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The overall market, as measured by the S&P 500 index, was down slightly over the week but it was not without volatility. The greatest volatility came between Wednesday and Thursday when a large decline rocked the market. A correction occurred between Thursday and Friday that resulted in a rally. Friday itself saw much volatility as the market went through a series of plunges and rallies. Crude oil prices were also down slightly on the week but there was significant volatility in crude as well. Monday saw a huge decline and Friday saw a huge rally. Prices fluctuated between those two extremes all week. As usual, the overall market action had different effects on the six offshore drilling stocks that I follow in this series of weekly updates.

SeaDrill (NYSE:SDRL) opened on Monday, August 27 at $41.69. The stock closed at $41.25 in after hours trading on Friday, August 31. SeaDrill shareholders thus suffered a loss of $0.44 or 1.06% over the past week. SeaDrill opened at $39.78 on August 6, 2012. This gives the stock a four-week gain of $1.47 per share or 3.70%. SeaDrill announced a very solid second quarter on Monday. The company is executing well on its growth strategy and is still in an aggressive growth stage. SeaDrill also hiked its dividend on Monday. The new dividend is $3.36 annually which works out to a 8.15% yield at current prices.

SDRL 5-Day Chart

Source: Fidelity Investments

SDRL 4-Week Chart

Source: Fidelity Investments

Ensco (NYSE:ESV) opened at $57.00 on Monday, August 27. The stock closed at $57.36 in after hours trading on Friday, August 31. Shareholders thus witnessed a gain of $0.36 or 0.63% over the past week. The stock opened at $55.90 on August 6. Stockholders in the company thus profited from a gain of $1.46 or 2.61% over the trailing four-week period. Earlier this week, Credit Suisse (NYSE:CS) issued a neutral rating on Ensco and set a $62 price target. Ensco will go ex-dividend later this week. Shareholders as of September 6 will be receiving a dividend of $0.375.

ESV 5-Day Chart

Source: Fidelity Investments

ESV 4-Week Chart

Source: Fidelity Investments

Transocean (NYSE:RIG) opened at $49.06 on Monday, August 27. The stock closed at $48.84 in after hours trading on Friday, August 31. Transocean's shareholders thus incurred a loss of $0.22 or 0.45% this week. The stock opened at $48.98 on August 6. This gives Transocean stock a loss of $0.14 or 0.29% over the trailing four-week period. A panel of Brazilian judges upheld an earlier ruling that Transocean and Chevron (NYSE:CVX) are no longer permitted to operate in Brazil. This could potentially cost both companies hundreds of millions of dollars in business. Prosecutors are seeking a fine of $20 billion from the 3,600 barrel spill. Transocean will likely declare force majeure on its existing contracts in Brazil and possibly try to sell all the rigs currently operating in that country.

RIG 5-Day Chart

Source: Fidelity Investments

RIG 4-Week Chart

Source: Fidelity Investments

Diamond Offshore (NYSE:DO) opened at $66.96 on Monday, August 27. The stock closed at $67.03 in after hours trading on Friday, August 31. Shareholders of Diamond Offshore thus profited from a gain of $0.07 per share or 0.10% for the week. The stock opened at $66.88 on Monday, August 6. The stock thus had a trailing four-week gain of $0.15 per share or 0.22%.

DO 5-Day Chart

Source: Fidelity Investments

DO 4-Week Chart

Source: Fidelity Investments

Atwood Oceanics (NYSE:ATW) opened at $45.77 on Monday, August 27. The stock closed at $46.27 in after hours trading on Friday, August 31. This gives the stock a gain of $0.50 per share or 1.09% for the week. Atwood opened at $44.70 on August 6. Thus, shareholders in the company experienced a gain of $1.57 or 3.51% 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 $38.47 on August 27, 2012. The stock closed at $38.09 in after hours trading on Friday, August 31. Thus shareholders suffered a loss of $0.38 or 0.99% for the week. Noble opened at $37.91 on August 6, 2012. Thus, the stock had a trailing four week gain of $0.18 or 0.47%. Noble Corporation will be presenting at the Barclay's Capital CEO Energy-Power Conference later this week, on September 6. I will be analyzing the company's presentation and posting it to this site after the event.

NE 5-Day Chart


Source: Fidelity Investments

NE 4-Week Chart

Source: Fidelity Investments

These stocks delivered a mixed performance over the past week. Three of the stocks delivered gains over the week and the other three delivered losses. Atwood Oceanics delivered the greatest gain, at 1.09%. SeaDrill delivered the largest loss. This loss is rather surprising given the company's excellent earnings announcement but if the stock continues to decline then there could be a good buying opportunity. SeaDrill was the best performer over the trailing four-week period however, with Atwood Oceanics in a close second. Transocean was the worst performer and the only one of these six stocks to deliver a loss over the trailing four week period. The current situation in Brazil seems likely to weigh on the stock going forward until the issue is resolved.

Source: Weekly Performance Update On 6 Offshore Drilling Stocks