Offshore drilling contractor Noble Corporation noticed its quarterly internet loss deepen after being negatively affected by rig impairment prices amid decrease demand because of the coronavirus pandemic and low oil costs.

Noble on Wednesday reported a internet loss attributable to the corporate for the three months ended 31 March 2020, of $1.1 billion on whole revenues of $281 million.

In the identical interval of 2019, Noble recorded a internet lack of $70.9 million and revenues of $282.9 million.

Results for the primary quarter 2020 included internet after-tax unfavourable objects totalling $977 million – together with a pre-tax non-cash cost totalling $1.1 billion, regarding the impairment of the semi-submersible rigs Noble Danny Adkins and Noble Jim Day, the drillships Noble Bully I and Noble Bully II, and sure capital spares.

This was partially offset by tax advantages totalling $47 million, together with a advantage of $43 million, relating primarily to the appliance of the Coronavirus Aid, Relief, and Economic Security Act provisions handed by the US Congress to handle the adversarial financial influence ensuing from the COVID-19 pandemic.

Excluding the influence of this stuff, Noble would have reported a 1Q 2020 internet lack of $86 million.

Julie J. Robertson, Chairman, President and Chief Executive Officer of Noble Corporation, famous: “We have lately lowered our G&A and shore-based assist burden by roughly $25 million on an annualized foundation and proceed to hunt extra price effectivity measures to additional streamline our group for present market exercise“.

Robertson additionally stated that the corporate had employed Evercore as a monetary advisor to guage alternate options to boost Noble’s liquidity place and cut back the whole quantity of debt and corresponding curiosity prices.

“These alternate options embody, however should not restricted to, potential capital alternate transactions in addition to a extra complete debt restructuring“, Robertson said.

Commenting on the state of the offshore drilling trade, Robertson added, “The discount in demand because of the COVID-19 pandemic and the precipitous escalation in world crude oil provides have positioned the oil and gasoline trade in a state of heightened duress.

The penalties of this mix of detrimental occasions are more and more seen, and the offshore drilling trade will endure one other interval of depressed enterprise exercise for a period of time that continues to be tough to forecast”.

The publish Rig impairments take Noble Corp. deeper into the crimson appeared first on Offshore Energy.

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