4 earnings, which came shy of consensus estimates both on top and bottom lines. The miss on the top line is a bit strange considering the fact that Noble Tom Madden started its contract 28 days ahead of the schedule. The company did not provide revenue efficiency numbers in the press release and I'm assuming that efficiency was in the 90-91% range. Considering the company had a couple of new drillships starting work in late Q3 - early Q4, lower efficiency may be attributed to rig break-in periods.

NE had slightly higher expenses compared to Q3 due to new rigs starting contracts and should see material decrease from Q1 onwards as it plans to scrap three semisubs. Scrapping these three rigs should decrease the company's cost base by $35-40 million per quarter. I'd be interested to hear more details on the conference call regarding maintenance… Read More …