The drillers are an excellent way to play a difficult choppy market. The street has beat down the drillers for a number of reasons but with CDs and treasuries 1-2 1/2%, worth the risk. SDRL has possibly newest fleet (along with ESV) and both their divvy's are very attractive (10% and 5.4%) but SDRL has more debt. With the new contract it would appear dividends are safe for several quarters at a minimum.
RIG, (6.6%) DO (1%), and NE are also at the lower trading range but older, with less dividend. You have to buy' em when their unpopular and with the dividend and by being in the energy sector with newer fleets and contracts much better than Vegas.... I can wait and these are excellent levels to enter.
I looked at all the major drillers and settled on SDRL. The outsized dividend is what made the difference for me. I like companies that give back to their shareholders. The SDRL dividend looks very safe to me. JMHO!
If you go to their website, awilcodrilling, you can pull up the financials. The recent Q report was two days ago. Net profit of $25.9 million on revs of $66.3 million. EPS of $0.86. The fee to buy shares is a little steep. But for a small driller it seems okay. They only have two rigs working at the time. Both Semi-subs. Both ancient but upgraded in 2011.
probably do it again. ya know it has to suck being short and paying out all that do ray me $$$. 28 mill shares short still, unbelievable. maybe they'll blow out earnings and all the shorts who got it wrong will cover...that'll be fun!
Oh, he is listen, but it is his decision to help or not help.
With an evil president that has created conflict and death world wide with his weakness and incompetents; it is the good Lords decision on what to do. He may decided the Morons elected him now they have to live with it.
Sentiment: Strong Buy
AWLCF is pink sheet company. I couldn't find audited financials or much else - bottom line I don't do such stocks after watching a lot of investors lose a lot of money over the years. I will stick to SDRL. They can say anything they want in a conference call.
A really funny thing you'll see is that in the under construction portion of the data, it shows 66 drillships int he order book. EIGHT of them at the EAS shipyard in Brazil. Good luck with those ever happening.
You want some good info about the industry, go to rigzone and check out the different classes of drilling vessels being built, on the water and who owns them. The delivery schedule beyond this year skinnies up a lot. The pundits that were calling for lower rates for all deep water drillers never gave a second glance at the fleet make up of the different companies. Like most mainstream articles, poorly thought out and much too general to be useful, yet some "investors" with hot money jump first then ask questions later.
scott, I have both. First If you sign up to receive data by email from AWLCF you will get their latest conf-call presentation. Has some great charts especially on rates and schedules for all North Sea competitors. Secondly, there is little if any correlation between oil prices and drill ship activity. It may effect day rates some but, not the commitment of big oil to undersea development. Many analysis make predictions based on mega data and do not get down to examine the core business. Most current drill ships are committed or optioned into 2016 which the industry says looks like a banner year.
Don't worry the Saudis will come to the rescue. They will pull back on their production.
I do fear that lower crude prices will effect day rates for new contracts for all drillers. Then there is also the economic cycle. It has been a slow recovery from '08'. So when the next decline happens, I would like to be in a position to buy stocks such as SDRL with their newer rig fleet.
I also own AWLCF and have been very happy. In the 5 months I have been with company the stock is up 15 % and the dividend rate over 22% from my buy in. The management is recognized as being excellent. This is a company that returns free cash flow to stock holders. However SDRL is on my radar and may in the longer run be a great investment, IMHO.
That is definitely a good sign as far as financial strength. One thing I don't understand is why they don't lock in all the rates long term now instead of LIBOR plus 2%. Do they think that short term interest rates are not going up for an extended period of time. I have expected for a while the 10 year treasury to go down and have been WRONG.
The big fear is that they can not lease their rigs over the next year to 18 months. Since
SDRL has the most modern fleet - they should be the easiest to lease. They do have the highest debt used to modernize the fleet but you get the highest divi for the risk. I have thought about buying some of the others but stay with SDRL. Anyone have logic why I should go with other ones(ESV has been the most tempting)
Yep.........that's the main reason my friends go to electric vehicles or just to drive less to hurt the Russkis. Ha Ha ha.
We're the largest consumer of gasoline on the planet and we have used LESS for each year for 5 consecutive years. 16 year olds don't really care about driving like me and my friends did at that age. Many more more efficient vehicles.Or many people...like me,move to a ski area or other resort area and since we are where we want to be,we don't have any other reason to drive anywhere else.