Week 6: Analysts’ Views on Diamond Offshore
In Week 6 (ended February 9, 2018), there was one recommendation revision for Diamond Offshore, and one target price revision. Reuters, citing Raymond James, wrote that “offshore drilling recovery ‘is harder than…
In Week 6 of 2018, all offshore drilling stocks fell more than 9%, marking their fourth consecutive week of decline.
Goldman Sachs raised the target price for Rowan Companies (RDC) to $15 from $11.5. The consensus 12-month target price for Rowan Companies is $15.68.
Last week, there was important news regarding Seadrill Partners (SDLP). The news wasn’t good for investors.
The week ending February 2 wasn’t very good for the offshore drilling industry. Offshore drilling stocks and the rig count fell from the previous week.
On January 24, Barclays reduced Transocean’s target price to $7 from $9. On January 12, Wells Fargo raised the target price for the stock to $11 from $9.5.
On January 12, 2018, Wells Fargo raised Ensco’s target price to $7 from $6. On the same day, Susquehanna raised the target price to $7 from $5.5.
January was great for oil prices. Brent crude oil prices soared to $70 per barrel in January 2018 and were at a three-year high.
Transocean (RIG) and Noble (NE) have positive YTD (year-to-date) returns. Since the beginning of January, Noble has posted 3.8% returns.
In this article, we’ll look at offshore drillers’ backlogs in comparison to 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 2018 backlog-to-trailing-12-month revenue ratio will tell us, based on their current backlogs, what these companies’ 2018 revenues will look like compared to their last four quarters’ worth of revenue.
Among the offshore drillers under our consideration in this series, Diamond Offshore Drilling (DO) has the highest credit rating by Moody’s at “Ba3.”
Slumping oil prices have put offshore drillers (IYE) under financial pressure. The first victim of this pressure has been dividends.
Offshore drilling (IYE) companies are capital intensive, so looking at their financial leverages is very important.
In this article, we’ll look at the technical indicators for the offshore drillers under our review.
Offshore (OIH) exploration and development wells are drilled with the use of rigs. Rigs come in various sizes and with various characteristics.
In this part of the series, we’ll compare Wall Street analysts’ consensus ratings for the offshore drilling companies we’ve been analyzing.
Except for Diamond Offshore Drilling (DO), all offshore drilling companies’ current ratios rose at the end of 3Q17 compared to their ratios at the end of 2Q17.
Offshore drillers have seen mixed returns on a year-to-date basis. The worst performer has been Rowan Companies, and the best performer has been Ensco.