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Offshore rig owner Noble Corporation has secured work for its jackup Noble Innovator on the UK North Sea carbon storage project.
The New York-listed Texas-headquartered driller has won a new contract from BP which will see the 2003-built ultra-harsh environment unit drill six firm wells for the Northern Endurance Partnership (NEP).
The BP-operated NEP is developing infrastructure to transport CO2 from carbon capture projects across Teesside and the Humber to secure storage under the North Sea, with start-up expected in 2028.
Noble has experience in CCS drilling, including its work on Ineos-led Project Greensand in the Danish North Sea. The company recently achieved a significant milestone in CCS rig technology by securing technical qualification from the class society DNV for its work on evaluating how CO₂ operations affect rig systems and defining the technical solutions needed to safely support offshore CO₂ operations.
Blake Denton, senior vice president of marketing and contracts at Noble, said that supporting the Northern Endurance Partnership advances the company’s role in delivering the well infrastructure behind the UK’s net-zero ambitions and reinforces Noble’s leadership in offshore carbon storage.
The rig’s contract, which will be in direct continuation of current employment with BP, is expected to start in the third quarter of 2026 and comes with options attached for additional wells. Financial terms have not been disclosed. The unit is currently on a $145,000 per day deal until September, after which the dayrate will be increased by $10,000, according to Noble’s fleet status report.
Noble Corporation plc (NYSE: NE) Noble Corporation’s Latest Earnings Overview
Noble’s most recent earnings data comes from their First Quarter 2025 Earnings Call (reported April 28, 2025) and related guidance for 2024 and 2025. Key financial highlights include:
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Q1 2025 Results (from Insider Monkey and PR Newswire sources):
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Net Income: Not explicitly stated in Q1 2025 reports, but Q1 2025 earnings per share (EPS) were reported with a -16.13% surprise compared to analyst expectations, suggesting performance slightly below estimates.
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Revenue: Approximately 2.41% above expectations, indicating solid revenue performance driven by contract drilling services.
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Adjusted EBITDA: For Q4 2024 (the most recent full quarter with detailed guidance), Adjusted EBITDA was in the range of $275 to $305 million, with full-year 2024 Adjusted EBITDA at $925 to $1,025 million. For 2025, guidance projects Adjusted EBITDA of $1,050 to $1,150 million.
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Total Revenue: Q4 2024 revenue was guided at $850 to $890 million, with full-year 2024 revenue at $2,550 to $2,700 million. For 2025, revenue is projected at $3,250 to $3,450 million.
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Backlog: As of February 17, 2025, Noble’s backlog stood at $5.8 billion, reflecting strong future revenue potential from drilling contracts.
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Capital Expenditures: Q4 2024 capital additions (net of reimbursements) were $105 to $135 million, with full-year 2025 projected at $375 to $425 million.
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Full-Year 2024 Results (reported February 17, 2025):
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Net Income: $482 million for the full year.
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Adjusted EBITDA: $810 million.
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Free Cash Flow: $184 million.
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Revenue: Not explicitly detailed for the full year in the Q4 release, but guidance for 2024 was $2,550 to $2,700 million.
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Operational Highlights:
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Noble’s fleet utilization was 74% for floaters and 82% for jackups in Q4 2024, with significant contract wins adding $525 million in contract value, including a $171 million contract with Tullow in Ghana.
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The acquisition of Diamond Offshore Drilling, closed on September 4, 2024, bolstered Noble’s deepwater drilling capabilities, contributing to revenue and backlog growth.
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Noble returned capital to shareholders, paying $80 million in dividends and repurchasing $20 million in shares in Q1 2025, with a quarterly dividend of $0.50 per share declared for Q2 2025.
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Carbon Capture in Noble’s Business
Noble’s core business revolves around offshore drilling services for oil and gas, with no explicit mention in their 2024 or Q1 2025 earnings reports of a dedicated carbon capture and storage (CCS) business unit or direct profits from CCS activities. However, there are some indirect references to low-carbon initiatives or technologies that could relate to carbon capture or emissions reduction:
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Low-Carbon Technology Integration:
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Noble’s Q1 2025 earnings call mentioned upgrades to rigs under Shell contracts, including a “closed bus power system” to reduce carbon footprint. These upgrades, costing $60 to $70 million per rig, are aimed at making Noble’s drillships among the most high-spec and lower-emission units globally.
