Noble's $133 Million Tax Bill On $16 Million Of Pre-Tax Profit Drives $117 Million Loss
The offshore driller's quarterly tax provision dwarfed its pre-tax income, and backlog slipped to about $6.8 billion.
Noble, the offshore drilling contractor, booked a $133.0 million income tax provision against just $16.0 million of pre-tax income in the third quarter, turning a small operating profit into a $117.0 million net loss, or $0.73 per diluted share, its 10-Q shows.
Tax charge swamps operations
Operating income rose to $60.1 million from $50.4 million a year earlier, on revenue of $728.8 million, down from $798.0 million. Interest income and other swung to an expense of $9.1 million, which the company tied to a fair-value markdown of the seller loan it holds from the Borr jackup sale.
The tax line was the problem. The provision included recurring quarterly accruals of $117.3 million, mostly in Ghana, Guyana, Luxembourg, Switzerland and the United States, plus $15.8 million of net expense from valuation-allowance adjustments, primarily in Switzerland. The second-quarter filing showed a $16.3 million provision and recurring accruals of $39.3 million; the third quarter of 2025 carried a $31.7 million provision.
For the first nine months, Noble reported a net loss of $33.0 million, against net income of $130.1 million a year earlier.
A driller with a thinner backlog
Noble, which owns and operates mobile offshore rigs and earns a fixed dayrate for each working day, had a fleet of 36 rigs at the end of 2025 and now lists 29. Backlog stood at about $6.8 billion at September 30, down from about $7.1 billion at June 30. A customer option on the Noble Viking was pushed from the fourth quarter of 2026 into 2027.
Floater revenue fell to $563.4 million from $630.1 million a year earlier, and jackup revenue to $120.3 million from $127.3 million. The company's earnings release put adjusted EBITDA at $201 million and free cash flow at negative $48 million. CEO Robert W. Eifler said the company had secured about $560 million of new contract awards that support "a strengthening fleet utilization profile as we move through 2027."
Dividend and asset sales continue
The board declared a $0.50 per share dividend, payable December 17 to holders of record on November 25. Noble ended the quarter with $337 million of cash and $1.9 billion of debt principal.
In October it completed the sale of the Noble Resolve, with the sale of the Noble Globetrotter II expected to close in the fourth quarter for $38 million. For 2026, it narrowed revenue guidance to $2,850-$2,900 million and adjusted EBITDA guidance to $850-$900 million.
Eifler said the company's contracted capacity in the second half of 2027 is already about 20% higher than in the first half.
Sources
- 10-Q Filing — Noble Corp. (NE) — SEC EDGAR
- 10-Q Filing — Noble Corp. (NE), Q2 FY2026 filed 2026-07-28 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, exhibit991-q32026pressrele.htm) — Noble Corp., filed 2026-10-26 — SEC EDGAR
- Noble Corporation (NYSE:NE) posts better-than-expected sales in Q3 2026 but stock drops — Yahoo Finance
- Noble Corporation PLC (NE) Reports Q3 Loss, Tops Revenue Estimates — Yahoo Finance
- NOBLE CORPORATION PLC ANNOUNCES THIRD QUARTER 2026 RESULTS – Company Announcement - FT.com — Financial Times
- Noble Non-GAAP EPS of -$0.57 misses by $0.80, revenue of $729M beats by $16.25M (NYSE:NE) — seekingalpha.com
- Noble Corporation (NE) Q3 earnings: what to expect — Yahoo Finance
