Noble Corporation Plc Q4 FY2025 earnings call

• Strong booking levels with backlog at $7.5 billion. • Commercial highlights include contracts like Noble Great White with Aker BP in Norway, Noble Johnny D’Souza in Nigeria, and various rig contracts in different regions. • Market outlook: Contracted UDW rig count bounced back to 105, contracted utilization rate of marketed fleet is 95%. • Fleet strategy: Sold five jackups to Borr Drilling and expect to close sale of Noble Resolve, focusing on high-end deepwater and CJ70 jackup market, with strategic investments in rigs like Noble Great White.

In Q4 2025, contract drilling services revenue totaled $705,000,000, adjusted EBITDA was $232,000,000, and free cash flow was $35,000,000. For the full year 2025, revenue was $3,300,000,000 and adjusted EBITDA was $1,100,000,000. Backlog increased to $7,500,000,000.

• 2026 guidance: Total revenue between $2,800,000,000 and $3,000,000,000, adjusted EBITDA between $940,000,000 to $1,020,000,000. • 2026 CapEx expected to be between $590,000,000 and $640,000,000. • Anticipated normalization of net CapEx to lower sustaining range after 2026, with potential annualized EBITDA of around $1,300,000,000 and free cash flow of ~$600,000,000 by 2027.

• Macro uncertainties and Brent prices hovering around five-year lows. • Petrobras budget pressure causing slower contract executions and blend-and-extend negotiations. • Potential project delays and industry consolidation risks affecting the business.

Q: Arun Jayaram asked about industry consolidation and implications to Noble.

A: Robert said consolidation has been the path post-COVID, Noble has benefited, and they feel they have scale and will be picky with opportunities.

Q: Scott Gruber inquired about strength in sixth-generation market and dayrate improvement.

A: Robert said it's project-specific right place, right time, and a mix of factors including backlog curve and fleet contracting for dayrate improvement.

Q: Eddie Kim asked about dayrate fixtures and negotiations with Petrobras.

A: Robert said possibility of dayrate fixtures up in mid-2027, and negotiations with Petrobras are ongoing with complexity.

Q: Fredrik Stene asked about Norwegian market and floater fleet.

A: Robert said Norway market outlook is flat to up, and Globetrotter and Apex are in niche applications.

Q: Ben Summers asked about U.S. Gulf market and 2027 demand.

A: Robert said they are hopeful for 2027 demand pickup but risks exist, and backlog supports optimism.

Q: Keith Beckman asked about CapEx on contracts and jackups.

A: Robert said CapEx is split between Endeavor and D’Souza, and they are committed to CJ70s.