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UPDATE 1-Noble Corp expects rig delays to hurt revenue
September 4, 2012 / 12:25 PM / in 5 years

UPDATE 1-Noble Corp expects rig delays to hurt revenue

* Sees third-quarter rev down by $50 mln

* Third-quarter profit to fall by $0.08-$0.12/shr: Analysts

Sept 4 (Reuters) - Noble Corp, the owner of the world’s third-largest offshore drilling fleet, said it expects its quarterly results to be hurt by extended downtime at its rigs in the Gulf of Mexico and Brazil.

The company expects its third-quarter revenue to fall by about $50 million due to the operational issues.

Analysts on average were expecting revenue of $954.4 million, according to Thomson Reuters I/B/E/S.

“Revenue hit would likely reduce third-quarter earnings of 74 cents per share by 8 cents to 12 cents per share,” Tudor Pickering analysts wrote in a note to clients.

The company, however, said its jackup rig Noble Hans Deul, currently operating in the UK North Sea, has extended a contract with Royal Dutch Shell Plc by 18 months.

Noble expects to generate revenue of $132 million from the contract extension.

Noble said its ultra-deepwater drillship Noble Globetrotter I located in the U.S. Gulf has experienced a longer-than-expected downtime.

The rig will remain at a reduced day rate until the end of this quarter, when all testing and commissioning of a subsea blowout prevention and control system is expected to complete.

The company said an ultra-deepwater rig and two drillships in Brazil were yet to return to work as it was awaiting regulatory approvals in the country.

Noble said another deepwater rig Noble Max Smith, which is undergoing a planned shipyard program in Mississippi, may experience 30 to 40 days of unpaid downtime due to a delay in mobilization to Brazil.

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