|Bid||19.3200 x 800|
|Ask||19.3400 x 1200|
|Day's Range||18.9500 - 19.5700|
|52 Week Range||10.0600 - 20.9800|
|PE Ratio (TTM)||148.62|
|Earnings Date||Jul 30, 2018 - Aug 3, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||14.41|
The offshore drilling industry made headlines last week, especially Seadrill (SDRL), which reached a 52-week high of $0.73 on May 17. The stock rose more than 98% in Week 20 (ended May 18). On May 17, The company’s volume increased to 69.3 million shares, making it the third most actively traded stock on major US exchanges. The stock’s last-three-month trading volume was 5.2 million, and its price was 300% higher than its 52-week low.
Seadrill (SDRL) had a fantastic run in the last four days. Read Why Seadrill Stock Skyrocketed? to learn more about why the stock price rose and if any fundamentals are attached to the rise. In this part, we’ll discuss the technical indicators for Seadrill and some other key offshore drillers (IYE).
In week 19, which ended on May 11, several analysts revised their recommendations and target prices for offshore drilling stocks.
In week 19, the week ended May 11, Rowan Companies and Noble Corporation were the best performers among the offshore drilling stocks. Both stocks rose more than 12.0% last week. Seadrill Partners, which rose less than 1.0%, was the lowest performer among its peers.
On May 10, Bank of America Merrill Lynch raised Ensco’s (ESV) target price to $5.5 from $3.5. On April 30, Wells Fargo reduced Ensco’s target price to $5 from $6. On April 27, Susquehanna reduced Ensco’s target price to $5 from $5.5. On April 26, Evercore reduced Ensco’s target price to $7 from $8 and maintained an “outperform” rating. Jefferies raised Ensco’s target price to $5.5 from $5 and maintained a “hold” rating.
Ensco’s (ESV) operating cash flows represent the cash flows from its core operations. In the first quarter, Ensco saw cash flows from operations of $39.5 million—compared to ~$104.6 million in the first quarter of 2017. Ensco’s capital expenditures or capex for the first quarter was $269 million, which included $207 million in payment toward the shipyard for ENSCO 123.
In the previous two parts, we analyzed Ensco’s (ESV) revenues and costs. In this part, we’ll see where the company’s EBITDA (earnings before interest, tax, depreciation, and amortization) could be heading.
Ensco’s (ESV) drilling expenses were $325 million in the first quarter—up from $278 million in the first quarter of 2017. The drilling costs are lower from $334 million in the previous quarter due to lower scheduled repairs and reactivation costs. Excluding integration-related costs, the total contract drilling expense was better than the guidance of ~$320 million.
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. The decline in the company’s backlog was due to realized revenues during the first quarter, which were partially offset by contract extensions and new contract awards.
The return of higher crude oil prices -- and the likelihood that they will persist -- gives Hess Corp., Diamond Offshore, and Core Labs strong chances of producing market-beating performances.
Ensco expects its second-quarter revenues to increase 6% quarter-over-quarter due to contract startups of ENSCO DS-10, ENSCO DS-7, and ENSCO MS-1. The fiscal second-quarter revenue for ENSCO DPS-1 will also add to the revenues, which will be partially offset by the end of the ENSCO DS-6 contract.
Ensco (ESV) stock had a good run in the last three months. The stock rose more than 33% during this period. Currently, Ensco is trading 18.5% lower than its 52-week high and 59.7% higher than its 52-week low. The Dow Jones Industrial Average (DIA) has risen 2.7% in last three months as of May 11. The SPDR S&P 500 ETF (SPY) has risen 4.3% during the same period.
U.S. crude oil and petroleum product inventories fell last week even as production hit record highs, the EIA said on Wednesday in a majorly bullish report.
In the previous part, we discussed that Susquehanna revised the target prices for Transocean (RIG) and Noble (NE). Jefferies revised the target price for Transocean, Noble, and Diamond Offshore (DO) in week 18 (week ending May 4). In this part, we’ll see how analysts revised the target prices and recommendations for other offshore drillers in week 18.
In week 18 (the week ending May 4), many analysts revised their recommendation and target prices for offshore drilling stocks.
In week 18, the week ending May 4, Ensco and Seadrill were the best performers among offshore drilling stocks. Both of the stocks rose more than 6% last week. Diamond Offshore, which fell more than 3%, was the worst performer.
LONDON/COPENHAGEN (Reuters) - Shipping group A.P. Moller-Maersk is likely to shelve plans to list its struggling offshore drilling division because of weak market conditions, according to five finance sources familiar with the matter. The Danish company is now expected to focus on a trade sale of Maersk Drilling, and extend the timeline to divest the unit beyond its initial target of the end of 2018, said the sources who declined to be named as the discussions are private. Maersk group has not publicly put a price tag on the division, but analysts value it at around $4.8 billion.
In this article, we’ll look at analysts’ revised recommendations and target prices for Rowan Companies (RDC) after its 1Q18 release. On March 3, RBC raised Rowan’s target price to $16 from $14.
NEW YORK , May 8, 2018 /PRNewswire/ -- Loews Corporation (NYSE: L) announced today the declaration of the Company's quarterly dividend of $0.0625 per share of Common Stock, payable June 12, 2018 to shareholders ...
Rowan Companies’ (RDC) direct operating costs, excluding rebillable items, were $140 million in 1Q18, below its guidance of $150 million–$160 million. Its costs were lower than expected in 1Q18 due to lower drillship fuel purchases and reduced costs on the Gorilla IV and Ralph Coffman, which came off contract late in 4Q17.
NEW YORK, May 08, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of DDR ...
Operating cash flow represents cash flow from core operations. In 1Q18, Rowan Companies (RDC) saw operating cash flow of -$11.1 million, compared with $81.8 million in 1Q17.
Rowan Companies (RDC) has two main operating segments—Ultra-Deepwater Drillships and Jack-Up Drilling Rigs. The company’s total drilling revenue in 1Q18 was $211.2 million—28.7% lower its 4Q17 revenue of $296 million. Excluding rebillables, its 1Q18 revenue was $194 million, down $89 million from the previous quarter.
The market for offshore rigs hasn't improved much, but Diamond's management keeps the company well-positioned for a turnaround.