Noble Narrows 2026 Outlook as Q3 Loss Widens

Noble Corporation plc reported a wider sequential loss for the third quarter of 2026 and narrowed its full-year revenue and adjusted EBITDA guidance, while raising its capital spending range primarily to reflect more customer-reimbursable expenditures. The offshore driller also disclosed about $560 million of new contracts, leaving its backlog at $6.7 billion.

Revenue rose to $729 million from $720 million in the second quarter, but adjusted EBITDA declined to $201 million from $212 million. Adjusted EBITDA margin narrowed to 28% from 30%.

The GAAP net loss widened to $117 million, or $0.73 per diluted share, from a loss of $37 million, or $0.23 per share, in the prior quarter. The presentation did not specify the primary drivers of the larger loss.

Operating cash flow was unchanged sequentially at $144 million. Capital expenditures declined to $192 million from $205 million, while free cash flow remained negative at $48 million, compared with negative $59 million in the second quarter.

Noble ended September with $1.55 billion of net debt, up from $1.43 billion three months earlier. Net leverage increased to 1.9 times from 1.7 times, while liquidity declined to $980 million from $1.1 billion. Quarter-end liquidity consisted of $337 million in cash and cash equivalents and $643 million of available revolving credit capacity, net of outstanding letters of credit.

2026 guidance narrowed

Noble now expects 2026 revenue of $2.85 billion to $2.90 billion, compared with its previous range of $2.80 billion to $2.90 billion. Its adjusted EBITDA forecast was narrowed to $850 million to $900 million from $850 million to $925 million.

The company raised its capital expenditure guidance to $680 million to $705 million from $615 million to $665 million. Noble said the increase primarily reflected customer-reimbursable capital spending, now expected to total $65 million rather than the previously indicated $25 million.

New awards support $6.7 billion backlog

Noble secured approximately $560 million of new contracts since its July 27, 2026 fleet status report. The awards involve the Noble BlackRhino, Noble BlackHawk, Noble Faye Kozack, Noble Interceptor and Noble Globetrotter I.

The BlackRhino is scheduled to begin a four-well contract in late 2026. The Globetrotter I is expected to start a two-well contract in the second quarter of 2027, followed by a well-intervention contract late that year. The Faye Kozack has a five-well contract scheduled to commence in mid-2027, while the BlackHawk is due to begin a one-well contract in late 2027.

For the jackup fleet, the Interceptor is scheduled to start a one-well contract in the third quarter of 2027 and a 26-well contract later that year. The Noble Intrepid also has a one-well contract scheduled for late 2027.

As of October 26, 78% of available days for Noble’s 28-rig marketed fleet were committed for 2026. Contract coverage stood at 72% for 2027, 55% for 2028 and 13% for 2029 through 2031.

Noble maintained its fourth-quarter dividend at $0.50 per share. The company noted that future dividends and share repurchases remain subject to board review of factors including business development, growth strategy, leverage and financing requirements.

The company cautioned that backlog represents the maximum drilling revenue available under firm contractual dayrates and may not be fully realized. Contracts can be canceled, suspended, delayed or reallocated, while actual dayrates may be affected by downtime and operational suspensions. Other identified uncertainties include changes in offshore drilling demand, oil and gas prices, geopolitical instability, operating hazards, weather, regulatory changes, supplier constraints and delays in rig upgrades or maintenance.