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Deepwater Offshore Drilling Momentum Is Slowing

By Travis Hoium - Updated Apr 7, 2017 at 11:13AM

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A look at results from Noble(NEBLQ) and Diamond Offshore(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 (SDRL)and Transocean(RIG -1.45%), 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. 

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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.

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Stocks Mentioned

Transocean Ltd. Stock Quote
Transocean Ltd.
RIG
$3.41 (-1.45%) $0.05
SeaDrill Limited Stock Quote
SeaDrill Limited
SDRL
Diamond Offshore Drilling, Inc. Stock Quote
Diamond Offshore Drilling, Inc.
DO
Hercules Offshore, Inc. Stock Quote
Hercules Offshore, Inc.
HERO.DL
Noble Corporation plc Stock Quote
Noble Corporation plc
NEBLQ

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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