Sue Goodridge

In Week 30, which ended on July 27, analysts revised their target prices for Ensco after its second-quarter results.

The US offshore rig count in Week 30, which ended July 27, was 16, one less than the previous week and eight less YoY (year-over-year).

Offshore drilling stocks had mixed returns in Week 30, which ended July 27. The best performer was Seadrill (SDRL).

Transocean (RIG) released its second-quarter results yesterday after the markets closed. Let’s take a look.

In week 30, the week ending July 27, Evercore downgraded one crude tanker company and revised other companies’ target prices.

For the week ending July 27, oil prices rose 2%. Oil prices were supported by EIA’s (U.S. Energy Information Administration) weekly report.

According to Weber’s report, the Suezmax rates on the West Africa-UK route fell from $7,184 to $6,451 per day on July 20–27.

In week 30, the week ending July 27, the BDTI rose to 759 from 723. The BDTI has risen ~8.4% in 2018.

As of June 30, Ensco (ESV) had a total contracted backlog of $2.3 billion—compared to $2.8 billion as of December 31, 2017.

In the first half of 2018, Ensco had negative cash flows from operations of $18 million—compared to its positive cash flow of ~$130.5 million the previous year.

Ensco’s second-quarter revenues were 2.45% higher than expected. The company’s EBITDA was 11.6% higher than the consensus estimates.

Diamond Offshore released its second-quarter results today before the markets opened. Let’s take a look.

Transocean (RIG) is set to release its second-quarter results today after the markets close. Let’s see what analysts expect.

Dynagas LNG Partners (DLNG) released its Q2 on July 27. DLNG reported net income of $0.4 million and adjusted net income of $4.5 million.

China released its June PMI on July 1. In June, China’s manufacturing PMI was 51.5. The PMI fell 0.4% from the previous month.

China (FXI) released its key economic data for June—import and export data, auto sales data, and the manufacturing index.

Navios Maritime Midstream Partners (NAP) released its second-quarter results today. The company earned revenue of $20.8 million.

GasLog Partners (GLOP) released its second-quarter earnings today before the markets opened.

Ensco (ESV) released its quarterly fleet status report on July 19. Ensco 8503 secured a 100-day contract with Talos Energy in the US Gulf of Mexico.

Ensco stock is finally trading in the green in 2018. As of July 24, Ensco has a YTD (year-to-date) return of 14.2%.

On July 17, Morgan Stanley raised Nordic American Tankers’ (NAT) target price to $2.5 from $2.25.

On July 12–19, bunker fuel’s average price fell to $478.5 per ton from $504 per ton. The bunker fuel prices at Rotterdam fell to $416 per ton.

According to Weber’s weekly report, the VLCC (very large crude carrier) demand was stronger in week 29, which led to a rebound in VLCC rates.

The BDTI can be used to assess the crude tanker industry. In week 29 (week ending July 20), the BDTI fell from 744 to 723.

Transocean’s (RIG) ultra-deepwater semi-submersible GSF Development Driller I has secured an 11-well contract with Chevron (CVX) in Australia.

In Week 29, which ended on July 20, all offshore drilling stocks traded in the red. Seadrill (SDRL) fell the most.

Analysts’ consensus rating for Noble is 3.2 on a scale of 1 (“strong buy”) to 5 (“strong sell”), meaning “hold.”

According to Reuters, ten analysts have given recommendations on Golar LNG Partners (GMLP). The consensus rating on the stock is a “buy.”

Eight analysts have given recommendations on Teekay LNG Partners. Of these, 37% of analysts are bullish.

According to Reuters, the consensus rating for GasLog (GLOG) is 2.08, which means a “buy” on a scale of one (strong buy) to five (strong sell).

In Week 28, RBC Capital, BMO, Evercore, and Susquehanna revised target prices for offshore drilling companies.

According to Noble’s latest fleet status report, the company has secured two contracts and one contract extension for its jackup rigs.

