Fred Olsen Energy (Sell, TP: NOK3.00) - Only nuisance value left
Fred Olsen Energy has announced that a restructuring solution may require new equity and potentially impairments of debt. Regarding equity, we maintain our view that the current equity may be marginalised in the upcoming restructuring. We estimate a negative NAV and peer group valuation suggest little to no equity value left. Hence, we believe the equity has only nuisance value left, and we maintain our SELL recommendation with a NOK3 target price.Fred Olsen Energy is engaged in offshore drilling as well as engineering and fabrication services. Co. provides services and operates within the two segments; offshore drilling and engineering and fabrication. The Offshore Drilling segment provides services to the offshore oil and gas industry. The Engineering and Fabrication segment provides engineering, fabrication, ship building and repair services for various offshore and onshore industries.
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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