Noble Corporation Q3 2026 Earnings Recap

Noble’s shares fell 5.4% after earnings, with investors likely focused on weaker near-term cash generation and a 5% sequential decline in Adjusted EBITDA as rigs transitioned between contracts. Voyager also started its Shell contract later than planned, while free cash flow was negative $48 million.

Key Takeaways

• Q3 Adjusted EBITDA was $201 million, down 5% sequentially; management attributed the decline to fewer contracted days for four rigs, partly offset by resumed Brazil operations and the Gerry de Souza’s startup.
• Free cash flow was -$48 million. Noble maintained its $0.50 quarterly dividend and declared another $0.50 per share for Q4.
• Voyager’s four-year Shell contract began in late September, a few weeks later than planned due to commissioning and weather delays. Valiant and Discoverer are scheduled to start their Total Suriname campaign around year-end.
• Noble secured approximately $560 million in contract awards over the past three months, bringing reported backlog to $6.7 billion. Several new programs, including Ghana and Peru, are scheduled to begin in 2027.
• Management cited improving deepwater utilization and day rates, but also described the U.S. Gulf as a soft spot and said it expects only some improvement there next year.