In week 19, the week ended May 11, Rowan Companies and Noble Corporation were the best performers among the offshore drilling stocks. Both stocks rose more than 12.0% last week. Seadrill Partners, which rose less than 1.0%, was the lowest performer among its peers.
On May 10, Transocean’s (RIG) stock price of $13.50 was the new 52-week high for the stock. RIG stock rose 7.7% in week 19. Rowan Companies (RDC) stock rose ~12.0%, Diamond Offshore (DO) stock rose 4.0%, and Ensco (ESV) stock rose 12.7%.
Noble Corporation (NE) stock rose ~12.1%, Seadrill (SDRL) rose 8.0%, and Seadrill Partners (SDLP) rose 0.3% in week 19. In the same period, the VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, rose ~3.1%.
The US offshore rig count totaled 21 in week 19—an increase of two over the previous week. In week 18, the offshore rig count had risen by one. The offshore rig count was the same as in the previous year.
The total US rig count, including oil and natural gas rigs, was 1,045 in the week ended May 11—13 rigs more than in the previous week. The rig count was significantly higher than the 885 rigs reported during the same period in 2017. In week 19, the US oil rig total was 844—ten more than in the previous week.
In the next part of this series, we’ll see updates from Noble Corporation’s latest fleet status report. We’ll also examine analysts’ revisions in week 19 for offshore drilling stocks.