Diamond Offshore (Buy, TP: USD16.00) - Focus on building visibility for 2025
We are slightly above consensus on Q4e EBITDA and in line on 2024e, as consensus has recently come down considerably. For 2025–2026, we believe it is key to build visibility on its high-spec drillships and we look for all drillships to be working in the US GoM, where the company has a solid relationship with bp. For 2024, the main uncertainty relates to Ocean GreatWhite downtime after its operational incident in the UK (we estimate three months), and we expect more details on the conference call (results due after US close on 27 February). We reiterate our BUY and USD16 target price.Diamond Offshore Drilling provides contract drilling services to the energy industry around the globe. The company's fleet enables it to provide services in the floater market on a worldwide basis. The company's contracts to provide offshore drilling services vary in their terms and provisions. The principal markets for the company's offshore contract drilling services are: the Gulf of Mexico, including the U.S., and Mexico; South America, principally offshore Brazil, and Trinidad and Tobago; Australia and Southeast Asia, including Malaysia, Indonesia, Myanmar and Vietnam; Europe, principally offshore the U.K., and Norway; East and West Africa; and the Mediterranean.
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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