Offshore drilling stocks
In the week ending November 17, 2017, all of the offshore drilling stocks traded in the red. Seadrill was the worst performer.
Below are the stock returns of offshore drilling companies on November 17, 2017—compared to their prices a week ago.
- Seadrill (SDRL) fell 17.6%.
- Transocean (RIG) fell 10.6%.
- Noble (NE) fell 10.1%.
- Diamond Offshore (DO) fell 7.5%.
- Rowan Companies (RDC) fell 9%.
- Ensco (ESV) fell 12.8%.
The VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, fell 8% during the same week.
Seadrill stock has a worst year-to-date return. As of November 17, Seadrill stock has fallen 90.9% since the beginning of the year. Ensco had a YTD (year-to-date) return of -44.4%. Diamond Offshore was the best performer among the above-mentioned stocks. The stock has a YTD return of -8.7%.
The US offshore rig count for the week ending November 17, 2017, was 21—three higher than the previous week. The rig count was also lower by two rigs compared to the same period last year.
The total US rig count (oil and natural gas rigs) was 915 for the week ending November 17—eight higher than the previous week. The rig count was significantly higher than 588 rigs reported for the same period last year. The total US oil rigs recorded were 738—the same as the previous week.
After Seadrill, one more offshore driller has applied for Chapter 11 bankruptcy protection. In the next part of the series, we’ll discuss the other driller that applied for bankruptcy. In Part 3, we’ll see how analysts revised their recommendations and target prices for offshore drillers in the week ending November 17, 2017.