All posts from in,

Noble Corporation Management’s Thoughts on Cost Cutting in 3Q15

Key Takeaways from Noble Corporation's 2Q15 Earnings

(Continued from Prior Part)

Cost cutting initiatives

To withstand the current industry downturn, offshore drilling companies (OIH) have no choice but to reduce their costs as much as possible. Noble Corporation (NE), along with its peers such as Diamond Offshore (DO), Atwood Oceanics (ATW), Seadrill (SDRL), and Ensco (ESV), has announced cost reduction plans to maintain margins. Noble Corporation’s (NE) drilling expense-to-revenue ratio has drastically decreased from 47% in 2Q14 to 41% in 2Q15.

Drilling expenses

  • As the above chart shows, Noble Corp’s...