Noble (NE) risk factors, FY2024 10-K

Risks Related to Our Business and Operations

1. 01The offshore contract drilling industry is a highly competitive and cyclical business with intense price competition. If we are unable to compete successfully, our profitability may be materially reduced
2. 02Our ability to renew contracts that expire or obtain new contracts and the terms of any such contracts will depend on market conditions and our customers' expectations and assumptions of future oil prices and other factors
3. 03Drilling contracts with national oil companies may expose us to greater risks than we normally assume in drilling contracts with non-governmental customers
4. 04Our current backlog of contract drilling revenue may not be ultimately realized
5. 05Our business may be impacted by numerous operating hazards
6. 06Unionization efforts, labor interruptions, and labor regulations could have a material adverse effect on our operations
7. 07A major natural disaster, catastrophic event, acts of war, terrorism, social unrest, pandemic, or other similar event could have a materially adverse effect on our business, financial condition, and results of operations, or have other adverse consequences
8. 08We face risks associated with our participation in certain joint ventures as well as investments in associates
9. 09We are exposed to risks relating to operations in international locations, including the mobilization and demobilization of our rigs to and from such locations
10. 10Operating and maintenance costs of our rigs may be significant and may not correspond to revenue earned
11. 11Inflation may adversely affect our operating results
12. 12We may have difficulty obtaining or maintaining insurance in the future and our insurance coverage and contractual indemnity rights may not protect us against all the risks and hazards we face
13. 13Our failure to adequately protect our sensitive information and operational technology systems and critical data and our service providers’ failure to protect their systems and data could have a material adverse effect on our business, results of operations, and financial condition
14. 14Upgrades, refurbishment, and repair of rigs are subject to risks, including delays and cost overruns, that could have an adverse impact on our available cash resources and results of operations
15. 15Failure to attract and retain skilled personnel or an increase in personnel costs could adversely affect our operations
16. 16Supplier capacity constraints or shortages in parts or equipment, supplier production disruptions, supplier quality, and sourcing issues or price increases could increase our operating costs, decrease our revenues, and adversely impact our operations
17. 17We may experience risks associated with future mergers, acquisitions, dispositions of businesses or assets, or other strategic transactions
18. 18We may not achieve the intended benefits of the Diamond Transaction, and the Diamond Transaction may disrupt its current plans or operations
19. 19Failure to effectively and timely respond to the impact of long-term changes in the energy mix could adversely affect our business, results of operations, and cash flows
20. 20We face risks associated with creating and executing new business models, particularly when such business models involve a risk profile, remuneration, or financial scheme that is different from a conventional drilling contract
21. 21(ii)exploring alternative financial models focused on risk and reward sharing through, among other things, bonus-malice schemes, deferred payments, fixed pricing, or co-investments, enabling operators to develop fields that would otherwise be economically challenged

Regulatory and Legal Risks

1. 22Changes in, compliance with, or our failure to comply with certain laws and regulations could have a material adverse effect on our results of operations by adding to our costs, or negatively impact our operations by causing delays or limiting activity
2. 23Any violation of anti-bribery, anti-corruption, or anti-fraud laws, including the Foreign Corrupt Practices Act, the United Kingdom Bribery Act, or other applicable laws and regulations could result in significant expenses, divert management attention, and otherwise have a negative impact on the Company
3. 24Any failure to comply with the complex laws and regulations governing international trade could adversely affect our operations
4. 25sanctions, such as fines, imprisonment, debarment from government contracts, seizure of shipments, and loss of import and export privileges
5. 26We are, or in the future could be, subject to investigations, litigation and claims that could have an adverse effect on us

Financial, Tax, and Governance Risks

1. 27We may record impairment charges on property and equipment, including rigs and related capital spares
2. 28The 2023 Revolving Credit Agreement, the indenture for the 2030 Notes, and the indenture for the Diamond Second Lien Notes each contain various restrictive covenants limiting the discretion of our management in operating our business
3. 29A loss of a major tax dispute or a successful tax challenge to our operating structure, intercompany pricing policies, or the taxable presence of our subsidiaries in certain countries could result in a material adverse effect on our financial condition and results of operations
4. 30Our consolidated effective income tax rate may vary substantially from one reporting period to another
5. 31Fluctuations in exchange rates and nonconvertibility of currencies could result in losses to us
6. 32Certain shareholders own a significant portion of our outstanding equity securities, and their interests may not always coincide with the interests of other holders of the Ordinary Shares
7. 33Holders of the Ordinary Shares may not receive dividends on their Ordinary Shares, and we may decrease or suspend our dividend on, or our repurchases of, our Ordinary Shares
8. 34We are a holding company, and we are dependent upon cash flow from subsidiaries, joint ventures, and associates to meet our obligations
9. 35A large percentage of the Ordinary Shares (or warrants exercisable for Ordinary Shares) are held by a relatively small number of investors