Soon no rigs working
With news reports suggesting a temporary layoff of the Bideford crew (FOE’s only working rig), the worst-case scenario with no rigs working is playing out. While we expect FOE to be more aggressive in finding short-term work for the Bideford than its other stacked rigs, this is far from enough for the equity value. In our view, the valuation is too high and the debt level suggests a financial restructuring is inevitable, which could marginalize the current equity. We maintain our SELL recommendation with NOK3 target price, representing 81% downside potential.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.