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The overall market, as measured by the S&P 500 index, was down this week although it still remains over 1,500. The index actually started out the week with some relative strength. Tuesday saw the index slowly trend upward. Wednesday is when the trend reversed. On that day, the index slowly proceeded downward and accelerated its decline in the latter part of the day. Thursday continued this trend, opening significantly lower than Wednesday's close, but rallied somewhat in the later hours of the day. Friday saw the market rally slowly, slowly tracking upward. This rally was not enough to reverse the decline from earlier in the day. Crude oil was broadly down all week, with Wednesday and Thursday each seeing large, rapid corrections. Tuesday and Friday were both relatively flat, although Tuesday did see a sharp rally later in the day. As usual, this had different effects on the seven offshore drilling stocks that are tracked in this series.

Seadrill (NYSE:SDRL) opened on Tuesday, February 19 at $37.91. The stock closed at $36.69 in after hours trading on Friday, February 22. Seadrill shareholders thus saw the value of their holdings decrease by $1.22 per share or 3.22% over the past week. Seadrill opened at $39.15 on January 28, 2013. This gives the stock a trailing four-week loss of $2.46 per share or 6.28%. Seadrill will announce its fourth quarter and preliminary full year 2012 results on Thursday of this week. I am expecting another solid quarter, although the company's large amount of downtime during the fourth quarter will be a drag on earnings. As my long-time readers have come to expect, I will have an analysis of the company's quarter out shortly following the earnings announcement. Additionally, Forbes stated earlier this week that Seadrill stock appears to be oversold based on technical indicators. Indeed, the decline in the company's stock price is not backed up by the long-term fundamentals, although the company will likely see its profits decline in the short-term beginning in the second quarter.

SDRL 5-Day Chart

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Source: Fidelity Investments

SDRL 4-Week Chart

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Source: Fidelity Investments

Ensco (NYSE:ESV) opened at $64.68 on Tuesday, February 19. The stock closed at $61.49 in after hours trading on Friday, February 22. Shareholders thus saw the value of their holdings decrease by $3.19 per share or 4.93% over the past week. The stock opened at $62.30 on January 28. Stockholders in the company thus saw their holdings decrease by $0.81 per share or 1.30% over the trailing four-week period. Ensco reported its fourth quarter and full year 2012 results on Wednesday. Overall, the company saw its earnings rise significantly from the prior year, although quarterly diluted earnings per share figures were lower in the fourth quarter 2012 compared to the fourth quarter 2011. Ensco expects to continue its growth in 2013 and the industry fundamentals are certainly on the company's side. I will have an analysis of these results published within the next few days.

ESV 5-Day Chart

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Source: Fidelity Investments

ESV 4-Week Chart

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Source: Fidelity Investments

Transocean (NYSE:RIG) opened at $56.21 on Tuesday, February 19. The stock closed at $53.11 in after hours trading on Friday, February 22. Transocean's shareholders thus saw the value of their holdings decrease by $3.10 or 5.52% this week. The stock opened at $58.07 on January 28, 2013. This gives Transocean stock a trailing four-week loss of $4.96 or 8.54% over the trailing four-week period. Transocean's legal problems in Brazil were resolved this week as a judge dropped the criminal charges against the company. The civil charges over the Frade spill still remain, although Chevron (NYSE:CVX) is likely to have more at stake than Transocean here. Additionally, billionaire activist Carl Icahn remains interested in Transocean and this could result in a massive dividend being issued to shareholders.

RIG 5-Day Chart

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Source: Fidelity Investments

RIG 4-Week Chart

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Source: Fidelity Investments

Diamond Offshore (NYSE:DO) opened at $75.18 on Tuesday, February 19. The stock closed at $71.99 in after hours trading on Friday, February 22. Shareholders of Diamond Offshore thus saw the value of their holdings decrease by $3.19 per share or 4.24% over the week. The stock opened at $74.97 on Monday, January 28. The stock thus had a trailing four-week loss of $2.98 per share or 3.97%. Diamond Offshore went ex-dividend on Thursday, February 14. Shareholders as of the market close on the previous day will receive total regular and special dividends of $0.875 per share. This dividend effectively decreases the trailing four-week loss to $2.105 or 2.81%.

DO 5-Day Chart

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Source: Fidelity Investments

DO 4-Week Chart

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Source: Fidelity Investments

Atwood Oceanics (NYSE:ATW) opened at $54.16 on Tuesday, February 19. The stock closed at $52.37 in after hours trading on Friday, February 22. This gives the stock a loss of $1.79 per share or 3.31% for the week. Atwood opened at $53.39 on January 28, 2013. Thus, shareholders in the company saw the value of their holdings decrease by $1.02 per share or 1.91% over the trailing four-week period.

ATW 5-Day Chart

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Source: Fidelity Investments

ATW 4-Week Chart

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Source: Fidelity Investments

Noble Corp (NYSE:NE) opened the week at $39.26 on February 19, 2013. The stock closed at $36.93 in after hours trading on Friday, February 22. Thus, shareholders saw the value of their holdings decrease by $2.33 per share or 5.93% for the week. Noble opened at $38.41 on January 28, 2013. Thus, the stock had a trailing four week loss of $1.48 or 3.85%. Noble stock went ex-dividend on Thursday, February 7. Shareholders as of the previous day will receive a dividend of $0.13 per share. This dividend payment effectively reduces the trailing four week loss to $1.35 per share or 3.51%. The U.S. Coast Guard has found sixteen violations on the Noble Discoverer which is currently contracted to Shell (NYSE:RDS.A) for operations offshore Alaska. This could result in potential fines against Noble although hopefully Shell will cover any costs arising out of this. This would depend on the actual terms of the rig contract.

NE 5-Day Chart

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Source: Fidelity Investments

NE 4-Week Chart

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Source: Fidelity Investments

Pacific Drilling (NYSE:PACD) opened the week at $10.00 on February 19, 2013. The stock closed at $9.58 in after hours trading on Friday, February 22. Thus, shareholders saw the value of their holdings decrease by $0.42 per share or 4.20% for the week. Pacific Drilling opened at $10.38 on January 28, 2013. Thus, the stock had a trailing four week loss of $0.80 per share or 7.71%.

PACD 5-Day Chart

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Source: Fidelity Investments

PACD 4-Week Chart

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Source: Fidelity Investments

All of these stocks saw relatively large declines over both the past week and the trailing four-week period. This is in direct contrast to the fundamental strength in the industry (which I have written about many times over the past few months), however, that may make for more inviting points on some of these stocks. The best performer over the past week was Seadrill, although Atwood Oceanics was in a very close second. The worst performer over the past week was Noble with Transocean in a close second. The best performance over the trailing four week period was seen by Ensco, which had the smallest loss over the period. The worst performer over that same period was Transocean. Pacific Drilling and Seadrill also delivered fairly miserable performances over the time period.

Source: Weekly Performance Update On 7 Offshore Drilling Stocks