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Sink or Swim: Which Offshore Drillers Survived the Downturn?

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Stock performances

Offshore drillers have seen mixed returns on a year-to-date basis. The worst performer in the offshore drilling (IYE) industry has been Rowan Companies, and the best performer has been Ensco.

The following are the stock returns of offshore drilling (OIH) companies as of January 29, 2018, compared to their prices at the start of the year:

  • Diamond Offshore Drilling (DO): 4.6% fall
  • Noble Corporation (NE) : 3.3% rise
  • Transocean (RIG): 1.9% rise
  • Rowan Companies (RDC): 6% fall
  • Seadrill Partners (SDLP): 0.55% rise
  • Ensco (ESV): 5.3% rise
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Bankrupt companies

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.

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 its 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 filed to dissolve its operations.

Surviving companies

While many companies failed to survive the brutal downturn, many others did survive. In this series, we’ll give you the tools to assess these surviving offshore drillers. It’s a starting point to help you figure out which offshore drilling stocks to long or short based on the current industry outlook. We’ll also compare the key fundamentals you should consider when analyzing offshore drilling companies.

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