What Do Noble Corporation’s Results Tell Us about the Industry



Offshore drilling industry

On August 31, the price of Brent crude oil touched $54 per barrel, nearly an 8% rise from the previous closing price of $50.05 per barrel. However, this price level did not last long, with oil falling to $49 on September 7, 2015. The drilling industry is highly influenced by oil prices, which affect the rates exploration and production firms are willing to pay for drilling services. It has been a tough year for offshore drilling (OIH) companies such as Diamond Offshore (DO), Noble Corporation (NE), Atwood Oceanics (ATW), Seadrill (SDRL), Pacific Drilling (PACD), Transocean (RIG), and Ensco (ESV).

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Actual earnings versus estimates

In 2Q15, Noble Corporation (NE) beat market estimates for EBITDA (earnings before interest, tax, depreciation, and amortization) as well as revenue. The company reported 2Q15 revenue of $793.50 million, compared to analyst estimates of $768.65 million. Similarly, its EBITDA was $434.30 million against analyst estimates of $394.87 million.

What you’ll find in this series

In this series, we will look at Noble Corporation’s (NE) 2Q15 results and conference call highlights. We will analyze the company’s current position, management’s future plans, and discussions between management and analysts to gauge the company’s future.

About Noble Corporation

Noble Corporation (NE) is an offshore drilling contractor for the oil and gas industry. The company owns and operates 32 drilling units—8 submersibles, 9 drillships, and 15 jack-ups. The company focuses on ultra-deepwater and high specification jack-up drilling opportunities in the United States, Brazil, Argentina, the North Sea, the Mediterranean Sea, the Black Sea, the Middle East, Asia, and Australia. Noble Corporation has been engaged in this business since 1921.


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