Ensco (Hold, TP: USD5.00) - Busy jack-up update
Ensco included several new jack-up contracts in its quarterly fleet status report (FSR), including multi-year contracts in the Middle East for new builds Ensco 140 and 141, which we believe are with Saudi Aramco. Furthermore, premium jack-up Ensco 104 has been confirmed with ADNOC for 16 months and it added a number of short-term jack-up jobs in the North Sea and for its 8500-series in the US GoM. We have reduced 2018–2020e by 3–6%, and maintain our HOLD recommendation and USD5 target price.Ensco is an offshore contract drilling company engaged in providing offshore contract drilling services to the international oil and gas industry. As of Dec 31 2017, Co. owned and operated an offshore drilling rig fleet of 62 rigs. Co.'s rig fleet includes 12 drillships, 11 semisubmersible rigs, four moored semisubmersible rigs and 38 jackup rigs, including rigs under construction. Co.'s business consists of three operating segments: floaters, which includes its drillships and semisubmersible rigs; jackups; and other, which consists of management services on rigs owned by third-parties. Co.'s two reportable segments, floaters and jackups, provide one service, contract drilling.
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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