real-time news and commentary for investors
Wednesday, Sep 25
Noble spinoff mirrors industry focus on new fleets
- Analysts praise Noble Corp.'s (NE) plan to split itself in two, seeking to improve the quality of its fleet by sending its aging assets to market next year and focusing on its newer, more advanced vessels.
- The news was "long awaited but still positive,” Tudor Pickering says, adding the new fleet will have solid contracts and the time frame for the IPO is realistic.
- "The commodity-era jackups and floaters are not going to see strong utilization forever, and now’s a good time to get out. It’s an addition by subtraction strategy," an S&P Capital analyst says.
- The company’s biggest rival, Transocean (RIG), last year sold off lower-quality assets for $1B and could pursue a spinoff of more of that older fleet soon.