Ocean Yield (Hold, TP: NOK58.00) - Awaiting de-risking from FPSO
We have cut our EBITDA for 2019e by 13%, as we are somewhat cautious on the re-employment of Dhirubhai-1 (D1). Current distribution levels look sustainable given our D1 assumption, but we do not rule out a dividend cut. Hence, an announcement on D1 would de-risk the investment case considerably. We reiterate our HOLD, while we have cut our target price to NOK58 (73), based on 9x our 2020e EPS of USD0.74.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.
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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