SDRLF - Noble Corporation's Hand Likely Forced By Saudi Arabia In Recent Jackup Divestiture
- Company surprisingly exits Saudi Arabia by selling four modern jackup rigs to competitor ADES International ("ADES") at a less-than-stellar price.
- With ADES partially owned by the Kingdom, Noble might have been pressured to sell the rigs. Nevertheless, the transaction vastly increases the company's cash on hand thus providing additional flexibility.
- Preliminary FY2022 guidance translates to material free cash flow generation ahead of competitors next year.
- Discussing potential for further industry consolidation.
- Reiterating constructive industry view with a preference for restructured players like Valaris or Noble over debt-laden floating rig leader Transocean or modern jackup pure play Borr Drilling.
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Noble Corporation's Hand Likely Forced By Saudi Arabia In Recent Jackup Divestiture