Noble Corp. (NE, Financial) filed Quarterly Report for the period ended 2009-06-30.
Noble Corp. is a leading provider of diversified services for the oil and gas industry. Contract drilling services are performed with the company\'s fleet of offshore drilling units located in key marketsworldwide. The company\'s fleet of floating deepwater units consists of nine semisubmersibles and three dynamically positioned drillships seven of which are designed to operate in water depths greater than 5000 feet.(Press Release) Noble Corp. has a market cap of $9 billion; its shares were traded at around $34.44 with a P/E ratio of 5.5 and P/S ratio of 2.5. Noble Corp. had an annual average earning growth of 16.5% over the past 10 years. GuruFocus rated Noble Corp. the business predictability rank of 2.5-star.
In the second quarter of 2009, we recognized net income of $392 million, or $1.49 per diluted share, on total revenues of $899 million. The average dayrate across our worldwide fleet increased to $198,270 for the second quarter of 2009 from $194,308 in the first quarter of 2009. Fleetwide average utilization was 84 percent in the second quarter of 2009, as compared to 86 percent in the first quarter of 2009. Daily contract drilling services costs increased to $57,332 for the second quarter of 2009 from $53,646 for the first quarter of 2009. As a result, our contract drilling services margin decreased slightly to 71 percent in the second quarter of 2009 from 72 percent in the first quarter of 2009.
Net income for the three months ended June 30, 2009 (the Current Quarter) was $392 million, or $1.49 per diluted share, on operating revenues of $899 million, compared to net income for the three months ended June 30, 2008 (the Comparable Quarter) of $376 million, or $1.39 per diluted share, on operating revenues of $813 million.
Read the The complete ReportNE is in the portfolios of PRIMECAP Management, David Dreman of Dreman Value Management.
Noble Corp. is a leading provider of diversified services for the oil and gas industry. Contract drilling services are performed with the company\'s fleet of offshore drilling units located in key marketsworldwide. The company\'s fleet of floating deepwater units consists of nine semisubmersibles and three dynamically positioned drillships seven of which are designed to operate in water depths greater than 5000 feet.(Press Release) Noble Corp. has a market cap of $9 billion; its shares were traded at around $34.44 with a P/E ratio of 5.5 and P/S ratio of 2.5. Noble Corp. had an annual average earning growth of 16.5% over the past 10 years. GuruFocus rated Noble Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:
While the global macro environment improved during the second quarter 2009 compared to the previous two quarters, the worldwide economy remains uncertain. Oil prices strengthened during the quarter to reach the $60 to $70 per barrel range; however, prices continue to be volatile. Various economic indicators also continue to be mixed, leading to broad concern about length of the economic recovery. In spite of higher oil prices, we have not seen a substantial increase in demand for offshore drilling services. Demand remains high in the deepwater market segment, but there is little contract activity across the midwater or shallow water segments. In particular, dayrates for jackup units have decreased up to fifty percent in most regions and utilization has dropped significantly. While we believe that the risk for early contract terminations of, or defaults under, existing contracts has decreased, that risk has not been eliminated. We believe the contracting environment will continue to be challenging throughout the remainder of 2009. If the global economy continues to improve and oil prices stabilize, we hope to see increased demand for contract drilling services in 2010. However, due to the introduction of newbuild jackup units into the market, it is possible that dayrates for jackup units may not improve from current levels and could decline further as more units compete for available jobs.In the second quarter of 2009, we recognized net income of $392 million, or $1.49 per diluted share, on total revenues of $899 million. The average dayrate across our worldwide fleet increased to $198,270 for the second quarter of 2009 from $194,308 in the first quarter of 2009. Fleetwide average utilization was 84 percent in the second quarter of 2009, as compared to 86 percent in the first quarter of 2009. Daily contract drilling services costs increased to $57,332 for the second quarter of 2009 from $53,646 for the first quarter of 2009. As a result, our contract drilling services margin decreased slightly to 71 percent in the second quarter of 2009 from 72 percent in the first quarter of 2009.
Net income for the three months ended June 30, 2009 (the Current Quarter) was $392 million, or $1.49 per diluted share, on operating revenues of $899 million, compared to net income for the three months ended June 30, 2008 (the Comparable Quarter) of $376 million, or $1.39 per diluted share, on operating revenues of $813 million.
Read the The complete ReportNE is in the portfolios of PRIMECAP Management, David Dreman of Dreman Value Management.
