Noble Corporation plc (NYSE:NE) Q3 2018 Earnings Conference Call Transcript

Nov 01, 2018 • 09:00 am ET


Noble Corporation plc (NYSE:NE) Q3 2018 Earnings Conference Call Transcript


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Good morning. My name is Devon, and I will be your conference operator today. At this time, I would like to welcome everyone to the Noble Corporation Third Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

I would now like to turn the call over to Jeff Chastain, VP of IR. Mr. Chastain, you may begin your conference.

Jeffrey Chastain

Okay, thank you, Devon, and welcome everyone to Noble Corporation's third quarter of 2018 earnings conference call. We appreciate your interest in the company. A copy of Noble's earnings report was issued last evening along with all supporting statements and schedules. And you can find that on Noble's website. And again, that's

(Forward-Looking Cautionary Statements)

Also note, we are referencing non-GAAP financial measures in today's call. You'll find the required supplemental disclosure for these measures, including the most directly comparable GAAP measure, and an associated reconciliation on the Noble website.

And finally, consistent with our quarterly disclosure practices, once our call has concluded, we will post our -- to our website a summary of the financial guidance covered on today's call. And that will review fourth quarter and full year of 2018 figures.

So with that, I'll now turn the call over to Julie Robertson, Chairman, President and CEO of Noble.

Julie Robertson

Thank you, Jeff. Good morning, everyone, and welcome to our third quarter call. Your participation and continued interest and investment in Noble is greatly appreciated. Following my prepared remarks, Adam Peakes, our SVP and CFO will provide further details on our third quarter results and update the financial guidance for the remainder of 2018; Robert Eifler, our VP and General Manager of Contracts and Marketing, will update you on our fleet, including information on recent contract awards for several of our floating rigs and review of regional market opportunities; and Bernie Wolford, SVP of Operations will be available for further commentary when we open up the call for questions.

In addition to a review of our financial performance for the quarter, we want to bring you up-to-date on some encouraging developments at the company that we believe further support the view that a broadening industry recovery is underway. Specifically, I point to the progress noted in our latest financial report, the steady improvement in our active fleet count and the excellent regional distribution of our assets. Collectively, these improvements are expected to strengthen our competitive position as we approach 2019.

Our third quarter results showed another strong performance by the company. Total fleet operating days improved to 12% over the second quarter, which drove an 8% quarter-over-quarter increase in total revenues. Results for operating days and revenues extended a nice growth trend that has continued since the first quarter and both measures are now well-off the lows for 2018. Fleet downtime was higher in the quarter following some repair days for the standard-duty jackup, the Noble Joe Beall, which was