(Image: Semi-submersible Ocean BlackRhino Source: ALP Marine Traffic)
Investment Thesis
Diamond Offshore (DO) is one of the best offshore drillers with a decent balance sheet. However, the company presents definitive weaknesses when it comes to its rig fleet. It doesn't own a jack-up fleet anymore and continues to shrink in size.
While Diamond Offshore owns state-of-the-art drillships, on the other hand, it struggles with aging floater rigs as well. For the company to correct this pressing issue, management said that it would invest in its rig fleet rather than acquiring new rigs at