Noble (Buy, TP: USD32.00) - Doubly impressive
Noble has announced a sale of its four premium jack-ups in Saudi Arabia for USD292m, above our NAV of USD261m and current implied valuation of USD188m. The premium achieved equals USD0.5 and USD1.6/share, respectively. In addition, it introduced 2022e EBITDA guidance of USD265m–300m, above our like-for-like forecast (excluding the four rigs to be sold) of cUSD180m. Hence, the mid-point is c57% above our forecast, and approximately similarly above adjusted Bloomberg consensus. We believe the sale could accelerate the return of cash to shareholders, starting in 2022e. Based on the asset sale and updated guidance, we see 2022e EV/EBITDA of c5.0x.
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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