A look at results from Noble and Diamond Offshore 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 Seadrilland Transocean, 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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The article Deepwater Offshore Drilling Momentum Is Slowing originally appeared on Fool.com.
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.