Bankrupt Seadrill’s Stock Up 43% Last Week
Offshore drilling stocks
In the week ending November 10, 2017, all of the offshore drilling stocks traded in the green. Seadrill (SDRL) was the best performer. The stock rose more than 42%. Diamond Offshore was the worst performer among peers with a 5.8% rise.
Seadrill stock rose 42.8% in the previous week. According to reports, two groups have shown interest in making offers that would rival a debt-cutting plan put forward by the bankrupt Seadrill’s major shareholder, John Fredriksen. The proposal has come from a group holding 25% of Seadrill’s bonds. The other plan came from a bond investor. The company has been soliciting restructuring offers.
Below are the stock returns of offshore drilling companies on November 10, 2017, compared to their prices a week ago:
- Transocean (RIG) rose 6.4%.
- Noble (NE) rose 13.2%.
- Diamond Offshore (DO) rose 5.8%.
- Rowan Companies (RDC) rose 8.3%.
- Ensco (ESV) rose 14.1%.
The VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, rose 4.1% during the same week.
Even though Seadrill’s stock jumped this week, it still has the worst year-to-date returns among peers. As of November 10, Seadrill’s stock has fallen 89.1% from the start of the year. Ensco gave a year-to-date return of -39%. Noble stock fell 25.5% YTD. Among the above-mentioned stocks, Diamond Offshore is the best performer with a fall of 4.9%.
In the rest of this series, we’ll see where the rig count and oil prices are headed in the week ending November 10. In the last part of the series, we’ll see how analysts revised target prices and recommendations in the previous week for offshore drilling companies.