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These upgrades suggest Noble is investing in technologies to lower emissions, which could align with broader industry trends toward carbon management, but they are not explicitly tied to CCS projects or revenue.
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Industry Context on Carbon Capture:
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The oil and gas industry is increasingly exploring CCS to meet emissions reduction targets. For example, companies like ExxonMobil (a Noble client) are investing in CCS, with projects like hydrogen and carbon capture cited in their 2024 earnings.
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National oil companies (NOCs) and majors, such as Petrobras (another Noble client), are using CO2 injection for enhanced oil recovery (EOR), which reduces emissions intensity while boosting production.
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However, Noble’s role in these projects appears limited to providing drilling services, not directly operating or profiting from CCS facilities.
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Absence of CCS Revenue:
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Noble’s revenue streams, as detailed in their earnings, are derived from contract drilling services, with dayrates for high-spec drillships in the mid-$400,000s to low-$500,000s and jackups in the $130,000 to $250,000 range, depending on the region.
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There is no breakdown in Noble’s financials indicating specific income from CCS-related contracts or services. The backlog of $5.8 billion as of February 2025 is attributed to drilling contracts with clients like Tullow, Petrobras, and Shell, with no mention of CCS-specific projects.
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Potential Indirect Involvement:
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Noble’s clients, such as ExxonMobil and Shell, are actively pursuing CCS and low-carbon projects. For instance, Shell’s focus on low-carbon investments contributed to its high brand value in 2024.
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If Noble’s drilling services support wells or infrastructure related to CCS (e.g., CO2 injection wells), this would be embedded in their standard drilling contracts rather than reported as a separate CCS profit center.
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Without specific contract details, it’s challenging to quantify any indirect CCS contribution, but it’s likely minimal compared to Noble’s core drilling revenue.
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Evaluation of Carbon Capture Profits
Since Noble’s earnings reports and related sources do not explicitly identify carbon capture as a distinct business segment or revenue source, the following conclusions can be drawn:
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Direct Profits from Carbon Capture: There is no evidence that Noble generated direct profits from carbon capture in Q1 2025 or full-year 2024. Their financials focus entirely on contract drilling services, with revenue driven by dayrates and utilization of their floater and jackup fleets.
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Indirect Contribution: Any involvement in CCS would likely be through drilling services for clients’ CCS projects (e.g., wells for CO2 injection). However, this is not separately quantified in Noble’s earnings, and the financial impact would be part of their broader drilling revenue, which totaled $850 to $890 million in Q4 2024 and is projected at $3,250 to $3,450 million for 2025.
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Emissions Reduction Investments: Noble’s investments in rig upgrades for lower emissions (e.g., closed bus power systems) are capital expenditures, not revenue-generating activities. These costs, estimated at $60 to $70 million per rig, are expected to enhance operational efficiency and appeal to clients with sustainability goals but do not directly contribute to profits.
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Future Potential: Noble’s strong relationships with majors like Shell and ExxonMobil, who are scaling up CCS, could position Noble to support CCS-related drilling in the future. However, as of Q1 2025, there’s no indication that CCS is a significant profit driver.
Critical Perspective
While Noble’s earnings reflect robust performance in offshore drilling, the lack of transparency about CCS involvement is notable. The oil and gas industry faces pressure to decarbonize, and companies like Noble may be indirectly supporting CCS through client projects without highlighting it in financials. This could be due to CCS being a small or nascent part of their operations or because it’s bundled into standard drilling contracts. Investors seeking exposure to CCS profits might find Noble less directly aligned with this goal compared to operators like ExxonMobil or TotalEnergies, who report specific CCS investments.
Conclusion
Noble Corporation’s Q1 2025 and full-year 2024 earnings show strong financial performance, with projected 2025 revenue of $3,250 to $3,450 million and Adjusted EBITDA of $1,050 to $1,150 million, driven by offshore drilling contracts. However, there is no clear evidence of direct profits from a carbon capture business segment. Any CCS-related activity is likely embedded in drilling services for clients like Shell or ExxonMobil, but it’s not separately reported and appears to have negligible impact on profits. Noble’s investments in emissions-reducing rig upgrades are costs, not revenue sources, aimed at aligning with industry sustainability trends. For precise CCS profit data, Noble’s investor relations (contact: Ian Macpherson, +1 713-239-6019) or future earnings reports may provide clarity if CCS becomes a distinct focus.
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