Most offshore drilling stocks traded in the green in the week ended July 13. The best performer during the week was Noble.

In Week 28, analysts made no target price revisions or recommendation changes for crude tanker companies.

Between July and July 12, bunker fuel’s average price fell to $504 from $505.25 per ton.

According to Charles R. Weber’s weekly report, VLCC (very large crude carrier) demand across all key global markets was muted last week, softening rates.

In this part of our series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing.

Earlier in this series, we analyzed and compared the business fundamentals of different offshore drilling companies. Now we’ll look at the technical indicators for these offshore drillers (XLE).

Dividend yield indicates how much a company pays in dividends relative to its share price. It’s calculated as the dollar value of dividends as a percentage of the stock price.

Along with a company’s long-term solvency, it’s important to look at its liquidity position.

Offshore drilling (XLE) companies are capital-intensive, so looking at their financial leverage is very important. The debt-to-equity ratio and net debt-to-EBITDA ratio show these companies’ financial leverage.

In the last part of this series, we saw which offshore drillers had the highest and lowest falls in their backlogs. In this article, we’ll compare offshore drillers’ backlogs versus their revenues.

Toward the end of 2014, oil prices took a dip and the offshore drilling industry entered into a brutal downturn. Since then, offshore drilling companies have had a hard time securing contracts.

The consensus 12-month target price for Tsakos Energy Navigation is $5.05, which implies a potential upside of 44.7% from its market price on July 12.

The consensus 12-month target price for Navios Maritime Partners is $4.83, which implies a potential upside of 40.82% from its market price on July 12.

The consensus 12-month target price for Teekay Tankers is $1.69, which implies a potential upside of 43.2% from its July 11 market price.

The consensus 12-month target price for Euronav is $10.89, which implies a potential upside of 22.36% from its market price on July 12.

In week 26, which ended on June 29, none of the analysts revised their recommendations or target prices for crude tanker companies.

In week 26, which ended on June 29, the BDTI fell from 754 to 712. In week 25, the index dropped by one point.

Seadrill (SDRL) stock fell to a 52-week low of $0.10 on July 2—a fall of 52.5% from the previous day’s closing price.

Analysts’ consensus rating for Nordic American Tankers (NAT) is 3.33, which means a “hold.”

DHT Holdings (DHT) was the best-performing stock among peers on a YTD basis.

Euronav’s (EURN) YTD (year-to-date) returns were -1% as of June 28.

Nordic American Tankers’ (NAT) YTD (year-to-date) returns were 7% as of June 28.

DHT Holdings’ YTD returns stood at 30.6% as of June 28. The stock is the best performer among its peers so far this year.

About 92.0% of the analysts tracking Golar LNG recommended a “buy” or some equivalent on June 26.

Teekay LNG Partners reported its first-quarter results in May, posting net income of -$6.9 million.

GasLog earned revenues of $138.5 million in the first quarter compared to $128.3 million a year ago.

GasLog Partners earned revenues of $77.1 million in the first quarter—a 0.37% sequential fall and a 35.2% rise year-over-year.

This series ranks the top five LNG carrier stocks on a YTD basis. Höegh LNG Partners led the pack with a YTD return of ~-2.4% on June 26.

Previously, we discussed analysts’ recommendations for crude tanker stocks. Let’s now compare analysts’ revenue and EBITDA estimates for these companies in Q2 2018.

Previously, we discussed crude tanker companies’ EBITDA. In this article, we’ll discuss their FCF (free cash flow).

Previously, we compared five crude tanker companies’ Q1 2018 revenue. In this article, we’ll look at their Q1 2018 EBITDA.

In this article, we’ll compare five crude tanker companies’ Q1 2018 revenue.

In this series, we’ll compare crude tanker companies’ performance and their outlook for future quarters.

On June 21, Jefferies raised Transocean’s (RIG) target price to $15 and maintained a “buy” rating for the stock.

In May, no drilling permits were issued in the shallow waters of the Gulf of Mexico. In the first five months of 2018, only two were issued.

