Report
Martin Huseby Karlsen
EUR 169.01 For Business Accounts Only

PLSV data point in Brazil

Local updates suggest that Seabras-owned idle PLSV Sapura Topazio (Seadrill has 50% ownership) is well placed for work with Petrobras for c420 days. We see potential EBITDA of USD20m–25m p.a., c50% lower than the legacy PLSV contracts in Brazil. For Seadrill and its Senior Secured Note, for which Seabras is collateral, we consider more backlog for Seabras a clear positive. For Subsea 7 (four PLSVs on legacy contracts with Petrobras), we find such a data point soft as it would imply a cUSD100m (or 20%) reduction in its ‘cash EBITDA’ versus the current run-rate when current PLSV contracts expire in 2021–2022. We do not see this reflected in the long-term consensus for Subsea 7.
Underlyings
Akastor ASA

Akastor is a provider of products, systems and services to the oil and gas industry. Co. has three reportable segments: Engineering Solutions, which provides concept and front-end studies to oil companies; Product Solutions, which delivers oilfield products for the entire upstream value chain, from reservoir through processing and also includes Subsea, Drilling, Umbilicals and Process Systems; and Field-Life Solutions, which provides a range of services to increase oil and gas recovery from existing fields and extend the operating life of field assets. This segment also consists of two business areas: Maintenance, Modifications and Operations and Oilfield Services and Marine Assets.

Subsea 7 S.A.

Subsea 7 is a provider of seabed-to-surface engineering, construction and services contractor to the offshore energy industry. Co. provides products and services required for subsea field development, including project management, design and engineering, procurement, fabrication, survey, installation, and commissioning of production facilities on the seabed and the tie-back of these facilities to fixed or floating platforms or to the shore. Co. also provides products and capabilities to deliver full Life of Field services to its clients. Through its i-Tech Division, Co. provides remotely operated vehicles and tooling services to support exploration, production and drilling activities.

TechnipFMC Plc

TechnipFMC is global leader in oil and gas projects, technologies, systems, and services. Co. offers subsea, surface, onshore, and offshore solutions for oil and gas projects. Co. serves customers worldwide. With Co.'s technologies and production systems, integrated expertise, and comprehensive solutions, Co. is transforming Co.'s clients' project economics. Co. is uniquely positioned to deliver greater efficiency across project lifecycles from concept to project delivery and beyond. Through innovative technologies and improved efficiencies, Co.'s offering unlocks new possibilities for Co.'s clients in developing their oil and gas resources.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Martin Huseby Karlsen

Other Reports on these Companies
Other Reports from DnB Markets
Alexander Aukner
  • Alexander Aukner
Alexander Aukner
  • Alexander Aukner
Alexander Aukner
  • Alexander Aukner

ResearchPool Subscriptions

Get the most out of your insights

Get in touch