Borr Drilling (Buy, TP: NOK90.00) - All about the ‘dividend’ word
Having seen one of the more memorable turnarounds in the history of offshore drilling, Borr Drilling is shifting focus to the return of cash to shareholders. We believe its sponsor (Magni) will be a key driver to push for dividends as soon as practical, most likely in relation to its next refinancing event in 2024e. Based on how the capital markets have valued offshore drillers with a shareholder-friendly cash return strategy (like Seadrill in 2009–2014), we believe the shares could re-rate before potential dividend payments commence. We reiterate our BUY and have raised our target price to NOK90 (65).
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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