In May, the international offshore rig count was 198, up by four from 194 in April.

On June 18, Wells Fargo upgraded DHT Holdings (DHT), Frontline (FRO), and Teekay Tankers (TNK) to “outperform.”

The VLCC fixture tally in the Middle East market was 28 in week 25—a weekly gain of one. In the West Africa market, the VLCC fixture tally was seven.

Since the beginning of 2018, the BDTI (Baltic Dirty Tanker Index) has fluctuated between 628 and 781. The year started out with the BDTI at 700.

Yesterday, US crude oil surged 3.2% to close at $72.76 per barrel—the highest level since November 2014. Oil prices rose after a significant drop in US crude oil supplies.

In dollar terms, China’s (FXI) exports rose 12.6% YoY (year-over-year) while its imports rose 26% in May.

China, which has the second-largest economy in the world, also has a significant impact on the crude oil tanker industry.

In Week 25, which ended June 22, Jefferies downgraded one offshore driller and revised the target prices for others.

On June 22, three offshore drilling stocks traded at unusually high volumes, which led to prices rising.

Transocean’s (RIG) estimated second-quarter revenues are $764.5 million—15% above the previous quarter and 7.5% higher YoY.

In the first quarter, Ensco’s EBITDA fell to $91.3 million from $98.4 million in the fourth quarter of 2017. The first-quarter EBITDA was 45.3% lower YoY.

As of March 31, Ensco (ESV) had a total contracted backlog of $2.7 billion—compared to $3.8 billion as of December 31, 2017.

On June 15, Euronav sold six VLCCs (very large crude carriers) to Seaways. The company sold six vessels for a consideration of $434 million.

On June 15, Evercore reduced the target price for Tsakos Energy Navigation to $5 from $6 and maintained an “outperform” rating.

The US offshore rig count in Week 24, which ended June 15, was 20, the same as the previous week.

In Week 4, which ended June 15, offshore drilling stocks fell along with oil prices ahead of OPEC ’s meeting scheduled for June 22.

Shares of Nordic American Tankers (NAT) closed at $2.62 on June 18—21.3% higher than the previous day’s closing price.

On June 7, Noble (NE) released its June fleet status report. Most of the offshore drilling companies don’t publish a monthly fleet status report.

Golar LNG (GLNG) stock has fallen more than 9% since the start of the year. The stock fell sharply after its first-quarter results.

In the first quarter, Golar LNG Partners reported net income attributable to unitholders of $14.8 million and operating income of $26.1 million.

In May, Dynagas LNG Partners (DLNG) reported its first-quarter results.

Nine analysts have given recommendations on Teekay LNG Partners. Of these analysts, 33% are bullish on the stock.

A total of 13 analysts have given recommendations on GasLog, and 62% are bullish on the stock.

Most of the offshore drilling stocks traded in the green in the week ended June 1, returning 3.0%–6.5%.

Wall Street analysts expect net revenue of $100.8 million for Tsakos Energy Navigation (TNP) in the first quarter.

Tsakos Energy Navigation (TNP) is expected to release its first-quarter results on June 15. The stock has fallen 5.6% YTD as of May 30.

The consensus 12-month target price for Gener8 Maritime Partners is $6.8—a potential upside of 10.4% from the market price of $6.16 on May 25.

According to Reuters, the consensus rating for Tsakos Energy Navigation is two, which means a “buy.”

Navios Maritime Midstream Partners earned revenues of $19.8 million in the first quarter—6.3% lower than the previous year.

According to Reuters, the consensus rating for DHT Holdings (DHT) is 2.21, which means a “buy.”

According to Reuters, the consensus rating for Frontline (FRO) is 3.33, which means a “hold.”

For Teekay Tankers, one analyst recommended a “strong buy,” two recommended a “buy,” four recommended a “hold,” and one recommended a “sell.”

Golar LNG Partners (GMLP) released its first-quarter earnings today, reporting net income attributable to unitholders of $14.8 million.