Borr Drilling (Buy, TP: NOK35.00) - Financing and contracts
Borr Drilling’s Q4 results were on the soft side with adj EBITDA below expectations and losses on financial holdings. More importantly, it addressed the two main investor concerns: 1) the liquidity profile; and 2) contracting opportunities. Assuming its indicative term sheet for a new USD500m facility materialises, investor financing concerns should ease with an adequate liquidity profile for the next few years. It also addressed contracting opportunities in Mexico, Qatar and Kuwait, which we believe are likely to be at above-market dayrates. We stick to our BUY and NOK35 target price.
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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