SOURCE: The Bedford Report

The Bedford Report

August 25, 2010 08:30 ET

Analyst Research on Noble (NYSE: NE) & Diamond Offshore Drilling (NYSE: DO) -- Industry Outlook for Offshore Drillers

Note to Editors: The Following Is an Investment Opinion Being Issued by The Bedford Report

TORONTO--(Marketwire - August 25, 2010) -  The Bedford Report examines the outlook for companies in the Oil & Gas Drilling & Exploration Industry and provides research reports on Noble Corp. (NYSE: NE) and Diamond Offshore Drilling Inc. (NYSE: DO). Access to the full company reports can be found at

In the face of negative economic reports crude oil has slumped below the $72 level for the first time in 11 weeks, as the market braces itself for a possible double dip recession. In addition to negative news on the economic front, the industry is reporting growing inventories of fuels, further holding back the price of crude oil. In our view the outlook for a recovery in the price of crude oil is weak at this point, with the potential for short term pull backs in the market until economic recovery takes further hold.

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Offshore drilling companies face a particularly difficult climate in the wake of the BP oil spill in the Gulf of Mexico, with many uncertainties as the government fights to impose stricter controls on exploration. Noble Corp. & Diamond Offshore Drilling Ltd. face particular difficulties given their heavy involvement in the Gulf.

On the earnings front both Noble & Diamond Offshore Drilling failed to meet analyst expectations with earnings of $0.93 and $1.61 respectively. Noble saw total revenue in the quarter drop 21% to $709.0 million. Diamond saw Total Revenue drop 13% to $822.6 million. These results prompted Diamond to cut its special dividend to $0.75 per share.

Investors can get copies of the full analyst reports on Noble Corp. and Diamond Offshore Drilling Ltd. by registering for free at

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