This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Noble Secures New Contracts, Enhances Management Procedures - Research Report On Noble Corporation

NEW YORK, January 24, 2013 /PRNewswire/ --

Contract activities for offshore drilling companies continue to rise given the high level of demand for offshore drilling services. In light of this, Noble Corporation (NYSE: NE) [ Full Research Report] (1) recently updated its drilling rig status report stating three new contracts in the North Sea, West Africa, and Arabian Gulf areas. Operations for the new contracts will begin in the second quarter of 2013.

The new contracts are promising signs for investors, though it may take a while before the company can deliver again after experiencing operational downtime last year. The effect of the prolonged downtime from their rigs in the Gulf of Mexico and offshore Brazil is noticeable from the company's third quarter earnings, with the company earning only $112 million or $0.45 per share, missing the analysts' consensus estimate of $0.52 by $0.07. Earnings were down 15.1% from 2011.

As traditional oil fields produce less and less yield each year, the demand levels for offshore drilling service rise. This leads to higher day rates and more profitable operations. Drilling activity in the US Gulf of Mexico has also resumed, after it took a halt following the 2010 oil spill.

Nevertheless, this high demand for offshore drilling service cannot be fully taken advantage of if Noble Corporation continues to suffer downtime. Late last year, the U.S. Coast Guard raised several issues regarding Noble's drillship Noble Discoverer. Complaints were mostly concerned with the drillship's propulsion and safety management systems. Noble also experienced downtime in its other drill rigs, with a total of 68 days of downtime in the month of December alone.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs