Offshore drilling contractor Noble Corporation announced financial results for the first quarter of 2025 on April 28, highlighting nearly $2.7 billion in newly awarded contracts and a growing backlog that now totals $7.5 billion.
Noble reported net income of $108 million, or $0.67 per diluted share, for the quarter (ended March 31, 2025). Adjusted earnings per share came in at $0.26, while adjusted EBITDA reached $338 million. Total revenue was $874 million, slightly down from $927 million in the previous quarter, largely due to the absence of an early termination fee recorded in Q4 2024.
Net cash provided by operating activities was $271 million, and the company generated $173 million in free cash flow during the quarter.
“Our strong first quarter financial results and recent contract awards have demonstrated the effectiveness of our First Choice OffshoreSM strategy amid prevalent macroeconomic volatility,” said Noble CEO Robert W. Eifler. “The booking of over 15 rig years of new contract awards underscores the durability of our customers’ long-term commitments offshore.”
Among the major contract wins, Noble secured multiple long-term agreements with Shell and TotalEnergies. The Noble Voyager and another V-class 7th generation drillship, which is yet to be named, were each awarded four-year contracts by Shell in the U.S. Gulf. Both contracts are set to begin in mid-2026 and the fourth quarter of 2027, respectively, and carry base values of $606 million each. These figures include upgrades and services but exclude mobilization and demobilization fees. The contracts also include the potential for performance-based incentive compensation of up to 20% of the base value, though these incentives are not guaranteed.
As of April 28, Noble’s contract backlog stands at $7.5 billion, assuming 40% of the available performance-based revenue under its recent long-term contracts is realized. The backlog figure excludes mobilization and demobilization fees.
Noble’s floater fleet was 80% contracted during the first quarter, up from 74% the previous quarter. Dayrates for Tier-1 drillships have ranged from the low to high $400,000s, while sixth-generation floaters have been contracted at rates between the low $300,000s and mid-$400,000s. Utilization of the company’s 13 marketed jackup rigs dropped to 74% from 82% in the prior quarter, with North Sea dayrates for harsh environment jackups remaining stable amid limited new fixtures.
The company said it returned approximately $100 million to shareholders in the first quarter, including $20 million in share repurchases. Noble’s board approved a second-quarter dividend of $0.50 per share, payable on June 18, 2025, to shareholders of record as of June 5. Future dividends will remain subject to board approval and market conditions, Noble's statement said.
Noble ended the quarter with a total debt principal of $1.98 billion and $304 million in cash and cash equivalents.
Looking ahead, Noble reaffirmed its full-year 2025 guidance, forecasting total revenue between $3.25 billion and $3.45 billion and adjusted EBITDA between $1.05 billion and $1.15 billion. Capital expenditures, net of reimbursements, are expected to total between $375 million and $425 million.
Eifler said the company’s recent commercial momentum and 30% sequential increase in backlog have improved Noble’s operational visibility through 2030. “We remain highly focused on delivering safe and efficient operations for our customers, building strategic backlog, optimizing costs, and producing differentiated free cash flow and return of capital for our shareholders,” he said.
