Noble Corporation Reports Decline in Profitability Despite Increased Revenues in Q2 2025

Noble Corporation plc reported its financial results for the second quarter and first half of 2025, revealing a significant decline in profitability compared to the previous year. For the three months ended June 30, 2025, the company recorded a net income of $42.9 million, or $0.27 per diluted share, on operating revenues of $848.7 million. This marks a decrease from the net income of $195.0 million, or $1.34 per diluted share, on revenues of $692.8 million for the same period in 2024. For the six months ended June 30, 2025, net income was $151.2 million, down from $290.5 million in the prior year, with revenues increasing to $1.7 billion from $1.3 billion.

The financial performance reflects a 23% increase in contract drilling services revenue, which rose to $812.1 million in the second quarter, driven primarily by the acquisition of additional floaters through the Diamond Transaction. However, operating costs also surged, with total expenses rising by 48% to $713.4 million, largely due to increased costs associated with the newly acquired assets. The company’s operating income for the quarter fell to $135.3 million, a 36% decrease from the previous year.

Strategically, Noble completed the acquisition of Diamond Offshore Drilling in September 2024, a move that has expanded its fleet to 38 drilling rigs, including 25 floaters and 13 jackups. This acquisition is expected to enhance Noble's market position, although it has also contributed to increased operational costs. The company reported a total contract drilling services backlog of approximately $7.4 billion as of June 30, 2025, indicating a commitment of 59% of available days for the remainder of the year.

Operationally, the average rig utilization for the fleet was 67% in the second quarter, down from 73% in the prior year. The average dayrate for floaters decreased to $400,802, while jackups saw an increase to $176,503. The company’s total cash and cash equivalents increased to $338.2 million from $247.3 million at the end of 2024, reflecting improved cash flow from operations, which amounted to $487.4 million for the first half of 2025.

Looking ahead, Noble Corporation remains cautiously optimistic about the offshore drilling market, despite recent fluctuations in oil prices and demand. The company anticipates that the long-term outlook for ultra-deepwater floaters will remain strong, although it expects near-term utilization rates to be lower than those experienced in the previous two years. The ongoing focus on high-specification rigs is expected to shape future operational strategies as the company navigates the evolving energy landscape.