Solstad Offshore (Buy, TP: NOK60.00) - Set to enter a dividend phase
Q4 was mixed, with strong results in Solstad Offshore, but a weak Solstad Maritime due to a soft AHTS spot market. The guidance for Solstad Offshore was as we expected and Solstad Maritime edged higher. We look for more focus on the AHTS fleet through 2025 given its weak Q4, but we note only 11% of our 2025e EBITDA is derived from open AHTS capacity. The company intends to distribute a quarterly dividend from H2. We forecast it to start at NOK1/share, equalling an annualised yield of 10%. We reiterate our BUY and NOK60 target price.Solstad Farstad is a holding company. Through its subsidiaries, Co. is engaged in the operation of offshore service and construction vessels. Co.'s business is divided into three segments based on the different types of vessels: Anchor-Handling Vessels delivering services related to rig moves and anchoring of rigs and other devices at sea, Platform Supply Vessels delivering services relating to transportation of material to offshore installations and Construction Service Vessels delivering services relating to development of both sub sea and floating installations. As of Dec 31 2009, Co. operated a fleet of 50 wholly owned, jointly owned and leased vessels.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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