Seadrill: Best Performer among Peers Last Week



Stock performance

Offshore drilling stocks had mixed returns in Week 30, which ended July 27. The best performer during the week was Seadrill (SDRL). Noble Corporation (NE) was the weakest performer among its peers.

Peer stocks

Below are offshore drilling companies’ stock returns in Week 30:

  • Seadrill Partners (SDLP): fell 3.76%
  • Transocean (RIG): rose 1.57%
  • Noble Corporation (NE): fell 4.93%
  • Diamond Offshore Drilling (DO): rose 3.58%
  • Rowan Companies (RDC): fell 0.49%
  • Ensco (ESV): rose 3.96%
  • Seadrill (SDRL): rose 9.33%

The VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, rose 0.67%.

Year-to-date returns

At the end of June, Seadrill had the highest YTD (year-to-date) return among its peers. However, a month later, the situation has completely reversed. With a year-to-date return of -67.08% as of July 27, Seadrill has the lowest YTD return among its peers. On July 2, Seadrill stock fell more than 52% after the company announced that it successfully emerged from Chapter 11 bankruptcy. The 52% fall was followed by another fall of 30% the next day. To know more about why Seadrill stock fell so much, read Market Realist’s article Why Seadrill Stock fell 52% on July 2. As of July 27, Noble had a YTD return of 23.6%, and Transocean had a YTD return of 20.8%.

In the next part of this series, we’ll see where the offshore rig count is headed in Week 30. We’ll also look at other updates and analysts’ revised target prices and recommendations for offshore drilling stocks.

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