Also, five year credit default swaps (CDS) for offshore drilling companies in North America have widened 46% over the past month and 20% over the last week, according to MarketWatch. Companies in the sector are experiencing overcapacity beyond optimal levels due to a decrease in crude oil demand, combined with an increase of new vessels.
The deepwater drilling contractor's stock is down 32.88% year-to-date.
TheStreet Ratings team rates DIAMOND OFFSHRE DRILLING INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIAMOND OFFSHRE DRILLING INC (DO) 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 reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."