NYSE:NE
Noble Corp plc
A global leader in offshore drilling services delivering high-tech drillships to energy companies worldwide.
Key Metrics
Investment Thesis
Bull Case
The stock offers exposure to a recovering energy sector with Noble commanding premium pricing power due to its specialized ultra-deepwater fleet. Strong operating cash flows exceeding $900M annually provide flexibility for shareholder returns, evidenced by significant dividends of $320.4M and share repurchases, while the growing revenue trend suggests expanding market share.
Bear Case
Recent net income volatility from a peak of $481.9M to $216.7M raises concerns about margin sustainability in a cyclical industry. The company carries substantial long-term debt of $1.98B against only $471.4M in cash, creating liquidity pressure if oil prices drop or credit conditions tighten further.
About Noble Corp plc
Noble Corporation plc is a leading offshore drilling contractor providing comprehensive well construction services globally. The company serves major oil and gas operators with its fleet of deepwater drillships and support vessels, primarily operating in the US Gulf of Mexico and international waters.
Analysis
Management Discussion
While revenue grew significantly from $1.41B in 2022 to $3.29B in 2025 driven by robust drilling activity, net income experienced a notable contraction from $481.9M in 2023 down to $216.7M in 2025. This decline coincides with substantial cash outflows of $350.1M for investing and $373.9M for financing activities, reflecting heavy capital deployment or debt management strategies despite strong operating cash flow of $951.7M.
Industry Overview
The offshore drilling services industry is highly cyclical and tightly linked to global oil and gas exploration budgets, which have rebounded strongly over the last three years. Competition remains intense among a small group of major contractors, driving consolidation and technological differentiation as operators seek cost-effective deepwater production solutions.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.41B | $2.59B | $3.06B | $3.29B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $1.41B | $2.59B | $3.06B | $3.29B |
| Operating Expenses | $1.19B | $2.01B | $2.45B | $2.87B |
| Operating Income | $228.8M | $574.7M | $604.0M | $415.6M |
| G&A | $82.2M | $128.4M | $140.5M | $133.1M |
| Stock-Based Comp | $35.3M | $37.7M | $43.8M | $30.5M |
| Other OpEx | $1.10B | $1.89B | $2.31B | $2.74B |
| Non-Operating Income | $-37.3M | $-62.5M | $-111.6M | $-142.4M |
| Interest Expense | $42.7M | $59.1M | — | — |
| Pre-Tax Income | $191.5M | $512.2M | $492.3M | $273.1M |
| Income Tax | $22.6M | $30.3M | $44.0M | $56.4M |
| Continuing Ops | $168.9M | $481.9M | $448.4M | $216.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $168.9M | $481.9M | $448.4M | $216.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $168.9M | $481.9M | $448.4M | $216.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.05B | $1.06B | $1.39B | $1.27B |
| Cash & Equivalents | $476.2M | $360.8M | $247.3M | $471.4M |
| Accounts Receivable | $468.8M | $548.8M | $797.0M | $589.6M |
| Prepaid Expenses | $72.7M | $112.3M | $288.2M | $132.5M |
| Other Current Assets | $34.1M | $39.8M | $56.4M | $78.8M |
| Long-Term Assets | $4.18B | $4.45B | $6.58B | $6.26B |
| PP&E (Net) | $3.98B | $4.12B | $6.04B | $5.40B |
| Intangibles | $34.4M | $10.1M | $214.0K | — |
| Goodwill | $26.0M | $0 | — | — |
| Operating Leases | $34.6M | $24.5M | $79.0M | $60.0M |
| Other LT Assets | $106.8M | $286.7M | $460.9M | $794.7M |
| Total Assets | $5.23B | $5.51B | $7.96B | $7.53B |
| Current Liabilities | $667.1M | $641.7M | $940.4M | $759.7M |
| Accounts Payable | $290.7M | $395.2M | $397.6M | $298.8M |
| Current Debt | $159.7M | $0 | — | — |
| Current Leases | $23.8M | $10.6M | $14.8M | $13.9M |
| Deferred Revenue | $40.2M | $19.7M | $61.5M | $64.4M |
| Other Current Liab | $152.6M | $216.3M | $466.4M | $382.7M |
| Long-Term Liabilities | $960.7M | $944.5M | $2.37B | $2.22B |
| Long-Term Debt | $513.1M | $586.2M | $1.98B | $1.98B |
| LT Operating Leases | $23.9M | $15.1M | $66.0M | $52.0M |
| Other LT Liab | $241.9M | $292.4M | $318.3M | $193.4M |
| Total Liabilities | $1.63B | $1.59B | $3.31B | $2.98B |
| Shareholders' Equity | $3.61B | $3.92B | $4.65B | $4.55B |
| Retained Earnings | $255.9M | $541.2M | $411.2M | $286.6M |
| AOCI | $3.6M | $3.0M | $4.0M | $5.2M |
| Total L&E | $5.23B | $5.51B | $7.96B | $7.53B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $168.9M | $481.9M | $448.4M | $216.7M |
| Non-Cash Adjustments | $175.4M | $-214.4M | $-53.8M | $1.52B |
| Working Capital Changes | $-63.3M | $306.9M | $260.9M | $-785.5M |
| Cash from Operations | $281.0M | $574.3M | $655.5M | $951.7M |
| Cash from Investing | $375.8M | $-366.5M | $-959.0M | $-350.1M |
| Debt Issuances | $350.0M | $600.0M | — | — |
| Debt Repayments | $627.3M | $673.4M | $0 | $0 |
| Share Buybacks | $15.0M | $94.8M | $300.0M | $20.0M |
| Dividends Paid | — | $98.8M | $277.8M | $320.4M |
| Cash from Financing | $-367.8M | $-325.8M | $188.1M | $-373.9M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $289.0M | $-118.0M | $-115.5M | $227.7M |
| Beginning Cash | $196.7M | $485.7M | $367.7M | $252.3M |
| Ending Cash | $485.7M | $367.7M | $252.3M | $480.0M |
Frequently Asked Questions
How does Noble Corp plc make money?
The company's revenue is derived from core offshore well construction services including drilling operations, riser system rentals, and marine support vessel charters. Additional streams include the sale of drilling equipment and specialized marine engineering solutions that support upstream exploration and production activities across international markets.
What are the main risks for NE?
Investors should monitor volatility in oil and gas commodity prices which directly impacts drilling rig utilization rates and contract valuations. Geopolitical instability in key operating regions like the Middle East or Eastern Europe poses potential threats to vessel access and operational continuity. Rising interest rates increase borrowing costs associated with the company's significant long-term debt load, potentially squeezing margins.
What is NE's competitive advantage?
Noble maintains a competitive edge through its proprietary fleet of ultra-deepwater drillships capable of operating in extreme environments like the Gulf of Mexico. The company leverages advanced automation technologies to enhance safety records and operational efficiency while offering flexible charter terms that align with operator project timelines.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.