huber

Diamond Offshore and Noble Corp: Drilling Profits

Good analysis Nadeem.

I would have a question.

In the two years of 2004 and 2005 Diamond significantly outperformed Noble:

Prices January 2, 2004 January 3, 2006 Change
NE 17.80 37.31 110%
DO 20.48 72.83 255%

I think the earnings do not justify this difference:

Earnings 2003 2004 2005 2006
NE 0.63 0.54 1.08 2.66
DO -0.37 -0.06 1.91 5.12

What is the reason for this?
I would appreciate your opinion.