Noble Corporation Plc Q3 FY2025 earnings call

• Q3 highlights: Adjusted EBITDA $254M, free cash flow $139M, net disposal proceeds $87M; $80M dividend in Q3, $0.50 per share dividend declared for Q4. • Contract awards: BlackLion and BlackHornet extended by BP in US Gulf; Resolute awarded 1-year contract in Dutch North Sea; Interceptor booked 5-month accommodation contract in Norway; Developer option exercised by Petronas; Venture awarded 1-well contract in Ghana. • Market trends: Deepwater contracting showing stabilization/improvement; backlog at $7B, 57% contract coverage in 2026 for fleet, 70% booked for high-spec drillships in 2026 excluding options. • Operational performance: Crews and teams achieved excellent uptime/HSE; drillships in Guyana and US Gulf set records. • Cost rationalization: Diamond acquisition over-delivered on accretion; $100M synergies achieved, with ongoing cost savings efforts.

In the third quarter, Noble Corporation earned adjusted EBITDA of $254 million, generated free cash flow of $139 million, and received $87 million in net disposal proceeds. Total backlog as of October 27 stood at $7 billion. Adjusted EBITDA for full year 2025 is guided to $1.1 billion to $1.125 billion, with Q4 expected to be marginally lower than Q3. Backlog includes approximately $0.5 billion for revenue conversion in the remaining 2-plus months of 2025, $2.4 billion in 2026, and $1.9 billion in 2027.

• 2025 adjusted EBITDA guided $1.1B-$1.125B, CapEx net of reimbursables $425M-$450M. • 2026 guidance to be provided next quarter; EBITDA trough expected in H1 2026, lower than H2 2025; material inflection anticipated late 2026 onwards. • 2026 CapEx net of reimbursables expected ~$450M, subject to increase based on contract opportunities.

• Macroeconomic uncertainties, oil price volatility could impact upstream capital allocation. • Project and procurement deferrals could delay utilization improvement. • BOP lease termination on legacy Diamond ships involves ~$135M cash outlay, with $35M in Q4 2025 and remainder in 2026, offset by ~$45M annual savings.

Q: Arun Jayaram asked about improving utilization for high spec floater fleet and BOP leases.

A: Robert Eifler and Richard Barker discussed ongoing conversations for Viking, Gerry de Souza, BlackRhino; BOP lease termination has $35M in Q4 2025, max $135M cash outlay with $45M annual savings.

Q: Greg Lewis asked about H1 2026 vs H2 2025 earnings and spot work.

A: Robert Eifler said H1 2026 likely lower, driven by floaters, with line of sight on work but spot work gap; jobs mixed with some pushed, some on schedule.

Q: Edward Kim asked about first half 2026 EBITDA and recovery confidence.

A: Robert Eifler said limited work in H1 2026, recovery confidence from existing contracts and tightening market late 2026.

Q: Fredrik Stene asked about Globetrotter I, Deliverer, and harsh environment assets.

A: Robert Eifler said GT-I and Deliverer on table for work or divestment; harsh environment assets have opportunities, but need sharp pencil on opportunities.

Q: Doug Becker asked about BlackRhino's prospects.

A: Robert Eifler said BlackRhino has opportunities in US Gulf and other regions, including short/long term US and non-US.

Q: Noel Parks asked about West Africa, oil sentiment, and region differences.

A: Robert Eifler said West Africa is long-cycle, Mozambique to come online; oil sentiment negative, but deepwater planning continues due to long-term view.

Q: Joshua Jayne asked about cost rationalization efforts.

A: Richard Barker mentioned cost importance in down markets, Diamond synergy achievement, with ongoing cost savings not formally targeted but realized as activity slows.