Report
Mats Bye
EUR 420.51 For Business Accounts Only

Ocean Yield (Buy, TP: NOK55.00) - Ample capacity for new deals

We reiterate our BUY, but have lowered our target price to NOK55 (60), now based on 10% (previously 9% assumed) our 2020e DPS of USD0.6. We consider a higher yield prudent, given it is time-consuming to fix employment on the FPSO, while earnings for the Connector are uncertain and the fate of the AHTS is still subject to the Solstad reorganisation. We forecast cUSD120m in cash by year-end 2020e and a 28% equity ratio, which in our view leaves ample capacity to pursue new transactions.
Underlying
Ocean Yield ASA

Ocean Yield provides investments in vessels within oil-service and industrial shipping industry. Co. is a ship-owning company with investments in vessels on long-term charters.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Mats Bye

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