Week 18: US Offshore Rig Count Rose by 1

Stock performance

In week 18, the week ending May 4, Ensco and Seadrill were the best performers among offshore drilling stocks. Both of the stocks rose more than 6% last week. Diamond Offshore, which fell more than 3%, was the worst performer.

Week 18: US Offshore Rig Count Rose by 1

The following are offshore drilling companies’ stock returns for the week ending May 4.

  • Transocean (RIG) fell 2.7%.
  • Noble (NE) fell 0.64%.
  • Diamond Offshore Drilling (DO) fell 3.1%.
  • Rowan Companies (RDC) fell 1.9%.
  • Ensco (ESV) rose 6.6%.
  • Seadrill Partners (SDLP) rose 3.4%.
  • Seadrill (SDRL) rose 6.3%.

The VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, fell 0.07%.

YTD returns

Rowan Companies has the worst stock return among the offshore drilling stocks mentioned above on a YTD (year-to-date) basis. The stock has fallen more than 9% since the beginning of 2018. On the other hand, Seadrill is the best performer among its peers with a 24% YTD return.

Rig count

The US offshore rig count was 19 in week 18—one higher than the previous week. The offshore rig count was same as the previous year. The total US rig count, including oil and natural gas rigs, was 1,032 in the week ending May 4—11 rigs more than the previous week. The rig count was significantly higher than 877 rigs reported during the same period in 2017. In week 18, the US oil rig total was 834—nine more than the previous week.

In the next part, we’ll see how analysts revised the target prices and recommendation for offshore drilling stocks in week 18.