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The overall market, as measured by the S&P 500 index, showed an overall upward trend this week. But, it was not without volatility. Monday started off strong and then went down to near its starting point at the end of the day, there was a recovery on Tuesday which then ended with a fall, Wednesday showed another recovery, but then weakness returned after-hours on Thursday, before finally being capped with a powerful rally on Friday. Oil prices also showed an upward trend but were nowhere near as volatile. As usual, this had different effects on the six offshore drilling companies that I follow in this weekly series of updates.

SeaDrill (NYSE:SDRL) opened on Monday, August 6 at $39.78. The stock closed at $40.43 in after hours trading on Friday, August 10. SeaDrill shareholders thus experienced a gain of $0.65 or 1.63% over the past week. SeaDrill opened at $36.71 on July 16, 2012. This gives the stock a four-week gain of $3.72 per share or 10.13%. SeaDrill's stock is now approaching its all-time high of $42.34 which was reached earlier this year. The company still remains strongly positioned for growth and so it seems likely that this high will be breached if the market continues to show strength.

SDRL 5-Day Chart

Source: Fidelity Investments

SDRL 4-Week Chart

Source: Fidelity Investments

Ensco (NYSE:ESV) opened at $55.90 on Monday, August 6. The stock closed at $55.07 in after hours trading on Friday, August 10. This gives the stock a loss of $0.83 or 1.48% over the past week. The stock opened at $49.20 on July 16. Stockholders in the company thus profited from a gain of $5.87 or 11.93% over the four-week period.

ESV 5-Day Chart

Source: Fidelity Investments

ESV 4-Week Chart

Source: Fidelity Investments

Transocean (NYSE:RIG) opened at $48.98 on Monday, August 6. The stock closed at $48.56 in after hours trading on Friday, August 10. Transocean's shareholders thus suffered a loss of $0.42 or 0.86% this week. The stock opened at $46.21 on July 16. This gives Transocean a gain of $2.35 or 5.09% over the trailing four-week period. Transocean has been underperforming the sector for several weeks now. It appears that this trend is continuing. Transocean allocated $750 million in the latest quarter to its estimated loss contingency for the Macondo incident of 2010. That brings the total estimated loss contingency up to $1.95 billion. This resulted in the company reporting a loss in the most recent quarter. Once the liability from the Macondo incident is finally behind it, Transocean has the potential to see an escalating share price for patient investors who buy at today's levels.

RIG 5-Day Chart

Source: Fidelity Investments

RIG 4-Week Chart

Source: Fidelity Investments

Diamond Offshore (NYSE:DO) opened at $66.88 on Monday, August 6. The stock closed at $68.01 in after hours trading on Friday, August 10. This gives the stock a gain of $1.13 per share or 1.69% for the week. The stock opened at $63.01 on Monday, July 16. The stock thus had a trailing four-week gain of $5.00 per share or 7.94%. Diamond Offshore went ex-dividend on July 30, 2012. Shareholders as of that date will receive total dividends of $0.875. Thus, the company delivered a total gain of $5.875 or 9.32% to its investors over the trailing four-week period.

DO 5-Day Chart

Source: Fidelity Investments

DO 4-Week Chart

Source: Fidelity Investments

Atwood Oceanics (NYSE:ATW) opened at $44.70 on Monday, August 6. The stock closed at $45.07 in after hours trading on Friday, August 10. This gives the stock a gain of $0.37 per share or 0.83% for the week. Atwood opened at $41.45 on July 16. Thus, shareholders in the company experienced a gain of $3.62 or 8.73% over the trailing four-week period.

ATW 5-Day Chart

Source: Fidelity Investments

ATW 4-Week Chart

Source: Fidelity Investments

Noble Corp (NYSE:NE) opened the week at $37.91 on August 6, 2012. The stock closed at $38.22 in after hours trading on Friday, August 10. Thus shareholders experienced a gain of $0.31 or 0.82% for the week. Noble opened at $34.26 on July 16, 2012. Thus, the stock had a trailing four week gain of $3.96 or 11.56%. Noble went ex-dividend on August 2, 2012. Shareholders as of that date will be receiving a dividend payment of approximately $0.13. Thus, stockholders saw a gain of $4.09 or 11.94% over the trailing four-week period when the dividend is considered.

NE 5-Day Chart


Source: Fidelity Investments

NE 4-Week Chart

Source: Fidelity Investments

Diamond Offshore was the best performer this week with SeaDrill in a very close second. Ensco was the worst performer and was one of only two of these companies (Transocean was the other) to deliver investors a loss over the past week. All of the companies were relatively flat over the past week, at least when compared to their trailing four-week returns. Noble delivered the best four-week performance after dividends are considered, just narrowly edging out Ensco. SeaDrill also delivered quite a respectable performance over the trailing four-week period. Transocean was the worst performer of the six over the trailing four-week period. The whole industry has been reporting very solid results over the last few weeks and I expect that this will continue with SeaDrill delivering its second quarter results on August 31.

Source: Weekly Performance Update On 6 Offshore Drilling Stocks