One of the world's largest offshore drilling contractors, Noble hires out a young fleet of drillships, semisubmersibles, and jackup rigs on a daily rate to oil giants like ExxonMobil, BP, and Petrobras, drilling in deep water from the US Gulf to the North Sea. It grew out of an Oklahoma hardware store: oil struck on a farm the Noble brothers took as payment for a debt led their nephew Lloyd Noble to found the drilling business in 1921. In the early 1950s it became the first company to drill offshore using electricity sent from shore off the Louisiana coast.
Noble swung to a $37M net loss as Brazil rig suspensions and a $42M impairment offset cost reductions.
Two rigs were suspended in Brazil and another was written down. fell 15% to $720 million and the company reported a net loss of $37 million, driven by a 22% decline in floater operating days and a $42 million on the Ocean Apex. The core fleet earned higher dayrates, but idle rigs and asset write-downs outweighed the pricing gains.
Key takeaways
A $42 million non-cash was recorded on the Ocean Apex to reduce its carrying value to estimated fair value less costs to sell, the single largest item driving the net loss.
fell 15% to $720 million, primarily from a 22% decline in floater operating days, including $43 million from the Noble Faye Kozack and Noble Courage suspensions in Brazil.
Floater average dayrates rose 3% to $412,650 and jackup dayrates increased 12% to $197,380, partially offsetting the impact of fewer operating days.
Section summaries
Management's Discussion and Analysis
Q2 2026 net loss of $37M driven by lower floater operating days, Brazil suspensions, and an impairment, partially offset by cost reductions.
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Total operating revenues fell 15% to $720M, primarily due to a 22% decline in floater operating days, including $43M from Noble Faye Kozack and Noble Courage suspensions in Brazil.
Floater average dayrates rose 3% to $412,650, while jackup dayrates increased 12% to $197,380, partially mitigating the impact of fewer operating days.
Contract drilling services costs decreased 11% to $446 million, driven by lower rental equipment, repairs, and labor costs, as well as rig divestitures.
was $144.2 million for the quarter, down 33% , and cash and equivalents fell to $456.2 million from $662.6 million at the end of Q1 2026.
The contract drilling stood at $7.1 billion, with 63% of available floater and jackup days committed for the remainder of 2026.
What changed
The $89.5 million gain on jackup sales that lifted Q1 2026 to $120.7 million did not recur; Q2 2026 instead recorded a $42 million on the Ocean Apex, swinging the bottom line to a $37 million loss.
Floater operating days fell 22% , a sharp reversal from Q1 2026 when the decline was described as reflecting fewer working days without a specific suspension event; the Q2 filing names the Noble Faye Kozack and Noble Courage suspensions in Brazil as the primary cause.
Merger and integration costs, which had fallen to $2.1 million in Q3 2025 and were not flagged as a material item in Q1 2026, were不提 in this filing, suggesting the Diamond Transaction integration is functionally complete.
What to watch
Track whether the Noble Faye Kozack and Noble Courage return to work in Q3 2026, and whether the Brazil suspensions are a temporary regulatory or contractual issue or signal a longer-term market softness in that region.
Monitor whether the Ocean Apex is sold in Q3 2026 and at what price relative to its newly impaired carrying value, testing the accuracy of the fair value estimate.
Watch for the blended floater dayrate in Q3 2026 to see whether the 3% increase to $412,650 continues as legacy Diamond contracts roll off and are replaced at current market rates.
Observe whether the $615–$665 million for 2026 is revised downward given the 33% decline in quarterly and the drop in cash reserves to $456.2 million.
Contract drilling services costs decreased 11% to $446M, driven by lower rental equipment, repairs, and labor costs, as well as rig divestitures.
A $42M was recorded on the Ocean Apex to reduce its carrying value to estimated fair value less costs to sell.
Net was $417M for H1 2026, down from $487M in H1 2025, reflecting the impact of jackup sales and Brazil suspensions.
Total stood at $7.1B as of June 30, 2026, with 63% of available floater and jackup days committed for the remainder of the year.
Quantitative and Qualitative Disclosures About Market Risk
There has been no significant change in our exposure to market risk when compared to those disclosed in Part II, Item 7A. “Quantitative and Qualitative Disclosures about Market Risk” in our Form 10-K.
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There has been no significant change in our exposure to market risk when compared to those disclosed in Part II, Item 7A. “Quantitative and Qualitative Disclosures about Market Risk” in our Form 10-K.
Information regarding legal proceedings is presented in “Note 8 — Commitments and Contingencies,” to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q and is incorporated herein by reference.
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Information regarding legal proceedings is presented in “Note 8 — Commitments and Contingencies,” to our unaudited condensed consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q and is incorporated herein by reference.
There are numerous factors that affect our business and results of operations, many of which are beyond our control. You should carefully read and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of O…
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There are numerous factors that affect our business and results of operations, many of which are beyond our control. You should carefully read and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of our Form 10-K for the year ended December 31, 2025, which contains descriptions of significant risks that might cause our actual results of operations in future periods to differ materially from those currently anticipated or expected. There have been no material changes from the risk factors disclosed in our Form 10-K for the year ended December 31, 2025.