Gayla sells DO 18.34: Are Offshore Drillers Good Investments Right Now?

This was a surprising improvement for the company given that offshore companies have been struggling to get contracts for their assets as of late. The company reported net income of $90 million or $0.66 per share for the second quarter, compared to $90 million or $0.65 per share reported a year ago. Unsurprisingly, the company has had a rough year so far, with its shares dropping more than 39% year-to-date. Meanwhile, the value of the stakes in the company amounted to $85.06 million. In the following article we will be discussing three underwater drillers that have suffered over the last years, but might get back on track in the years ahead.


Clyde:
The International Energy Agency has estimated that more than 300 billion barrels of oil can be found under water, greater than the unextracted reserves of Saudi Arabia.

Marion:
However, many believe that the potential of deep-water reserves and production is way too immense to be ignored.

Jack:
Unquestionably, the offshore oil industry has been mainly struck by the falling price of oil.

Carie:
Hence, investors should keep a close eye on Diamond Offshore as the stock could do well in the long run, and those who are already holding the stock should remain invested due to its robust prospects.

Reba:
Moreover, the company is winning business at the expense of its peers as discussed in the article.

Noriko:
However, I think that Diamond Offshore could be a good long-term bet due to its modernized fleet, low leverage, and a strong margin performance.

Kenda:
This indicates the impact of volatility in the end market on Diamond's stock price.

Margo:
This is where Diamond's stronger balance sheet will come into play, as it is capable of taking on more debt due to a low debt-equity ratio.

Naoma:
As such, offshore drillers such as Transocean and Seadrill will require capital between $4.3 billion and $6.7 billion in a bid to invest in newbuilds.

Allison:
However, an increase in scrapping activity could lead to an improvement in the oversupply situation in the end market, which will help Diamond Offshore gain ground as the company has modernized its fleet.

Diamond Offshore Drilling (NYSE:DO)
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