ESV - Ensco: Two New Small Contracts. Is It Really Enough?
Image: Ensco 72 from MarineTraffic
Investment Thesis
Ensco PLC (ESV) is one of the two offshore drillers - Transocean (RIG) is the other one - that I hold long term, despite a yet-to-be-seen "full recovery" that will eventually reduce the massive rig oversupply and boost day rates to a more viable level.
I wrote "full recovery" because the recovery has been visible in the jack-ups' portion only, showing a strong activity spreading worldwide whereby the floaters are still struggling, especially the ultra-deepwater segment. One exception is the semisubmersibles harsh-environment in the