The recent activity in the stock price of Ocean Rig UDW Inc. (NASDAQ:ORIG) indicates that traders are all set to bet on momentum plays along with the meteoric increase of the oil price. Yet, the fundamental situation cannot move as fast as shares prices do and any actual progress in the ultra-deepwater industry is months away.
The highlights
Noble Corporation plc (NYSE:NE) now identifies which day prices it can rely on which is beneficial for financial planning, however Shell’s choice to idle 2 rigs out of three is almost not a reason for delight. The backlog winner for Noble Globetrotter II just is $183 million. The negative bearing will be alleviated by keeping costs low and stacking the rig, but the hit is still considerable.
Noble shares recorded strong gains from lows along with other offshore drillers and they project that a correction will occur now, led by a potential improvement in oil prices as all promising news have been now made public and the contract modification news.
Ocean Rig an international provider entity of offshore deepwater drilling services, plans to announce its report for 3Q2016 after the market close on December 14, 2016. The volatility in the stock can largely be accredited to the results of OPEC meeting.
As OPEC has finally approved a production cut, it’s time to review what’s happening and assess it with initial projections. Most of the offshore Drillers surged after OPEC agreement. OPEC’s decision is particularly positive for high short-float firms like Atwood Oceanics.
No big action was noted in Ocean Rig stock and, arguably, Seadrill Ltd (NYSE:SDRL) so far. It’s probable that the market is focused on the planned restructuring for Ocean Rig and Seadrill’s third-quarter financial numbers. Seadrill Partners LLC (NYSE:SDLP) upside was even muted regardless of the fact that the firm is apparently not a part of Seadrill’s rearrangement.
