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Oil at 2-Year High: What It Means for Offshore Drilling Industry

PART:
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Part 4
Oil at 2-Year High: What It Means for Offshore Drilling Industry PART 4 OF 4

Seadrill Stock Rose 87% in September

Trading in the green

Offshore drilling stocks traded in the green in September. On Monday, September 25, offshore drilling stocks jumped between 4% and 10% as UBS raised the target price for these drilling companies. The increased target prices were a result of UBS seeing signs of improving demand for oil rigs and signs of stabilization of the sector. According to UBS, analysts’ oil prices will normalize in 2020 and 2021.

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Seadrill stock price

In September, Seadrill’s (SDRL) stock price rose 87%. Seadrill was the best performer among offshore drillers. The stock has risen in spite of the fact that the company filed for chapter 11 bankruptcy protection. Traders have seemed to ignore the bankruptcy filing. Investors may want to be cautious about this stock, as under re-organization of the company, they could lose 100% of their invested capital. To know more, read Seadrill filed Bankruptcy on September 12.

Stock performance

All offshore drilling (OIH) stocks traded in the green in September. Below are the month-to-date returns as of September 28, 2017:

  • Ensco (ESV) rose 38.2%.
  • Transocean (RIG) rose 27.8%.
  • Diamond Offshore (DO) rose 29.2%.
  • Noble (NE) rose 41.7%.
  • Atwood Oceanics (ATW) rose 39.5%.
  • Rowan Companies (RDC) rose 30.4%.
  • Seadrill Partners (SDLP) rose 17.3%.

 

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