Offshore drilling in 2017
It hasn’t been a good year for offshore drilling companies. Almost all of them have had negative returns. Some offshore drillers failed to survive the downturn and filed for bankruptcy.
In November 2017, Pacific Drilling applied for Chapter 11 bankruptcy protection. In September 2017, Seadrill (SDRL) filed under Chapter 11 to restructure its $10 billion debt. To learn more about the restructuring, read Seadrill filed for bankruptcy on September 12. In March 2017, Ocean Rig filed for Chapter 15 bankruptcy protection. It reached an agreement with a group of lenders to convert $3.7 billion of debt into new equity. In June 2016, Hercules Offshore filed for bankruptcy. Except for Hercules, all these companies filed in order to restructure their debt. Hercules Offshore filed to dissolve its operations.
While many companies failed to survive this brutal downturn, many companies did survive. Even though all offshore drillers traded in the red this year, we’re still going to analyze the top five YTD returns of companies in the industry. We’ve selected companies with market capitalizations of more than $1 billion.
Top 5 offshore drillers
Diamond Offshore Drilling (DO) was the best performer among its peers in 2017. Its stock has fallen just 3.5% as of December 12, 2017. Next is Rowan Companies (RDC), which has fallen 22.6% YTD. Noble Corporation (NE), Transocean (RIG), and Ensco (ESV) have fallen 28%, 32.2%, and 42.5%, respectively.