Noble Corp plc (NE) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $301.69 million, or $ 1.24 a share in the quarter, against a net profit of $105.48 million, or $0.42 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $41.61 million, or $0.17 a share compared with a net profit of $78.20 million, or $0.31 a share in the last year period. Revenue during the quarter plunged 40.69 percent to $362.98 million from $611.97 million in the previous year period. Gross margin for the quarter contracted 193 basis points over the previous year period to 54.40 percent. Total expenses were 87.37 percent of quarterly revenues, up from 71.33 percent for the same period last year. That has resulted in a contraction of 1604 basis points in operating margin to 12.63 percent.
Operating income for the quarter was $45.85 million, compared with $175.46 million in the previous year period.
David W. Williams, chairman, president and chief executive officer of Noble Corporation plc, noted, "First quarter fleet performance was exemplary, with total downtime approaching historic lows, while operating cost management efforts continued to produce positive results, helping to preserve our operating margins in the quarter. Also, for the first time in several quarters, we experienced a quarterly increase in our contract backlog following the award of multi-year contracts for three of our jackups. Finally, total debt was reduced in the quarter with the repayment of $300 million in senior notes. These accomplishments fortify our solid industry position and further prepare Noble to address emerging opportunities that should materialize as the offshore industry recovers."
Operating cash flow declinesNoble Corp has generated cash of $141.87 million from operating activities during the quarter, down 17.73 percent or $ 30.56 million, when compared with the last year period. The company has spent $38.11 million cash to meet investing activities during the quarter as against cash outgo of $86.29 million in the last year period.
The company has spent $309.72 million cash to carry out financing activities during the quarter as against cash outgo of $362.19 million in the last year period.
Cash and cash equivalents stood at $519.77 million as on Mar. 31, 2017, up 120.06 percent or $283.57 million from $236.20 million on Mar. 31, 2016.
Working capital increases sharply
Noble Corp has recorded an increase in the working capital over the last year. It stood at $414.57 million as at Mar. 31, 2017, up 85.85 percent or $191.50 million from $223.07 million on Mar. 31, 2016. Current ratio was at 1.75 as on Mar. 31, 2017, up from 1.31 on Mar. 31, 2016.
Days sales outstanding went down to 35 days for the quarter compared with 42 days for the same period last year.
At the same time, days payable outstanding went down to 23 days for the quarter from 24 for the same period last year.
Debt comes down marginally
Noble Corp has recorded a decline in total debt over the last one year. It stood at $4,041.82 million as on Mar. 31, 2017, down 2.92 percent or $121.76 million from $4,163.58 million on Mar. 31, 2016. Total debt was 36.72 percent of total assets as on Mar. 31, 2017, compared with 33.43 percent on Mar. 31, 2016. Debt to equity ratio was at 0.65 as on Mar. 31, 2017, up from 0.56 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.62 for the quarter from 3.07 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
