Noble Drilling Corp News

American Classic Voyages Co. subsidiaries Delta Queen will trim its upcoming cruise schedule by a combined total of 27 cruises. Delta Queen Coastal Voyages will eliminate three cruises in 2001. Also, the 2002 summer and fall schedule of the 174-passenger Delta Queen will be enhanced to meet passenger demand for more variety. Moody's Investors Service confirmed the A2 senior ratings of Carnival Corporation, but changed the rating outlook to negative reflecting the uncertain economic and industry conditions that the company faces in the wake of the attacks on the U.S. Moody's believes the events of September 11 will further stress industry conditions that were already suffering from price weakness.

ABN AMRO raised its 2001 earnings estimates for several offshore drillers and said the oil service industry was in the early stages of a multiyear growth phase. "We are raising our 2000 and 2001 upstream capital spending growth estimates,'' analyst Asit Sen said in a research note. "We note that our views are above the latest consensus expectations. To reflect higher-than-previously expected day rates/utilization rates, we are also raising our 2001 earnings estimates and price targets," he said. "We believe that the sector is in the early stages of a multiyear growth phase. Accordingly, we would use any periods of significant near-term weakness as buying opportunities," he added.

Noble Drilling Corp. said on Monday that the Noble Jimmy Puckett, a 300-ft. independent leg cantilever jackup rig, was damaged when it encountered severe weather while under tow in Indian waters. The Houston-based company said the rig had lost its derrick and other drilling components. It is currently in Mumbai, India, waiting out the inclement weather so that a full assessment of the damage can be conducted - a process, which according to Noble, may encompass several weeks.

A recent report from Lehman Brothers found that global offshore drilling budgets are set to grow more than 10 percent in the coming year. The survey, which utilized the opinion of 320 oil companies, indicated that primary drivers for growth will be the North American offshore drilling market, with the U.S. and Canada expected to spend 15.7% and 28% more respectively. Spending outside of North America is not expected to expand so rapidly. The findings have sparked a mini rally among the offshore oilfield services stocks, a volatile group which has enjoyed a healthy 1999 nonetheless. Crude oil, gasoline and heating oil all posted big gains on the New York Mercantile Exchange on Wednesday after industry data showed a huge decline in oil and refined products stored in the U.

Offshore oilfield service stocks, to put it mildly, have endured a wild ride for much of 1999. The once high-flying sector actually hit the skids in concert with the late 1997 Asian financial crisis, and resultant plummet in oil prices. Despite a raging rally in oil pricing for much of the year, investors have cautiously approached the stocks. One reason for the caution is purely psychological, as too many investors have been burned too many times on the cyclical stocks. Another is political, as OPEC’s current production restraints are eyed warily. Nevertheless, last Wednesday proved a boon to these companies collectively, as a bullish market for crude oil and refined oil products fueled strong gains for U.S. oilfield service and drilling stocks.

Offshore oilfield service stocks, to put it mildly, have endured a wild ride for much of 1999. The once high-flying sector actually hit the skids in concert with the late 1997 Asian financial crisis, and resultant plummet in oil prices. Despite a raging rally in oil pricing for much of the year, investors have cautiously approached the stocks. One reason for the caution is purely psychological, as too many investors have been burned too many times on the cyclical stocks. Another is political, as OPEC's current production restraints are eyed warily. Nevertheless, last Wednesday proved a boon to these companies collectively, as a bullish market for crude oil and refined oil products fueled strong gains for U.S. oilfield service and drilling stocks.

It appears that the long awaited, much antipated and greatly debated offshore boom part II is prepared to launch again, as offshore drilling stocks surged on Thursday as U.S. crude oil prices hit a fresh nine-year high of $32.15 a barrel, fueling a second day of strong gains on Wall Street for the oilfield services sector. Drilling stocks across the board were flying high, some posting high single and low double digit gains for the day. At mid-day R&B Falcon Corp. was 1-1/2 higher at 18-1/8 and Santa Fe International Corp. was up 3 at 32-15/16 -- gains of roughly 9 and 10 percent respectively. It was the second straight day of substantial gains for oilfield services stocks…