Noble Swings To $117 Million Quarterly Loss On Tax Bill, Even As Backlog Holds At $6.7 Billion
The offshore driller narrowed its 2026 revenue and EBITDA ranges, raised its capital spending outlook and kept its $0.50 dividend.
Noble, the offshore drilling contractor, posted a third-quarter net loss of $117 million, or $0.73 a share, after a $133 million income tax provision swamped $60 million of operating income. The company reported Monday that about $560 million of new contracts have lifted backlog to $6.7 billion.
A tax bill drives the loss
Revenue was $729 million, down from $798 million a year earlier and up from $720 million in the second quarter. The net loss compares with $21 million a year ago and $37 million in the second quarter.
Adjusted EBITDA, the company's earnings measure before interest, taxes, depreciation and certain items, fell to $201 million from $212 million in the second quarter. Adjusted loss per share was $0.57, against adjusted earnings of $0.19 a year earlier.
Free cash flow was negative $48 million: operating cash flow of $144 million less $192 million of capital spending. Cash stood at $337 million and total debt principal at $1.9 billion on September 30.
CEO Robert W. Eifler said the quarter saw both Brazil rigs resume operations but was also hit by several other rigs moving between contracts.
Who Noble drills for
Noble owns and operates mobile offshore rigs and earns a fixed dayrate from oil and gas companies for each day a rig works. As of December 31, 2025, its fleet had 36 rigs, 25 floaters and 11 jackups.
Utilization of the 28 marketed rigs rose to 70% in the third quarter from 67% in the second. Floaters were 66% contracted, and the five ultra-harsh-environment jackups were 86% utilized.
New awards since the July fleet status report include a four-well TotalEnergies job in Nigeria for the Noble BlackRhino, a five-well Tullow job in Ghana for the Noble Faye Kozack, and a two-well Occidental job in Peru at $400,000 a day for the Noble Globetrotter I. The Noble Interceptor is slated for a one-well DNO job in Norway followed by a 670-day ConocoPhillips plugging-and-abandonment scope on the Ekofisk field.
Guidance narrows, spending rises
For 2026 Noble now sees revenue of $2,850-$2,900 million, versus $2,800-$2,900 million before, and adjusted EBITDA of $850-$900 million, versus $850-$925 million. Capital spending guidance rose to $680-$705 million from $615-$665 million, mostly because customer-reimbursable spending went to $65 million from $25 million.
Eifler said contract coverage and dayrates keep improving despite limited demand lift from higher oil prices this year, and that the company expects a "meaningful inflection in fleet utilization and cash flow starting H2 2027."
The board declared a $0.50 per share dividend for the fourth quarter, payable December 17 to holders of record on November 25. The Noble Resolve sale closed October 9 with $45 million of final proceeds, and the $38 million sale of the Noble Globetrotter II is expected to close in the fourth quarter.
Noble hosts its earnings call Tuesday at 8:00 a.m. Central.
