Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: HH who wrote (26577)	7/26/1998 11:01:00 PM
From: Bazmataz	Respond to of 95453

If this has been posted already, sorry. Anyone care to comment? Noble says Gulf of Mexico to stay weak in Q3 HOUSTON, July 24 (Reuters) - Noble Drilling Corp. said on Friday it expected offshore drilling markets in the Gulf of Mexico and Venezuela to remain weak in the third quarter. But President and Chief Executive Officer James Day told a conference call that other markets were holding up well. Day also said the recent decline in day rates for drilling rigs in the Gulf of Mexico could spark a revival in drilling activity in that region. ''Third and fourth quarter, you could continue to see, certainly way into the third quarter, weakness in the Gulf of Mexico,'' Day said. ''Venezuela continues to be very weak. Many of the oil companies that have come down there to drill have been standing on the sidelines because of the reorganization within (Venezuelan state oil company) PDVSA,'' he said, referring to Petroleos de Venezuela. Noble's conference call came a day after the Houston-based company reported a 52 percent rise in net income, excluding non-recurring items, to $50.4 million or $0.38 per diluted share, from $33.2 million, or $0.25 per diluted share, in the year-ago period. The First Call consensus of analysts' estimates for Noble's second-quarter earnings had been slightly higher at $0.40 per share. Day painted a brighter picture of markets in other regions such as Brazil, the West Coast of Africa and the Middle East. ''In other areas of the world...we from our operating perspective, feel fairly comfortable that any (contract) renewals that we have coming up won't be a problem and, in fact, in most cases, the renewal day rates will be going up,'' he said. Day said the recent erosion of day rates for rigs in the Gulf of Mexico, caused by the protracted slump in world oil prices, might soon lead to a revival in demand for rigs from oil firms. ''You may start seeing a few independents becoming active again later this quarter and taking up some of this overhang that's existing in the market,'' he said. Noble's stock fell 13/16 to 20-1/16 on Friday in trading onthe New York Stock Exchange