Noble said the results for the first quarter 2009 include net after-tax charges of $0.04 per share mainly regarding an impairment charge taken for the Noble Fri Rodli, because of a decision to assess disposition alternatives for this submersible drilling unit.
Contract drilling services revenues for the first quarter of 2009 was $872 million, up 9.3% from year-ago quarter. Contract drilling margins for the first quarter 2009 were about 72%, generating $548 million in net cash provided by operating activities. The company has invested $251 million in capital projects during the quarter. Debt as a percentage of total capitalization declined to 11.7% at March 31, 2009, from about 14.9% at the end of the fourth quarter of 2008.
Despite a turbulent global economy and pressure on demand for drilling services, the strength of our $10.6 billion backlog and focus on execution enabled us to deliver another great quarter, said David W. Williams, chairman, president and chief executive officer. We remain committed to maintaining our financial flexibility through the disciplined execution of our capital program, continued improvement in our cost structure and the active pursuit of opportunities to create shareholder value.
During the first quarter, Noble repurchased about 1.7 million shares at an average cost per share of $25.28. At the end of the first quarter 2009, the company had about 16.6 million shares remaining on its accessible repurchase authorization.
Highlights
The company’s newbuild deepwater semisubmersible Noble Dave Beard arrived in Brazil to go through final outfitting and commissioning before beginning of a five year contract, which is anticipated to take place in the fourth quarter of 2009. In the US Gulf of Mexico, Noble reached an agreement with Noble Energy to substitute the Noble Clyde Boudreaux for the Noble Paul Romano in completion of a two year commitment at a dayrate of $605,000. This strategic substitution will accelerate earnings for the company and let the company’s customer earlier beginning of its planned drilling program. The Noble Clyde Boudreaux will begin operations for Noble Energy following the conclusion of its existing commitment in the fourth quarter of 2009. The Noble Paul Romano will be accessible in the first quarter of 2010.
Noble’s newbuild jackup, Noble Hans Deul began operations during the first quarter of 2009 under its contract with Shell. In addition, the company’s Noble Roy Butler and Noble Carl Norberg concluded their moves from West Africa to Mexico, and started separate contracts with PEMEX in March 2009.
During the quarter, Noble also concluded its earlier disclosed change in place of incorporation from the Cayman Islands to Switzerland.
