NEW YORK (TheStreet) -- Seadrill (SDRL) - Get Report stock is falling by 1.37% to $5.74 in afternoon trading on Wednesday, on lower U.S. oil prices after stockpiles rose last week.

WTI crude is down 0.33% to $45.08 per barrel, while Brent crude is up 0.25% to $48.35 per barrel this afternoon, according to the index.

U.S. commercial crude inventories increased by 4 million barrels to 457.9 million barrels for the week ended September 25, according to the U.S. Energy Information Administration.

"The large crude oil inventory build, driven by a drop in the refinery utilization rate, makes for a bearish report," Again Capital partner John Kilduff told Reuters.

Production, however, declined to 9.1 million barrels per day last week, from 9.14 million barrels per day the previous week.

Bermuda-based Seadrill is an offshore drilling contractor for the oil and gas industry.

Separately, TheStreet Ratings team rates SEADRILL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate SEADRILL LTD (SDRL) a HOLD. The primary factors that have impacted our rating are mixed — some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for SEADRILL LTD is rather high; currently it is at 61.55%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.04% significantly outperformed against the industry average.
  • Despite the weak revenue results, SDRL has outperformed against the industry average of 22.5%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Energy Equipment & Services industry. The net income has significantly decreased by 37.4% when compared to the same quarter one year ago, falling from $605.00 million to $379.00 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to the other companies in the Energy Equipment & Services industry and the overall market, SEADRILL LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • You can view the full analysis from the report here: SDRL