Key Highlights

● Second-quarter total revenue fell to $720 million from $849 million a year earlier.

● The company recorded a net loss of $37 million, against net income of $43 million.

● Floater utilisation was 59 per cent, with overall utilisation of 65 per cent.

● Contract backlog stood at $6.8 billion, with about $200 million of new work added.

Noble Corporation plc (NYSE:NE) is an offshore drilling contractor with a fleet of floaters and jackups serving oil and gas producers worldwide. Its shares trade on the New York Stock Exchange as NE, and the company's press release confirms that listing. The group reports in US dollars. Offshore drillers depend on day rates, utilisation and operator spending, which have been mixed in 2026. Its results therefore offer a window into the offshore drilling cycle rather than the broader US economy, which is a fair point to bear in mind when comparing it with any diversified index.

Second-quarter 2026 results

Noble announced results on 27 July 2026. Total revenue was $720 million, compared with $849 million a year earlier and $786 million in the first quarter. The company recorded a net loss of $37 million, or $0.23 per share, against net income of $43 million a year earlier, and adjusted diluted earnings per share were $0.01. Adjusted EBITDA was $212 million, down from $282 million. Management cited operational suspensions of two rigs in Brazil, costing about $43 million, and a $42 million impairment on the Ocean Apex, which was sold for scrap in July. Utilisation was 59 per cent for floaters, 83 per cent for jackups and 65 per cent overall. Contract backlog was $6.8 billion, with about $200 million of new work since the April fleet status report. New awards included a three-well bp contract in the UK North Sea from March 2027 at $320,000 per day plus a $5 million mobilisation fee, and a six-well Asia Pacific contract for the Noble Viking from early 2028. First-half revenue was $1.505 billion and first-half net income was $84 million, helped by a stronger first quarter in which net income was $121 million. The third of four Blackships buyouts was completed in the quarter at a cost of $18 million.

Dividend and its support

The board approved a quarterly dividend of $0.50 per share, with a record date of 3 September and payment on 24 September 2026, which annualises to $2.00 and matches the figure in our records. Dividend payments totalled $163 million in the first half, and there were no share repurchases in that period. Support is a live question. Second-quarter operating cash flow was $144 million, but capital expenditure was $205 million, leaving free cash flow of negative $59 million. The release showed debt principal of $1.9 billion and cash of $456 million, implying net debt near $1.4 billion on our own calculation rather than a company figure. Noble refinanced $800 million of bonds with 6.250 per cent notes due 2034, incurring an $18 million extinguishment loss. Dividends are discretionary and the capital programme will determine how comfortably cash flow covers them. Capital expenditure for the first half was $308 million, which is why free cash flow remains the figure to monitor alongside the dividend.

A Large Backlog Against a Softer Cash Position

Noble Corporation lowered its full-year 2026 guidance after Brazil rig suspensions and an Ocean Apex impairment weighed on the quarter, even as new contract wins, including a UK North Sea deal with bp, kept its $6.8 billion backlog intact. Second-quarter free cash flow of negative $59 million raises the question of how comfortably the dividend is covered, and the company's refinancing of $800 million of bonds at 6.250 per cent shows borrowing costs rising as it works through a softer patch in offshore drilling demand.