Did anyone see this " Charge " coming. Problem is Headline will be Noble earnings " $.68" not the meet # of $ .82 before the charge. The knee jerk reaction will be extremely negative. In this " beat up the drillers environment" just meeting earnings estimates would have been negative---$.68 number will kill.
Yes, I didn't know when they would take the charges for the cold stacked rigs and pending sales.
They dumped all the bad news into the final report which is normally not the case.
Most everything was inline with estimates except the one time charges (47.3mm) and CD services cost, way over estimates. I was concerned about CD services. A 24mm hit. or .10 a share. I'll post my results later.
Are you ready to hold management accountable yet? 1. Delays in newbuilds missed the peak market. 2. fiasco in Arctic Sea 3. Downtime issues that were out of control. 4.Raising dividend when they could have paid down debt. I would much rather have a lower payout with a higher stock price. They should show some senior management the door. Then the new guys and the stock(bag)holders can blame the old guys instead of saying the analysts don't like us. Years and years of going in a circle. And Spinco? All we hear is how the older rigs are worthless and the future is modern and deepwater. It sounds like a set up for more bad news. With our current management, who believes we are going to get the good end of any deal to sell the old rigs?.