Dolphin Drilling (Buy, TP: NOK10.00) - Time to collect receivables
Until it shows progress on the collection of outstanding receivables in Nigeria, we have taken a conservative view and forecast the company will be unable to collect outstanding and future revenues from Nigeria. A new debt financing at attractive terms helps mitigate liquidity challenges, but in a scenario with no payments from Nigeria, 2024–2025 liquidity may be challenged. It also confirmed a new job in India and plans to reactivate a rig towards a solid contract in the UK, where it is building a solid PnA-focused business. We reiterate our BUY but have cut our target price to NOK10 (15) due to a lack of payments and the need to rebuild investor confidence.
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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