Awilco Drilling (Hold, TP: NOK35.00) - Continuing to deliver backlog
Awilco Drilling just announced a new 115-day contract for WilPhoenix in the UK for the 2018 summer season. The implied rate is around USD120k/day, which we believe reflects a busy summer season and is slightly above our modelled assumption of USD110k/day. As the contract is back-to-back with the current Apache contract, it fills the 2018 gap for the rig before the long-term contract with Alpha Petroleum, due to start in Q3 2018. We have a HOLD recommendation and NOK35 target price on Awilco Drilling, which is based on its backlog plus a conservative terminal value of USD20m per semi.
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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