Diamond Offshore's surprising Q4 strength lifts drillers, DO +2%


Recent bearish views on offshore drillers are forgotten for at least a day, as Diamond Offshore's (DO +2%) solid Q4 earnings and revenue beats help lift the entire sector.

Cowen analysts especially like DO's increased dayrates: Q4 ultra-deepwater average dayrates rose to $350K/day from $284K, deepwater dayrates increased to $402K/day from $380K, and mid-water floater rates rose to $277K/day from $258K.

However, Wunderlich notes that while the contracts and extensions are a positive, the low duration of the contracts may be the new norm for many of DO’s older lower specification rigs, which will translate to a lower backlog and less revenue visibility.

ESV +3.4%, SDRL +2.1%, ATW +2.1%, RIG +2%, HP +2%, NBL +1.9%, RDC +1.9%, PKD +1.8%, HERO +1.3%.

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Comments (9)
  • arthur_bishop1972
    , contributor
    Comments (4213) | Send Message
     
    The downgrades of drillers was silly. It did give us some great buying opportunities though. I p/u some ESV for myself and added for a client at about 6% div level.

     

    I guess analysts have their uses : )
    6 Feb 2014, 04:30 PM Reply Like
  • jokes21
    , contributor
    Comments (53) | Send Message
     
    Useful idiots
    6 Feb 2014, 04:37 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4213) | Send Message
     
    Lol...yes.
    6 Feb 2014, 05:20 PM Reply Like
  • cheechako
    , contributor
    Comments (19) | Send Message
     
    Arthur, Do you mean excuses?
    8 Feb 2014, 07:04 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4213) | Send Message
     
    Lol...that too, cheechako.
    12 Feb 2014, 01:32 PM Reply Like
  • cheechako
    , contributor
    Comments (19) | Send Message
     
    Thanks, NYSE, for selling off SDRL. It has provider me with an opportunity to buy at lower prices.
    6 Feb 2014, 05:18 PM Reply Like
  • 15994652
    , contributor
    Comment (1) | Send Message
     
    Cannot be better , 6 - 12 months down the road, the same people would be screaming buy. Then you can consider selling.
    7 Feb 2014, 03:52 AM Reply Like
  • Mr. Twigs
    , contributor
    Comments (106) | Send Message
     
    DO is solid out fit with the will to pay a nice dividend....amazing they beat it down so far....did step in and buy....that dividend is 87 cents paid in March I believe....drill on...
    7 Feb 2014, 08:45 AM Reply Like
  • cheechako
    , contributor
    Comments (19) | Send Message
     
    I really like the ocean drilling companies particularly the deep drillers such as SDRL.
    8 Feb 2014, 07:02 PM Reply Like
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