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Week 22: Offshore Rig Count Is Flat from the Previous Week

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Stock performance

Most of the offshore drilling stocks traded in the green in the week ended June 1, returning 3.0%–6.5%. The best performer among these peers for week 22 was Seadrill (SDRL). The stock had fallen more than 32.0% in week 21. In week 22, the weakest performer among its peers was Seadrill Partners, which was the only stock trading in the red.

Peers

Following are the stock returns of offshore drilling stocks in week 22:

  • Seadrill Partners (SDLP): fell 0.29%
  • Transocean (RIG): rose 4.8%
  • Noble (NE): rose ~3.9%
  • Diamond Offshore (DO): rose 4.9%
  • Rowan Companies (RDC): rose 3.1%
  • Ensco (ESV): rose 3.1%
  • 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 0.14%.

Rig count

The US offshore rig count totaled 19 in week 22—unchanged from the previous week. In week 21, the offshore rig count remained flat. The offshore rig count was down by four compared to the same period in 2017.

The total US rig count, including oil and natural gas rigs, was 1,060 in the week ended June 1—13 rigs more than in the previous week. The rig count was significantly higher than the 916 rigs reported during the same period in 2017. In week 22, the US oil rig total was 861—two more than in the previous week.

In the next part of this series, we’ll see how analysts revised their target prices and recommendations for offshore drilling stocks in week 22.

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