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Deepwater Offshore Drilling Momentum Is Slowing

A look at results from Noble (NYSE: NE  ) and Diamond Offshore (NYSE: DO  ) show mixed results coming from the very important ultra-deepwater market. Utilization fell from the second to third quarter at Diamond Offshore, and dayrates fell at Noble. This resulted in a decline in revenue and profitability for both companies sequentially. As we prepare to hear from ultra-deepwater-focused companies Seadrill (NYSE: SDRL  ) and Transocean (NYSE: RIG  ) , it will be important to keep an eye on how these trends play out. Both companies are betting big on ultra-deepwater, and a drop in demand or dayrates would be a blow to their stocks. 

See more in the following video.

To learn more about the strengths and weaknesses of Seadrill, as well as what to expect from Seadrill going forward, be sure to check out this brand-new premium report one of our top Stock Advisor analysts has put together. Click here to get started.

Fool contributor Travis Hoium manages an account that owns shares of Seadrill. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool owns shares of Transocean and Seadrill. Motley Fool newsletter services recommend. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 23, 2012, at 6:28 PM, Dudebro1 wrote:

    Good story. Although, would have been better had you been wearing a deep V or slouch neck.

  • Report this Comment On October 23, 2012, at 6:46 PM, RickRickert4MVP wrote:

    Good story. Although, would have been better had you been wearing a chain with a Patron bottle pendant.

  • Report this Comment On October 24, 2012, at 3:54 PM, spokanimal wrote:

    Here you go, Travis. This will probably help you out with this:

    ... I thought you were a gaming analyst?

    Let me know if you need any more help with the drilling industry.


  • Report this Comment On October 27, 2012, at 11:49 AM, artmuseum wrote:

    "Slowing" - Bah, humbug!

    When SDRL's John Fredriksen is ACCELARATING

    growth by a spate of innovative financial vehicles + acquisitions of new units into its inventory, am I allowed to wonder what is happening to this foolish blog's not so foolish image?

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Related Tickers

10/20/2016 4:01 PM
DO $17.90 Up +0.11 +0.62%
Diamond Offshore D… CAPS Rating: ***
HERO.DL $1.16 Down -0.02 -1.50%
Hercules Offshore CAPS Rating: **
NE $6.01 Up +0.14 +2.39%
Noble CAPS Rating: ****
RIG $10.59 Up +0.13 +1.24%
Transocean CAPS Rating: ****
SDRL $2.35 Down -0.02 -0.84%
Seadrill CAPS Rating: ***