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Noble Corporation plc

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Noble Corporation’s fourth quarter 2016 loss was narrower than expected and its revenue beat the Zacks Consensus Estimate. Noble’s robust portfolio of assets, long-term commitments and strong backlog offer some relief in the currently weak pricing scenario.  What's more, Noble continues to benefit from its ability to land contract extensions even in a weak market.  Moreover, the company’s price chart has outperformed the broader market Zacks categorized Oil & Gas Drilling market.  However, uncertainty lingers over new contract flows and dayrates. Also, Noble Corp. has a large number of rigs coming off contracts and securing new contracts for those could be a challenge in the present conditions. Further, the oversupplied rig market remains a challenge for offshore drilling firms. So, until the uncertainty and volatility in oil prices subside, we see limited upside for NE shares from current levels.

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