DJ Noble Corp. Shares Up After Deal to Divest Four Jackups in Saudi Arabia

By Michael Dabaie

Shares of offshore drilling contractor Noble Corp. were up 5% to $23.22 in afternoon trading after a deal to divest four jackup rigs in Saudi Arabia.

The company said it would sell the four jackup rigs in Saudi Arabia to ADES International Holding Ltd. for $292 million.

"The sale of these four jackups further bolsters our already strong balance sheet and improves Noble's financial flexibility. As we look to 2022, our anticipated net cash position coupled with our expected free cash flow generation better positions the company to execute on our financial priorities to repay debt and return cash to shareholders," said Chief Executive Robert Eifler.

Based on the impact of the deal, Noble guided for 2021 adjusted revenue of $870 million to $890 million and 2022 adjusted revenue of $975 million to $1.05 billion. The company sees adjusted earnings before interest, taxes, depreciation and amortization of $110 million to $120 million in 2021 and $265 million to $300 million for 2022.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

August 26, 2021 14:04 ET (18:04 GMT)

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