Image: Jack-up Noble Sam Turner
Investment Thesis
The London-based Noble Corporation (NE) released its fourth-quarter 2019 results, which confirmed again that the offshore drilling industry is not near a turnaround despite recurring calls of an elusive recovery that seems sailing away as soon as we close in.
Thus, I do not think NE should be considered as investment potential, but in terms of a trading tool, it has been exceptional for me.
The contract backlog is still eroding, albeit at a slower pace, and average daily revenues, adjusted for the Shell contract buyout, improved to