Ensco: Why 3 Analysts Revised Their Recommendations
Of the 35 analysts covering Ensco (ESV), three analysts gave “strong buy” recommendations, while eight analysts gave “buy” recommendations.
Along with falling revenues, analysts expect a fall in Ensco’s EBITDA for 1Q17. Analysts estimate that Ensco’s EBITDA could be $156 million in 1Q17.
Wall Street analysts estimate revenues of just over $469 million in 1Q17 for Ensco (ESV)—a fall from revenues of $504 million in 4Q16.
Ensco (ESV) plans to release its 1Q17 results on April 27, 2017, before the market opens. The company plans to hold its conference call the same day.
Seadrill (SDRL) has a cash balance of $1.4 billion, which brings its net interest-bearing debt to $8.5 billion.
Bankruptcy protection does not mean liquidation, and the company is able to continue with its business operations.
On April 4, 2017, Seadrill’s stock price fell 55.7% in a single trading session and reached a 52-week low of $0.65.
Seadrill (SDRL) subsidiary North Atlantic Drilling (NADL) has secured a ten-year contract for West Elara and West Linus with ConocoPhillips (COP). The rigs should add ~$1.4 billion to its backlog.
In the previous part of this series, we saw that President Donald Trump is preparing an executive order that will open new areas of the Arctic and Atlantic oceans to oil and gas drilling.
President Donald Trump is preparing an executive order to open new areas of the Arctic and Atlantic oceans to oil and gas drilling.
Transocean’s (RIG) stock had relatively a good run in 4Q16, but the stock’s good times were short lived—RIG stock has fallen 14.3% so far in 2017.
Transocean (RIG) has successfully bagged two multimillion-dollar rig contracts, which have come as good news for the struggling offshore drilling industry.
Offshore drilling (IYE) (OIH) companies are cyclical and volatile in nature. They’re also capital-intensive, with high levels of depreciation and amortization, and their financial leverages vary.
In this part of the series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing.
Usually, if a stock is trading below its 30-day moving average or its 200-day moving average, it’s an indication that the stock is oversold.
Debt acts as a lever, magnifying gains and losses. Companies with high debt in hard times have greater chances of going bankrupt, but high leverage can also be positive if these companies survive.
In February 2016, Moody’s downgraded Noble (NE) to a Baa3 rating from a B1 rating. It downgraded Seadrill Partners (SDLP) by three notches to Caa2.
Except for Seadrill (SDRL), Ocean Rig (ORIG), Atwood Oceanics (ATW), and Ensco (ESV), all offshore drilling companies’ current ratios rose at the end of 4Q16.
Offshore (OIH) exploration and development wells are drilled with the use of rigs. Rigs come in various sizes and with various characteristics.
Because these offshore drilling (IYE) companies vary in size, it’s not a good idea to compare their backlogs. So, we’ll compare them by way of their backlog-to-revenue ratios.